Take it back to the beginning, guys. Where did the problems start? Congress,
in its great wisdom, decided that Freddy and Fannie should purchase loans
written for *affordable* housing. That translated into sub prime. The banks
never would have made loans that Fannie & Freddy would not purchase. So,
with those guarantees, the banks made loans that ought never have been
written.

Home ownership is a pillar of the American Dream. But it isn't for everyone.
Full disclosu I was, for many years, a Century 21 broker and also owned a
mortgage banking business. We originated, but did not directly loan. We
routinely turned down loans (that we could have written) because the reality
was that the potential borrowers would not be able to make the payments. I
earned a lot of enmity from some other RE brokers for that because sales
didn't go through, and I let many commissions go south, but it was the moral
thing to do. I could not, in good conscience, have someone invest hard
earned dollars in a loan that would come back to bite them in a matter of
months or a year, when the house they coveted would be foreclosed. I wish
more brokers and lenders had felt the same.

That is only part of the current problem, of course. But it is
representative of the laissez faire attitude that took hold. It would take
miles of broadband to talk it all out, and I don't pretend to understand all
of it. But it was only a matter of time.

Diana

"tbell" wrote in message
.com...
On Tue, 23 Sep 2008 08:16:44 -0700, Al Pickrel wrote
(in article ):

Why have we been paying taxes all these years if all we need to do is
print
more money when we need it?


...so that the predators in the credit industry have something to feast
on,
silly.

Tom
Walnut Creek, CA
Nikon D200