Is the housing crisis the fault of the people?

Okay, I don%26#039;t know much, but from what Ive gathered the housing crisis is beacuse people got adjustable rate mortgages and the banks spiked the prices up and no one can pay.

It has to be more complex then that, Now I HATE the banks, more then the next guy infact, I%26#039;m close to just using the sac under the bed to keep my money.

But has the Idiocracy really gotten that bad in this country to think thats a good idea.

The first time I heard about this I thought %26quot;Oh my god, that is such a scam who would fall for that%26#039;

please tell me its more complicated then that, my heart goes out to the families who have fallen on hard times beacuse of those deceitful bastards, But I would have never fallen for something like that.

Is the housing crisis the fault of the people?debt consolidation loan

Yes. The %26quot;people%26quot; from the bank.

Is the housing crisis the fault of the people? loan

You only have a small part of the picture. It is not entirely the banks fault. Yes, they did get greedy and signed many loans without thoroughly reviewing each applicant however, the american consumer is to blame also. Most of the loans defaulting are %26#039;subprime%26#039;. meaning, the people who got the loans had bad credit. That is totally the persons fault!! they have bad credit because they were irresponsible when it came to budgeting, spending etc. It doesnt matter if you make 30k a year or 300k a year, there is no reason to have horrible credit. In addition, the american lifestyle tells people to buy big. Everyone wants a bigger, better house and i know alot of people who lied and stated their income was higher than it really was. Therefore, it just as much the individuals fault than it is the banks fault|||The Bank is not some soul-less entity. It is made up of people. People offered a bad idea and other people took it. Not too hard to figure out.|||There is plenty of blame to go around. At a macro level there was a lot of liquidity in the credit markets, ie lots of cash.

When there is excess liquidity there tends to be speculative bubbles, look up the Dutch Tulip mania. Housing prices were going up too much in some areas like Las Vegas, FL, and CA.

So credit standards get loose and higher risk loans are made. Credit risk and asset risk, ie lending 190,000 on a property the lender knows is worth only 170,000, lending to speculators and investors, interest only loans, no down payments, etc.

Adjustable rates, especially the teaser rates loans have caused some of the problems.

Look at the Cleveland Plain dealer, they had an article where a guy makes 75k per year and is defaulting on 1300 a month payment. He claimed it was the increased payment, but it turns out he buys $1500 of lottery tickets per month. So there you go. Sometimes it is a free spending consumer who can not manage their money or took out home equity loans to pay for cars, vacations, motorcycles, credit card, etc.

The broker system has caused problems, and a lot of banks no longer use brokers. Some brokers pushed high fee, high rate loans on unsophisticated consumers, who were mislead or in some cases just plain cheated.

a%26gt;|||Check out the %26quot;Money as Debt%26quot; videos on youtube, they give you a realistic view of what our money system is really like. You%26#039;ll REALLY hate banks after watching it, but it%26#039;s very informative.