Big Government Responsible for Housing Bubble

[Frenchy]

Originally Posted by east_stingray

I guess I'm one of few people left in the world who blames this mess entirely on borrowers. I don't care how much money someone is trying to give you; don't take more than you can pay back.

Trying to blame the banks and the Fed is just a bunch of finger-pointing. They were stupid and I don't really feel sorry for them, but they weren't the end-cause of this mess. Irresponsible Americans were.

If I could make the anology...It's like blaming the drug problem in this country on the users, and not the suppliers.
It is a shared responsibility, IMO.

[AZXD40]

Originally Posted by east_stingray

I guess I'm one of few people left in the world who blames this mess entirely on borrowers. I don't care how much money someone is trying to give you; don't take more than you can pay back.

Trying to blame the banks and the Fed is just a bunch of finger-pointing. They were stupid and I don't really feel sorry for them, but they weren't the end-cause of this mess. Irresponsible Americans were.

+1

Seems taking responsibility for ones actions isn't the "In" thing to do..

[jmichna]

Originally Posted by XDConvert9mm

JM, if you're referring to my post then let me make you aware that I am not advocating more government control of, well....anything....
My most honest opinion is that it is difficult to paint the entire situation with one broad brush. There are too many variables in individual cases and circumstances to do that.

No, my comment was not specific to any of your posts. It was more my general observation. And I agree totally with your end statement - the situation is too broad to be painted with one brush, and there are too many variables in circumstances.

Lenders that opted to take on more risky loans in an effort to gain more profit should not be bailed out by the Federal government. Period. It is bad business to assume more risk than you can handle. If you run your business badly, you deserve the consequences. Uncle Sam should not be in the business of bailing out poor business decisions... it only encourages bad business decisions since the consequences of bad decisions disappears.

Same can be said for borrowers... they made bad decisions. They decided to take a mortgage at low introductory rates - for whatever their reasoning - and did not think beyond immediate gratification... whether living in a home they truly could not afford, or (anticipating the home as a short term investment vehicle) anticipating "flipping" the home after a couple years to gain profit.

Reminds me of a story:
A wealthy, old man - considered a business genius and great success by all in his field - was about to retire. He was approached by a young up-and-coming executive, who asked the old gentlemen to share his vast knowledge for success.

The young fellow asked the old man "What is your secret to success?" The old man held up two fingers, and said two words: "Good decisions."

The young exec, pondering these words, asked the old man "How do you know to make good decisions?" The old exec responded, holding up a single finger, with one word: "Experience."

Now, thinking he was getting the run-around, the young turk asked the old man "How do you get Experience?" The senior exec held up two fingers, and said "Bad decisions." then walked away.

[east_stingray]

Originally Posted by Frenchy

If I could make the anology...It's like blaming the drug problem in this country on the users, and not the suppliers.
It is a shared responsibility, IMO.

Using and supplying drugs are both illegal activities. Lending money is not. Lending money is a legitimate business, and a lot of banks around here who did it irresponsibly are going out of business. That's the free market. I've watched 5 local banks go under in the past month, and they're responsible for their own mess.

When borrowers borrow more than they can pay back, that's THEIR fault, and it should be THEIR mess to clean up, not mine.

[XDConvert9mm]

Originally Posted by east_stingray

Using and supplying drugs are both illegal activities. Lending money is not. Lending money is a legitimate business, and a lot of banks around here who did it irresponsibly are going out of business. That's the free market. I've watched 5 local banks go under in the past month, and they're responsible for their own mess.

When borrowers borrow more than they can pay back, that's THEIR fault, and it should be THEIR mess to clean up, not mine.

OK, then how about we substitue Bartender for Supplier. Does that analogy make more sense to you? After all, it's legal. As I said above, I think applying one blanket statement like you have to the whole situation like you have is incredibly myopic. Sorry you're stuck with the mess but you do have company, so take heart.

[east_stingray]

It's just that I'm more libertarian and focused on individual responsibility than a life involving other humans is ever likely to be. I halfway wish my parents had raised me a raving liberal with my hand out so that I could blissfully coast through times like this (with my hand out) without getting my panties all in a bunch.

[AZXD40]

you are not alone East...