The Mortgage Loan Crisis: Who Should Take The Blame
There has never been more confusion about mortgages than at this particular time in history. The global economic system has been collapsed by people who were confused about mortgages and didn't know it. Whose fault was it? It was the fault of the sub-prime home buyer. It was the fault of the sub-prime mortgage broker. It was the fault of lazy financial advisors who put their client's money in asset backed paper that turned out to be worth whatever recycled paper goes for and no more. But the Federal Reserve Bank should carry most of the blame. Lenen doorlopend krediet explains how the Dutch solve this.
The Federal Reserve is the party most responsible for destroying the global economy. This private corporation, charged by Congress with managing our money supply, cannot be trusted. Did you see Jon Stewart hammer Jim Cramer, the host of CNBC's Mad Money, on who did this? Well, the answer is, the Federal Reserve Bank did it. And they should pay. Congress must rescind the Bank's charter and replace it with a central bank controlled by the Treasury Department.
Mortgage brokers concocted obtuse mortgage contracts and then began shilling subprime loans to unqualified buyers. They dit it in a way that would make the most hardened magazine subscription telephone sales person squirm.
When the FRB raised the ratio it flooded the market with more money, which went out in loans to unqualified buyers which were then bundled as the infamous 'asset backed paper.'. An other word for a so called toxic asses is a liability. And that's what the governement is buying. Your tax money is being used to the American government.
And lastly are the people who bought homes they couldn't afford, and then started whining that they didn't know they had an adjustable rate mortgage. I know that's harsh, but it is the truth. These people should never have been allowed to purchase a home, and they certainly shouldn't be rescued from foreclosure.