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View Diary: Our Economy: MASSIVE FRAUD By Mortgage Industry. (269 comments)

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  •  I don't know what the breakdown is (2+ / 0-)
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    Inverted, get the red out

    But clearly some home purchasers were part of the problem, some by being greedy (e.g. get rich quick flippers), some by being stupid (e.g. people who didn't understand the concept of a balloon loan or what affordability really means), and some by being dishonest (e.g. those who lied about their incomes).

    But even given all this, it's indisputible that the overwhelming impetus for all this came from dishonest bankers, regulators and politicians. If you're a heroin dealer who gives out free or cheap junk to get people hooked, you're still a heroin dealer who took huge advantage of irrespondible, weak and foolish people and deserve to do time.

    He who tills his land shall have plenty of bread, but he who chases fantasies is void of understanding. (Proverbs 12:11)

    by kovie on Wed Feb 25, 2009 at 08:57:28 PM PST

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    •  It is highly disputable (0+ / 0-)

      Owning a big house is not an addiction.  Your analogy suggests that you have a distorted view of responsibility and obligation.  

      •  Wanting to own a house (0+ / 0-)

        than you can't afford and won't be able to pay for, or flipping houses in a real estate bubble to make a quick buck, is absolutely an addiction. There is absolutely no doubt that there were people who did this, even if they're not the real cause of the bubble or meltdown. You need to get out of either/or binary thinking.

        What is responsible about buying more than you can afford? WAY more? Or flipping?

        He who tills his land shall have plenty of bread, but he who chases fantasies is void of understanding. (Proverbs 12:11)

        by kovie on Thu Feb 26, 2009 at 03:44:08 PM PST

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    •  FBI: 80:20% Lenders:Borrowers (0+ / 0-)

      According to the FBI, 80% of the frauds were lenders. 20% of the frauds were borrowers.

      "When the going gets weird, the weird turn pro." - HST

      by DocGonzo on Thu Feb 26, 2009 at 10:24:47 AM PST

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      •  I'm lumping frauds, fools and the greedy (0+ / 0-)

        into one overall group of home purchasers who, whether they were doing so knowingly or not, were part of the problem, and that's a number that I don't have. But even if it's bigger than 20%, it's still clear that the overwhelming impetus for this con came from crooked bankers, traders, regulators and politicians.

        Plus, considering that most of the former are now paying for their poor behavior, in many cases dearly, I'm even less inclined to blame them. But the latter are not really paying for it yet, and need to be made to, both legally and financially.

        He who tills his land shall have plenty of bread, but he who chases fantasies is void of understanding. (Proverbs 12:11)

        by kovie on Thu Feb 26, 2009 at 04:29:05 PM PST

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