Comments on: True Sources of Financial Crisis http://www.visioncredit.org/true-sources-of-financial-crisis/ Your Nonprofit Credit Counseling Organization Mon, 06 Feb 2012 15:50:02 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: NINJA Loans to Blame for Financial Crisis | Vision Credit Education, Inc. http://www.visioncredit.org/true-sources-of-financial-crisis/comment-page-1/#comment-2374 NINJA Loans to Blame for Financial Crisis | Vision Credit Education, Inc. Wed, 18 Mar 2009 13:45:59 +0000 http://www.visioncredit.org/?p=727#comment-2374 [...] True Sources of Financial Crisis [...] [...] True Sources of Financial Crisis [...]

]]> By: Charlotte Gore http://www.visioncredit.org/true-sources-of-financial-crisis/comment-page-1/#comment-740 Charlotte Gore Fri, 10 Oct 2008 18:59:55 +0000 http://www.visioncredit.org/?p=727#comment-740 I agree with most of what you've written here, but the point that's been missed is that the securitization model created for Freddie Mac is what allowed these predatory mortgages to be sold, with the risk then passed on and the initial broker able to wash their hands. Traditionally lenders would have been left with the risk, and in that sort of business they would not have made such reckless loans. The fact that house supply in the US eventually outstripped supply is what stopped this model working. If house prices had continued to rise we wouldn't even be talking about this. I agree with most of what you’ve written here, but the point that’s been missed is that the securitization model created for Freddie Mac is what allowed these predatory mortgages to be sold, with the risk then passed on and the initial broker able to wash their hands.

Traditionally lenders would have been left with the risk, and in that sort of business they would not have made such reckless loans.

The fact that house supply in the US eventually outstripped supply is what stopped this model working. If house prices had continued to rise we wouldn’t even be talking about this.

]]> By: Pointing Fingers At Poor And Dems | E Pluribus Unum http://www.visioncredit.org/true-sources-of-financial-crisis/comment-page-1/#comment-739 Pointing Fingers At Poor And Dems | E Pluribus Unum Fri, 10 Oct 2008 16:38:09 +0000 http://www.visioncredit.org/?p=727#comment-739 [...] But simple is as simple does. To blame these CRA [Community Reinvestment Act] policies is a simple answer to a complex problem. Additionally, it fails to address the real problems that caused the current meltdown of our financial sector. [...] [...] But simple is as simple does. To blame these CRA [Community Reinvestment Act] policies is a simple answer to a complex problem. Additionally, it fails to address the real problems that caused the current meltdown of our financial sector. [...]

]]> By: American Street » Blog Archive » Pointing Fingers At Poor And Dems http://www.visioncredit.org/true-sources-of-financial-crisis/comment-page-1/#comment-738 American Street » Blog Archive » Pointing Fingers At Poor And Dems Fri, 10 Oct 2008 16:37:10 +0000 http://www.visioncredit.org/?p=727#comment-738 [...] But simple is as simple does. To blame these CRA [Community Reinvestment Act] policies is a simple answer to a complex problem. Additionally, it fails to address the real problems that caused the current meltdown of our financial sector. [...] [...] But simple is as simple does. To blame these CRA [Community Reinvestment Act] policies is a simple answer to a complex problem. Additionally, it fails to address the real problems that caused the current meltdown of our financial sector. [...]

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