Do you think the Clintons should take part of the blame for the failure of mortgage companies?
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I distinctly remember questionable loans from mortgage companies becoming popular during the Clinton administration, and was mad that people were allowed to buy houses that are obviously not qualified to get loans and over inflating housing prices, so responsible people can't afford them. Now Hillary is attacking Bush for his lack of response to sub-prime mortgages. I am not claiming Bush is blameless, but asking for opinion on Clintons part on the fall out of mortgage companies going bankrupt.
Do you think the Clintons should take part of the blame for the failure of mortgage companies?Is it a function of the US Government to tell private Mortgage Companies, who they are allowed to loan money to ?
I don't believe so.
Can you imagine the outcry if a Politican said a mortgage company should not loan money to poor people to buy a house ?
And to some of the previos answerers, the bankruptcy rate now, does not deal with the economy, it's based on the type of loans that were granted.
IE: you borrow money at very low interest rates for the first 3 to 5 years, giving you very low payments.
Then the interest rates normalize and your payments go way up.
The problem is the people borrowing the money, shouldn't have qualified for the loans in the first place, the mortgage companies knew most of the borrowers would never be able to afford the loans after the interest rates normalized.
Those types of loans were initialed introduced for college graduates. That way they could buy a house sooner and as thier earning power increased, the interest rates normalized, but their higher income could maintain the payments.
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