These idiots never learn

**Wild Cobra** · 05-12-2011

While i agree, people were rooked into bad loans. One lingering question i always have is where in the is the personal responsibility here? They didnt have to take the bad loan, it was pretty easy to take a moment while you are financing one of the biggest purchases you will ever make, to see exactly how it all works, and what the future may hold.

I completely agree here.

The industry has done some things I think are pretty bad, but they wouldn't get away with it if people had more responsibility. We are suppose to be a free nation. People are free to up. Not my problem.

**Wild Cobra** · 05-12-2011

Originally Posted by ElNono

I'm not going to excuse borrowers that didn't do their homework, but lenders know a lot better than that. People borrowing more than they can pay back, defaulting on their debt and getting their property foreclosed isn't a new occurrence. It's part of the system and has happened since credit has been offered. It has happened to all kind of people. It hasn't brought down the financial system.

Lenders have no excuses because they have a fairly large set of data to make a fairly decent determination of what the loan should be and to make decisions based on that data. When I had no credit history at all, my first line of credit was $250.

There's no way that lenders didn't know what they were issuing, and the fact that they couldn't stop issuing these junk loans fast enough just shows you how systemic the scam was.

That's right. Lenders should have known better and we should have never ailed them out.

**Wild Cobra** · 05-12-2011

Originally Posted by ElNono

My point is: if lenders weren't actually running a scam, they would actually care about the type of loans they were issuing, including credit histories, etc.

Obviously, the fact that they could turns those ty loans in a cash cow is what killed the way the system is supposed to work.

Yes, and who set up those regulatory rules and laws that allowed this to happen?

You will always have someone who operates "lawful evil." Laws and regulations should include a "scope' and "purpose" that disallows using unintended loopholes of the text.

**Stringer_Bell** · 05-12-2011

Originally Posted by Wild Cobra

You will always have someone who operates "lawful evil." Laws and regulations should include a "scope' and "purpose" that disallows using unintended loopholes of the text.

Yep...we definately need more regulation on white bankers!

Keep up the good work, I'm reading all of this and taking notes.

**ChumpDumper** · 05-12-2011

lol unintended

**ElNono** · 05-12-2011

Originally Posted by Wild Cobra

Yes, and who set up those regulatory rules and laws that allowed this to happen?

You mean the regulatory rules that weren't extensive enough to prevent that kind of scam... I'm pretty sure neither the poor or minorities set those up.

Originally Posted by Wild Cobra

You will always have someone who operates "lawful evil." Laws and regulations should include a "scope' and "purpose" that disallows using unintended loopholes of the text.

This is far from a 'bad apple'. This was systemic, and the reason the whole sector was collapsing. Every financial agency was doing this. It's obvious that if you don't impose certain limits through regulation, these en ies are completely unwilling to regulate themselves, even if it means the entire economic collapse of the nation.

**DMX7** · 05-12-2011

You can thank Gramm–Leach–Bliley Act for allowing commercial banks to become i-banking card houses in the first place.

**ElNono** · 05-12-2011

Originally Posted by DMX7

You can thank Gramm–Leach–Bliley Act for allowing commercial banks to become i-banking card houses in the first place.

Add Greenspan for supporting it, and Clinton for signing it into law...

**Nbadan** · 05-12-2011

I'm sure Soul Patch's idiocy in this thread...

not sure why conversations ever have to go there at all....anyway....buying a new big house was the trendy thing to do back then, even when people in this forum were saying that this was a bubble which will not reach a happy end for a lot of people...just as we are saying about commodities today....there was a lot of bad personal decision making by individuals, but there was also a giant ponzi scheme of bad debt by security brokers, and less we forget, a complete lack of govt oversight going on...

**Soul_Patch** · 05-13-2011

Originally Posted by Wild Cobra

I completely agree here.

The industry has done some things I think are pretty bad, but they wouldn't get away with it if people had more responsibility. We are suppose to be a free nation. People are free to up. Not my problem.

It becomes everyone's problem when said up, snowballs into a collapse of the entire nations economy.

This would be a good argument that unabashed capitalism cannot work. There has to be regulation involved to curtail the greed. Thats just the world we live in.