element187 Wrote:
Jun 17, 2012 1:25 PM
No, it was the federal government that FORCED banks to give loans to people who didn't qualify (in fact, Obama was a lawyer for ACORN at this time, which ACORN was a big player in intimidating banks to give loans to people who didn't qualify for a traditional loa ) Since banks cannot take the risk of giving a traditional loan to people with terrible credit, they were forced to create a new product that offloads that risk, called the sub prime mortgage.... If government didn't force banks to give loans to these unqualified people, the collapse in the mortgage market would never happened... What did you think would happen if you gave millions of home mortgages to people with no ability to pay for it? Government caused the collapse.