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luckis11
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"Banks lost, borrowers lost", then who won?
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luckis11 said:"Banks lost, borrowers lost", then who won?
The only winners were the people who made their profits and ran (house flippers, realtors, etc)
luckis11 said:I guess the borrowers neither won or lost because it was like paying a rent for as long as they could pay it? Am I correct so far?
turbo said:The CEOs and other high-ranking officials at the banks (even failed ones) raked in huge bonuses, especially when they were able to foist off "triple A securities" backed by garbage onto investors. If you only want to count financial gain as "winning", just follow the money to the dishonest and the unethical.
luckis11 said:I guess the borrowers neither won or lost because it was like paying a rent for as long as they could pay it? Am I correct so far?
WhoWee said:I know of situations where people signed a loan with nothing down, never made a payment and squatted until they were forced to leave - applied for utility assistance and food stamps as well.
I also know of situations where borrowers lied about their incomes to buy a larger house, very little down, struggled to make payments for a few years (couldn't afford furniture - lived only a few rooms) then experienced a loss of income and lost the house and their credit.
Pengwuino said:Lying about income was a huge problem over here in California. Some brokers/loan officers were also setting up loans where people paid 50% of their income into their mortgage and borrowers didn't care.
turbo said:There was lots of very shady stuff going on to let people "qualify" for loans.
The housing bubble was caused by a combination of factors, including loose lending practices, low interest rates, and speculation by investors.
The government did play a role in the housing bubble through policies such as the Community Reinvestment Act, which encouraged banks to make riskier loans in low-income areas.
The housing bubble had a significant impact on the economy, leading to the financial crisis of 2008. The collapse of the housing market caused a ripple effect that affected many industries and led to a recession.
Banks, mortgage lenders, and investors who took advantage of the housing bubble to make risky loans and investments were the main profiteers. However, many individuals also profited from the inflated housing prices by selling their homes for a higher price than they originally paid.
The housing bubble had a devastating impact on homeowners who were unable to keep up with their mortgage payments, leading to millions of foreclosures. Additionally, the collapse of the housing market also resulted in job losses and financial struggles for many individuals and families.