Quote:
Originally Posted by lushchocolateswirl
People can blame the big banks all they wish, but when it comes down to it, it was their individual choice.
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Maybe the problem is in "what is it?" Yes, a homeowner who applied for an ARM with interest rates he could not afford is 100% responsible for his fiasco. But that is a trivial problem. We have a recession resulting in inflation, job losses, or stagflation that will adversely affect every one. The homeowner did not create that. Financial mismanagement did.
Whereas one home loan default is directly traceable to one party of that contract; the bigger economic problem is directly traceable to the other party to that (and other) contract.
You can only blame the homeowner for his mortgage default. The major economic crisis - a more significant problem - is directly traceable to the finance industry that is even still doing fraudulent (Enron style) accounting and 'creative financing'.
Appreciate that there is no 'blame' relationship between foolish homeowners and the others who invented / offered this 'creative financing'. Each is 100% guilty for their side of each contract. Blaming the mortgage applicant does not exonerate anyone else.