A time capsule of the greatest financial mania in the history of mankind, told in real-time by regular folks and patriots. May future generations better understand the madness of crowds, and how power and money corrupt.
If you could blame one person or institution for the housing bubble and crash, who/what would he/it be and why?
point the finger
Greed. Pure and simple. If you were to analyze all the characters in this unprecedented financial fiasco, the one common element present in participants was human greed. Starting off with the greedy homeowners who believed their homes had to appreciate 20% every year! The greedy real estate agents who wanted and still want the 6% for doing practically nothing. The greedy appraisers who were on the take for inflating property values. The greedy mortgage brokers who cooked the books. Lets not forget my favorite of favorites, the greedy flippers who prostituted the sanctity of home ownership for the quick profit. The list goes on and on. And now, all these "players" still want you and Joe taxpayer to "bail" them out. It truly is disgusting when you think about human nature (greed). But thats food for another conversation. Sincerely,Guy laughing at the Flippers
I blame low down ,stated income loans ,that set the stage for massive liar loan fraud by realtors,loan agents, and borrowers .The appraisers didn't object enough to the pressure they were under to give hit the mark appraisals .
Greenspan no question1%? What a joke
This is surely most stupid Stupid question of the day?Greenspan.
Each financially irresponsible American is to blame.
This Debacle lies Squarely on Greenspan's shoulders. He was either extremely Naive or So Full of himself that he thought he could change mother nature and instead he only unwittingly magnified the outcome by delaying the completion of a normal human economic cycle. He should be judged harshly by history and rightfully so, right along with his other foolhearty cohorts.
People who don't have any sense. Like say people who support more regulation of lending in one breath and people who support Ron Paul in the next
Greenscam, and his only desire to have a "legacy",without a doubt!
Blame the people who signed their names to exotic loans so they could purchase shit boxes they otherwise could not afford. Without these greedy home buyers, the bubble could never have happened. I have no sympathy for them or anyone else who bought homes at these ridiculous prices. I hope they are all choking on their granite top, stainless steel mortgages.This is no different then the Joey-Bag-O'-Donuts purchasing stocks in the late 90s without a clue of what they were spending their money on.
Bill Buckner. Had the Red Sox won that year everything would have turned out differently.For those of you blaming Greenspan, what would the alternative have been? Severe recession maybe even depression in 2002. Given the choice of that or a housing bubble I choose option 2.Or do you people not remember what happened in Sept 2001?
I blame the coach for leaving Buckner in when he could barely walk; And for not pulling Pedro 17 years later.......Arrrhhhh!!
Greenspan was the enabler.
Bill Buckner :)
98% of the blame belongs to the Buyers....All I have to do is buy a home--sell it--and I'll be rich!!!!!! Just like my hero Mr. Trump.Don't worry that the mortgage will adjust...Don't worry that you don't have any money...Tom down the street made 150K selling his house...Imagine if we owned 6 of them!!
#1: Wall St. They managed to create paper CDOs which now they themselves value at less than 30% of what they started out at. That's a 70% haircut & some mighty poor investments.
Aw Keith, you gotta forgive Buckner. Especially if you are a Met fan like I am. I blame Bush-ner for the incompetence of his appointees and the build an economy at any cost even if it is a house of cards. Banking and lending standards were relaxed too much during the last 6 years and that was part of the oversight responsibilities.Greenspan is a convenient scapegoat but during Clinton the bubble he was asked to orchestrate was not nearly as systemic and hollow as this one is. And I believe he was pressured to keep rate so low the numbers did not bear out the low rate for so long.
Bush enabled all this to happen. His 'supply side' easy lending voodoo without a regulator to be seen anywhere mantra gave greenie the green light, no pun intended; to open the floodgates thereby 'doping' the masses with oodles of unchecked credit, all the while, obtaining enough political capital from the doped down masses to engage in his operation nation building of choice.The doped down masses with their heads up their asses will come to learn that all that easy supply side credit comes with consequences just like what happened in 1929. As history does repeat given the same formula. Mission accomplished.
Alan Greenspan, without a doubt
The Fed.......as in we're so F'ed!!
The red sox got their world championship. Get over it already. You northeast tards always believe the world revolves around your cities and sports teams.Oh, and the Fed is to blame for this mess. Leaving interest rates too low for too long and running the money printing presses 24 hours a day / 7 days a week.
I blame Greed and now Greed wants a government bail out
Greenspan is the culprit. The low fed funds rate would not have been so bad without all the insane mortgage products that became commonplace in our new economy. Greenspan just sat by as all this insanity took placeThe "fun part" of this will be the Greenspan effect on the 2008 Presidential election. As the economy deteriorates the candidates will have to one by one turn on Mr. Greenspan.The "fun part" will be to see who turns first. My guess is Hilary can't turn because of her husband's ties with Mr. Greenspan.Hopefully Rudy is following all of this.
You folks are forgetting something very important.The Dot-Com.ers, and those who invested in the Dot-Com craze. If not for these fools there would have been no stock market crash and Greenspan would have never had cut rates to 1% to help out his cronies in the first place.Kieth,Let me know if I am wrong!
nice photoFUcking buckner.
The centralized education system of the US.
I agree with Mike at 7:59
The buyers who did not look at historical rates of appreciation and/or those that looked at them, and bought nonetheless.
I blame realtors. And the wine, the cheese and the pink Hummer SUVs.
The Boomers.There have always been asset bubbles, but only a Boomer would be gullible enough to believe that a 1300 sq ft tract home in the California desert is actually worth $650,000.
It's a no-brainer - The GOP,G.W. Bush, and Alan Greenspan.
Anon said:For those of you blaming Greenspan, what would the alternative have been? Severe recession maybe even depression in 2002. Given the choice of that or a housing bubble I choose option 2.Or do you people not remember what happened in Sept 2001? ----------------------------------Bubbles are always credit induced and recessions are necessary, healthy, but painful, corrections to the overextension of credit. What the FED did was give another dose of financial Meth to an economy that was ready to crash after its 1990s dose. The crash is going to be even worse now. Of course the FED can just juice up the economy one more time or until it ODs. Ooops. Already there. Depression.
The partnership between our Federal Government and the "Federal" Reserve Bank. They collude to inflate our currency satisfying the bloated governments constant need to take more of our money without having to show this obviously by raising taxes. In return the blood sucking "Federal" Reserve private corporation receives interest income right from the get go. WE pay them with the unconstitutional income tax to print our money. HAHAHA they have the sweetest scam in history... we are such sheep.
The MSM bear a large share of the blame here. Protestations to the contrary notwithstanding, the media here are not neutral reporters of fact but active players in the system by virtue of their dependence on RE advertising revenue, and gave (and still do in large part) carte blanche to the NAR and Realtors™ to lie, lie, lie to people under the cover of "journalism". Yes, people are stupid, but consider that people in the U.S. still basically trust the press. (E.g., they do not assume that reporters will lie about the facts, despite this being shown to be the case over and over - witness, e.g., the repeated and deliberate Reuters reporting of scenes carefully staged by Hezbollah as if they were real.) When the public reads "real estate never goes down", "buy now or be priced out forever", etc., coming from reporters on the market without any critical questioning or analysis, they wrongfully assume that the reporter can be trusted to perform or report any such analysis, and this trust has been the people's undoing.
"For those of you blaming Greenspan, what would the alternative have been? Severe recession maybe even depression in 2002. "Well a severe recession is needed after a huge bubble is blown up like that. Only then can the economy recover properly and in a HEALTHY, ORGANIC manner. I think what we are going to suffer through now will be much worse than what would have happened had the Fed not dropped rates to the floor to engineer their precious "soft landing". If the Dow would have dropped to around 5500, we would have had reversion to something near a historical mean. Instead, we never had a proper reversion to the mean, because the meddling bureaucrats opened the monetary floodgates. Now, instead of a localized tech/equity bubble, we have a global debt bubble of epic proportions. Take this from someone who works in the software industry and suffered the most from the recession - we needed it and we needed more bloodletting to have a proper shakeout. It didnt happen. Now we're ALL going to pay dearly.
Didn`t Alan Greenspan used to be a goldbug at one time? I wonder who or what swayed him to the dark side? Hmmmm, could it be the global corporate elites? I just dig this crazy fiat money system! Isn`t your house tanking while lifes little necessaries go through the roof great?
speaking of Ron Paul how did his numbers line up? Looks like all you fools who sent him money might as well have wiped your asses with the $100 bills.
Poor Billy Buc
I am too busy to write today so my nuetered and retarded pet parrot named Chicken will speak on the subject (that should quaify him/it). "broooock, Bush did it, brooock".
The Fed. I can't believe we let them do it to us again. Abolish the Federal Reserve.
How can I be to blame when I was just doing the bidding of my Fed member bank bosses? I never did anything without the bankers' directives. When I advised obtaining short-term adjustable-rate mortgages, I was just following orders. It's not fair that I should be blamed for this mess. Subprime, alt-A, or whatever. How was I supposed to keep up with all of those "innovations"? Oh well, when the stock and real estate markets crash again, we'll just print trillions of dollars more fiat credit-money and blow more bubbles! 0% Fed funds rate? Oh, yeah, that's the ticket! After all, what good are bankers if they can't leverage deposits (or leverage leverage of leverage) and lend at interest? That's all we know how to do. We just keep lending until the system crashes. What's the big deal? Now, excuse me while I go back to my bathtub to soak.
Greenpan = Wall St.They act with one mind - it is that one, arrogant, 'I am more powerful than the system' mind that is to blame.
It's all Billy Buckner's fault
Global warming. Mild temperatures are making housing obsolete.
Greenspan the enablerreal estate agents and brokerswho pushed the dopeand buyers who were so un educatedthat they didnt have a clue whatthey were getting into.all of the above except Greenspanmade their decisions based upon greed.jim c
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