America...the Land of the Free..... to be stupid. However it is a catch 22 as we are also the land of the Free to be creative, entrepreurial and take a risk. So who should determine what is stupid and too risky ....such as the creation of the Wright Bros? Ultimately it is a delicate balance in allowing for failure while giving room to grow and thrive. In the US we don't really trust our government and it seems with very good reason.
yes, very well said indeed. However giving a 700k mortage to people who earn 300 a week is not allowing for failure but a guarantee for failure. One the other hand when I founded my business here in Germany and needed a credit my bank told me even if they think my business plan is great they can`t lend because of all these restrictions here so I see both sides believe me. Maybe a compromise would be needed. As you said, its a delicate balance.
not at all disagreeing with you top, only in very recent years could a borrower purchase a home with less than 10-20% down (in some cases 5%) and very strict Loan to Income ratios etc. Obviously the individual is to blame but as Greenspan put it we all thought the banks & mortgage Co's would be conservative and put their own well being and the shareholders trust 1st:eek: instead of becoming greedy and stupid.
in Germany they think about a law that the mortage lender has to keep a certain percentage of the loan and only can sell parts of it. I think its a good idea.
very well may end up being just that, after all, what else is left, and we have Presiden Cheney and VicePresident Bush-II to thank for the last 8 years of completely convoluted events and realities we are dealing with, whether we like that statement or not.....
his board is awesome www.ml-implode.com that was the real ground zero as what banks were falling....i was shocked how the insight was spot on at ml-implode etc