Originally Posted by
buzzpat
I actually believe that there's plenty of fault all the way around. Freddie and Fannie were/are corrupt, banks knowingly made loans to high risk clients, and the recession put many otherwise responsible homeowners out of work with no way to meet their mortgage obligations. Walking away from a commitment with the ability to still make payments is one thing, losing your job and income and having no way to pay yor mortgage is wholly different. I think we're seeing a combination of both.
Buzz (and Carl),
Don't forget the shenanigans on the part of Goldman Sachs, et al. regarding the bundling of sub-prime mortgages and passing off the bundles as being "Investment Grade".
In the case of GS they then made bets against the very investment products they sold and denied they had a Fiduciary Responsibility. Great integrity!
Note: Guess who was recently appointed to the board of Goldman Sachs?
You may have missed this, but none other than the infamous Michelle Burns.
For the FNWA folks... She was the genius who created the bankruptcy proof golden parachutes for Leo Mullin and company and made the decision to sell Delta's fuel hedges (which in part drove Delta into bankruptcy).