Why is everybody so mad at the banking investment community for economic problems?

Question

The suckers took out mortgages and failed to pay up like the contract stipulated. The brought it on themselves. Trust me.

Answer 1

Everyone needs a scape goat, and when you are a government hack who causes problems, the best thing to do it point a finger away from yourself.

Answer 2

knock it off, when did you idiots turn into car salesmen....?

people are stupid, and you took advantage of them,,...im in sales, i would love to act like some of those companies who jack up the price after the sale...

in america, its s***w or be screwed....i cant stand that way of life, it is going to haunt us for years.

thanks assholios

Answer 3

They have already admitted they loaned money for unsound mortgages.  They will pay for the mistakes by laying off a lot of people and increasing any fee they can.   The public is going to end up paying for their bad loans in several different ways.  And by the way, some of those "suckers" have lost their jobs to down-sizing or corporate flight to countries with cheap labor.  The foreclosures were the result of a lot of different societal reasons!

Answer 4

Because they're crooks and thieves, just like their cousins the lawyers !!!!

Answer 5

Government LIBERALS pressured banks and mortgage companies to give loans to people that had very poor credit ratings.   But, the media tries to hide that fact.

Answer 6

because they pretend to be knowing what they're doing and every single crisis proves them wrong ; with our money.

Answer 7

Ok, so the "suckers" deserve what they get for taking out outrageous mortgages that they couldn't afford to pay for in the situation that interest rates change.  I understand that.

But what about the USA tax payers who took out responsible mortgages, and are paying off their mortgages and are not defaulting.  The ones that didn't bite off more than they can chew, and made reasonable house purchases that they intend to honor their contracts.

They're getting the shaft because the US government has to "bail out" some of the investment community with tax payers money.   The investment community lent people money when they shouldn't have, now the investment community goes running to the government like a bawling baby asking for the government to help them by buying all this worthless crappy debt that they created.   Some (like Bear Stearns) needs the governments help so they don't go completely under, and instead the government supports it's buy-out financially.

At the same time this is happening the CEO's seem to still be getting some hefty pay-cheques and bonuses.

I think it's awful the way some of these banking/mortgage companies made terrible stupid lending decisions and then expect tax payers to help them out.

I guess I'm lucky I live in Canada, where this is mostly not an issue.  In most situations the banks look a lot hard at people who want mortgages here than the USA, and Canadian banks look for usually larger percentage down payments before they approve mortgages.   That stops some of the wide speculation.  It's much rarer in Canada to be able to get those type of 0 percent or very low downpayment mortgages that firms in the USA seem to have been offering

Answer 8

People are upset with the banking investment community for current economic problems because they believe that the 'suckers' were given loans by lenders that were beyond the 'suckers' ability to repay.

I think it's a question of responsibility...  Many of the people who received sub-prime mortgages were getting involved in their first real estate transaction. Because of this, they were not aware of the many hidden costs associated with home ownership.

Mortgage recipients are only involved in the process of getting mortgages 1-3 times in their lifetimes, whereas the mortgage brokers/lenders do it day in and day out; they are intimately familiar with the process and the hidden fees.  

I think people are upset with the banking community because they acted unethically in many of the cases.  We know the bankers are in it for the money, however, their quest for profit should have been mitigated by a concern for the best interest of their clients.

Answer 9

I know what your saying and I agree However last week I went to an open house this young guy and wife were wide eyed and wanted their 1st house The R E agent was talking their B/S My heart went out to him.He and his wife were holding hands their daughter was tell them what bedroom she wanted etc I said a little pray for them that night as they well need it