Comments on: Fed Chairman Ben Bernanke to Abandon Lenders and Investors

By: Peter B.

Peter B. — Sun, 16 Sep 2007 19:29:43 +0000

Dave: have to agree! Especially about the “first-time” home-buyers! American dream? yeah!:-)

By: WebKnowledge.info - Webmaster Resources » Blog Archive » Fed Chairman Ben Bernanke to Abandon Lenders and Investors

Sat, 15 Sep 2007 06:09:50 +0000

[...] Allan Wall wrote an interesting post today onHere’s a quick excerpt [...]

By: Jason Fox

Jason Fox — Fri, 14 Sep 2007 09:09:37 +0000

This SH!T SICKENS ME. The central banks have all the power and we have nothing. Sad times.

By: Dave

Dave — Wed, 12 Sep 2007 15:01:05 +0000

It is true that the government participated in what is now a mortgage loan debacle. For example, the state of VA offers 10 year interest only loans to first time home buyers as one financing option and the state has the first right of refusal should the homeowner decide to sell the home…hence the term and inventory, in some cases, for state-owned homes.

First-time homebuyer classes are a joke and do not discuss the advantages and disadvantages of the various mortgage types. I have taken several to see what was actually discussed. They are dog and pony shows designed to accomodate the large number of attendees and to amuse them and massage their audience’s fervent desire to pursue the American Dream…nothing more.

None of this is to say that the first-time buyer is right for picking the high-risk mortgage or for not making good on the debt. It is however, clear evidence of the complicity of the state in promoting and profiting from what are to the states risky investment instruments.

By: The Feed Bag - Refried and Served Again

The Feed Bag - Refried and Served Again — Sun, 09 Sep 2007 19:53:04 +0000

[...] Joshua Dorkin at Bigger Pockets covers Fed Chairman Ben Bernanke to Abandon Lenders and Investors [...]

By: Jeff Brown

Jeff Brown — Fri, 07 Sep 2007 07:10:29 +0000

Your final comment re: Bernanke’s power, is of course true.

I think, perish the thought, he believes folks should
be responsible for their own actions.

The ‘poor’ folks you mention, are, at least percentage wise, a small number. I empathize with them. They’ll go back to being renters, as that’s what they should have remained in the first place. I think you and I can agree on that.

Since they bought with no money down, and probably had their closing costs paid, they’ve got nothing to lose.

Bernanke believes what our grandparents taught us. That we should keep our noses clean, work hard, and try not to be so damn dumb that you can’t see something’s too good to be true.

Once and for all we all, Bernanke is gonna send folks who’ve brazenly violated not only economic physics, but plain common sense – to stand in the corner for a well deserved timeout.

Seriously Joshua, at what point to you draw the line? At what point do you tell the fat lady to stop whining and stop eating 7,000 calories a day? At what point do you finally say, “You made the decision, you reap the consequences – good, bad, or ugly?”

By: Joshua Dorkin

Joshua Dorkin — Fri, 07 Sep 2007 05:14:27 +0000

I’ll agree with you partially. Unfortunately, many people were lured in by the allure of great deals, low rates, rising prices, etc. and the government encouraged loose lending practices to enable this. Once things started to catch up with people, the government came in and put the blame on the lenders.

Businesses will do anything to make a buck. Government regulation exists to protect the people from these businesses and their practices. Why wouldn’t a poor person get a no-doc loan to buy a house if it is being offered to them? The problem is that unfortunately, many people are uneducated and the regulators never stepped in to protect them from the businesses out making a buck. If the rules for lenders were more strict in the first place, we wouldn’t be in this situation.

As for the government . . . they caused this problem. They need to fix it.

Bernanke isn’t to blame directly, but he is someone with the power to do something about it all.