“Along those lines, one reader wrote, “I do believe EVERYONE in the Real Estate industry has played some part….big or small, in why we are here. The Realtor, the Lender, and the Appraiser – everyone was looking to make a dollar – since that was each one of those people’s jobs. Keep in mind that the lenders were given ridiculous products to sell and push, that the Realtors loved to sell and push homes, that the appraisers loved to do more appraisals and sell and push values to keep making money (vicious circle), and let’s not forget our government’s beautiful speeches on how ‘Everyone deserves Home Ownership.’ No one deserves anything – you EARN the right for homeownership – it is not your American Right – how that got clouded in the discussion is beyond me. Basically what my point is to stop the finger pointing at each other and start fighting back at the true source of this” Our Overreaching, Overbearing Government…”
This is from a daily email I get at work. I love how he fails to mention the role securitization played or a LACK of regulation (or enforcing those on the books) played in the whole mess. More importantly, what about the outright fraud committed by lenders in an effort to circumvent regulatory fining (forging signatures, foreclosing without proper paper work, etc)?
It is true that there is a lot of blame to go around and the government’s home ownership encouragement and to a much larger extent, low interest rates helped fuel this fire. However, those are only two of many factors that led this house of cards to fall over.