right, so.. yeah I like to think about things in great detail, and when I do that for long enough I tend to realize things that were not as apparent before hand.
lets talk about the housing crisis, what really caused it and who is to blame from #1 the most to blame to #2+ the least to blame. (as there are multiple people to blame)
but lets write the facts first in a non-biased objective form and see where logic takes the conclusion:
We know there was bad paper associated with mortgages that individuals had taken out. now the government (especially obama) stopped the Investigation buck right there and blamed the general populace for abuse. and so now we have to pay it off for the next 200 years.
well lets continue the Investigative male deer then shall we?
What would/did cause people to in mass hoards suddenly follow a fad of mortgage abuse? were people really that alert to the market that they knew they could get that extra money? I think not, the people in question were too gullible and ignorant to realize what the banks were offering seemed fishy, so I hardly see the intent of theft in the minds of such ignorant people. they just sheerly didn't have the intellect to figure out this scam in the first place.
Watson: ok Holmes, so, then it's the banks fault for issuing bad paper right? I mean after all they admitted to it!
Don't be so quick to take a conclusion watson, that is until you view all the evidence from all parties involved. I bring you the question of "why would the banks knowingly issue bad paper that at the end of the day would hurt them?" they knew it was bad paper, they knew it would blow up in thier faces eventually! no person with a banker's financial education would willingly pull such a stunt, and further to that conclusion I find it Very improbable that all the banks would begin the same trend at the same time! the banks are not the start of the issue, someone else forced them to begin the issue!
lets go back a bit in our deer's life before it lost it's antlers and was defenselessly eaten by savage wolves shall we?
something or someone forced the banks to issue these rediculous loans. well the only thing that can Force a bank to do anything is the law, which would bring the blame to the government, now if you go back to the start of the housing crisis, when the bad paper first started to be written a law had been passed by our smoothest president ever, thats right good old William Clinton. the law he signed (of which he was a strong influence into the laws writing) was intended to help the average american afford things they otherwise couldn't afford by demanding that the banks issue loans to everyone regardless of credit history or yearly salary. this stipulation would force banks to give everyone the highest loans available if anyone would come asking for such!
watson: so clinton haphazardly has committed criminal neglect on a national financial scale that errupted into the whole world due to the bank's bad paper?
I'm sorry watson but not all the culprits have been taken into questioning yet! it is too soon to make a conclusion.
So, clinton signs a law to make loan issuing by banks mandatory no matter who comes for a loan. but inorder for this to happen the general populace would have to know of this law's existence, and that law is not known by any of the citizens effected by this circumstance.
Watson: so, someone else put these citizens upto it!
Correct watson! but who did it? let us continue in our invesitgation. now I believe the answer of where to go from here in the investigation comes from one of my previous deductions which has left a blatant opening. "the law he signed (of which he was a strong influence into the laws writing) was intended to help the average american afford things they otherwise couldn't afford" the hole is blatant here, our next culprit is the people charging the price of coarse!
Watson: but who would charge such a price that people can't afford?
Realtors selling newly built houses after demolishing old ones that the banks foreclosed on. and Colleges charging 30,000+ for one semester of education. as well as some car manufacturers.
Watson: obsurred!! you are saying that the people we respect most for thier Education and intellect are responsible for bad paper? this would be outrulled by the same thing you said gave the banks amnesty! intelligent people wouldn't create bad paper that would negatively effect them!
hmm, you are correct but we have yet to fully investigate the parties I merely listed with an example of thier overcharging. and to be clear they were overcharging, so part of the problem definitely exists here, why don't we look in closer detail!
Why such high prices? I have talked with actual construction companies about the costs to build a house and buy the land, and they gave me an esitmate of $45,000 at normal construction hourly rates which were average considering the dangers of the work. and that $45,000 house was being sold for $400,000, I talked to city officials and realtors to try and ascertain how much ti costs to keep one of these houses till it's sold (taxes and electricity and water fees for showing the house, and advertisement fees, plus commision) I found that inorder to do all that, it would only cost another say $55,000 on average, so the price should be around $100,000, why on god's green earth is it $400,000? thats 400%!!
and while sniffing around the clue hit me right in the face as they spoke about trying to sell me property, they would need my credit information and income information before they would consider selling me a house. same with colleges they want credit info and income info if they can get it. cars? the same.
I see a trend the things people can;t afford require us to give these companies access to our financial records, they actively look at these records to see if we can afford thier products and services!
Watson: well thats a normal part of business, I hardly see anything wrong there..
to the untrained eye that would be the case, but there is another side to this visibly innocent issue and it is malicious in it's intent and filled with greed.
Elementary My Dear Watson; Any Credit sniffer would immediately notice the law clinton made, and see that it gave the average citizen the ability to get loads of money from mortgages, with thier new found knowledge they were encouraged to find out just how high they could push the market's cieling in the intent of fleecing this wolly sheep of a market, milking the cash cow, savagely taring appart our poor defenseless buck!
so the credit sniffing companies raised the price of houses and college and cars because they knew that people could get these loans of $400,000 and had income on top of that. and they didn't just want some of the money, they wanted all of it!
so They told the citizens about the bank's mortgage situation, they pushed people to get loans to afford thier wares the people then went to the banks and were amazed at what they could get! then they told thier friends, who some of them would abuse this system! and others would avoid it realizing it was a scam and instead would by houses for sale by owner for a decent price and used cars and try hard to afford thier kid's education with family help. the banks however now had a severely bad issue, the general populace had somehow figured out how to use clinton's law to exploit them and get tons of money, they knew they couldn't keep this up, and they didn't want to have to foreclose on everyone's house, nor did they want to have to pass the blame to the general populace! so they bundled all the bad loans into mortgage backed securities and tried hard to sell them internationally, which was surprisingly successful. however eventually they could no longer keep up this pace, and the bubble burst as the banks lost tons of money from thier clients not paying enough back each term because thier clients couldn't pay it back at a fast enough rate.
and there we have the crisis!
I have already named the culprits, and now to prove thier motive;
they were the only ones who made actual money off this without government reimbursement. all the money that the world lost went to them.
thats right the credit sniffing new house salesmen and colleges charging too much money and cars getting more expensive than normal. though car companies are less to blame.
I promised a listing of who is to blame starting with the most responsible and leading to the least responsible, I shall keep my word;
#1: Realtors of new houses upping prices to obscene values as they knew they could get it due to the average citizen's ability to pull in that money from a mortgage.
#2: colleges, as not all of them were doing the above.
#3: car companies as only a few companies had really substantial prices to begin with
#4: Bill Clinton through negligence
#5: last on the list and least responsible; the general citizen who was used as nothing more than a cash currier during this event. even those who willingly abused it out of thier own knowledge got thier punishment already in the bank reclaiming everythign they own and putting them on the street.
that is the conclusion, all parties have been thoroughly investigated, and only one stands out as undoubtably guilty at intentionally trying to fleece the market once they relaized the huge exploit they had been given.
I rest my case.