Why did liberals take out loans they couldn't afford to pay back?
yes, some conservatives did too but mainly all the foreclosures are from Liberals./
- Anonymous1 decade agoFavorite Answer
Because they were told by the Democrats that everyone DESERVES a house. See, their whole idea is that you don't have to work hard to earn money and then earn a house; everyone DESERVES one. So, they loosened up all the regulations and allowed the banking/mortgage industry to run wild.
Moreover, they believed that they deserved a house, too, even if they couldn't pay for it. So, now they are blaming the lenders for "tricking" them into buying a half million dollar house on 40k a year of an Adjustable Rate Mortgage for 3% a year. How you can't figure out that the banks are in business to make money and an Adjustable rate isn't going to adjust downward is hard for me to understand.
My husband and I bought a house and got a mortgage before we were married 7 years ago. The lenders wanted us to use my salary desperately as well as my husband's but we both knew that once a child arrived, I would not be working. We could have been in a 300k-400k house, especially if we knew the government was going to bail us out if we stopped paying the mortgage, but we knew we wouldn't be able to pay for it and so we didn't buy it. We knew that we had to work to earn a home and were not simply entitled to it.
I was a "starting family," but I didn't get any help from the government for my mortgage. I guess I worked too hard for my money to qualify.
Have you noticed that liberals have no real explanation for it but to insult you? Except for the one who believes that the poor are so disenfranchised (a term she learned in school, no doubt) that we should buy them all better homes than we can afford for ourselves.
It's "wall street greed" not lack of personal responsibility! They're all poor victims of Republicans!
- ugotthatLv 61 decade ago
Why did Countrywide and the rest lend some guy making 50,000 per year a loan for a 300,000 house?
I came across a woman who made 2,000 a month but she got a mortgage for 4,000. WTF Who was stupid on that one? The woman or the bank that lent her the money? She can always get an apartment and just get a black mark on her credit that disappears after a few years. Meanwhile that foreclosure is probably still for sale.
All those smart people and analysts should have know better. When I bought my place 25+ years ago the bank would have laughed in my face and kicked me out.
Ahh deregulation the Republican calling card and McCain's also. Oh that's right he changed his mind the other day after proclaiming at the RNC how he was all for it. Just like the other day he said the economy was sound. Before Lehman and the $85 Billion to AIG.
Don't blame Liberals for this crap. You're not Mitt Romney and this isn't the RNC. What group initiated lax oversight that made this possible?
C'mon stand up and take responsibility already. I'm tired of this Republican blame someone else shlt.
- socratesLv 61 decade ago
I'm sure liberals have taken out loans they couldn't afford to pay back. I don't see how you can know if more or fewer conservatives did the same and I don't see how I or anyone else could possibly know why. Obviously you must have found some reliable site that lists the ideologies of those suffering from foreclosure. I'd sure like to know what that site is. That issue aside, if major mortgage lenders are giving out loans to people (liberal or conservative) who can't pay them back who's dumber the borrower or the lender? In your world, were all of the borrowers and lenders liberal democrats? Where were the conservative republicans, Crawford?
- tribeca_belleLv 71 decade ago
The deregulation of the mortgage industry is the basic reason for the cascading failures in the economy. Further deregulation of financial institutions and the weakening of consumer protections -- all Republican policies -- have resulted in the ripple effects throughout the worldwide financial industry.
Blaming the people at the bottom, conservatives, moderates as well as liberals, is myopic and even silly. If the Bush administration had even paid attention to what was happening to these people early on, when first warned, some or most of the current financial disaster might have been avoided.
The taxpayers would not now be on the hook for hundreds of billions of dollars in an already debt-ridden economy. You however are still caught up in blaming the homeowners. See how far that kind of thinking has gotten us.
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- Anonymous1 decade ago
Because their leaders told them to! It's that simple. They were told to make loans available for those who couldn't afford it. So the Liberal Democrats never made available a class at a bank that shows them how to save, pay off their debt, get their credit rating up and buy within their means.
Liberal Democrats can only think about what people need. They don't take the time to see what the ramifications are. They are no different then the Elite in Hollywood who think they know what is best for you and I.
Go figure. BTW 94% of Home Owners are doing just fine!
- GriggnaxLv 71 decade ago
Yeah, blame the victim.
Why did multi-billion corporations APPROVE the loans they KNEW people wouldn't be able to pay back? Aren't banks supposed to check that stuff?
Oh that's right...so they could bundle those mortgages and sell them off to make even more money. They didn't have the responsibility of trying to collect the loans they approved, so they didn't care, leaving many unsuspecting people stuck, and now, broke.
"Trickle down" economics at it's best. The rich get richer, and the rest of us get trickled on.
TOS answer: because they were duped by unscrupulous lenders who were only interested in making money for themselves.
- Anonymous1 decade ago
To say starting families trying to buy their first home are liberals is a huge stretch of the truth. The Bush Administration as long touted that American home ownership was at its highest point due to his handling of the economy.
A more accurate representation would be mortgage companies approved loans for people that could not afford them. Please stop blaming the faults on the world on liberals, greed would be more appropriate claim.
- misskate12001Lv 61 decade ago
Seeing as how I have a loan myself, at no point was I asked for my political views or if I was Liberal or Conservative. There is no way anyone could assert that liberals took out more loans as there is no data that exists to support it.
- rogueLv 51 decade ago
It is wall street greed that takes advantage of the tax payers,you are paying for that greed right now with all these bail outs of broke companies whether you realize it or not.Now we need to put regulations back and enforce them unlike what the republicans are doing for the past 8 years.Republicans always support welfare for the rich.
- Psych LapseLv 61 decade ago
Isn't it time we all try to gather some strength hanging on to each other, find the root cause of things going wrong and try to fix them?
Name calling (liberals, etc), blame, finger pointing, all these are playground antics. We are all to blame. Now let's see if we can collectively figure out how to fix it!