Going back to President Jimmy Carter, and perhaps even before, US Presidents have been excited about getting people to own homes. So Congress passed easier lending laws.
The banks picked up this hue and cry and ran with it. Like DUH.
So in today's New York Times Mayor Bloomberg "blames" congress for the debt mess, and charismatic ex-Mayor Ed Koch "blames" wall street and wants somebody to be tried as a criminal.
So take the issue I am dealing with, to whit, a Condo that sold at market peak to an unemployed mother of two children. She was given not just one, but two mortgages so she could have a cashless transaction. So who is at fault? Congress for making such loans available via ready markets for mortgage instruments? Countrywide Credit who made this fantastic loan? Or the woman who "bought" the condo knowing the payment far exceeded whatever income she could drum up?
Who would you throw in jail?
Congress, FannieMae, Banks, whoever. Stop trying to figure out who is at fault. it is too late. The accident has happened. Fix the Ship of State and get us steaming to a meaningful recovery.
