Whose fault is the recession?

[Fly Rod]

Originally Posted by Raven

the average credit score is 650 or lower

I'm not saying what the average credit score is, I'm saying what it takes to get a loan from a local bank in my area, a score of 700 or better, 20% down on residential, 25% on commercial and some banks will charge you a higher interest percentage for commercial or a mix use commercial/residential. Before a bank will release monies for a Condo loan the units must be 71% sold or under agreement which means that if a person wants to buy and move in quickly he/she would have to pay cash if the Condo units do not meet the 71% and banks are not releasing monies on existing Condos if there is not a maintenance escrow/reserve account of which a lot of Condos never had before instead if they needed work to be performed they would attach special assessment charges to each owner above and beyond their monthly Condo fee.

Maybe banks in your area are accepting credit scores 650 or less, but I doubt it. Now a mortgage company may accept a lesser credit score.

[Joe]

Politically, it does not matter who is to blame: It matters who is believed to be to at fault by the majority of the electorate.

[Fly Rod]

Originally Posted by Joe

Politically, it does not matter who is to blame: It matters who is believed to be to at fault by the majority of the electorate.

If the people had or would read up of who is at fault they would find that both Republicans and Democrats are to blame for voting on a bill to deregulate the Glass Steagall Act of 1933. This act helped get us out of the great depression.

The deregulation bill signed by Bill Clinton in 1999 makes it sound like it was all the Democrats fault but, it was the Republicans that brought the bill to the floor both in the senate and house. The Glass Steagall Act was voted down by a huge majority of both Republicans and Dem's in both houses.

People can say what they want about Bush but he had warned congress in 2001 that the economic crisis was coming. From then until now it was the Democrats fault with Barney Frank being a cotributor to what has happened as well as the financial community.

[JohnnyD]

Originally Posted by Fly Rod

People can say what they want about Bush but he had warned congress in 2001 that the economic crisis was coming. From then until now it was the Democrats fault with Barney Frank being a cotributor to what has happened as well as the financial community.

Bush warned that an economic crisis was coming and then it's the Dem's fault?

If Bush was such a miraculous savant when it came to the economy, maybe forcing through major tax cuts wasn't the best idea then?

How exactly has it been strictly the Dem's fault since 2001? The Republican's held a healthy majority for 5 out of 8 years in the Senate and 6 out of 8 years in the House with Bush in office.

This isn't a strict party issue. Both sides are grossly responsible for the economic breakdown.

[Jenn]

who's at fault? how about all the people that just HAD to buy the things they couldnt afford to "keep up with the Jones's" and are now crying about the economy because they have to repay their debt? Bull poopie! Maybe there was some shady lending going on but the consumer needs to know what they are getting themselves into and decide for themselves if they can afford it to begin with.

[Backbeach Jake]

It was caused by all of the money for nothing. Morgages and loans that were written and leveraged as the ink went down. Rediculous equity loans that had nothing to do with reality. Balloon payments that were impossible for even God's rich uncle to meet. Money for nothing. The money was spent and ultimately we got nothing.

[Fly Rod]

Get ready for the next set of bank/ mortgage default loans that are known as "Option Arm Loans." With this type of loan the interest rate adjust monthly and payment adjust annually. The option is interest only and minimum payment usually less then the interest with the end results being a growing loan balance. This type of loan is known as pick your own loan payment.

[justplugit]

Originally Posted by JohnnyD

This isn't a strict party issue. Both sides are grossly responsible for the economic breakdown.

For sure.

When it comes to mortgages ,20% down should be the rule.

[Backbeach Jake]

The first mortgage that I applied for, in 1975, required 30% down. I was floored! I was looking at a new house (30K!) and had no idea where to find nearly 10 grand on Cape Cod.