Who's to Blame

The people that took the loans are to blame. If they cannot do math and figure it out they will be in the hole. Many of them had help listening to loan orig. that tried to fool them while ranking in large commissions. The person just made a bad choice. Many more than likely went to public schools of the 1990's where math was watered down. People make bad decisions because they want things now rather than waiting till they can afford them. The have great roll models in Washington D.C. that are masters at this.

John:

I must respectfully disagree with you regarding mortgage companies making the spread between 1-4 percent.  The banks didn't make that spread either.  I think you are getting some of your rates confused.

There were many mortgage companies that made a lot of money, but it was due to volume and a refinance boom as well.  Afterall, mortgage compannies are limited on how much they can make on a transaction.

This post was faster than a Fox News Alert! 

The timing seems a little weird to me that Alan Greenspan's interview airs 2 days before we expect to see a rate cut.  I know he has a book coming out but the timing is still curious to me.  What will Gentle Ben do? 

As far as the previous rate cuts going on so long was concerned, and I've posted this before, it was like the morning after a heavy night of drinking at a frat party.  Not quite sober yet, the inevitable pain is bound to set in but if you keep on drinking you can delay it just a little while longer.  Eventually, the bottle is empty and quite the hangover begins.

Finding where to place the blame seems useless, but the lawyers are circling the wagons.  The good news is that there are opportunistic buyers out there watching and waiting to get in on the action.