January 30, 2008
Who’s To Blame? Rapacious Realtors, Amoral Agents, Beleagured Buyers?
Foreclosures are decimating Stockton, Pittsburg and other Bay Area cities; fallout from the credit crisis is worsening; the housing slowdown continues. As Stan Laurel used to say, “Another fine mess you’ve gotten us into.” But who, exactly, got us into this?
Was it Alan Greenspan, who lowered interest rates in 2001, stoking the housing market, then throttled back? I have a feeling Adam Schwartz, who posted his disdain for Realtors in an earlier Redfin blog entry, might point the finger at real estate agents. And another reader, Doug, says adults need to take the responsibility for their actions; perhaps he would point the finger at irresponsible buyers.
And what do you think? Is it all of the above, one of the above, or some other factor entirely? (Train wreck photo: Erik Charlton on flickr.)
Slappy said:
I say all three are to blame…between the Ponzi scheme of repackaging mortgages to realtors with no fiduciary responsibility to greedy buyers (and ignorance = greed), they all should share the blame and take it in the shorts.
No bailouts of any kind what so ever.
January 30, 2008 9:44 PM
Janis Mara said:
Slappy, could you say a little more about the repackaging of mortgages? I think I know what you’re referring to, but was wondering if you could expand on that a little. Do you mean selling mortgages on the secondary market?
January 31, 2008 9:14 AM
Susan Kuchinskas said:
I agree with Slappy — everyone is to blame. But ultimately, individuals should take responsibility for their financial decisions. This is different from the predatory lenders who take advantage of old people.
I’d like to know exactly what percent of these foreclosures were people who planned to flip their houses. Anyone planning to live in the house for five or 10 years should have had a plan for paying the mortgage when it went up.
And I definitely don’t want any of my tax dollars to go to help people in foreclosure, for that reason.
January 31, 2008 10:33 AM
Janis Mara said:
Wow! Sentiment is running high against bailouts. Other readers have made similar comments, and no one has spoken up in favor, at least not in my posts. You mention predatory lenders who take advantage of old people. What about, for example, buyers for whom English is not a first language, who don’t understand the system very well and who are taken advantage of by mortgage brokers? Don’t they deserve a break?
January 31, 2008 11:50 AM