Quote:
Originally Posted by Degausser
Well, that's just mutual stupidity on their part for taking the loan.
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Bush was responsible for it. When he came into office he relaxed the regulations that said lenders could only make firm offers of credit to people who had the appropriate credit rating and earning potential. Then by 2004 he was bragging that home ownership had increased more in his Presidency than in any other. He hailed it as the cornerstone domestic achievement of his administration. He is entirely responsible.
As to the bailout, it is entirely unnecessary. Foreign banks and other institutions will buy up the remnants of these companies on their own, the government doesn't and shouldn't have to do it. The only people losing out will be the investors of those companies, not the entire economy like the greedy credit companies want you to think.