Did Generation X Cause the Housing Crisis?

[Henry Rogue]

Years later and they're still trying to convince us that something else besides bank's risky loans (who'd had the risk removed and been directed to by government) wasn't the primary driver.

There's a difference between a layperson not realizing that a loan is beyond their means, and the predatory lender who KNOWS it's beyond their means.

There's also a gigantic problem when only one of these groups had to pay the consequences for their actions, while the ones really responsible are "too big to fail" and get a bailout.

Removing risk is key, but don't forget about artificially low interest rates. That's what attracted buyers in the first place. That pushed the market beyond the Production Possibilities Frontier. Malivestment and overproduction.

[otherone]

Generation X was taught by the Boomers that homes were an investment, not just a place to live. The bubble was a long time coming, when lenders, realtors, friends and family tell you that your home will APPRECIATE in value every year, people couldn't get into a home FAST enough. The trends showed that if you ran into trouble, you could refi or sell....no problemo....Blaming an entire generation is silly.

[Bossobass]

"Predatory Lending"

Nuff said.

[Seraphim]

Government insured mortgage securities is what caused the ability to lend in a preditory manner in the first place.

Remove that and predators get their legs chopped off upon default. Fear/greed balance was removed by Bush's socialist policies.

"Predatory Lending"

Nuff said.

[dinosaur]

The generation who made money off the bubble, blaming the generation that got soaked by it? Sick.