Borrowers are number 1. They are the ones who bid up prices and kept going to banks for ever higher loans. Greenspan is very close, if he had raised interest rates we would have gone through a slowdown but home prices would not have spiraled out of control and the world would not be in the mess it is in now.

I don't blame a bank for being a bank.

What about George Bush's policies in promoting the previous phony "economic boom", and Congress' and the Fed's failure to provide simple, basic, "common sense" regulation of the banking/finance market, and the stock markets.

The promotion of an UNREGULATED Free Market Economy, esp. as promoted by Alan Greenspan, was basically flawed, enabling and allowing the run away greed and corruption of the corporations to escalate nationally, and as we now know, internationally.

This entire debacle would could have, and would have been averted, had the government exercised basic oversight and regulation of the dinancial industry. If the Fed had issued simple "common sense" regulations requiring that all mortgage aplicants be fully pre-qualified for the loans that they applied for, would have averted the subprime mortgage loan debacle. "Common sense" reasonable oversight and regulation of the CDSs - Credit Default Swaps, and derivatives would have prevented the pervasive abuse and unsound business practices in regard to these instruments.

So, for the lack of some "basic common sense", Congress enabled and allowed these debacles to occur.

The function of government is to be the "Gate Keepers" of the integrity and stability of our economy . . . and Congress grievously failed to do that.

Consider this: The government has so far allowed the corrupt CEOs, CFOs, and managment to keep their ill gotten gains from this irresponsible and corrupt business activity . . . they have even allowed them to walk off with Millions,
Tens of Millions, and even hundreds of Millions of dollars in "golden parachutes", bonuses, and compensations.

Meanwhile, the government is shifting these fraudulent losses onto the taxpayers, and the prudent investments of the average people (retiree programs, etc.)

Our government, esp. Congress has enabled and caused these travesties to occur. Government is responsible for the integrity and stability of our economy. Instead, they "sold out" to the elitists corporate and ultra wealthy special interests groups.

Problems starts with a congress eager to take a politically expedient CRA (community reinvestment action) approach to allow even those who cant afford it, home ownership. Then terror attacks (9-11-01) congress shifts focus to anti terrorist activities and tells regulators to enforce a flood of new regulations (Bank Secrecy, Patriot, etc.). Focus shifts to anti terror activities and away from safety and soundness. S&S ball is lost in a myriad of regulations and new enforcement priorities. Until we re focus problems will continue even post socialist bail out. Problem is they probably dont even realize that the main culprits are the congress and regulators alike.

I blame the president. In 2002 he was promoting with heavy advertising for American citizens to spend and buy to stimulate the economy. They did as they were asked. The presidents lack of leadership and oversight of his appointed underlings and their actions led to the crisis. Then he has the nerve in his latest public economic addresses to blame the U.S. citizens for the foreclosure debacle. They were just responding to all of his advertising!

I totally blame the Democrats. It's called the Community Reinvestment Act, and it basically was a law passed by the Democrat majority congress saying that lending institutions must lend to low income individuals regardless of the fact that they would be unable to keep up the payments.

Low income individuals? I had friends buying two, three houses a month flipping them, buying more, no money down. Mortgage broker friend,closing ten properties a week. Gave me a quarter million dollars with no income verification. I paid off two investor loans with a uncollateralized, unverified credit card loan @3.99% fixed. I know real estate sales people who closed five houses in one week. I blame myself. I paid it all back. What was I thinking?

The government is principally to blame. When the President, Congress, and the Fed (Alan Greenspan) are praising and promoting the "booming economy", and they tacitly support and promote the market activity by the corporations and the markets, then, in essence, in additional to enabling and allowing the corrupt, fraudulent, and unsound business practices to occur, THEY ALSO AIDED AND ABETTED IN CONVINCING THE GENERAL PUBLIC THAT THESE ACTIVITIES WERE "LEGITIMATE" . . . Thereby participating in DUPING a lot of gullible and niave Americans.

"If the government allows, supports, and promotes those business activities, then it must be "legitimate" . . . right? . . . WRONG!

Our government, up to the highest levels, failed to diligently perform their fiduciary duties in regard to all of these matters. They were tacitly, and openly complicit in the development and perpetuation of these FRAUDS against the American people.

I blamed our ivy league prestigious colleges fail to put emphasis, by requiring mandatory subject of "business ethics", in front of the rich boys of America!!!
We turned them all into "legalized crooks!"

Google video: America Freedom To Fascism. "Know the truth and the truth will set you free". When corporations rule a country that country is a FASCIST government. The National Socialist Party (also known as the NAZI party) in Germany during world war II was a FASCIST government. Our government was long ago taken over by private, for profit corporations like the Federal Reserve, General Motors, G. E., etc.The fascist, financial, corporate, oligarchy (elite families), is in total control of our government. Our Declaration of Independence and Constitution are in the trash.The question is do you fight it, or go quietly into the long night of fascist, totalitarian, slavery? In times of adversity true character is revealed.

This is the root of all the problems we are having in the real estate market. The system works like this: the real estate agent works on commission and wants to make a sale, the mortgage originator ( loan officer) is paid on commission and wants to make a sale, the appraiser works on a fixed price for the appraisal, but if he/she doesn't come in with the appraisal the mortgage originator wants, he/she will not get any work. The three conspire if you would to make the sale. The bank doesn't care, it packages the loans and sales them and makes a commission. Your politicians don't care, the financial sector pays them well (campaign contributions) to look the other way. The system could be made to work in an honest manner if the government cared to make it so. THROW THE BUMS OUT! WE NEED TERM LIMITS!

Beijing curbed mortgage lending in 2003 and 2006 to keep debt manageable amid a real estate boom, while American regulators responded to a similar situation by letting credit grow, said Liu Mingkang, chairman of the Chinese Banking Regulatory Commission.
"When U.S. regulators were reducing the down payment to zero, or they created so-called `reverse mortgages,' we thought that was ridiculous," Liu said at the World Economic Forum in this eastern Chinese city. He said debt in the United States and elsewhere rose to "dangerous and indefensible" levels. Look guys China is calling us dumb. Are they going to lend us the money for this bailout?? It's only a matter of time before the US is not going to be able to borrow money at a reasonable rate. No one wants to lend money to dumb people. We need new leaders. THROW THE BUMS OUT! Let's try term limit.

RESPONSE to PROUSAHELP (above):

The Ivy Leager corporate guys would not have been "leagalized crooks" if Congress had not relaxed and or terminated the previous "existing regulations"; and if they had prudently addressed the need for basic regulations for mortgages, CDSs, derivatives, etc.

So, if Congress had done their job, then those "Ivy Leagers" would have unquestionably been crooks guilty of felony frauds . . . right?

Congress gave into the special interests groups by relaxing the regulations, terminating many regulations, and not enacting needed "common sense" regualtions. And it wasn't "just the Republicans" nor "the Democrats" . . . it was the vast majority of Congressmen irrespective of party affiliation.

Now all of them (like Bareny Frank D-MA) are trying to cover up their past misdeeds in regard to all of these matters. Frank was one of the strident OPPOSERS of implementing oversight and implementation over Fannie and Freddie . . . and his "significant other" was purportedly holding a high paying position in Fannie Mae at the time. (now he is supposedly running a ceramics shop).

Congress is generally not "manned" with people astute enough to deal with complex issues . . . or to see beyonod the political donations, etc. . . . most Congressmen are attorneys . . . Now doesn't that "say a lot".

We need a fundamental change in government. I see no hope except maybe term limits. Why not term limits for congress and the senate. We have two 4yr terms for the president. Why not three 4yr terms for the senate. And four 2yr terms for congress. Add , no past or present congressman can run for the senate or president, and no senator past or present can run for congress or president. The career politician thing is not working. THROW THE BUMS OUT!

Sorry Brett I just had a question. If no past or present senator or congressman can run for president then who would we end up with as president? They do need to have political experience so are you thinking governors and local legislators?

Take a breathe guys. It's only money. Three years ago, at the height of this nonsense, my neighbor sold her house for $440 thousand. I thought the guy who bought it was insane. She thought she won the lottery. The guy who bought it, put it up for sale this past May, asking $890 thousand. I now think he is certifiable. If he sells it for close to that price, the only conclusion that could be drawn, is that I should be placed in a nut house on general principles.

The CEO's of the banks that went bust, should not be let off the hook. When someone is in charge of a financial institution that operates under false pretenses and causes worldwide turmoil for personal gain, hurting millions of hard working individuals and families, they should be held accountable. Let's see if this happens!

I dont know if you are rich enough to be a republican or not .Why do you think the republicans and democrats are bailing out the morgatage cos, the banks, fanny may and freddie and now wall street? For one reason so all the rich bas***ds wont lose there money, Who is footing the bill ? the poor ba***ds that work everyday trying to survive.I admit I have good ins. but I worked 30plus years to get it. now Mckain wants to tax it. He will end up cuting our s.s. and medcare. The only thing that is hurting this country is all the rich are moving the factories overseas to get cheaper wages and more profit. Think about it friend I know you are a smart guy.

http://www.youtube.com/watch?v=1RZVw3no2A4

Try this link and you will know who is responsible for the current economic climate

When will all the culpable entities that promoted and participated for their financial benefit at the expense of the taxpaying hardworking middle class and lower folks have class actions and or charges of fraud and abuse of their powers and resposibilities placed against them. While we're at it, why not lower and cap all of our congressmen and senators salaries and perks until this mess is all rectified. Where are the "ambulance chasers" when you need them?