This is not an easy question to answer. There are people who monitor the
different markets. These are the same people who are now predicting that the prices
of homes will continue to fall another 25%-30%. Where were these people before the
crash started? Where were the big banks and lending institutions when the people
signed the loans they could not afford.
People signed for loans that they could afford today, but did not take into
consideration, or did not care to, the fact that the interest only loans will go up
in premiums in a few years. Now, no one can afford the loans, foreclosures are at
an all time high, banks are losing billions.
It would do no good for anyone to blame and point fingers at this point in
time. It won't make the problem go away, a solution needs to be found so that this
does not occur again. A fact finding body needs to be implemented to find the true
cause for the debacle, come up with recommendations and submit it to Congress.
I do not think Congress can do this. People do not trust Congress to find any
thing factual. However, they do draw up the laws. And it may not need to be a law,
just financial guidelines to prohibit this fiasco from happening again.
Where was the Federal Reserve during this time? Do they not have some say in
this? Instead of supplying more money to bail the banks out, which will inevitably
drive up inflation, why did they not step in and handle things before the nightmare
got started? Not under governmental control, The Fed should have gotten together
with the major banks and put in methods of control early. The fact they did not is
an indication they may be the ones who benefit the most from this series of events.
Could that be why no fact finding body as been convened? Is there something
sinister hatching in Washington? Is there a plot by the financial powers to be to
turn the housing market upside down? There are a lot of questions being asked, and
no answers coming forth. Foreclosures are at an all time high, billions of dollars
are being lost by major institutions, people's lives are being ruined, and the
impact is not fully known even now.
