West Coast Connection Forum

Lifestyle => Train of Thought => Topic started by: TraceOneInfinite Flat Earther 96' on September 18, 2008, 07:51:16 PM

Title: Didn't govenrment force banks to give subprime home loans?
Post by: TraceOneInfinite Flat Earther 96' on September 18, 2008, 07:51:16 PM

I remember Trauma had a nice thread a while back explaining how the government forced banks to issue subprime loans to home buyers that they really never wanted to quality in the first place.

Now those loans have defaulted causing so many problems for the economy....

Can someone explain, I tried to search for it but didn't see it.

Title: Re: Didn't govenrment force banks to give subprime home loans?
Post by: Low Key on September 20, 2008, 01:23:56 AM

Before all of the foreclosures, house prices were at an all time high. Banks figured they could give out bullshit loans to people who couldn't pay it back, then take the house and try to resell it for a profit. So basically, a month after the bank took back the house, the land was worth more, not to mention the thousands of dollars they got from the bullshit loan. That is what I believe anyways.