I don't think that anybody is guilty of anything but stupidity and greed! Credit got so cheap that it drove the price up too fast. Peoples sold their home for 40% over the real value and nobody figured out that the whole thing was artificial. Contractors started asking more and more over their cost and cost of building started to rise anyway due to specialist like electrician and plumber starting to ask for their share! Landowners also sold their land for inflated value and a lots of peoples got rich flipping house.
The cities got greedy too and property tax went to the roof and they never considered that it was a temporary artificial situation. Insurance company had to adjust their rate to take into account the new value and that sure did not help peoples who were already struggling.
Many foreclosure at the start of this mess were not due to the fact that peoples could not afford their mortgage anymore it was all the other cost that have gone to the roof these peoples had bought their homes before the bubble started and they could only afford the mortgage that they had and in a few years they see their insurance and tax goes 40% to 60% up. By the time these peoples tried to sell nobody wanted to buy anymore at least not at 60% more than what it worth! Did I forget anyone... So who is guilty? More to the point who innocent?
Read the Article at HuffingtonPost
No comments:
Post a Comment