The View From 1776

Infantile America

Collapse of the subprime mortgage market reflects the “don’t trust anybody over 30” mentality of the Baby Boomers.

Posted by .(JavaScript must be enabled to view this email address) on 08/16 at 03:16 PM
  1. This post is another in a long stream that reflects the incapacity of The View to get in tough with the present world.

    Market collapses had occurred long before Baby Boomers arrived on the scene.
    Posted by .(JavaScript must be enabled to view this email address)  on  08/17  at  09:22 AM
  2. While I agree about your general point on the "juvenocracy" in which people seek public bail-outs and quick fixes to collapses based upon human greed and foolishness, there is another facet to the subprime meltdown- which is that predatory lenders (not lenders at all, but salespeople wanting to make a sale) allowing unsophisticated investors into this mess. The WSJ profiled a family that earns $90k a year, now faced with $50k in mortgage costs and looking at default...they have no equity in the house...who is at fault, certainly the borrower, who does not know how to budget and forecast and leverages him/herself to the hilt for the sake of "owning," but what about the mortgage lender in all this? As a banker I am appalled by the lending practices I have seen in recent years that led to the present fiasco. Where is the agency and responsibility there? When I recently applied for a mortgage for our little house, the broker said: "Why so little? I can approve you for a lot more than that!" implying I was being foolish for not leveraging myself more to take advantage of a "rising market"... but I think I am saddled with more than enough debt burden... I think the consumer has really been exploited in all of this. As a banker I am disgusted with the misery that my colleagues have inflicted on people who trusted their "advice." This recent "meltdown" is the result of compromised professional values and simple greed. Is this a symptom of a deep generational moral crisis? Maybe. But it is more particularly a collapse of professional standards and values.
    Posted by .(JavaScript must be enabled to view this email address)  on  08/17  at  09:48 PM
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