Way too many mortgages given to borrowers who had practically no collateral to support them. Some were those wishing to own their first home, some were those wanting more home than they could truly afford (who covered this shortfall with absurd HELOC's right at the beginning of executing the mortgage), and some were simply buying expensive homes that they solely intended to flip, which they again did not have the collateral to support.
Not only were these risky loans handed out en masse, but they were given out with interest rates that weren't high enough to represent a proper Risk Premium. We all apparently thought that home values would just keep soaring upwards forever.
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Replies to: "Banks also gave mortgage loans to a variety of unqualified borrowers."
- Want to see the definition of a V Shaped recovery check out S&P, Dow, and NASDAQ charts since March - PBHangingChad - 9:54am 7/6/20
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- And as we have always said, the stock market is the economy - Chris94 - 11:30am 7/6/20
- The NASDAQ and S&P forecasts future markets and broad sectors of companies in the index’s. If - PBHangingChad - 11:38am 7/6/20
- I'm far more interested in unemployment numbers and closed businesses - Curly1918 - 10:22am 7/6/20
- 2008 remembers. [NT]
- jimbasil - 10:09am 7/6/20
- What caused the ‘08 collapse vs this one? Let’s see how small you are? I’ll wait to you Google why. [NT]
- PBHangingChad - 10:21am 7/6/20
- Why of course it was Trump - is there any other truth. - jimbasil - 10:26am 7/6/20
- Bush was President and it was a mortgage crisis. Some believed everyone should own a house. So the - PBHangingChad - 10:33am 7/6/20
- nm [NT]
- Irish 64 - 3:05pm 7/6/20
- Lil Georgie believed in the "American Dream", LMAO. [NT] [LINK] - Irish 64 - 3:06pm 7/6/20
- oh, really? [NT] - jimbasil - 10:56am 7/6/20
- nm [NT]
- Irish 64 - 3:05pm 7/6/20
- Bush was President and it was a mortgage crisis. Some believed everyone should own a house. So the - PBHangingChad - 10:33am 7/6/20
- We all created the '08 collapse by using our homes as ATM machines [NT]
- Curly1918 - 10:24am 7/6/20
- Banks also gave mortgage loans to a variety of unqualified borrowers. - jakers - 12:24pm 7/6/20
- Wow you guys are very bright. There is so much money pushed into the economy by the Fed and - PBHangingChad - 10:35am 7/6/20
- thank God you're here to inform us. [NT]
- jimbasil - 10:57am 7/6/20
- I post facts. You can’t handle the truth. You prefer BS. That’s the difference. [NT] - PBHangingChad - 11:42am 7/6/20
- thank God you're here to inform us. [NT]
- jimbasil - 10:57am 7/6/20
- Why of course it was Trump - is there any other truth. - jimbasil - 10:26am 7/6/20
- What caused the ‘08 collapse vs this one? Let’s see how small you are? I’ll wait to you Google why. [NT]
- PBHangingChad - 10:21am 7/6/20
- And as we have always said, the stock market is the economy - Chris94 - 11:30am 7/6/20
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