>>>Larry Elder sums it up.
>>>
>>>http://www.ibdeditorials.com/IBDArticles.aspx?id=307228725989304
>>>
>>>An indictment of greed! A case for more government intervention! Worst financial crisis since the Great Depression! Failure of capitalism! This list includes the "lessons" of the recent turmoil in the financial markets. Nonsense.
>>>
>>>Down with greed!
>>>
>>>Someone please produce the gun held to the temples of borrowers who put little or no money down, took out "teaser" rates, and then pleaded ignorance or victimhood when the lender — as stipulated in the contract — jacked up the rate. >
>>
>>Right there is the problem. It assumes that all parties have an equal ability and knowledge of financial matters when entering the contract which, if you are honest with yourself, is simply not true. Some lenders are ignorant, some not so, some are very smart. They cannot all be considered equal nor can blame be assigned equally among them.
>>
>>I wont even go into the incredibly clever and persuasive powers of modern marketing techniques used to sell virtually anything and to which, unless you are trained in the arts of persuasion, you will probably be influenced by, to say the least.
>
>Mortgage conditions are very simple, even for the most exotic versions, and, by the way, clinical mental disability is quite rare thing. Also, every home buyer must be assisted by a lawyer who is supposed to explain legal side of the issue. The most common reason of recent mortgage failures is not that people did not understand what they take. They gambled on the opportunity that home prices will go up and they sell the property after 3-4 years with profits. Naturally enough, if they are able to figure out positive scenario then they should not claim mental disorder just because negative scenario got upper hand.

I am quite sure that many lenders did as you say and were aware, possible only in passing, of these "potential" risks. I am also quite sure that many lenders were not reading the small print, were not knowledgable of financial matters, and were being sold something. There are at least 2 things here (1) financial knowledge, and (2) sales and marketing techniques. When one party wishes to sell something, and that party has resources, then for sure the selling process includes some very clever selling "techniques".

I dont blame the lenders or the lendees. What I suggest is that instead of trying to place blame I would rather say that no one is blameless...