Are banks who actually gave out subprime mortgages affected by the crisis ?
or did they sell off those mortgages to other banks and are too busy now buying up real estate at dumping prices over the crisis they created ?
yah thats what I mean mike, give out bad loans, sell those loans off to other banks, wait for the housing market to collapse real estate brokers going broke toegether with banks you sold your bad loans to.
Collect real estate at really low prices.
Any banks who did that, gave out subprimemortgages but yet are the winners oft the crisis, because they sold off all their bad loans ?
Tags: affected, Banks, Crisis, gave, Mortgages, Subprime
yes
Many banks have collapsed and were forced to merge with others. This was a big boom for Bank Of America,
One of the biggest to fall is Wachovia who did not give out a lot of sub prime loans but acquired a bank 2 years ago that had most of their assets in the hidden sub prime mortgages. Those owners walked away with $2.3 billion profit after selling.
Banks were forced to give Sub Prime loans to people that had no ability to pay by Congress.
Who is responsible?
Both sides. Democrats with the CRM enacted into law in 1977 and fortified in 1995. Also it was the Democrats who blocked the regulation of Fannie Mae.
Then there is the Bush Administration that kept printing money to grow the economy. If the money was not available, then the greedy bankers could not have loaned it out.
Your second question is no. No one want to snap up the property now because the value is going to correct its self. That means value will fall. So if you are holding a lot of property that you purchased at a high price. You will lose value. If you bought your house before the ridiculous climb, hold on to it.
Mike