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Reader comment on:
Subprime Debacle

Submitted by Jim, Oct 26, 2007 10:16

Credit bureaus require individuals to obtain long-term debt like mortgages and lines of credit to improve their credit scores so that more credit can be obtained. Without this constant pressure to improve the credit score and obtain more credit regarless of the risk or the inability to repay debt, would we have ever had a subprime crisis? I think not. It's a monthly payment economy and credit bureaus are the creatures of the lending establishment that are driving that economy. Subprime defaults are just the beginning. When massive defaults on credit card debt begin, that's when the fun really begins.

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Other reader comments on this article

Comment By Date

I found this article balanced. The author just reported the information and allowed the reader to come to his or... [MORE]

Jeffre Powell, Certified Mortgage Planner 

Nov 11, 2007 11:00

Congress is considering legislation to hold the Lender liable for loans made to borrowers that fail. The legislation is saying... [MORE]

Prof. Samuel D. Bornstein 

Oct 27, 2007 22:31

Reckless lending puts financial system at peril. The same thing happened. We have market watch dog, Bank Examiners and Auditors.... [MORE]

prasad 

Oct 27, 2007 04:16

Congress is considering legislatiion to hold the Lender liable for loans made to borrowers that fail. The legislation is saying... [MORE]

Prof. Samuel D. Bormstein 

Oct 26, 2007 22:58

Why use the misnomer "correction" to describe the housing bear market. Housing is in a multi-year bear market that will... [MORE]

David Shulman 

Oct 26, 2007 15:29

Pupils of the 7th and 8th Grades of America's Public School Systems should become proficient in the financial operation of... [MORE]

Claude Bogardus 

Oct 26, 2007 10:58

Credit bureaus require individuals to obtain long-term debt like mortgages and lines of credit to improve their credit scores so...

Jim 

Oct 26, 2007 10:16

Your suggestion that mortgage originators be capitalized to hold a percentage of their loans in portfolio is excellent. World Savings... [MORE]

Laurent Baptiste 

Oct 26, 2007 08:16

Boo hoo. Bad investments made by greedy businessmen on mortgages entered into by uninformed buyers who weren't qualified to begin... [MORE]

Steven Gruber 

Oct 26, 2007 07:21

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