Submitted by Cindy S, Dec 10, 2007 17:34

I'm glad to see some folks finally using the word "artificial" to describe what led to the housing boom. Artificial/fraudulent appraisals, builders and sellers raising prices just because they could, and the housing industry's spin that people "better buy now or be priced out." Add to that, toxic loans, mortgage fraud, "flippers," and shoddy new construction, and it was no surprise that consumer advocates and others predicted this result years ago. Unfortunately, the industry denied anything was wrong with this, and law enforcement didn't pursue crooks when it was "just consumers" getting harmed. Home buyers who reported mortgage fraud were told, "It's a civil matter--get a lawyer and sue." Many could not sue, because of the unprofitable nature of such cases for law firms, or the arbitration clauses in contracts that prohibit suing. Arbitration also hid numerous complaints by keeping it out of public record. But, when banks and investors got hurt, suddenly more interest was taken, and now the govt is stepping in, when it will probably do no good for consumers anyway. The govt doing anything after the fact just sends the message that it's ok to commit crimes and manipulate the economy (to the nation's detriment), as long as it's the industry doing it, not individuals who'd surely go to prison for doing the same damage to the country.

Note: Comments are screened, and in some cases edited, before posting. We reserve the right to reject anything we find objectionable.