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Originally Posted by brewer12345
So, someone put a gun to their head and told them they had to borrow all that money?
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If a lender lies to or misleads a potential borrower then the lender has to take some part of the blame when the loan goes bad. I was surprised to learn that many of these subprime mortage lenders are not under regulatory jurisdiction of the FDIC, only the state. In Colorado the regulations are very lax.
Here's an interesting article by a conservative economist about the wider implications.
http://www.rgemonitor.com/blog/roubini/185098
Justin, I wouldn't rest too easy just because you don't have a mortgage problem. If this mess gets worse and we end up in a recession, it can bite you in the a** in many unexpected ways.
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