Wednesday, March 28, 2007

Who's To Blame for the Housing Bubble Fiasco

One of the big questions is who is to blame for the housing bubble fiasco.

Here is my list [it is not in any particuar order]:
  1. Greenspan & The Feds for the cheap money supply (low interest rates, for too long)
  2. Parts of the Real Estate Industrial Complex for cheer leading the housing bubble (David Lereah, Gary Watts etc.)
  3. Irresponsible & crooked lenders for lending to people who can't afford it.
  4. Appraisers over inflating housing unit values.
  5. Speculators & Flippers ( for being greedy and fueling this mania)
  6. Some home buyers (non flippers & speculators) for buying beyond their means and being ill informed.
  7. Parts of the Media for not informing the public about this issue sooner (finally they are communicating this)
  8. Fannie Mae & Freddie Mac for bundling up risky loans
  9. Asian Central Banks & others for buying all these risky bundled loans
  10. Others ( yet to be determined, please discuss)