GREED



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  • Greed is the great motivator of the economy.
  • Greed is what Alan Greenspan thought he understood but apparently he did not. The greed of investors at all points of the chain of destruction is what brought the economy to its knees.

  • The root cause of our current economic crisis can be summed up in one word — GREED. Over the years, mortgage lenders were happy to lend money to people who couldn’t afford to pay their mortgages. But they did it anyway because they were greedy and they had nothing to lose. If a borrower couldn't afford to pay their mortgage the lender didn't care, they were able to charge these borrowers higher interest rates and make more money on these loans which were called sub-prime loans. If the borrowers defaulted on the loan the lender still didn't care, they simply foreclosed on the house and put it back on the market to re sell.

  • The whole thing was one big scheme. Everything was great as long as houses were selling while their prices and their values continue to go up. Lenders made it easier to borrow money, and the higher demand drove up home values.

  • Some home buyers bought houses they could not afford, some bought a house just so they could turn around and re-sell that house and make a profit. These are called flippers.

  • There was greed at every turn and profit at every turn, but what goes up must come down.