by RubyUnicorn

Created on: January 31, 2009   Last Updated: April 09, 2009

The housing bubble was NOT caused by the poor. Since home ownership is considered part of the American Dream, I think one must first think about what the word "dream" means. It means that a person works hard, saves their money, and some day is able to own their own home. Sometimes in life, dreams do not come true. Life in and of itself is a difficult, sometimes painful, and often a hard road to travel. There are some who want us to all believe that life is nothing but hearts and flowers and filled with warm fuzzies. That is not being realistic. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /

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The housing problem was caused by both predators and prey alike. There were unscrupulous lenders who convinced "prey" that they could afford a home well outside their means and income. The main absolute cause was not the lenders or the people buying, it was our own government with Rep Barney Frank, Senator Harry Reid, and yes then senator Barack Obama who felt that banks and lending institutions should and must give loans to those who were not ready for the responsibility. Because these "predators" were legally forced by the government to make these loans available, it caused an abnormal rise in home ownership. It is actually worse than that; Rep Barney Frank was in deep with Fannie Mae and Freddy Mac, as was Barack Obama. Barney Frank knew it was about to collapse, he knew this people. He did nothing. Even worse, he went out and told the American people that everything was just fine and that there were no worries. In my opinion, Mr. Frank should be prosecuted for what he did or didn't do.

Look at it this way. I am 45 years old and I still do not own my own home. My husband and I want to purchase a home, but we know that we have to be able to financially afford one in the right price range. No money down is a very good thing to have for a home loan; however, I would never ever purchase an item of such massive price without a fixed interest rate for the life of the loan. That is sheer nonsense. I would never allow balloon payments or interest only loans as well. I do not have much home buying savvy, but at least I know this. Those who bought homes like this did not do their "homework" sort to speak.

One couple the main stream media tried to use as their poster family to prove predatory lending; was a couple that lived in New Jersey. They wanted to have the American Dream and own their own home. House prices in New Jersey at the time were over

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