Both government and bank should be blamed. Bank did not evaluate borrower well. Government did not stop bank.
Updates from Tuesday 29th October, 2013 Toggle Comment Threads | Keyboard Shortcuts
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Yanqi Wang
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danielleyallouz
The banks fault because they are lending out money at high risks, they weren’t certain if the people could pay it back/couldn’t afford it.
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admin
Banks loaned money to those who couldn’t pay back mortgages.
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shawnwu
1.）Banks – no proper screening before giving out loans, mortgages.
2.）Government-fed keptinterest rateso low so that it encouraged gambling -
fraserdenton
banks approving high-risk loans, both banks/customers entered debt since people couldnt pay back the money/banks could not sell houses
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jian(Jane) zhang
Ultimately banks and the financial mangers are to blame for the inability to foresee the consequences of over-lending money to the market.
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theochapman
The banks were not doing a good enough back ground check on the people they were lending money to. Banks were too eager to lend out money.
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rebeccaketler
the banks were lending money to people with bad credit ratings. People defaulted on their mortgages and credits. Banks were greedy.
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Mikhail Golovanov
People who borrowed the money – they borrowed the money without being able to pay it back. But basically everyone is to blame
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avijitsingh
The govt pushed banks to loan to everyone
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dandan zhang
bank
bank didn’t give loan to people depending on their pay back ability -
cicisong
People
1. borrow too much money without knowing if they are able o return
2. not responible about the money they owed -
haochang
Bank is too positive about people’s abilities to pay back their loans in the future.
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Yihan Xu
bank:
low interest rates put out by the banks encourage spending, thus banks are giving out and people spending more money than affordable -
Yiling Zhao
Even though banks know that people may not be able to pay back, they still give the loan.
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Huan Yan
It is the banks that approved the lending of massive amount of loan to borrowers who were unable to repay. More credit check needed!
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yenalee
Issuing credit default swaps: people take out bonds on the bet that companies will fail in order to receive insurance
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charlottechase
banks and money lenders who gave out subprime mortgages resulting in massive defaults
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Sarah So
Banks are to blame because they lent money that they didn’t have in the first place. Everyone else also has responsibility
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zhaopeng
Bank: should evaluate the borrowers’ ability to return the money.
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Yash Multani
The banks started lending money to people they knew would not be able to pay it back.
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amynixon
Banks shouldn’t lend money if the people can’t pay it back, people shouldn’t borrow money if they can’t pay it back. Everybody is involved.
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charlespan
Banks lends out money without security to pay it back.
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Teodor Karov
The crisis was caused by the banks, who attracted potential users with lowered interest rates, and offered loans to people with poor credit
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Matt Harnett
The banks provide low interest rates to the consumers and then they are stuck with loans they can’t pay off.
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turato
Banks loaned out money to (low-income) people who wanted to buy houses without properly screening them and then sold the mortgages to firms
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shomasmah
banks fault- They were loaning money to everyone, and the loans were not paid back.
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georgeguo
Banks are the ones to blame because they didn’t realize the risks behind lending money to people already in debt.
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avijitsingh
It happened partly because derivatives exploded uncontrollably, congress allowed people to give mortgages to those who were not doing well
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Zi Hang Lei (Jeffrey)
Excessive borrowing due to low interest rate, and borrowers can’t pay back. #blameeverythingtogovernmentandbanks
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