yes! u can possibly say that. right after the point when the IT bubble burst around 2000, greenspan lowered interest rates to 1%. many many people begain purchasing luxury houses, cars, things they couldnt afford. they bought houses with adjustable rate mortagages. Which meant that at that point their had low mortgage payments because the interest rate was low but anyone that thought that interest rates were going to stay that low deserves to go bankrupt. interest rates never stay that low and the only reason they were 1% was to spur investment. so yes, people 'magically' decided to get houses. before u start agreeing with people on the causes of this recession u should do ur own research. if u think this is only the fault of the bankers and not the taxpayers, then u are really in for a surprise.
Im speaking based on personal experience... yes interest rates were low and yes people were stupid to think they would stay that low... but they had to get that idea from somewhere.... maybe someone who would benefit from selling loans, selling houses, selling cars....
.... i dont think if they know what the consequences were they would have gone through with this... whos job was it to explain this to the customer? What do you do when you want a house and you have ur banker, and agent convincing you that this is ok, interest rates will stay like this, and you can refinance in 6 months to a year?
Yes they didnt have to listen, but who would they rely on for advice on this other than their banker and realtors.... who was supposed to provide correct information?
....based on the situations i have seen a lot of this was caused by bankers... im not sure about ur personal experience or research...
... if a child that doesnt know any better is given alcohol by an adult that knows he is wrong.... the adult is at fault, not the child.
It is the responsibility of the banker to fully explain the product he is selling along the consequences or advantages that may come along with it.