bostonbubble.com

[news]

Use this forum thread to discuss the following link.

Description: Buyer fraud rampant in bubble-time purchases - 15-20% of counseling cases in LA involve fraud, Boston analyst describes straw buyers
URL: http://www.reuters.com/article/domesticNews/idUSN2037615020080305?pageNumber=1&v ...truncated...
Info/Broken?: http://www.bostonbubble.com/link_info.php?id=1530

Subscribe to New Links: RSS Feed
Suggest a Link: Reference Suggestion Forum

[admin]

Thanks to the Bubble Markets Inventory Tracking blog for pointing this out:

http://bubbletracking.blogspot.com/2008/03/news-flash.html

- admin

[JCK]

Buyer fraud + lender complicity.

If I leave a GPS in my car with the door unlocked, I shouldn't be terribly surprised if it gets ripped off.

This doesn't in any way excuse the thief's behavior, but if the GPS was the one you lent me, you probably could sue me as being negligent (a reasonable person would know that you have to hide GPS and lock the door).

If you make it too easy for people to take out huge loans with no verification, you have to expect a small percentage will take advantage.

[admin]

I totally agree. The lenders were enablers. They are especially culpable because they encouraged reckless borrowing on loans that they knew they would not be holding and that they had been entrusted to make for others. They collected their fee for making the sale and turned around and resold the loans right away.

- admin