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[bob ford <bobford79 AT yahoo.com>]

That is a good video explanation of 'one' of the causes of the housing 
bubble.  But the narrators conclusion that the realtors are the sole cause, 
and that the banking enterprises are blamesless ,is just plain wrong.

he's right, the bankers didn't show the customer the house, they didn't sell 
the customer the house.  But, the banks make the rules.  If the realtor 
'salesman', is aware that his customer can not qualify for a more costly 
house --that no banking institution will buy the paper-- then , then salesman 
is not going to waste his time showing that house; there would be no 
commission.

I'm not that fond of realtors, as a group. Thought I have met and done 
business with some fine individual realtors.  The fact remains, the person 
(the bank) who 'buys the paper', does set the rules.  And, the derivative 
bomb, was just a d*mn scheme, for hedge funds and investment banks to 
multiply profits off each (including the badly papered) sale.

When I bought my house, my realtor was a true professional.  I qualified to 
buy a much more expensive house than the one I bought.  But, my wife had 
found the house we liked , in the right neighborhood; at a price I told her I 
was willing to spend.  There were things other than paying for a house, for 
which I wanted to allocate funds.  

The realtor didn't try to push a more expensive house on us even though the 
banks would have bought more paper.  And, when I bought this house , banks 
were much more careful with lending practices.  During this bubble, banks let 
realtors know they would buy almost anything.

  Realtors are professional salesmen, not professional baby-sitters.  They 
sold as much as they could to make the biggest possible commissions; but only 
because the banks let it be known that they were buying all paper.....bobford




--- On Sat, 10/18/08, Clansgian AT wmconnect.com <Clansgian AT wmconnect.com> wrote:

> From: Clansgian AT wmconnect.com <Clansgian AT wmconnect.com>
> Subject: [Homestead] How Realtors Destroyed the Economy
> To: homestead AT lists.ibiblio.org
> Date: Saturday, October 18, 2008, 7:08 AM
> It was just a matter of time until someone said it:
> 
> http://uk.youtube.com/watch?v=Hv9hSLtEwOM
> 
> (It's a YouTube video, so 'caveat miror' for
> dial-ups)
> 
> 
> James
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