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Class envy is in play here, though. I don’t think the government should bail anyone out. On the other hand, how are sub-prime loans “sleazy” when a good-sized portion of the population would never get a loan without them? Do we really want to go back to requiring sterling credit and 20% down on all mortgages? If we do, there will be far fewer homes bought and sold in this country, and the economy will no doubt tank.

On the other hand, how are sub-prime loans “sleazy” when a good-sized portion of the population would never get a loan without them? Do we really want to go back to requiring sterling credit and 20% down on all mortgages? If we do, there will be far fewer homes bought and sold in this country, and the economy will no doubt tank.

Exactly. Easier loans are good for the little guy (remember what made Jimmy Stewart a good guy in "It's a Wonderful Life"?). But somehow they become "sleazy" when... um... too many little guys can get them. Or something.

I don't even begin to understand the dynamic at play here. How did so many people on the left get to a place where their main refrain is that loans are "sleazy" and money should be tightened up so that the little guy has a harder time buying houses? One can only conclude that the left becomes angry if "too many" people have houses. Or... the wrong kind of people? Or what?

I don't know, but I do know there are some really ugly emotions at play here.

Yes, we should go back to the good old days when people had to put 20% down on a house in order to get a mortgage. Credit has been too loose for quite some time now. The fact that people could buy houses and put almost no money down has fueled the insane rise in housing prices. A person who cannot put money down on a house really cannot afford to a buy a house and, therefore, should not be given a loan to do so.

This is a much-needed correction to the real estate market and it should be allowed to continue. Eventually, the economy will be stronger for it and housing will become more affordable for the average person.

If your financial situation is such that you cannot be confident that you'll be able to pay your mortgage, then you have no business getting a mortgage. You should instead either defer buying a house until you get into better shape, or buy a smaller house (or condo), build up equity, and then trade up.

how are sub-prime loans “sleazy” when a good-sized portion of the population would never get a loan without them?

A good-sized portion of the population is not credit worthy and should not get a loan.

Do we really want to go back to requiring sterling credit and 20% down on all mortgages?

Not necessarily sterling credit, but good credit. Not necessarily 20% down, but maybe 10%.

“Do we really want to go back to requiring sterling credit and 20% down on all mortgages? “

YES!

DUH!