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Posted by: engineer 11 months, 3 weeks ago
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engineer11 months, 3 weeks ago
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If the banks hadn't approved the loans in the firstplace, the current problem would not have happened. They counted on the value of homes constantly going up and those who could not afford the homes to increase their mortgages to keep paying the bank outrageous interest and fees. The banks greed backfired. The banks should have said NO!!!
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Jeboba11 months, 3 weeks ago
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and then Bush kicked it over the edge in 2002.
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White House Release:
http://www.whitehouse.gov/news/releases/2002/06/20...
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Endoscopy11 months, 3 weeks ago
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They had no choice as the CRA as amended by a lobbying effort by ACORN starting in 1990. In 1992 they achieved their goal and CRA and some other banking rules were modified. These changes went into effect in 1995. Banks were rated on their compliance with CRA. If they did not have a good enough rating they were prevented from expanding etc. Therefore as time went on the better able poor got the loans first. Then the less able were given the loans. Bad loans were given in order to comply. These were a cost of doing business. The problem was that when the foreclosures started increasing in 2006 it made a problem in the housing market. Too many houses on the market because of the foreclosures and prices started falling. Builders did not realize what was happening quick enough so there was a glut on the market. The housing bubble burst and the financial mess we are in came to be.
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CRA created under Carter for minorities.
CRA amended under Clinton and other banking changes were made.
Went into effect 1995.
2003 through 2006 Republicans tried to fix Fannie Mae and Freddy Mac but Democrats stopped any fix
Thank you for this mess Democrats.-
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wtagg11 months, 3 weeks ago
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They had no choice? That's pretty funny.
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Then the democrats get credit for the housing boom and the low rates that occurred during that period. Back earlier in this decade, the republicans hurt their hands congratulating each other for the very thing you are attempting to blame the democrats solely for.
Take a look at the Gramm-Leach-Bliley bill of 1999. Another bill applauded until just recently.
What you are asking for is more regulation. How liberal of you.
"2003 through 2006 Republicans tried to fix Fannie Mae and Freddy Mac but Democrats stopped any fix"
Provide some evidence where the democrats solely prevented this from occurring.
Plus, there is no empirical evidence that anything the republicans had planned would have prevented what occurred. What your narrow tunnel talk show entertainer vision prevents you from seeing is that this was much more than fannie and freddie. It was the breath of the entire market of pursuing a more risky business model than what was possible before all the deregulation was established. The whole market became one of speculation.
Deregulation, just like regulation, comes with a price. A free market allows businesses to do what they want. It shouldn't be a surprise when the early risks that are taken provide a larger return, that larger risks are taken to provide an even larger return. Eventually, the risks come back to bite one's hand. -
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Jeboba11 months, 3 weeks ago
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YOU ARE SO WRONG! A bipartisan group tried to fix Fannie and Freddie in 2004 but it was resoundingly voted down by the REPUBLICAN controlled congress.
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Do your homework. Stop listening to the right wing bullcrap!
Bush also pushed it off the edge in 2002. Read this:
http://www.whitehouse.gov/news/releases/2002/06/20... -
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TFLComment removed: Hard Banned
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Jeboba11 months, 3 weeks ago
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It was somewhat under control until George Bush pushed it over the edge in 2002. READ THIS OFFICIAL WHITE HOUSE NEWS RELEASE!
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http://www.whitehouse.gov/news/releases/2002/06/20...
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