The way we ended up in the subprime crisis was Congress passed what I think was called “the fair housing act.” It forced banks to end their practice of redlining, wherein some neighborhoods would not receive loans because the payback was negative. As it turned out, these districts were largely black owned and operated. Congress incentivized banks to loan to bad credit risks by buying and bundling the loans into something called derivatives. Only a small percentage of these loans went bad, but due to the leverage of the way they were packaged and resold it resulted in the 2008 housing crisis. Now they are doing something similar with a different agency. Madness is doing the same thing and expecting different results. Communism is doing something you know will end badly just to bring down the system. This is communism.
Zackly —
instant replay and the banks will abscond with 1/2 of your money above 10k.
no, NO and Ef NO.
The only good Communist is ...
Even worse, after the unqualified “preferred minority” borrowers defaulted, the banks were accused of deceiving them into borrowing the money - the unqualified borrowers were portrayed as victims TWICE.