“The de-regulation crowd pushed like heck to make it easier for mortgage bankers to process mortgages with less regulation.”
Hello there parsi!
Could you please tell me who these de-regulation folks are?
From my understanding it was the government regulations that forced banks into a situation where they had to loan to certain groups else be accused of things like “redlining”.
In fact - a younger Barak Obama served as legal counsel for ACORN on the issue of redlining.
It was folks like Bawny Fwank - government regulation people - who pushed this sort of thing.
In fact - Bawny hasn’t learned his lesson. He wants Fannie Freddie to “relax” again.
As far as Wall ST. - their largest contribution as far as I can tell would that nasty little thing called the credit default swap.
SW - who really thinks the people running the show actually belong in jail.
Oh darn, now you’re jumping on me too! I can’t type fast enough to keep up!
Anyway, the CRA mandated more loans in poor areas, if possible, so credit restrictions were loosened. The poor folks paid their bills, so loans to the wealthier were also loosened. This turned into a debacle.
Frank did push for loosening, but GOP was all for it too. The mortgage guys didn’t give a crap because they were making commissions on the packages and probably getting kickbacks.
Credit card companies were practically given carte blanche (Spanish for a “white cart” which is what rich folks in Spain used to have because they could afford paint whereas the peons could not afford paint due to the inequities inherent in the unregulated capitalistic system. ) with bankruptcy reform wherein less poor victims of the legal loansharking could resort to bankruptcy.
parsy, who hopes that answered it.