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.
I agree with all of that, except - it all started with CRA.
CRA started a dominoe effect.
As usual with liberal meddling - something is done in the name of compassion and unintended consequences wind up hurting more people in the long run.
CRA is government regulation.
FannieFreddie encouraged the mortgage guys w/ their false claims to great revenues.
Turns out Wall Streeters weren’t the only ones interested in mult-million dollar bonuses.
So Fannie Freddie gives a false illusion of safety - semi government backed - misleading the investors.
It’s a virus that infects the whole system.
It all started w/ the government - perpetuated by the government. And the crooks are still trying to “help.”
SW - who still likes you, and is going to bed now if you don’t want to answer right away :)