Posted on 09/15/2008 5:21:16 PM PDT by Kaslin
Big Government: Barack Obama and Democrats blame the historic financial turmoil on the market. But if it's dysfunctional, Democrats during the Clinton years are a prime reason for it.
But it was the Clinton administration, obsessed with multiculturalism, that dictated where mortgage lenders could lend, and originally helped create the market for the high-risk subprime loans now infecting like a retrovirus the balance sheets of many of Wall Street's most revered institutions.
Tough new regulations forced lenders into high-risk areas where they had no choice but to lower lending standards to make the loans that sound business practices had previously guarded against making. It was either that or face stiff government penalties.
The untold story in this whole national crisis is that President Clinton put on steroids the Community Redevelopment Act, a well-intended Carter-era law designed to encourage minority homeownership. And in so doing, he helped create the market for the risky subprime loans that he and Democrats now decry as not only greedy but "predatory."
(Excerpt) Read more at ibdeditorials.com ...
Read all of this one first...
http://article.nationalreview.com/?q=NDA4YTY1N2ZhMDhmNjIwNTk4OTI2MDYxZWU4NDg1Y2Q=
I think Bush should address the Nation from the Oval Office and do the FDR speech. “There’s nothing to fear but fear itself”.
Thank you, President Clinton.
Sub-prime loans to high-risk “minority” buyers.
Only Ivy League Law School graduates could come up with such a brilliant, well-conceived plan.
Well, I guess we can all say we’ve paid our reparations now, haven’t we?
Sorry, only if we GAVE them the houses now that they can't pay for them would our debt be paid.
W isn't very persuasive. He'd best keep quiet.
The MSM and NPR immediately jumped on the bandwagon. There were a few voices pointing out that a fairer metric would have been to compare the foreclosure rates for blacks and whites; that number was nearly identical. They were shouted down.
The Democrats in congress threatened to conduct hearings into the "crisis." Terms like "redlining" and "ethnic clensing" were tossed about. Bankers started to wet their pants.
Then... silence. Absolute silence on the subject.
Years go by. Then...
Subprime meltdown. Senators and congressmen getting sweetheart mortgage deals. You know the rest.
Come to think of it, the original brouhaha might have blown up when the congress was taking heat over the house bank; you remember, congresspersons going to the house post office to redeem $15K in postage stamps, week after week.
I guess idiot Obama means he's a supply sider, which W isn't anyway.
The rats and the empty suit should he; God forbid get elected, won’t rest until they have turned this great nation into a third world country
FDR he is not. Of course, FDR was the beginning of this mess but that is another story.
This policy has little to do with this housing and credit bust IMHO.
Subprime doesn’t just mean low income or minority anyway. Lots of big players have poor credit and resort to ARM’s as a way to play the market.
It is California, Florida, and Nevada that are the mortgage bottomless pits. Stockton CA has the highest foreclosure rate in the nation...not exactly a slum.
http://money.cnn.com/2008/09/12/real_estate/foreclosures/index.htm
http://www.stocktongov.com/EconDev/pages/population.cfm
The government should never force lenders to loan to poor credit risks, but low end loans aren’t behind this.
Thank unreal speculation, unreasonable appreciation of “hot” real estate, 2% prime and plain old greed for this. Not the millions of hard working people given a chance to own a home. The vast majority are making their payments.
http://www.mbaa.org/NewsandMedia/PressCenter/64769.htm
Great articles.
The Klintons were determined that people with no income and no job be allowed to purchase a home. No down payment and no way to pay the mortgage they marched us towards this meltdown.
All with the complicit approval of Alan Greenspan.
Thank Andrew Cuomo for starting all that “redlining” BS
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