The Republicans are wimps for not letting everyone know what was going on. Please NOTE the connection to Community Organization in pushing these bad loans.
Now I know why BO doesn't talk about his CO days. He was peddling this financial bilge to the market.
Yup...After five years, they sold out....making a $50,000 profit. Nice country, this America.
Why McCain’s people are not pounding this is just beyond me. Are they deaf, blind and dumb ?
CRA pushed "Ninja" loans.No income, no job, no assets
Guess why they failed !
Some wags on the net think this was done deliberately
by the Democrat Party(Marxist/anarchists) in order to seize power.
“The Republicans are wimps for not letting everyone know what was going on.”
The Republicans, and especially W and his administration, spent a good deal of time bragging about the “ownership society” and the increase in minority home ownership during his administration.
This article might correctly describe part of the problem, but deregulation that has allowed more and more speculation based on tiny margin requirements. And the above mentioned Phil Gramm could well turn out to be a “star” in a way he might not enjoy.
Both political parties played a big role in this crisis, as well as the financial community itself. There will be plenty of blame to go around, and new world records set for finger pointing, dodging responsibility and excuse making in DC.
This is exactly what I said, yesterday. The cause of this mortgage crunch can be traced to the community activism groups, like ACORN (probably the largest). This all started as a type of affirmative action in the mortgage market.
Politicians on both sides were jumping through hoops to to please these people, for fear of being called racists. Congress passed laws to force banks to offer mortgages to unqualified, low income home purchasers, in order to get permission to expand. Then when the loan market seemed to slow down, they passed another law to allow the expansion of the credit market into the insurance industry and facilitate bank mergers and buy outs.
Bush was at fault for expanding these housing loans even further under the banner of “compassionate conservatism”.
This gov’t involvement in banking and insurance is not even socialism. It is fascism, pure and simple. It is government
interference and regulation in private industry,to the benefit of politicians and favored businessmen (Franklin Raynes comes to mind).
That’s part of the problem. The other part of the problem is the irresponsibility of Washington politicos, some of whom are looking for work in the Obama Administration.
bump
I was living in the Charlotte area in the late ‘80s-early ‘90s and NCNB was one of the first and largest banks accused of “redlining”. This post sparked led me to google “ncnb redlining” and this popped up: http://lists.cohousing.org/archives/cohousing-l/msg00082.html
I found it quite intresting to say the least
reference ping
Obviously the banks had created or found a secondary market for all of these mortgages. Wall Street figure out how to package them (put lipstick on a pig) and sell them.
When you have thousands of companies and banks competing with each other for the closing fees while at the same time you have unlimited funding - you have a recipe for millions of sub prime loans.
Bump for the smartest article on the economy.