I snipped this from the heart of the article:
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.
How do you fight something MANDATED by the President and makes people millions in the process? Not just the Investment banks, but loan officers, title reps, appraisers, construction, contractors, banks, underwriters, etc., etc.
The other stigma of political correctness was also used, as many of the subprime mortgages were to minorities, namely blacks and Hispanics.
There was a study in San Jose, CA that nearly 60% of all surnames in foreclosure were Hispanic, could be Filipino, but mainly Mexican.
The Left and MSM actually BLAME people for making the loans they MANDATED had to be done...oddly enough, they said these loans were predatory and should never have been made to the same credit risks you would not leave your wallet with, much less $200,000.
The Left wants Communism, plain and simple, and this is a way to centralize insurance, banking and home lending.
Please note there are many “HUB” type housing projects (rentals) near public transportation planned all over the Bay Area. Note, no home ownership and it will help the environement.
All this can be cured by common sense, but between Congress, Bush and Clinton, there is no logic. I fear an Obama presidency.