The 1995 Community Reinvestment Act (left wing) forced banks to give loans that could not be paid back. Freddy and Fanny (left wing Socialist organizations)then bought those tax payer backed loans.
The government then buys the loans with taxpayers money, and there’s a left wing take over of the housing industry - right under our noses.
See http://www.youtube.com/watch?v=exxVZTKq1vA
See also http://www.youtube.com/watch?v=1RZVw3no2A4 for a really good 10 minute video about the problem.
—1993 and 1998, 467 billion dollars in mortgage credit flowed” “CRA mortgage loans increased by 39 percent..Other loans 17%”...:”
Phil Gramm wanted expand the number of banks which no longer would be covered by CRA.”
Dems didn’t...the comprimise with Dodd and Clinton was....CRA would cover the bank expansions...
Clinton on the Community Reinvestment Act: “as we expand the powers of banks, we will expand the reach of that act.”
http://www.treas.gov/press/releases/ls241.htm
One must recognize the underling problem, though...and that is we have faulty instruments for MBS (mortgage backed securities)...it doesn’t help that dems pushed CRA on the economy...but it certaintly would have been better if we didn’t compromise with the dems in the first place.