I gave a lengthy expose on this on these Free Republic pages almost two years ago and most of you wouldn’t accept that back then, coming back with the same Economics 101 pap the President spouted on Sept 24th.
The start of the subprime foreclosure crisis that has now snowballed to this global panic was the subprime loans given to illegal aliens, and the legal landlords of illegal alien dormitory houses.
If you compare the houses going into foreclosure in 2007 and early 2008 using the accurate data of foreclosures from Realtytrak.com and several others against the demographics of illegal aliens as presented by the Pew Hispanic Trust data, you will find a near perfect match down to the ZIP code - the nine-digit ZIP code, which means the neighborhoods. The few deviations were in states where anti-predatory lending laws restricted subprime lending with teaser entry rates and exponential ARMs.
Bottom line, unrestricted subprime loans to the illegal alien population of 12, 20, maybe 40 million illegals needing housing over the last 7 years (that’s the size of New York State or Texas almost overnight) was the necessary bottom of the Ponzi pyramid that is our current crisis. All those clever “instruments” - CDOs, bonds, traunches - needed mortgage paper to build the Ponzi pyramid on, and the illegal housing market was their manna from heaven (or better, Latin America).
But no pandering politician wants to admit that their open borders and amnesty schemes would have any consequences. The Dems wanted the new Hispanic voters, and the RINOs wanted the cheap labor. America be damned.
And your next president is promising to keep pandering while you suckers pay a new tax of at least $2700 for everyone in your family so the Wall Street guys can enjoy their $40 million golden parachutes.
The start of the sub prime loan fiasco was when Clinton changed the loan standards to help the CRA program. Some of those that initially benefited very well could have been illegals, some were minorities, some were just poor. To say the entire problem was started by loans to illegals is just not accurate.
The CRA program had honorable goals, it just got out of hand and the Democrats were blinded to any problems out of fear it would hurt the CRA. Once companies realized a lot of money could be made doing these risky transaction the loans were made not only to the poor and minorities but anyone trying to make a quick profit. One of the big issues with this is the cover up and denial of problems by democrats when attempts were made to stop this problem.