Posted on 12/20/2008 12:03:06 PM PST by CalifScreaming
Just how did Americans come to lose $10 trillion in real estate and stock wealth?....And it was Clinton who initially spread the subprime rot to Wall Street. To help Fannie and Freddie reach their "affirmative action" lending quotas, HUD in 1995 let them get affordable-housing credit for buying subprime securities that included loans to low-income borrowers.
Less than two years later, Freddie partnered with Wall Street investment banker Bear Stearns to issue the first securitizations of low-income CRA loans.
There's even a press release still available on the Web that memorializes the historic deal, which dumped hundreds of millions of dollars in the risky loans on the market — a down payment on the hundreds of billions that were to follow.
(Excerpt) Read more at ibdeditorials.com ...
Look...the Mainstream Media is NOT going to cover this...so it must not have happened.
Hell...they are still advertizing 97.5% financing...go figure.
Carolyn
No one should ever have been able to get those loans past/present/or future.
Have good credit eith at least 20% down or no loan for anything.
If you don’t pay your credit card bill in full every month cancel their credit card until the entire bill with interesr is paid.
Already posted and whoever wrote it is Dumber than a coal bucket and living in never, never land with jackson.
Facts won’t change mindsets. In an age when people gather in blizzards to protest global warming — how can you expect them to believe that forcing banks to give mortgages to all comers could cause problems?
The current financial mess was caused by government interference with free market capitalism, and now the central planners are using more government intervention to supposedly fix the problem.
The primary blame belongs with the Democrats (aka Socialists), but the Republicans have aided and abetted the crimes committed by just going along. The same thing is happening right now with the Socialist Security, Medicare and Medicaid systems, which are financial time bombs destined to undermine freedom. At some point there will not be enough taxpayers to pay for all this idiocy, and the money printed by the government will be next to worthless.
There is such a thing as normal foreclosure are default rate. If what you think is true, was true, the rate during say 2000, 2001, 2002, 2003 would have been higher than the normal, they were average. Next conspiracy theory please.
Yeah, how did that happen... lets say 1,000,000 people defaulted on their home loans all at once at an average of $250,000 a piece.. that’s $250 billion, if they all defaulted in the first month without ever having made a payment.
$10 trillion and counting. Amazing what people with subprime credit can do when they put their minds to it. /sarc
ping
Then please explain how this thing happened
This is old news. Affirmative action in lending turned out to be a disaster. But most people won’t know it or believe it until a REAL leader has the guts to take on the MSM full bore and expose them for the limp-wristed elitists that they are.
Because org.whodat is a troll and a Left-wing shill.
See the previous posting for details.
He's trolling on this new posting.
Great post. IBD scores again!
Ah, so. Thanks.
The question is itself part of the delusion. Those prices only existed, briefly, because they were artificially inflated by a bubble created by business and government misbehavior.
There has been some real wealth lost, but most of that $10T was never anything but an illusion. But people insist on talking about it as if it is real wealth that was lost.created by business and government misbehavior.
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