THIS particular thread addresses ONLY the CRA, Freddie, Fannie and the rest of the mortgage-loan fiascos which account for 90% of the economic crisis and even the fundamental causes even of everyone’s, including AIG’s, failed investment portfolio.
“THIS particular thread addresses ONLY the CRA, Freddie, Fannie and the rest of the mortgage-loan fiascos which account for 90% of the economic crisis...”
Didn’t bother to read the link, did ya.
Okay, then. We should be talking about Bush because he was eyeballs deep in this mess.
Does the Partnership for Prosperity Agreement (with Mexico) ring any bells?
How about the New Alliance Task Force?
These were both about getting millions of Mexican illegal aliens into the US banking and mortgage market using Fannie and Freddie-backed loans.
While it is true that the Democraps created and implemented these programs, only American citizens were allowed to participate.
Bush's above named programs opened these programs and the entire US banking system to any Mexican illegal alien possessing a Matricula Consular ID card.
Bush didn't force the banks to open their goods and services to illegals. The banks wanted to pursue that market segment and made sure to back the man who would implement it for them.
Here's small peek into what Bush wrought:
In 2004, Wells Fargo reported that they had signed up 400,000 new Matricula Consular accounts and at the time were opening up 22,000 new accounts a month. Keep in mind this is just Wells Fargo. This does not include BofA, Citibank, Chase, WaMu, etc. It also does not take into account that sub-prime lending would not reach its peak until 2005-2006.
The IRS says they've issued over 11 million ITINs since its inception. Mexico says they've issued over 5 million Matricula Consular cards.
If you're going to talk about the mortgage mess, then you absolutely need to be including Bush in the discussion because excluding him leaves out a big chunk of the problem, which he, himself, helped cause.
If you'd like the complete picture, see my FR home page.
You want some really scary news?
The P4P and New Alliance Task Force also opened the US commercial banking and mortgage market to Mexican illegal aliens.
That turd will start stinking really bad this summer.
Question: How have the regulations and practices (except suspension of mark-to-market for a while) that brought about these loans and derivatives been changed so that the situation cannot happen again (i.e., ‘bailouts’ and other money for Fannie/Freddie/banks/investment houses)?