Posted on 08/27/2010 7:06:17 AM PDT by cycle of discernment
"Brad" commnets:
Below is a brief history of why the housing bubble burst.
» 1977: Democrat Jimmy Carter signs the Community Reinvestment Act, guaranteeing home loans to low-income families.
» 1999: Democrat Bill Clinton puts the CRA on steroids by pushing Fannie Mae and Freddie Mac to increase the number of subprime loans.
» September 1999: The New York Times publishes an article headlined "Fannie Mae Eases Credit to Aid Mortgage Lending," which warned of the coming crisis due to lax lending policies of the Clinton administration.
» 2003: The White House calls Fannie and Freddie a "systemic risk" and the Republican Bush administration pushes Congress to enact new regulations.
» 2003: Rep. Barney Frank, D-Mass., says Fannie and Freddie are "not in a crisis," bashes Republicans for crying wolf and calls F&F "financially sound." Democrats block Republican-sponsored regulation legislation.
» 2005: Federal Reserve Chairman Alan Greenspan voices warning over F&F accounting, saying, "We are placing the total financial system of the future at a substantial risk."
» 2005: Sen. Charles Schumer, D-N.Y., says he thinks F&F "over the years have done an incredibly good job and are an intrinsic part of making America the best-housed people in the world."
» 2006: Sen. John McCain, R-Ariz., again calls for reform of the regulatory structure that governs F&F.
» 2006: Democrats again block reform legislation.
» 2008: The housing market collapses; Democrats blame the Republicans.
(Excerpt) Read more at washingtonpost.com ...
self ping
That’s about the size of it.
Why the GOP hasn’t been shouting this from the rooftops is beyond me.
BUBBLE BUST BUMP....
Not quite. Artificially low interest rates were gasoline on a relatively small fire.
Can you please put the entire chronology on the Free Republic page? I haven’t the faintest idea where to look for the post starting at the WaPo front page.
“Weaker-than-expected July orders for long-lasting U.S. manufactured goods suggested a slowdown in manufacturing and new U.S. single-family home sales unexpectedly fell in July to their slowest pace on record.”
Meanwhile the liars continue to figure and the figures continue to lie as long as they can. When the bond rating drops and interest rates reach a Carterian 20% will the press admit that this arrogant POS in the WH does not know WTF he is doing? Or, worse, that he DOES know WTF he is doing?
Because while, institutionally, the Democrats were behind the mortgage excess, there were many Republicans on the bandwagon also. Lots of them Senators, probably many of them conservative. They, too, want to keep their seats.
Remember, first and foremost, they are all politicians.
They clearly are suicidal. There are a number of things they just let go by. The myth of the Clinton surplus, for instance. I sometimes don’t think the Republicans are really on our side.
It was a random comment to an article in the post, I’ll try to find the exact page link for you...but this is the comment in it’s entirety.
2007 Franklin Raines takes 90 million dollars in a bonus.
“Conservatives - doing the job the RINO/GOP won’t do” ping.
They left out the Clinton-Reno press conference where Clinton said that any lender who failed to adhere to the hugely, newly-expanded CRA would be prosecuted to the full extent of federal law.
Good one!
Agreed on the gasoline, not on the size of the fire.
I will say some of the issues with the housing market were also a more liberal policy. For example Greenspan kept the int rates too low causing housing inflation, Bush himself said he wants everyone to be able to buy a house, so the subprime loans (which no democrat complained about) as well as below market int rates fed into the mess we have now.
Because when the controlled both the White House and both houses of Congress they failed to change it.
later reference
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