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To: Tau Food

You just have no idea what you’re talking about if you don’t think the feds were coercing banks to make bad loans. W’s big pushes included increasing zero-down mortgages and increasing minority home ownership. So he added on to then in-place bad policies and did nothing to unwind them:

http://www.nytimes.com/2008/12/21/business/worldbusiness/21iht-admin.4.18853088.html?pagewanted=all&_r=0

http://georgewbush-whitehouse.archives.gov/infocus/achievement/chap7.html

http://isteve.blogspot.com/2008/09/2002-bushs-speech-to-white-house.html


26 posted on 12/08/2012 12:08:30 PM PST by 9YearLurker
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To: 9YearLurker
I think you need to read your own sources.

Bush never forced any banker to make any loans. Bankers made loans (and made loans they later acknowledged were risky) because they were able to sell those loans to Wall Street firms who securitized them and sold them to invetors. Wall Street was able to sell them to investors because rating agencies labeled many toxic securities as AAA investment grade securities.

From top to bottom, those participating in that sales chain did so because their activities were profitable. As long as they were paid to rate crap as AAA, the rating agencies labeled crap as AAA. As long as rating agencies labeled crap as AAA, ignorant investors would buy that crap . As long as investors were willing to buy securities, Wall Street was willing to create and sell them. And, as long as Wall Street would purchase loans, lenders were willing to create them.

See if you can find one banker in this country who will say that Bush forced him to make any loan, ever.

34 posted on 12/08/2012 1:40:55 PM PST by Tau Food (Never give a sword to a man who can't dance.)
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