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To: cynwoody

“The financial crisis was caused by the US Government in an effort to buy votes and further the prospects of the the Democrat Party and Progressivism. “

Convenient story, not accurate. The private financial sector lobbied hard during the Clinton years to be allowed to get into the lending that generated the bubble. They cultivated the subprime market without being compelled to make those loans in the slightest. Only commercial banks were covered by the CRA.


41 posted on 01/10/2014 11:46:15 PM PST by Pelham (Obamacare, the vanguard of Obammunism)
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To: Pelham
They cultivated the subprime market without being compelled to make those loans in the slightest.

They needed a buyer for their garbage loans. The USG provided that buyer, the ultimate "greater fool", in the form of the government-sponsored enterprises, Fannie and Freddie. Without that backstop, the mortgage-lending cowboys would have crashed long before they actually did and without the far-reaching consequences.

A healthy market would have kept the cowboys in check. But a healthy market was contrary to Progressive policy.

43 posted on 01/11/2014 12:43:08 AM PST by cynwoody
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