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Who caused the Housing Crisis of 2008??? Ask Slick Willy

mwg0735 2012/09/19 11:17:17

In 1999, President Clinton signed the Financial Services Modernization Act, which tore down Glass-Steagall's reforms by removing the walls separating banks, securities firms and insurers.

Under President Clinton, the government became eager to promote home ownership to Democrats. Interest rates were low, the market grew for loans to borrowers with weak credit and private-sector mortgage bonds boomed. About 38 percent of those bonds were backed by subprime loans. They are at the root of today's financial crisis.

Libritards will want to Blame Bush but you are the losers - and the country has suffered. Now we have Oslimo to deal with who is even more worthless then BJ Clinton.

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  • shadow76 2012/09/19 14:11:10
    shadow76
    +1
    That pretty much sums it up!
  • MichaelJ 2012/09/19 12:07:02
    MichaelJ
    If you take an unbiased look at the housing crisis and the reasons for it, this pretty well covers it.

    Imagine requiring that borrowers be required to actually qualify for loans!!!! This is what has amazed me since the mortage crisis began. The government goes to the banks, tells them they must start making loans to people who don't qualify for them. The banks say, fine, if you will guarantee the loans. The government says fine! We will guarantee the loans. The banks of course KNOW that these people aren't going to repay the loans which is why they didn't want to loan to them in the first place.

    Since they know those people the government forced them to loan to are going to default, they package the loans and sell them. The people buying the loans know as well as the banks that these unqualified borrowers will default but who cares, the government guaranteed the loans! It's a no looser situation.. well accept for the tax payers who are on the hook for all those loans that surprise, surprise the unqualified borrowers defaulted on!!!!

    That is where the hypocrisy of this whole scheme reached epic proportions. Politicians like Dodd and Frank BLAIMING the banking industry for what enevitabily happened and apparently everyone swollowed it!!!!!. Banks were doing exactly what bus...
    If you take an unbiased look at the housing crisis and the reasons for it, this pretty well covers it.

    Imagine requiring that borrowers be required to actually qualify for loans!!!! This is what has amazed me since the mortage crisis began. The government goes to the banks, tells them they must start making loans to people who don't qualify for them. The banks say, fine, if you will guarantee the loans. The government says fine! We will guarantee the loans. The banks of course KNOW that these people aren't going to repay the loans which is why they didn't want to loan to them in the first place.

    Since they know those people the government forced them to loan to are going to default, they package the loans and sell them. The people buying the loans know as well as the banks that these unqualified borrowers will default but who cares, the government guaranteed the loans! It's a no looser situation.. well accept for the tax payers who are on the hook for all those loans that surprise, surprise the unqualified borrowers defaulted on!!!!

    That is where the hypocrisy of this whole scheme reached epic proportions. Politicians like Dodd and Frank BLAIMING the banking industry for what enevitabily happened and apparently everyone swollowed it!!!!!. Banks were doing exactly what business is DESIGNED TO DO, make money and people act like they are the ones to blaim! If our fine politicians would have let the banks, lend money to people who actually QUALIFIED for loans, as they were before the government insisted they lend to ANYONE NONE OF THIS WOULD HAVE EVER HAPPENED!!! Of course you can't curry favor with voters by not giving them something they don't qualify for.
    (more)
  • GANGA~Patriotic Revolution ... 2012/09/19 12:01:11
    GANGA~Patriotic Revolution BL-100+
    Clinton also loosened housing rules by rewriting the Community Reinvestment Act, which put added pressure on banks to lend in low-income neighborhoods.
  • S. Gompers 2012/09/19 11:58:04
    S. Gompers
    Yes Bill did, but it is important to also look at the vote count that put this piece of crap legislation before him from the House and Senate.

    http://www.govtrack.us/congre...

    http://www.govtrack.us/congre...

    As you can see, no party is without blood on their hands...

    There were alarms being sounded as early as 2002 but the SEC was busy watching porn.
  • Embalmer 2012/09/19 11:46:32
    Embalmer
    +1
    Yup, Clinton, on he advice of Robert Rubin, signed the Gramm–Leach–Bliley Act which repealed Glass-Steagall which was put in place following the Great Republican Depression. Banks spent millions getting Glass -Steagall repealed and the repeal itself didn't cause the Great Bush Recession, it was caused by investment banking schemes like the credit default swaps (CCS. which was the brainchild of some investment bankers at Lehman brothers/ Alan Greenspan pushed hard for the repeal also, claiming it would greatly help the economy.

    Credit default swaps allowed banks to sell loans and lines of credit to clients who would "bet" whether or not they would be repaid. They turned into toxic asserts and then all hell broke loose.
  • All American 2012/09/19 11:39:42 (edited)
    All American
    +2
    That and Acorn, the Community Reinvestment Act, Barney Frank, Chris Dodd, Maxine "Under" Waters, "She Lies" Jackson Lee et. al.
  • JMCC 2012/09/19 11:18:33
  • mwg0735 JMCC 2012/09/19 11:29:19
  • JMCC mwg0735 2012/09/19 11:31:32
    JMCC
    +3
    ;)

    The truth is that politicians don't really understand finance and so rely upon the advice of "friends" in the Financial sector. None of who can be trusted to give impartial advice.

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