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.
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...
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.
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.
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.
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.