We Need To Move Toward A REGULATED Economy

[Ultrarunner]

In my own little corner of the USA... Oakland CA... I would say Regulation is part of the problem. Prior to increased regulation is was near impossible to borrow money for a home here.

When I bought my first home in East Oakland it required 20%, 3 years on the job and good credit AND many banks still were not lending in in East Oakland.

That changed when lawsuits brought gov regulations forcing banks/lenders to loan in areas like mine with little to nothing down and no job and credit requirements. Home prices escalated and there was a flood of first time homeowners.

The neighborhood really started to come alive and revitalized... but, the problem was many of these new homeowners were over their heads and it was only a matter of time.

It was Freddie and Fanny that gave rise to these loans by buying them and AIG insured them.

[Ultrarunner]

Originally Posted by Wild Style

If you do nothing else tonight, read this link

I read it, but I think it did not go far enough... just look at how the former heads of Freddie and Fanny came out smelling like a rose with millions

[bxlefty23]

Originally Posted by Ultrarunner

In my own little corner of the USA... Oakland CA... I would say Regulation is part of the problem. Prior to increased regulation is was near impossible to borrow money for a home here.

When I bought my first home in East Oakland it required 20%, 3 years on the job and good credit AND many banks still were not lending in in East Oakland.

That changed when lawsuits brought gov regulations forcing banks/lenders to loan in areas like mine with little to nothing down and no job and credit requirements. Home prices escalated and there was a flood of first time homeowners.

The neighborhood really started to come alive and revitalized... but, the problem was many of these new homeowners were over their heads and it was only a matter of time.

It was Freddie and Fanny that gave rise to these loans by buying them and AIG insured them.

exactly
****ing idiot politcians buy votes with our taxdollars promising houses for everyone
it is disgraceful

[lynxix]

thank Clinton for a deregulated banking industry