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Barney Frank had the idea to relax lending standards and Senator Dodd pushed that legislation through
The people, we're the idiots who signed on the dotted line for these loans.
The banks, they knew the borrowers couldn't afford these loans but loan officers work on commission and more loans mean more money.
The investment banks, they sold this bad paper like it was gold. They knew the cash flows were risky.
We all share a little blame.
But for the love of GOD above, quit blaming Bush. He isn't to blame for everything. You people have a disorder where everything bad in your life is Bush's fault. It's pathetic.
An editorial from a right wing rag with no sourcing, no footnotes, and very little detail.
What exactly was Clinton's new policies regarding minority loans?
It doesn't say.
How much did it effect the crisis in terms of losses?
It doesn't say.
Who exactly is saying Clinton was the cause? Besides your typical right wing nuts of course?
Then why was it that I read an article in 2002 that said lenders were going to begin going after people with "cash only incomes and no credit record", meaning illegal immigrants, for hom mortgages? I bought my first home in 2000 in California, and it appreciated from about $130K to near $200K from 2000 to 2002 when it seemed to level off. Then around 2003 it skyrocketed and kept going up. That's when I began to see people buying homes in my neighborhood who didn't look like they could afford it, based off their jobs, cars, what they owned, etc. In 2005 I knew something was really wrong, so I sold for $400K and took the equity to another state, and by Fall of 2005, prices started to decline in my neighborhood in CA. It seems to me that this whole mess started in the early 2000s when they started giving out loans to people who couldn't afford them, and doing all the ARM/interest only/nothing down loans. In 2000 when I bought my first home, I had to put 5% down and got a standard fixed rate 30 year mortgage. There was no mention of other "funny financing". I seriously doubt this goes back to the early 90s to place blame on Clinton, but then people like Rush will twist facts to do just that.
See what happens when we push socialism? We try to put everyone in a home and our economy falls on it's face. Just wait until Obama goes through with his tax the rich and give to the poor plan. It's the same plan as the housing plan that backfired. The idea, that everyone should be wealthy.
Free markets rule.. they always do.. you can't stop them.
People are poor for a reason. People are rich for a reason. People buy homes for a reason. People live in Apartments for a reason. When you mess with the free markets and disrupt those equilibriums.. bad things happen.
Turn on CNN. CNN is not conservative by any strech. Even they are blaming the liberals. It's also coming out one of Obama's top economic advisors was a big shot at Freddie for a long time. This isn't right wing bias.. these are facts.
Credit card companies were doing the same thing. Extending credit to higher-risk markets. How do you explain that?
It was greed, pure and simple. They extended the credit, then rammed through bankruptcy reform (with Biden's help, admittedly).
Yes, everyone is to blame, to some extent. Clinton & Biden get blame, too. But it was their championship of CONSERVATIVE causes that is to blame.
This crisis was brought to you by conservative ideology.
An editorial from a right wing rag with no sourcing, no footnotes, and very little detail.
What exactly was Clinton's new policies regarding minority loans?
It doesn't say.
How much did it effect the crisis in terms of losses?
It doesn't say.
Who exactly is saying Clinton was the cause? Besides your typical right wing nuts of course?
In answer to your request for specifics, here is an article authored by Joe Mason, an Associate Professor of Finance, Drexel University LeBow College of Business, and Senior Fellow at the University of Pennsylvania Wharton School of Business, concerning Cisneros at HUD in 1994:
Out of this logic arose the National Homeownership Strategy, prepared by the U.S. Department of Housing and Urban Development (HUD), under the direction of Secretary Henry G. Cisneros, in response to a request from President Clinton.
…streamlining transaction costs, expanding creative financing and public gap financing, and making technological improvements in loan underwriting [that] will reduce the costs of homeownership…. Regulatory reforms will allow developers and builders to reduce the costs of land assembly, housing construction, and home rehabilitation, making homeownership more affordable for willing homebuyers who are now priced out of the housing market (The National Homeownership Strategy:
Partners in the American Dream, Chapter 1: The National Homeownership Strategy). Chapter 4 of the Strategy deals with innovative approaches to mortgage financing that can help borrowers live in homes (I say “live in” homes because non- or negative-amortizing instruments do not help individuals buy homes). In what now appears to be rather startling language, the Strategy advocates, “…financing strategies, fueled by the creativity and resources of the private and public sectors,” to help homebuyers that lack cash to buy a home or income to make the payments,” (The National Homeownership Strategy: Partners in the American Dream, Chapter 4: Financing).
Between this, and the Village Voice article concerning Andrew Cuomo actions at HUD to loosen the documentation requirements for home loans, I think it is difficult for Democrats to escape much of the core cause blame here:
Credit card companies were doing the same thing. Extending credit to higher-risk markets. How do you explain that?
It was greed, pure and simple. They extended the credit, then rammed through bankruptcy reform (with Biden's help, admittedly).
Yes, everyone is to blame, to some extent. Clinton & Biden get blame, too. But it was their championship of CONSERVATIVE causes that is to blame.
This crisis was brought to you by conservative ideology.
What are you smoking? Conservative ideolgy?
Conservative ideology is work hard, save money, sacrifice.. then buy a home.
Liberal ideology is everyone should be equal. No one should be left out. Minorities and poor people should all have the same opportunities. It's that mindset of everyone should be happy, which in a perfect world is great, that led to Barney Frank relaxing the lending standards.
To say putting poor people in homes just to put them there is a conservative ideology is perhaps the most ridiculous thing I've read since I joined this website.
I used to Allocated low income housing tax credits in my old job. These are Democratic ideologies.. trust me.. I've been there. These people who want poor people to live luxurious lives so we can all sleep guilt free at night are LIBERALS. I promise you.
This crisis was brought to you by conservative ideology.
Wrong. Liberal ideology forces banks to lend to people whether they qualify or not - we can't go around hurting people's feelings and discriminating against them just because they can't pay for their home, the taxpayers will save them when they go bankrupt.
The democrats saw unfairness and discrimination of low income, poor people unable to afford a home of their own, without ever taking into account if they could afford one or not.
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