Financial Meltdown due to Bush-McCain Economic Philosophy (legal, liberal, conservative)

[zentropa]

Tough new regulations forced lenders into high-risk areas where they had no choice but to lower lending standards to make the loans that sound business practices had previously guarded against making. It was either that or face stiff government penalties.

Really? Lenders were "forced" to make risky loans? My goodness, where was the outcry? Oh yeah, they were profiting.

The Community Redevelopment Act came into existence because lenders were denying loans for homes simply because the customer was a minority or lived in a minority neighborhood. You don't remember that?

[tluv00]

Originally Posted by WillysB

And all we got was a cheap blue dress.

I think we got billed for the dry cleaning as well

[Rggr]

Originally Posted by zentropa

Really? Lenders were "forced" to make risky loans? My goodness, where was the outcry? Oh yeah, they were profiting.

The Community Redevelopment Act came into existence because lenders were denying loans for homes simply because the customer was a minority or lived in a minority neighborhood. You don't remember that?

It also allowed "community groups" to have a lot of power by giving them the ability to rate how banks are doing in the community. The banks then have to satisfy these organizations which means making enough loans for them to be satisfied.

There certainly were banks making money and making poor decisions, but the CRA was certainly not helpful in this either.

[SLCPUNK]

Originally Posted by luzianne

Oh, BULLCRAP! What is going on right now is a result of BANKS loaning money to people who couldn't afford a house. And actually CLINTON is a big part of that because he thought everyone should be able to own a home and he tried to make sure everyone could, even if they couldn't afford it. But basically it comes down to banks being greedy and loaning money to people who really couldn't afford to make the payments.

Bush's lack of regulation let these banks run amok.

Originally Posted by luzianne

But how does this affect us? It doesn't.

Looked at your 401k lately?

[Miborn]

Originally Posted by zentropa

Really? Lenders were "forced" to make risky loans? My goodness, where was the outcry? Oh yeah, they were profiting.

The Community Redevelopment Act came into existence because lenders were denying loans for homes simply because the customer was a minority or lived in a minority neighborhood. You don't remember that?

Clinton added to the new bill:

"requirements that banks make loans to minorities, farmers, and others who

have had little access to credit."

[tluv00]

Originally Posted by Sunshine Chick

Look it up!

Where at? Drudge? Free Republic? Politico? Which conservative rag should I look it up in?

It wasn't Clinton or Bush is was one part administration, 3 parts the industry. Let them suffer dammit. Stop bailing out big business and promote capitalism!!

[123cop]

Originally Posted by SLCPUNK

Bush's lack of regulation let these banks run amok.




Looked at your 401k lately?

Incredible, another person blaming Bush for the world not being perfect.

Americans are too blame. If we were smart enough not get in over our heads in debt then we would never have taken out risky loans. But we did and the greed was too inticing for the banks to turn down.

So George Bush and USA should have to tell us how much we can afford? Are you serious? Are we children? Can we not make up our own minds. It's Americans who are at fault. Yes, govt oversight would have helped. But seriously, the fact that we need govt oversight to help us not spend too much money.. are we that pathetic?

[SLCPUNK]

Originally Posted by 123cop

Incredible, another person blaming Bush for the world not being perfect.

Many people had their hand in the jar. But to claim that Bush's lack of regulation of the financial market had anything to do with this meltdown would be naive at best.

Originally Posted by 123cop

Americans are too blame.

American banks included...

Originally Posted by 123cop

If we were smart enough not get in over our heads in debt then we would never have taken out risky loans. But we did and the greed was too inticing for the banks to turn down. .

Oh, lol, I see, the banks were simply led astray by the American people. I get it now.

Originally Posted by 123cop

So George Bush and USA should have to tell us how much we can afford?

Do you like creating false arguments to hem and haw about? I never said that. I said that Bush was asleep at the wheel, allowing the financial sector to regulate itself, and that's why we have this mess now.

Originally Posted by 123cop

Are you serious? Are we children?

Are you? According to you, the colossal failure of some of these financial institutions are because of the American people, not their lax lending standards that they repackaged and sold to Wall Street. You're serious?

Originally Posted by 123cop

Can we not make up our own minds. It's Americans who are at fault. Yes, govt oversight would have helped. But seriously, the fact that we need govt oversight to help us not spend too much money.. are we that pathetic?

Lets retry that:

Government oversight to ensure banks don't allow these risky loans to be granted out to anybody with a pulse and then resold on Wall Street as a security. Yes, we need that.

[TigerLily24]

Banks, etc. made the loans because they could bundle them and sell them for lots of money. No bank HAD to provide a mortgage to someone without documentation to prove they could pay off the loan. The bank chose to ignore their own criteria for credit-worthiness because it was profitable to do so.

They employed and still employ lobbyists whose jobs it is to make sure that no regulation is passed that would interfere with the banks' ability to make more and more money.

Here is an interesting link to an article that shows the part Phil Gramm played in all this:

Foreclosure Phil

Note that Republicans still controlled Congress when this passed.

[Sunshine Chick]

Originally Posted by Miborn

Clinton added to the new bill:

"requirements that banks make loans to minorities, farmers, and others who

have had little access to credit."

A bill that Jumpin Joe Biden voted for and McCain voted against.

Sure, lets allow banks to pass out money to losers with 350 credit scores.

Great idea dems, give loans to losers.