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Exactly right. The government may have wanted to encourage home-ownership and they were right to do so in light of wide-spread red-lining and the like, however, the government did not tell anyone to create ARMs or relax lending standards
Um... in fact, they did. From Fannie Mae in 2000 (though policies like these go back at least to the 1990's)...
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"Underwriting Standards Countrywide tends to follow the most flexible underwriting criteria permitted under GSE and FHA guidelines. Because Fannie Mae and Freddie Mac tend to give their best lenders access to the most flexible underwriting criteria, Countrywide benefits from its status as one of the largest originators of mortgage loans and one of the largest participants in the GSE programs. When necessary—in cases where applicants have no established credit history, for example—Countrywide uses nontraditional credit, a practice accepted by the GSEs."
Please. The government tells the bankers that they can do what they told the government they wanted to do. Most of the shaky loans were hedged in a manner that resulted in bank profit whatever happened. The bank made interest if the loan was paid and got an insurance payment if it was not. A major part, CDOs, of that fraud is still out there waiting for somebody to say enough is enough and bail out. Then the edifice will collapse like a wooden store front attached to a tent.
Please. The government tells the bankers that they can do what they told the government they wanted to do.
Right, Greg... . Lefties never demanded home loans and student loans for the low-income and credit unworthy. Now pull the other one.
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Most of the shaky loans were hedged in a manner that resulted in bank profit whatever happened. The bank made interest if the loan was paid and got an insurance payment if it was not.
You're finally starting to get it. The key is VOLUME. The more loans that were made, the more the banksters raked in the $$$$$, default or not. They get paid either way. The self-righteous lefties fell right into the banksters trap when they demanded additional loans for the low-income and credit unworthy.
You don't get it. The banks told the Righties and Lefties they wanted to loan to EVERYBODY regardless of ability to repay. Repayment ability was irrelevant to the bankers. Seeing as the financiers, through campaign contributions and other bribes, own both sides this was a done deal. the idiocy was the governmrnt, also responding to the masters, bailing these theives out when the system fell apart in 2008.
As a leftist I would have the GOVERNMENT make loans to the less well off and students and keep the private sector completely out of it. These loans would have been repaid as a permenant surcharge on the eir borrowers income tax.
You don't get it. The banks told the Righties and Lefties they wanted to loan to EVERYBODY regardless of ability to repay. Repayment ability was irrelevant to the bankers. Seeing as the financiers, through campaign contributions and other bribes, own both sides this was a done deal. the idiocy was the governmrnt, also responding to the masters, bailing these theives out when the system fell apart in 2008.
Righties? Since when do righties think the low-income and credit unworthy should be offered loans? The lefties' meme is that the righties are heartless and don't want to offer those types of "opportunities."
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As a leftist I would have the GOVERNMENT make loans to the less well off and students and keep the private sector completely out of it. These loans would have been repaid as a permenant surcharge on the eir borrowers income tax.
Um... exactly what do you think the GSEs are, and why do you think the TAXPAYERS had to bail them out?
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. Lefties never demanded home loans and student loans for the low-income and credit unworthy. Now pull the other one. 
