The Start of the SubPrime Debacle - Clinton's 1994 Order (Ron Paul, illegal, regular)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
At President Clinton's direction, no fewer than 10 federal agencies issued a chilling ultimatum to banks and mortgage lenders to ease credit for lower-income minorities or face investigations for lending discrimination and suffer the related adverse publicity. They also were threatened with denial of access to the all-important secondary mortgage market and stiff fines, along with other penalties.
This was supposedly a crackdown on redlining, what the democrats saw was discrimination in the lending market. Who knew that banks should have declined unqualified applicants?
As we all know, not everyone can or should own a home, but that didn't matter to the democrats.
Think about it. All dysfunction and distortion can be traced right back to government intrusion and meddling. Housing is a perfect example, so is education. Once the government gets involved, things go down hill quickly.
Think about. All dysfunction and distortion can be traced right back to government intrusion and meddling. Housing is a perfect example, so is education. Once the government gets involved, things go down hill quickly.
Did Nixon direct the EPA to regulate carbon emissions when he created the agency in the 70s?
Did Nixon direct the EPA to regulate carbon emissions when he created the agency in the 70s?
Hell no.
It's the bureaucracy.
Well, exactly. That's why it's almost impossible to put the genie back in the bottle, almost impossible to actually SHRINK government, which is desperately needed.
...meanwhile, the credit system in this country is choking under unprecedented amounts of new rules and regulations, many of which are counterproductive, needless, or totally stupid. Ask your local community banker about Dodd Frank. All because the government is deflecting blame for their mess onto banks and bankers.
Bad guys don't follow the rules; good guys don't need them. So why pass a few thousand pages of more rules, when they do not begin to enforce the ones already on the books.
Dem celebrity politician/businessman Corzine and his bankrupt MF Global are today's prime example of failure to enforce the most basic regulations.
Hate to dump water on your smoking gun, but what part of the Equal Opportunity Act calls for unverified income credit applications, losing of credit standards or the granting of subprime loans?
The Equal Credit Opportunity Act (ECOA) is a United States law (codified at 15 U.S.C. § 1691 et seq.), enacted in 1974, that makes it unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction, on the basis of race, color, religion, national origin, sex, marital status, or age (provided the applicant has the capacity to contract);[1] to the fact that all or part of the applicant’s income derives from a public assistance program; or to the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The law applies to any person who, in the ordinary course of business, regularly participates in a credit decision, including banks, retailers, bankcard companies, finance companies, and credit unions.
Well, exactly. That's why it's almost impossible to put the genie back in the bottle, almost impossible to actually SHRINK government, which is desperately needed.
Yet Ron Paul offers just such a proposal in his plan to cut $1 Trillion and 5 government departments in the first year and you only talk him down.
This was supposedly a crackdown on redlining, what the democrats saw was discrimination in the lending market. Who knew that banks should have declined unqualified applicants?
As we all know, not everyone can or should own a home, but that didn't matter to the democrats.
Clinton vowed to veto the Senate version of the bill unless it was re-written to include "requirements that banks make loans to minorities, farmers, and others who have had little access to credit." The new version passed 90-8 in the Senate, passed the House, and Clinton signed it into law. Clinton's required reworking of the bill should be studied closely to see what role, if any, it played in illegal, often racist, subprime loans at higher rates than Caucasian borrowers were offered.
And 'the rule of unintended consequences' strikes AGAIN!!!!!!
What a surprise, Sherlock!!!!!!
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
