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Why do people do this? Clinton signed it. If you want to note other bad players, great, but don't deflect from the guilty.
One of the wonderful things about our government is that the President is a relatively weak office.
Major portions of the Glass Steagal act was repealed by the Gramm–Leach–Bliley Act of 1999. Note the names in the name of the act. All prominant Republicans.
The repeal of major portions of Glass-Steagal couldn't have been accomplished without bi-partisian cooperation. So while many Republicans LOVE to lay blame on Clinton because he signed it, the truth is that both parties share equal responsibility for it.
When the repeal was passed, many Republicans took credit for it because the bill originated from them.... it was intended to promote competitiion in the financial industry.
Now that its gone to crap, many Republicans are quick to lay blame on the Democratic president of that time, Clinton.
Give credit and blame when due... both parties were involved.
You seem to be placing the whole of the blame on the government and the poor while ignoring the many rich people who benefited from this scheme.
The government has passed rules that the states disagreed with. They fought them in the courts and won. Nobody is forced to just go along with government mandates. The banks were fully on board with these bi-partisan desires. They get deregulated and in return they give low standard loans that the government was going to fully guarantee. There was NO forcing anyone to do anything.
...But on Thursday, almost three years after stepping down as chairman of the Federal Reserve, a humbled Mr. Greenspan admitted that he had put too much faith in the self-correcting power of free markets and had failed to anticipate the self-destructive power of wanton mortgage lending.
“Those of us who have looked to the self-interest of lending institutions to protect shareholders’ equity, myself included, are in a state of shocked disbelief,” he told the House Committee on Oversight and Government Reform. ...
“You had the authority to prevent irresponsible lending practices that led to the subprime mortgage crisis. You were advised to do so by many others,” said Representative Henry A. Waxman of California, chairman of the committee. "Do you feel that your ideology pushed you to make decisions that you wish you had not made?”
Mr. Greenspan conceded: “Yes, I’ve found a flaw. I don’t know how significant or permanent it is. But I’ve been very distressed by that fact.” ...
The "poor" homebuyers that bought homes above their means because " real estate always goes up " were being greedy too .
Don't think most of them bought a house with the plan to get rich off it ?
Sure it wasn't banker sized greed but still could be viewed as greed .
They were indulging in excess a home they couldn't really afford
Yet they did it anyways .
??? ??? I'm poor and I want to buy a home because OWNING IS THE BEST HEDGE AGAINST RENT INFLATION, because I've seen 30% rent inflation over the past four years, and because I cannot afford any more rent inflation above CPI.
One of the wonderful things about our government is that the President is a relatively weak office.
Major portions of the Glass Steagal act was repealed by the Gramm–Leach–Bliley Act of 1999. Note the names in the name of the act. All prominant Republicans.
The repeal of major portions of Glass-Steagal couldn't have been accomplished without bi-partisian cooperation. So while many Republicans LOVE to lay blame on Clinton because he signed it, the truth is that both parties share equal responsibility for it.
When the repeal was passed, many Republicans took credit for it because the bill originated from them.... it was intended to promote competitiion in the financial industry.
Now that its gone to crap, many Republicans are quick to lay blame on the Democratic president of that time, Clinton.
Give credit and blame when due... both parties were involved.
I have always blamed BOTH parties. With your first statement you are trying to diminish Clinton's role so you really have no standing in preaching to me.
The Fed Gov tells banks to lend to the poor. Consequently, banks lend to the poor, many of whom can't pay their mortgages.
Do you finally see where the problem lies? Go to the source of the problem: the Fed Gov.
Banks don't enter into contracts in which it's likely they'll lose money. They only made the loans to the poor because 1) the Fed Gov told them to and 2) They knew they could sell those loans to Fannie and Freddie which had been mandated by the Clinton/Cuomo-era HUD, as a parting shot at Bush before he took office, to have over 50% of the loans they buy from banks be made to low-income and/or credit-compromised borrowers.
Except Fannie and Freddie. And who forced them? Clinton and Cuomo. I posted the HUD document.
Without that forced upon the largest funding source of the US mortgage market (hence, the mortgage market driver), none of what followed happens.
Last edited by InformedConsent; 01-02-2017 at 06:24 AM..
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