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Once again too -- the 'story' people have in their heads is different than real life.
Yes 'liberals' wanted banks to introduce policies to help folks buy a house.
Conservatives didn't fight against it because it wasn't a bad idea.
What happened when those policies were implemented wasn't the perceived or intended outcome.
And it wasn't just 'low income' families that were getting these sub-prime loans
The conservatives did nothing to change that, they did nothing to revisit the policy and fix it.
Yes -- neither did the liberals.
Why? Because conservative and liberals were making money on their new founded way of handing out loans.........and they didn't want any politician to change it.
Many conservatives lost their houses....lost value...etc....why? Because a liberal made them do it?
It was libertarian/free market fundamentalist policies:
Quote:
We conclude widespread failures in financial regulation and supervision proved devastating to the stability of the nation's financial markets.
"More than 30 years of deregulation and reliance on self-regulation by financial institutions, championed by former Federal Reserve chairman Alan Greenspan and others, supported by successive administrations and Congresses, and actively pushed by the powerful financial industry at every turn, had stripped away key safeguards, which could have helped avoid catastrophe. This approach had opened up gaps in oversight of critical areas with trillions of dollars at risk, such as the shadow banking system and over-the-counter derivatives markets. In addition, the government permitted financial firms to pick their preferred regulators in what became a race to the weakest supervisor."
We learned absolutely nothing from 2008 and the “everyone deserves a house” rhetoric. Lending itself has been slowly easing up again under the radar.. Plus, you have loony tunes Omar, Harris, and Waters with their new plans to “help” people by creating Cabrini Green all over the country.
I know some of you only see black and white and will never understand this, but the Bush administration supported many liberal policies.
Of course, at one point, Bush did call for an audit of Fannie and Freddie along with more oversight by a new agency.
And what happened?
Let's see what Barney Frank said:
"They get to take things out on poor people," Frank said to a mortgage foreclosure symposium in Boston. "Let's be honest: The fact that some of the poor people are black doesn't hurt them either, from their standpoint. This is an effort, I believe, to appeal to a kind of anger in people."
Barney Frank claimed the GSEs were fundamentally sound and in perfect health, and plans to overhaul them were essentially acts of racism.
In the end, the CRA was designed to use US tax dollars to underwrite the poor financial behaviors and dismal credit histories of poor folks, most of them black, and do it all under the banners of fairness and access.
The bill was the gateway to the financial collapse and the subsequent scapegoating of financial institutions because we all know leftist policies are NEVER wrong and if they fail, it's due to poor implementation. LOL
It was always magic thinking to believe throwing money at a cultural problem solves that problem. It doesn't. It both exacerbates and illuminates the underlying problems in a society that people are too timid to talk about.
The 'magical thinking' was all based on Ayn Rand novels.
The CRA Did Not Cause the Subprime Financial Crisis
Quote:
The Federal Reserve Board found there wasn’t a connection between CRA and the subprime mortgage crisis. Its research showed that 60 percent of subprime loans went to higher-income borrowers outside of the CRA areas. Furthermore, 20 percent of the subprime loans that did go to ghetto areas were originated by lenders that weren't trying to conform to the CRA. In other words, only 6 percent of subprime loans were made by CRA-covered lenders to borrowers and neighborhoods targeted by the CRA. Further, the Fed found that mortgage delinquency was everywhere, not just in low-income areas.
And again.....liberals push their destructive policies, and then liberals like you blame the conservatives. So should we elect more liberals to come up with more destructive policies, or just elect conservatives so we can avoid them in the first place?
(Liberals really need to learn how to say "I was wrong" rather than blame conservatives for their horrible policies. If I was stupid and jumped off a bridge, should I complain that nobody was there to save me from my stupidity?)
"destructive" policies and "horrible" policies none of which you`re telling us about. Typing the word liberal over and over doesn`t make your case.
I know some of you only see black and white and will never understand this, but the Bush administration supported many liberal policies.
Of course, at one point, Bush did call for an audit of Fannie and Freddie along with more oversight by a new agency.
And what happened?
Let's see what Barney Frank said:
"They get to take things out on poor people," Frank said to a mortgage foreclosure symposium in Boston. "Let's be honest: The fact that some of the poor people are black doesn't hurt them either, from their standpoint. This is an effort, I believe, to appeal to a kind of anger in people."
Barney Frank claimed the GSEs were fundamentally sound and in perfect health, and plans to overhaul them were essentially acts of racism.
BOTH sides are responsible for the mess we had, and BOTH sides will be part of creating the next housing debacle. We’re due up!
"destructive" policies and "horrible" policies none of which you`re telling us about. Typing the word liberal over and over doesn`t make your case.
Destructive is allowing people who can barely sign their names, have no job, savings, good credit, or down payments and closing costs to get mortgages because everyone “deserves” a house.
There were a number of cause of the sub-prime mortgage meltdown. Some government policies. Some free market. Here is one of the free market causes:
Hedge funds, banks, and insurance companies caused the subprime mortgage crisis. Hedge funds and banks createdmortgage-backed securities. The insurance companies covered them with credit default swaps. Demand for mortgagesled to an asset bubble in housing.
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