…Feel free to correct me if I’m wrong.
Whether it was a Republican or Democrat Administration or Congress, the banks were “forced” by congress via B. Frank and Chris Dodds to loan to home buyers on the low end of the pay scale that couldn’t afford it. They eliminated the banks ability to check background, income and pay record before loaning money toward a home.
Theoretically, someone who made $45,000 per year could buy a property valued at $250,000 with no hope of making a $2,000 a month loan payment.
http://network.nationalpost.com/np/blogs/fullcomment/archive/2010/01/22/conrad-black-the-lessons-of-massachusetts.aspx#ixzz0dSBkicGX
The National Post is now on Facebook
The only thing that Conrad Black did not cover was that the genesis of the sub-prime fiasco, General bank screw-up and the subsequent recession was "The community re-investment act" signed into law by that idiot Carter on ) October 12 1977. This act REQUIRED that Goverment agencies, Financial institutions, including the Banks, disregard years of time tested lending practices and start making "Ninja" loans (No income, No job, No assets), to all and sundry. All the subsequent Presidents failed to take action to repeal this nonsensical act. Both of the Bush's warned that trouble would ensue if no action was taken to repeal or ammend it. Now the glib Mr. Obama is planning to penalize and punish the banking industry for the democrat's original mistake. I think that someone should tell Obama that he should be more concerned about where the buck stops and less about passing it.
That being the case, the banks bundled these “no-hope” loans into packages and sold them to others by taking the very risky loans and moving them out of their hands.
(And who could blame them!)
Any business, whether a car dealer, drug dealer or someone selling 2nd grade tin to 3rd world countries, would get rid of the not-up-to-quality product somehow. Slashing prices---Buy As Is---Buy one get one free or bundling a lot of them up (some good & some bad) and selling it as investment to get the money back.
Now today (1/20/2010) we get this administration blaming the banks and bonuses for the financial mess that is so rampant now.
Using the same ludicrous rhetoric that this President continually spews we now have the inept with their hands in the financial industry, Wall Street and the trouble starters Fanny & Freddie, still in business as usual!
Everything that comes out of the mouth of the top-tier Dems is suspect...
(and anybody that buys into the hucksterism is just not caring about the USA.)
