SultanOfSwing wrote:Michigan Girl wrote:You're wrong/incorrect ...Carter started it,
affirmative action~Clinton made it worse!!! Bush tried to stop FHLMC and FNMA in '03...Congress stopped Bush!!!
I believe subprime lending initiated in 1993 during Clinton's first year in office but it was passed in the US House of Representative by Republican controlled congress. These congressmen held their position during Reagan-Bush administration, and after Bush Sr. lost in his re-election because of his famous "read my lips, no more tax" crap plus his involvement in the first gulf war, lost to Clinton. I remember when I bought my first house in '94, not too many people buying houses because of recession. As I mentioned, me and my wife had a hard time to qualify in spite of having a good credit plus 10% downpayment, still they required us to get a co-signer.
So subprime was already active at the time Clinton was in office and became worse until George W. Bush's presidency. In spite of Bush being partly blamed I gave him credit when he signed a bill to help million of Americans who were unable to pay their high interest mortgages because of subprime crisis or modified their loans. Plus he also signed a tax relief bill to help homeowners who lost their homes from foreclosure and not to pay more taxes.
But this does sound reasonable!! ^^^meant to be added above!!:wink:
To hear today's Democrats, you'd think all this started in the last couple years. But the crisis began much earlier. The Carter-era Community Reinvestment Act forced banks to lend to uncreditworthy borrowers, mostly in minority areas.
Age-old standards of banking prudence got thrown out the window. In their place came harsh new regulations requiring banks not only to lend to uncreditworthy borrowers, but to do so on the basis of race.
These well-intended rules were supercharged in the early 1990s by President Clinton. Despite warnings from GOP members of Congress in 1992, Clinton pushed extensive changes to the rules requiring lenders to make questionable loans.
Finally found an article ...how do you do it, FF?!?!
Carter ...
The Community Reinvestment Act (CRA) – a Carter-era policy that requires federal financial supervisory agencies to encourage banks to grant loans to people with low income and little credit – played a major role in sparking the sub-prime mortgage crisis the nation now faces, according to economist Russell Roberts, who spoke at a forum on the issue Thursday at the Hudson Institute.
“I see the [current financial] mess as an example of the government’s attempt to engineer housing outcomes,” said Roberts, an economics professor at George Mason University. “People spend other people’s money much less carefully than they spend their own.
http://www.cnsnews.com/public/Content/A ... rcid=38135
Then we have Clinton ...
The report talks about the Clinton administration’s National Homeownership Strategy, citing President Clinton’s directive to “lift America’s homeownership rate to an all-time high by the end of the century.”
The Clinton strategy further said that Freddie and Fannie should reduce down-payment requirements and, according to the report, “called for increased use of ‘flexible underwriting criteria,’ which it said could be achieved in concert with ‘liberalized affordable housing underwriting criteria.’”
“That is the perfect smoking gun that tells how Barney Frank [D-Mass.], the Clinton administration and others would do it in those days,” Rep. Darrell Issa (R-Calif.), the ranking member on the House Oversight and Government Affairs Committee, said Tuesday in a speech at the Heritage Foundation.
“The seeds of the meltdown began with the well-intentioned goal that everyone have a home even if they can’t afford it,” he said. “It led to one of the biggest ponzi schemes ever.”
http://www.cnsnews.com/news/article/50680
Posted: Fri Apr 16, 2010 6:52 am
