Who's to blame for the mortgage boom to bust and resulting financial meltdown?

vanity | 9/17./2008 | Jim Robinson

[Jim Robinson]

If the government had never entered into the insurance racket in the first place, we’d never had this several trillion dollar mess. And how about the twenty some odd trillion dollar unfunded social security insurance scandal that’s about to bankrupt us all?

[mtngrandpa]

Herbert Sandler and his wife Marion Sandler were two who sold their company for 24 billion. One of the things that set Golden West Financial services apart from the others, was that they originated a lot of loans and then sold them as fast as they could. When he said the following in this news article, he really did know what he was talking about first hand. Financier Backs Project to Beef Up Investigative Reporting http://philanthropy.com/free/articles/v20/i02/02001001.htm

He says the news media were late, for example, to uncover the "predatory lending" that has been going on in recent years — that is, lenders offering "subprime" mortgages to people with poor credit histories, many of whom have now defaulted. "A very large percentage of them were sophisticated players in the mortgage market, targeting and going after poor and moderate-income people and in the process attempting to strip their equity, another story that still has not been done," he says.

Very "sophisticated players" indeed! Check out Herbert Sandler http://en.wikipedia.org/wiki/Herb_Sandler

[stockpirate]

The Socialist takeover of America seems to me to be spot on.

Let’s pray that we can prevent it with this election.

[dragnet2]

This isn't D vs. R. But US vs. the Gov't.

Bottom line.

The fish rots from the head.

[Morgan in Denver]

I only hope John McCain is elected AND he appoints someone with the caliber of Rudy as AG to go after anyone guilty.

[1035rep]

How about investigating and prosecuting the corrupt managers, senators and congressmen involved? Could it be because they’re Democrats?

Well, where the hell were they when Bush and McCain wanted to shine a light on the growing problem and reform the agencies while there was still a chance? Where was the great community organizer? Hmmmmmmmm?

bttt

[fatrat]

That just about explains it Jim but you left out one thing. while this was getting into full swing, they opened the border and let in several million prospective new homeowners and eventual mortgage defaulters. they bought with nothing down and sold to their cousin who sold to his sister who sold to her uncle who sold to his brother with a new inflated appraisal each time so that the last sale was inflated about 1000 percent and then the last excellent mortgage holder just walked away and left us to pay the bill.

[Wilhelm Tell]

McCain is making a strategical mistake by playing the populist and trying to show that he feels peoples pain rather than showing off his deep understanding and knowledge of the current crisis, through his attempted reform measures of Fanny Mae and Freddie Mac over the last several years.

Exactly. McCain needs to be very detailed and aggressive about the reform measures he promoted and how these reforms were rejected. Instead, we see people like Obama who got big contributions from the scammers and the MSM eagerly repeats it when Obama blames capitalism. And the MSM does not question the political connections of those who ran Fanny Mae and Freddie Mac into the ground. The MSM will not ask any tough questions. McCain needs to say what the MSM and the Democrats will never say.

[yazoo]

This isn't much different than the crash of 29. People were buying stock on margin because they believed they couldn't lose. The stocks would increase in value before the margin call. Low interest rates, easily available since 2001 allowed people to buy homes they could not afford under the assumption the house would increase in value before the bill came due.

[fatrat]

you are right. there were people in California and other hot areas that didn’t even have a job, anytime they ran short of funds they just re-financed one of their homes and took out as much cash as they wanted. Other people had jobs but were making more off the appreciation on their homes than they were from their jobs.

[volunbeer]

This isn’t D vs. R. But US vs. the Gov’t.

Bottom line.

The fish rots from the head.

________________________

You are both absolutely correct. However, I do think McCain should use this and use it often in the next few weeks. It illustrates his reform message and he understands it’s both parties. The ties to the Obama camp and the lobbying dollars to Obama are a bonus that should not be ignored.

If they can prosecute Enron they should prosecute those involved in this mess!

[tcrlaf]

“I’ve been hoping someone besides me would mention this fact.”

My parents bought thier first house under the Farmer’s Home Loan Rural Housing Program in the 70’s...

5% Down required...

[dennisw]

Obama represented Calvin Roberson in a 1994 lawsuit against Citibank, charging the bank systematically denied mortgages to African-American applicants and others from minority neighborhoods.
________________________

So Obama did his part to make this housing mess. He was part of the Democrat to get everyone including the unqualified and illegal aliens into homes. Lots of the time with lo-doc/no-doc loans

[Jim Robinson]

Thank you very much, proud2beconservativeinNJ!!

Welcome to the Dollar-a-Day Club!!