DO NOT LET UP, CALL YOUR REPS. FLOOD THEIR LINES< EMAILS< FAXES WITH ONE WORD...NO!
NOW WE KNOW WHAT A COMMUNITY ORGANIZER DOES
Posted on 09/28/2008 6:01:24 AM PDT by pleikumud
The enormous risk that Sen. McCain warned of in 2005 has now become a financial crisis of staggering proportions. That crisis can trace its roots to Bill Clinton’s signature on legislation making it easier for minority constituents with bad credit to obtain mortgages. In 1995, he had his Treasury Secretary, Robert Rubin, rewrite the lending rules for the Community Reinvestment Act, opening the flood gates of mortgage lending to unqualified borrowers.
This legislation, in effect, applied affirmative action to the lending industry, which is to say that the current crisis is NOT a “free market failure” but the result of socially engineered financial policy by the central government. The financial markets welcomed their new customers with open arms, fueling a real estate boom across the board.
These so-called “subprime mortgages,” which were offered at variable interest rates, were widely perceived as good investments. Investors used the high-risk instruments to secure assets in other markets fueling profits for investment banks and mortgage lenders. The subprime market thus expanded rapidly and the mortgage instruments were used by other firms as collateral for investments in stocks, commodities and the like.
(Excerpt) Read more at archive.patriotpost.us ...
I do not believe this is such a crisis. I think it is a HUGE SCAM!!! I ain’t buying it.
but it has to be fixed
We have invited third world business practices and corruption in this country by allowing any and everybody to buy a home and businesss.
The only way to bring back sanity is to limit immigration, allow foreigners to come to U.S. for higher education, learn the way of American civic life and become a responsible citizen.
Then and only then go for the American dream. This comes from a naturalized citizen.
YEP.
Papering over bad paper. Legislating over bad legislation.
One of many methods of white collar criminals/socialists/SCUMBAGS.
I think you are wrong. It is for real. For example, Citigroup execs are pondering right now an acquisition of Wachovia, an $800 billion + bank which may fail. If Citigroup doesn’t receive federal help, they may not do the deal. This would cost us all far more than the “bailout” bill pending approval this weekend. Think about the added contraction of credit and its impact on the economy.
“The enormous risk that Sen. McCain warned of in 2005 has now become a financial crisis of staggering proportions. That crisis can trace its roots to Bill Clinton’s signature on legislation making it easier for minority constituents with bad credit to obtain mortgages. In 1995, he had his Treasury Secretary, Robert Rubin, rewrite the lending rules for the Community Reinvestment Act, opening the flood gates of mortgage lending to unqualified borrowers”
What’s odd about this is I have yet to read of a single economist ascribing this crisis to what is described above.
Even if there were problems with paying back loans the banks/creditors could always take back the property. So where exactly would the loss be?
In any case, this is only applicable to Fannie/Freddie.
DO NOT LET UP, CALL YOUR REPS. FLOOD THEIR LINES< EMAILS< FAXES WITH ONE WORD...NO!
I think so also. It's a scam by the dims to make a big step toward socializing our country, by socializing our financial system through this bill.
Do not fall for this claptrap. Look who is doing this. Pelosi..Reid...Fwank...Paulson...Bush. Strange bedfellows. No i do not buy it. Come on. See this for what it is. SCARE TACTICS so they can cya and keep up the PONZI. The so called KOOKS are right like Ron Paul etc.etc. You have to be blind not to see it.
If the bank has paper that says the house is worth one million, but the house is actually only worth 500 thousand, the bank is out the half million. A house is only "worth" what you can get someone to buy it for, and right now that may not be a lot. Of course, home prices could be driven up by cash-flush investors (like, say, the Saudis) buying up American houses at a bargain price......
There is another example of government meddling that will be pushed to the fore soon, and that involves the gas shortages in the south. The cities and states currently having gas shortages also have recently enacted laws concerning "price gouging" by gas stations, gasoline distributors and oil companies. Show me an area in this country now that has gas shortages, and I'll show you gas station owners, distributors and oil companies who simply are afraid of being brought to court for "gouging". Generally these are areas like Asheville, North Carolina, which has no significant gasoline distribution nearby, in a state that has an attorney general crusading for votes by "protecting" consumers from the evil gas stations.
I WANT TO SEE A LIST OF ALL THE BASTARDS THAT WERE IN THE CONGRESS AND IN THE SENATE WHEN THEY LET THIS CRAP HAPPENED....
AND THEN I WANT THEM OUT....
I don’t care if it is an even swap of a democrat for a democrat and a republican for a republican (I would prefer all republicans replacements but...)
I WANT THE BASTARDS OFF MY PAYROLL !!!
It sure seems that is possible ... but we don't know that the majority of the $700B is as a result of defaults by unqualified borrowers. We also know middle class people could have gotten over their heads along with speculators flipping houses, etc. these people have not told us who primarily is responsible for this. I sure would like to see some stats
But you sure as heck are going to pay for it!
Congress caused the problem by not stopping Wall Street from securitizing mortgages. If this is about deadbeat homeowners that can’t pay their mortgages, then give THEM the $700 billion so they can.
Faked or highly speculative collateral values. Remember ARM means: Adjustable Rate Mortagage.
Property is looked at more of an appreciating asset. During the Clinton era law was expanded to basically force banks to lend to people who couldn't afford the mortgage. Banks would package these loans and the sold them to buy stock on future appreciation of the properties. It's all paper and no real value. So the private sector did what it normally does buy repacking these loans and selling them, but the problem is the gov't "forced" the appearance of highly valued collateral when it was nothing but crap!
Banks are forced to give mortages to a people who can't afford the payments.
Banks package mortages to sell to FaM & FrM.
Loans start to default.
Mortgage financial crisis/scam.
Right now you've got property that's been defaulted on or is going to be defaulted on which you can not sell for a profit, and you just lost your shirt WASHINTON MUTUAL!
New Agency Proposed to Oversee Freddie Mac and Fannie Mae (September 2003)
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