[1999 NYT article] Fannie Mae Eases Credit To Aid Mortgage Lending [to people who can't pay it back]

The New York Times ^ | September 30, 1999 | STEVEN A. HOLMES

[grundle]

That quote from a 1999 New York Times article is exactly why we are now having a mortgage crisis. The government encouraged lenders to lend money to people with bad credit who weren't able to pay it back. The article even predicted that there would be a government bailout.

[Eric in the Ozarks]

It was more than encouragement. Janet Reno promised a “reign of terror” for banks that didn’t.

[kittymyrib]

Rush is blasting McCain for wasting his time talking about earmarks today on the campaign trail, when he should be telling the people that the Democrats caused the mess in our economy.
He played tapes of the congressional hearings in 2005 in which the GOP was demanding a cleanup of Fannie Mae under the crook at the top, Franklin Raines, and the Black congress critters were practically calling them racists and lauding the job FM was doing “helping the poooor” get houses with 100% financing!

[library user]

Fannie Mae... has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people...

Not. The Clinton Administration and Fannie Mae wanted the same thing.

[Arec Barrwin]

I agree

[Bean Counter]

All in the name of “affordable housing”.

This was organized redistribution of wealth, and little else. Think about this massive give away of taxpayer’s money in terms of the demands for reparations from the likes of Maxine Waters and other members of the Congressional Black Caucus over the years.

When I look back to what was going on in the early 90’s with Fannie And Freddie, and compare it with the outcome we have today, it’s impossible not to see the connection as at least part of the problem and one of the motivations for de-regulating Fannie and Freddie in the first place.

[jennyjenny]

I’d really like to get my hands on those tapes.

[Bean Counter]

All in the name of “affordable housing”.

This was organized redistribution of wealth, and little else. Think about this massive give away of taxpayer’s money in terms of the demands for reparations from the likes of Maxine Waters and other members of the Congressional Black Caucus over the years.

When I look back to what was going on in the early 90’s with Fannie And Freddie, and compare it with the outcome we have today, it’s impossible not to see the connection as at least part of the problem and one of the motivations for de-regulating Fannie and Freddie in the first place.

[Zeddicus]

How many bloody knives and smoking guns do we need to find before the Maverick starts naming names and making them famous?

Sheesh.

[Calpernia]

BTTT

[Calpernia]

Excerpt 1999:

''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''

[Calpernia]

>>>and the Black congress critters were practically calling them racists and lauding the job FM was doing “helping the poooor” get houses with 100% financing!

As per this NY Times article, they are protecting their base.

Excerpt:

Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.

And let's see who one of the endorsers of the original bail out was:

http://dpc.senate.gov/dpc-new.cfm?doc_name=lb-110-2-35
S. 2636, the Foreclosure Prevention Act of 2008

endorsed S. 2636:

· ACORN

· Black Leadership Forum

· Lawyers Committee for Civil Rights Under Law

· Leadership Conference on Civil Rights

· National Association for the Advancement of Colored People (NAACP)