Posted on 09/09/2010 3:46:36 AM PDT by Scanian
The White House and Con gress claim they've fixed the subprime problem -- but they've barely put a Band-Aid on it.
Rep. Barney Frank, the House Financial Services Committee chairman, was one of the top culprits for years pushing government-sponsored mortgage lenders Fannie Mae and Freddie Mac to put billions at risk in support of "affordable housing" loans. Last month, he told CNBC's Larry Kudlow: "The kind of subprime loans where lower-income people were inappropriately pushed . . . into buying houses that they couldn't afford . . . we've outlawed most of those practices."
"I've been wrong before about things," Frank admitted. Unfortunately, he's still wrong.
Just consider a New York Times article last week that aimed to support the Democrats' claims.
Last June, the Times reports, Matthew and Hannah Middlebrooke bought a new $115,000 three-bedroom home in Milwaukee, with a fixed-rate 30-year loan -- for just 67 cents down.
The Times actually cites this as evidence that "good" subprime lending continues. It quotes John Taylor, president of the National Community Reinvestment Coalition, as citing the Middlebrookes' loan as "subprime lending done right," with the added claim that "if they had done subprime this way in the first place, we wouldn't have these problems."
(Excerpt) Read more at nypost.com ...
Residential is still inflated at least 25-50% in some areas I would say still inflated 75% over REAL market value.
The prop is to protect the banks and to keep banks from doing write offs on their taxes.
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