I’ve seen that slide-show before and it is clever and don’t get me wrong, I’m not trying to argue or stick up for the banks, but I clearly remember back in 2008, when all this happened, a lot of stuff was written and a lot of links were posted to hearings in which Bush administration people were warning the Free Lenders like Maxine Waters and Barney Frank (I particularly remember Barney Frank calling them scare-mongers) that the new regulations that REQUIRED banks to lend money to unqualified borrowers would bring down the system.
Typical of Bush wishy-washyness they didn’t keep pushing the issue, but they did put it out there, early in the 2000s, if I remember correctly.
Was that all a lie? Were there no government rules that basically forced banks to lend money to people who “needed a break”?
I certainly remember a LOT of stuff written and spoken on that subject.
Was it ALL not true?
(A lot of it was posted here, by the way.)
LOL,, before Bush, gave lip service against these high leverage loans, he and mel martinaze worked out a deal for fanny to make more of them. But once again, these loans did not go wrong until the price got so high, from speculation, and fake demand, that it was like a ponzi scheme that runs out of new investors. Why worry about loans going bad when you have laid off the risk, with hedges. Fact is loans without risk have no value, because risk sets the rate. The simple fact is that the fake housing boom gave birth to a lot of fraud. And the CRA played a part, but it was in effect for years and nothing happened. Then in the middle of the night with no hearings phil gramm slipped the credit modernization act through the congress, and gambling became legal on wall street.