Skip to comments.Federal Regulators Admit That Clinton's Mortgage Scam Caused the Economic Crisis
Posted on 01/10/2013 6:56:15 PM PST by Nachum
RUSH: "Federal regulators for the first time are laying out rules," this is from the AP, "aimed at making sure that people who borrow money for mortgages can afford to repay them." Do you realize what this means? Do you realize what this means? "Federal regulators for the first time..." It's 2013! For the first time? This is a tantamount admission. Nobody's calling it this, except I, El Rushbo, except me.
I'm telling you: It's a tantamount admission that the subprime mortgage mess was exactly what it was. It was people who were given loans that could never pay 'em back, and they were not picked on. It was not predatory lenders that went out and found them. This was social engineering by Democrats. (summarized) "The American dream is everybody should have a house. It's not fair that certain Americans should have houses and other Americans don't."
So here came the subprime mortgage plan, and it basically was a federal program that ordered banks to lend money to people that had no way of paying it back, lend money to people that didn't have to take a credit test and pass it, lend money to people that everybody knew would never pay it back. By the way, if you're new to the program, I want to explain this again. Because the economic mess that we are in was caused and is the result of, predominantly, this.
(Excerpt) Read more at rushlimbaugh.com ...
It was called the National Homeownership Strategy. Do a Google search and download it.
Clinton, Cisneros and Cuomo should be put in jail for it.
Clintoon destroyed the homes of millions of people, and wiped out the finances of half the Nation.
Amazing accomplishment to explain to God some day. Dont think God will be amused.
We always knew this was an ‘inside job’. ( Lew & Rubin at Citi) Trouble with the lunatic left is that though they can be led to believe a total fabrication about 9/11 being an inside job, they cannot see the truth about the Housing Crisis. Just look at the criminals that are now in the inner circle of power. If I were a lemming I’d have trouble believing that I’d been deceived, too.
Are we talking about the Newsweek “Father of the Year “ ?
The man who made Monica Lewinski a household name .. ?
The father of CNN telepromter talking head .. ?
The companion of the “Archietect of Benghazi “, the “thump and Bump” queen who can’t remember anything .. ?
The patron Saint of the Demorat Party ..?
Say it isn’t so .. !!
Is that an add-on to Jimmuh Cahtuh’s Community Re-investment Act of 1977?
From the moment the home affordability act (or whatever it was called) was announced during Clinton’s era, the end result was obvious. It doesn’t take a rocket scientist to see that forcing banks to give loans to those who can’t afford them is unsustainable.
Just like the current bloating of the welfare system, where federal government borrowing is undergoing exponential growth, and unprecedented numbers of people are dependent on government hand-outs. This welfare bubble is going to pop...
BUMP a great thread.
And it only took 14 -15 years for Federal regulators to figure this out ?
Thank goodness it wasn’t the Attorney General or the “Just-Us” department ,.. or we would be still waiting .
And Corporations and banks being threatened by the “Just-Us” Department ..
Naw , .. it could never happen here. This is America !
More of the same by the same party in control , just a decade and a half later ..
Making sure people can pay off there home loans by law?
Sounds like racism to me!!
Not to mention Bawney Fwank, Chris Dodd, and Chuck Schumer. They’re as complicit in it as anyone else. In fact, the whole scam dates all the way back to Carter.
Carter's "Re-investment Act" never went very far and therefore didn't do much damage because nobody pushed it very hard. BJ put it on the front burner and pumped (pimped?) it full of steroids and it took off.
Rush is making the same mistake many freepers and conservatives are making. Liberals are not the only destructive faction in the US, CEO and bankers are equally destructive. Take the housing crisis for example. Gov forced banks to set aside certain number of loans for minorities via CRA that violates sound lending principles. Bankers will go to court to fight any gov policy that makes them lose money. You can bet on that. If they do not, bet your life they found a loophole to make money from the CRA.
Gov policy provided them with a very lucrative loophole, FM and FM would buy all the mortgage notes after the bank held them for six months. Suddenly bankers discovered they can sign up anyone for a loan, the fees and points earned in six months before it was dumped on the dumb gov was very lucrative. Countrywide and WaMu made a fortune on liar loans. Contrary to banker spin that they did not want bad PR in court cases with the gov, all banks embraced CRA and used it to encourage liar loans. Everyone was in the act. Investment firms who brought these notes discovered they were bad. Instead of reporting it to the gov, they wanted to dump them on an unsuspecting public. Rating agencies are paid by Wall Street investment firms to rate their mortgage backed securities being put up for sale. Since the firms were paying for the rating review, rating agencies succumb to investment firm pressure to rate mortgage portfolios riddled with liar loans as AAA investment. These American made toxic investments were sold to pension funds, mutual funds and etc worldwide. In some sense the US is responsible for the world wide depression in 2008 because we failed to enforce existing regulations on our Wall Street bankers and investment firms. We are lucky Americans were not killed in foreign streets over the suffering we wrecked on the world.
The moral rot is all over in our gov and financial system. Going after the liberals only and ignoring the misdeeds of Wall Street and banking CEO’s is dangerous because it eliminates only half of the troubles and leaving the other half to create havoc in the future. If we want to clean out the rot in this country, sweep out the liberals, punish the CEO’s and reduce Wall Street Bankers to the traditional boring banking system we had during Glass Steagall.
My retired friend who worked in mortgage business before it went reckless summed it up well - “On 9/11 if Bin Laden walked down the street, I will shoot him, today (in 2009) if Bin Laden and a Wall Street banker walked down the street and I had only one bullet in my gun....I would shoot the banker!”
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Clinton and Frank pushed for people getting subprime loans. If they hadn’t done this, the bankers would never have been able to give such loans. Once the bankers saw that money could be made greed took over, but the cause was Clinton and his cronies.
Bush had nothing to do with the financial crisis, and the Republicans are still letting the Democrats blame him.
Clinton not the bankers was at the core of this crisis.
Bill Clinton is another Obama. Make no mistake. Clinton just couldn’t go further left because of the strong house republican leadership he had to deal with back then. Only reason, he didn’t get caught because it was already arranged for him to do this. He is owned by the cohorts in the party machine that wants America to punish. Clinton is a scam and smiles as he scams the crowd. This country has had so many frauds; which fraud is next.
You read that on an "occupy wall street" poster didn't you?
You are much too kind.
its a national disgrace.....immoral IMO....to lend money or borrow money on a whim, or a wish, just hoping things "work" out...
liberals are just the shallow face of the game...an ugle face to be sure...
obama and his minions are still blaming Bush for this one.
If the gov inadvertently created a loophole for rape, would you use it to rape a beautiful woman? When the bankers created liar loans, had them resold to pension funds and etc as AAA investments. Sooner or later this will come back to haunt them, and even worst destroy our country. Bankers knew this when they took advantage of gov stupidity. What does that make bankers in terms of being patriots. Would you do something that will in the long term destroy your own country? I would not. Bankers would. How are they no different from liberals that we hate and loathe.
Now we finally know the “hole” story of the 2008 Crash. It was caused by Bill Clinton’s penis!
So after forcing banks and other institutions to abandon prudent lending requirements twenty years ago so government could give free houses to the poor at taxpayer expense, regulators are now going to let government save us by forcing those lenders to return to those same requirements - this is sick.....
“many, many middle and upper income people bought 2nd and third houses and flipped them.”
Very true! And they did it because everyone was of the opinion that housing prices were just going to go up ad infinitum! But the mechanism here was different in that absent the crash (caused by those who got loans they couldn’t pay back) the people who were “leveraging” their capital could pay what they owed. Further, that they could continue to pay, but chose not to when they found that the market value of their holdings was substantially less than what they owed. In hindsight, they were caught and lost, but they were not caught directly by their investing strategy, but by a falling market that was caused by the bums getting loans that they could not afford. I have a neighbor who is now renting a house nearby. Back before the crash he bought a home for something on the order of $800k. He elected to “give it back” to the bank when it appraised for something like half of that. So it’s not really fair to blame the so-called middle and upper income people for what happened. They are victims of the government too. The government has succeeded in “erasing” literally trillions of dollars in real estate equity with CRA and its cousins.
Amazing accomplishment to explain to God some day.