Upside Down Mortgage

Posts Tagged ‘wiki subprime crisis’

Wiki Subprime

Question: Sub-Prime Mess: How responsible is Bill Clinton?

From wikipedia:

"In 1999, under pressure from the Clinton administration to offer more loans to minorities (who are traditionally underrepresented in the mortgage market), Fannie Mae began a program to extensively expand loans made to people with low to moderate credit."

Clinton's objective to see to it that every American own their own home and the subsequent pressure on Fannie Mae started the snowball that became the avalanche. Agree or disagree?

http://en.wikipedia.org/wiki/Subprime_mortgage_crisis

Answer: Or this video:

http://www.youtube.com/watch?v=Ncqqr1BFV...

Carter introduced the CRA in 1977 (not really a big deal, yet)

(http://en.wikipedia.org/wiki/Community_R...

Clinton modified the CRA. That forced banks to create what ultimately became the subprime market.

Bush tried to introduce legislation that would establish oversight of Fannie and Freddie

Barney Frank and the Dems rejected it as ludicrous and unnecessary

Later McCain and other Repubs introduced similar legislation

Again Dems rejected the idea

In the meantime, more and more bad mortgage paper was written for "homeowners" that would not be able to pay their loans if the market turned down or their ARMS came due etc.

That happened and the "house of cards" collapsed.

Here we are

HANK PAULSON: The President on the Whitehouse garden swing, holding coffee & pretzel asked me to explain to him how the pretzel is Sub-Prime Mortgage, coffee is a weak Dollar & I am the Fed. I dont get it, get me another coffee & pretzel & well try again

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