Don't forget that Obama and Barney Frank created that bad debt bubble with their mismanagement of Freddie Mac and Fannie Mae.
It was Obama that then bailed out all the crooked banks while they foreclosed on your home, using taxpayer money. He doubled our national debt in a few short months.
Exactly. People put 100% of the blame on the banks, but this was a government created crisis that government could later “solve”. Like the student debt “crisis”. I don’t think it was a coincidence the market exploded one month before Obama’s first election. Clinton set the wheels in motion with the Community Reinvestment Act of 1995. His HUD Secretary was Andrew Cuomo. They encouraged banks to throw their standards out the window and threatened them with regulations if they didn’t.
But President Bill Clinton, in 1995, added teeth to the CRA. Economists Stephen Moore and Lawrence Kudlow explained: “Under Clinton’s Housing and Urban Development (HUD) secretary, Andrew Cuomo, Community Reinvestment Act regulators gave banks higher ratings for home loans made in ‘credit-deprived’ areas. Banks were effectively rewarded for throwing out sound underwriting standards and writing loans to those who were at high risk of defaulting. If banks didn’t comply with these rules, regulators reined in their ability to expand lending and deposits.
Cuomo was perpetrating a fraud with his behavior as HUD secretary. He narrowly escaped scandal - mostly because his dad intervened. IIRC, Cuomo pushed someone else under the bus to take the fall.
The fraud was he forced banks to eliminate their home loan standards. Why? Because Clinton believed home ownership was "an American right." Seriously - just look up his rhetoric and speeches from the early 90s.
To the surprise of no one, defaults skyrocketed. Cuomo's office then reversed a decades old HUD policy of selling the defaults to other lenders (keeping the homeowners in the home), and began pursuing foreclosures en masse. The foreclosed properties were sold on the cheap to cronies and close associates of Cuomo.
The government created the crisis back in the 60s when they started the HMDA reporting and then said banks had to lend money to people that were not qualified via the three Cs
CREDIT (how well they paid their bills)
COLLATERAL (20% down)
CAPACITY TO PAY (did they have a fucking job)
Said it was racist... so then they started moar Federal Reserve like hybrids Fannie Mae, Freddie Mac, Ginnie Mae, then college loans and a bunch of other stuff to basically guarantee that broke dick mutherfuckers would pay back the bank loans or the gov would tax responsible people enough to give them their money back.
Bush, Clinton, Bush, Obama, were just moar sorry mutherfuckers adding to the bankers wealth.
BUSH SIGNS AMERICAN DREAM DOWNPAYMENT ACT
$200 million program will help tens of thousands of low-income families to become homeowners
WASHINGTON - There is a reason why many American families can't buy their first home - they can't afford the downpayment and other upfront closing costs required to qualify for a mortgage. For as many as 40,000 low-income fam
https://archives.hud.gov/news/2003/pr03-140.cfm
^^^^ that is the law that created the sub prime crisis
You have to love the swamp rat logic: "You can't afford a home because you can't afford the down payment. Here - we'll just give you the money. Enjoy!"
Uh...maybe they don't have the down payment because they can't afford the house in the first place?
Right. Without the discipline or initiative to earn a down payment, they aren't going to have the discipline or initiative to make the monthly payments.
Don't forget that Obama and Barney Frank created that bad debt bubble with their mismanagement of Freddie Mac and Fannie Mae.
It was Obama that then bailed out all the crooked banks while they foreclosed on your home, using taxpayer money. He doubled our national debt in a few short months.
Exactly. People put 100% of the blame on the banks, but this was a government created crisis that government could later “solve”. Like the student debt “crisis”. I don’t think it was a coincidence the market exploded one month before Obama’s first election. Clinton set the wheels in motion with the Community Reinvestment Act of 1995. His HUD Secretary was Andrew Cuomo. They encouraged banks to throw their standards out the window and threatened them with regulations if they didn’t.
https://www.capitalismmagazine.com/2020/01/community-reinvestment-act-reparations-gone-bad/
Cuomo was perpetrating a fraud with his behavior as HUD secretary. He narrowly escaped scandal - mostly because his dad intervened. IIRC, Cuomo pushed someone else under the bus to take the fall.
The fraud was he forced banks to eliminate their home loan standards. Why? Because Clinton believed home ownership was "an American right." Seriously - just look up his rhetoric and speeches from the early 90s.
To the surprise of no one, defaults skyrocketed. Cuomo's office then reversed a decades old HUD policy of selling the defaults to other lenders (keeping the homeowners in the home), and began pursuing foreclosures en masse. The foreclosed properties were sold on the cheap to cronies and close associates of Cuomo.
This is a decent write up of the scandal.
The government created the crisis back in the 60s when they started the HMDA reporting and then said banks had to lend money to people that were not qualified via the three Cs
Said it was racist... so then they started moar Federal Reserve like hybrids Fannie Mae, Freddie Mac, Ginnie Mae, then college loans and a bunch of other stuff to basically guarantee that broke dick mutherfuckers would pay back the bank loans or the gov would tax responsible people enough to give them their money back.
Bush, Clinton, Bush, Obama, were just moar sorry mutherfuckers adding to the bankers wealth.
Who do you think has been controlling our gov? (((the banks)))
Bush created the bad debt bubble
^^^^ that is the law that created the sub prime crisis
You have to love the swamp rat logic: "You can't afford a home because you can't afford the down payment. Here - we'll just give you the money. Enjoy!"
Uh...maybe they don't have the down payment because they can't afford the house in the first place?
"RAYCIST!"
Right. Without the discipline or initiative to earn a down payment, they aren't going to have the discipline or initiative to make the monthly payments.