Does anyone here think that banks may have been "forced" (regulated) to make loans to people that they should ?have not loaned money too? Like people that could afford the loans these banks made? I do not know the name of the specific bill, but either Clinton or Bush signed it. So, if govt regulations got us into this mess, why is more govt going to get us out? BTW: I am NOT for bailouts, or welfare, corporate or... |
No, they weren't. Banks got the very legislation that they bought and paid for. The bankruptcy reform act is the smoking gun and the banking lobby is holding the pistol. The stripped away consumers relief valve and now we are paying the price.
And republicans gutted the CRA back in 1999 and Clinton signed it. It's also a small part of the picture here.
I'm curious about this also... I DO recall President Bush pushing the "Ownership Society" in 2003 (pushing his tax-cuts), and the Democrats DID jump on that complaining that so many could not get home-loans (Mortgage Discrimination).
There were complaints that the Home Mortgage Disclosure Act of 1975 wasn't being strictly enforced (prior to President Bush's comments of 2003).
I also know of the Gramm-Leach-Bliley Act that deregulated / consolidated financial organizations... signed into law by President Bill Clinton on November 12, 1999. http://en.wikipedia.org/wiki/Gramm-Leach...
IT IS A MESS...
Oh, yeah, it was definitely the CRA of 1977 and not the Gramm(R)-Leach(R)-Bliley(R) Act of 1999 --- LOL: signed into law by Bill Clinton! (snuck in by Gramm) That's awesome-- Gramm pushed that thing through along with the Commodity Futures Modernization Act of 2000 to "protect financial institutions from OVERregulation." Quote, unquote. Emphasis added.
You know, Phil Gramm, recently bounced McCain advisor who said Americans were "whiny" and it was a "mental recession" --Phil Gramm whose wife was on the Board at Enron. You know the guy.
The door was opened for the finance company CEOs to make a quick buck and duck out before things started going really bad. They screwed the borrowers by dangling attractive but misleading rates in their faces, they screwed the financial backers and finally they are screwing the tax payers (which is a redundant screwing if you are an investor in bonds and such), all while setting on the porch of their 2.5 million dollar vacation home.
The government can't get us out of it, they will only muck things up more. The governments on a steep downhill slide to the reckoning day, that day where the crap hits the fan.
Smoove B better google it and read more about it.
No they were not forced to engage in predatory lending, nor where investors forced to insure the loans.
If you think investors have to be forced to do things they percieve as making them a buck, you are delusional.
That is like asking.... did credit card companies get forced to send families on foodstamps three and four credit cards through the 90s. NO They didn't force anything. Anyone who says they did is a liar. maybe a PhD in fibbing.
nobody forced the banks to make loans to people who couldn't even prove their income. Anyone who says they did, is nothing but a partisan hack, like the liars above trying to claim they did.
Absolutely. A large number of policies conspired together to reduce the cost of credit, such that even those who couldn't really afford it appeared to afford it.
This was a combined failure in both government and private industry. The government failures include many policies that encouraged people to buy homes even when those investments would otherwise be unwise. It even includes making interest on a home loan, but only a home loan, tax deductible.
There is enough blame to go around on this one.
Nope it was about selling bad loans bundled with good, thru non-insured loop holes. Any normal loan is insured, the whole idea is to find a few loopholes that allow banks to make and then peddle trash loans that are uninsurable.
There was a big fraud in those loans and the republicans as Paulson knew it. When the repulsican investor see the danger they took the money to China and are waiting the present administration ( their accomplices) use the taxpayer money to fix the mess they had created.
Of course not. When was the last time that any business which spends millions lobbying congress annually was "forced" to do anything?
This was about making a lot of money in a short amount of time (eg: a get rich quick scheme) and goes against everything we've been told as consumers to avoid.
So why did the MBA's and CEO's get it so wrong?
It wasn't the democrats in the 90's who did this. It's been going on since 77. Clinton just made changes, as did Bush.
