In 2002, why did Bush order 440 BILLION in subprime loans from fannie mae/freddie mac?
by Mortgage Rates on Wednesday, September 15th, 2010 | 6 Comments
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Because Bush was a mack daddy who liked to make it RAIN!!
Ask your boy Barney Frank, who said Fannie and Freddie were fine in the summer of 2008.
I love it. You ask a question blaming Bush and then post quotes complaining about Bush being too liberal and then (as if that’s not counter-intuitive enough) you blame all conservatives.
Because the Tea Party only cares about their so called bogus “cause” when it’s not a Republican. How many millions of republicans supported Bush during those times, how many republican politicians supported Bush during those times. All of a sudden, a democrat is in office and they’ve become a bunch of hypocrites that Id never respect. I’d never vote for a republican, they’re all hypocrites
oh gawd, bush didn’t create that nightmare. the union thugs got bill clinton to sign the bill that went into effect by the time bush got into office. union thugs intimidated bankers at work and at their homes.
the bill made it too easy get loans. poor people need mortgages too and the unions to the rescue. in time all the defaults became horrendice. not bushes’ fault.
find some truths at:
http://www.colony14.net
Simple. Borrowing money is the quickest way to stimulate the economy. As long as someone, somewhere, is borrowing and spending money, that money stimulates the economy.
Borrowing even more money would have looked even worse for the Bush administration so they found a way to keep the economy going without borrowing even more money. Encourage consumers to borrow money, for houses they never could afford via Fannie Mae and Freddie mac. Those who already owned houses were encouraged to take out second, third, and fourth mortgages (Not by Bush, specifically, )
If government debt, or more government debt, is politically unacceptable then leaders encourage more consumer debt instead to stimulate the economy.
Every time a house gets built it creates lots of jobs in the construction industry. And all those newly employed construction workers spend their money in still other industries. So the economy does great, for a while.
Some people also take out 2nd and 3rd mortgages on their homes and then go out and buy stuff they don’t need. This happens whenever home equity values goes up as a result of real estate booms.
In the long term though, you get a lot of consumer debt, and then those consumers aren’t buying any goods and services because their income is going to debt payments. Or those consumers lose their jobs and default on their loans. Which is exactly what has been happening in the last 2 years..