What was the “Unintended Consequences” of this Liberal Policy?
by Mortgage Rates on Sunday, November 7th, 2010 | 7 Comments
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Maybe the mess the housing market is in now.
But there will be probably a dozen posts that blame it on Bush when you clearly show it started years before he even announced his run for president.
Carter, Clinton, the beef up of the Community Reinvestment Act and Congressional democrats created the housing bubble and current economic disaster.
http://www.youtube.com/watch?v=y4A0RuXhnQA
From 2001 – 06, Bush and the Republicans made at least FIVE separate attempts to regulate F/F but dems BLOCKED each attempt… NOW Bawney Fwank thinks F/F should be ABOLISHED!?
http://www.youtube.com/watch?v=cMnSp4qEXNM&feature=related
Having said that, once banks were forced into bad loans, they took advantage of the situation to ensure they did not lose money on a rotten business deal.
To be fair, Bush continued this policy unabated with his “ownership society”.
But yes, the unintended consequence of forcing banks to lend to people who had no way of paying the money back was monumental.
By forcing banks to make subprime loans, the administration was creating an artificial bubble that would inevitably collapse, leading to the recent banking crisis. The accusations of underregulation are false. The problem was overregulation.
http://www.youtube.com/watch?v=_MGT_cSi7Rs
Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis
http://www.youtube.com/watch?v=cMnSp4qEXNM&feature=related
Timeline shows Bush, McCain warning Dems of financial and housing crisis; meltdown
http://www.youtube.com/watch?v=lFwv0FgtebI
Bill Clinton “democrats at fault for Fannie & Freddie
It’s wasn’t liberal policy. It was the republican congress. Specifically the Gramm-Bliley Act of 1999. Which allowed banks to become ins. cos. and investment firms.
And Barney Franks quote is from 2003 when was in the minority party and had no say in anything.
And the section entitled:Fannie Mae Eases Credit To Aid Mortgage Lending. Is something you wrote yourself.
You man up and quit lying.
The period between 1980 and 1994 saw more legislative and regulatory change af- fecting the financial services industry than any other since the 1930s.
You should bother to learn the whole story and not just the last 2 years of it.