09-28-2008, 09:42 PM
Glen, if you'll take a little time to learn who it was that set up a system that would give high credit risk people loans and refused to allow regulations every time it was brought up, you'll see that it was the opposite of free market business.
Banks used to require people to have down payments, stable jobs and high credit scores to qualify for a mortgage loan.
There were some in congress that thought this was unfair, so they came up with legislation that would give loans to people without the ability to pay it back it was called the Community Reinvestment Act.
read about that here: http://en.wikipedia.org/wiki/Community_Reinvestment_Act
But in 1995 under Clinton it authorized sub-prime loans "sub prime" is a nice way of saying "BAD LOAN" example if your car is broke and doesn't run, your car is "SUB PRIME" Fannie Mae said to the banks make the loan will guarantee it.
Before you start blaming BOOOsh and republicans you may want to look a little closer to home
In 2003 Bush tried to get congress to overhaul it and start a new agency that would regulate Fannie and Freddie but was blocked by the Democrats.
In 2005 McCain warned that the Mortgage industry was in trouble so he cosponsored a bill called “The Housing Enterprise Act of 2005” you can google it it is at www.govtrack.us it’s bill S-190. But it was blocked by democrats.
Why was it blocked? Because Fannie Mae had some friends in the Senate:
Chris Dodd , Barack Hussain Obama and Chuck Shummer, Harry Reid, Hillary Clinton, John Kerry and some dirty republicans.
You need to watch this video:
http://www.youtube.com:80/watch?v=H5tZc8oH--o
you’ll have to pause it to read some of it.
Banks used to require people to have down payments, stable jobs and high credit scores to qualify for a mortgage loan.
There were some in congress that thought this was unfair, so they came up with legislation that would give loans to people without the ability to pay it back it was called the Community Reinvestment Act.
read about that here: http://en.wikipedia.org/wiki/Community_Reinvestment_Act
But in 1995 under Clinton it authorized sub-prime loans "sub prime" is a nice way of saying "BAD LOAN" example if your car is broke and doesn't run, your car is "SUB PRIME" Fannie Mae said to the banks make the loan will guarantee it.
Before you start blaming BOOOsh and republicans you may want to look a little closer to home
In 2003 Bush tried to get congress to overhaul it and start a new agency that would regulate Fannie and Freddie but was blocked by the Democrats.
In 2005 McCain warned that the Mortgage industry was in trouble so he cosponsored a bill called “The Housing Enterprise Act of 2005” you can google it it is at www.govtrack.us it’s bill S-190. But it was blocked by democrats.
Why was it blocked? Because Fannie Mae had some friends in the Senate:
Chris Dodd , Barack Hussain Obama and Chuck Shummer, Harry Reid, Hillary Clinton, John Kerry and some dirty republicans.
You need to watch this video:
http://www.youtube.com:80/watch?v=H5tZc8oH--o
you’ll have to pause it to read some of it.