NY Times Sept 30, 1999 'shocker'! Guess who mucked up Fannie Mae?

[Hazcat]

http://www.bucksright.com/bush-proposed-fannie-mae-freddie-mac-supervision-in-2003-1141

Read that.  Bush TRIED to get it under control and the Dims shot it down!

[DesertMarine]

How it went down... "Joe" makes $40,000 a year, applies for a $399,000 house with an ARM he can't afford to begin with, greedy bank approves, than sells the note to AIG, Merrill Lynch, (pick one),....

Twyacht has got it right.  There are a lot of hard working people that were given loans that they could not afford.  Saw a report of a family that is now homeless.  The husband and wife both worked and bought a house on a interest only mortgage and were paying $1000 a month.  That was no problem.  He worked construction and with the downturn on homebuilding was laid off.  Then with the economy his payments went up to $3000 a month.  They are living in a van and looking for work to get back on their feet.  No, they are not looking for govt bailout. 

I don't believe that all the people that made bad choices on loans are lazy and whatever.  The idea of people being able to buy what they cannot afford is the main problem.

[tt11758]

The American Dream of home ownership is NOT part of the "Bill of Rights".  It's a privelage, one that comes from hard work and continuous employment!  One that comes from being responsible for ones actions and taking account of ones finances!

When did we become a country of victims? 

T

The 1990's.

[PegLeg45]

Twyacht has got it right.  There are a lot of hard working people that were given loans that they could not afford.  Saw a report of a family that is now homeless.  The husband and wife both worked and bought a house on a interest only mortgage and were paying $1000 a month.  That was no problem.  He worked construction and with the downturn on homebuilding was laid off.  Then with the economy his payments went up to $3000 a month.  They are living in a van and looking for work to get back on their feet.  No, they are not looking for govt bailout. 

I don't believe that all the people that made bad choices on loans are lazy and whatever.  The idea of people being able to buy what they cannot afford is the main problem.

+1
A lot of good people that were ignorant in the ways of financial workings were led astray by 'lending predators'.
To some that may not be an excuse, but it happened that way.
Many home buyers were 'talked into' adjustable rate mortgages without being warned (many didn't understand enough about ARM's to ask) of future risks when rates climbed.
People should have known better, but they didn't...and banks preyed on that...and now taxpayers are having to pay up for the bank's indiscretions.

[Dharmaeye]

Something is fishy in this report. In 2003, the Repubs had control of both Congress and the White House. If they had wanted this regulatory bill passed, it would have been passed.

[Sponsor]

[Hazcat]

I don't know how to embed it but here is a pretty good report on the 2003 and 2005 bills.



http://www.youtube.com/watch?v=3QBRIsCkGQ0

[runstowin]

http://www.brasschecktv.com/page/187.html 

This is to me an entertaining and edifying video on the present financial debacle.

[Fatman]

Something is fishy in this report. In 2003, the Repubs had control of both Congress and the White House. If they had wanted this regulatory bill passed, it would have been passed.

Bill Clinton raised a red flag on this in 1999 (I believe), and  Franks and Schumer again down played it.  The pattern here is Franks and Schumer.  I'm willing to bet a good hard look at these two is in the works.

On the Today show Sept 25, Clinton basically said he believed loosening of the SEC oversight in this admin was the last straw - also said Dems failed to act responsibly. After noting Bush alluded to the problems starting  'a decade ago' in Monday's speech, Matt Lauer mentions an old WSJ article stating CRA was noble but extremely dangerous. Clinton paused a moment, then replied  in hindsight (about the 3:30 mark)  the CRA of 1995 was responsible.  Seems plenty of blame to go around.

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