Forum Post: Banks were happy way back then...
Posted 13 years ago on Nov. 7, 2011, 9:46 p.m. EST by JohnnyO
(119)
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Until Andy Cuomo, HUD Secretary under Bill "Stain" Clinton started suing banks and mortgage companies who wouldn't approve risky mortgages.
They used to make you put down at least 20%. Not anymore. "Everyone should own a home".
Government is the problem, OWS nitwits.
Government of people that think government is the problem, is the problem, nitwit. Like Ayn Rand-worshipping Alan Greenspan and "government is the problem" Reagan. Think about it.
Reagan and every president since then was in on the fun. Face it, when you are blowing up a bubble economy with debt, everybody is happy, everyone gets votes. It's not until the bubble bursts that everyone has goo on their face, and now it is going to take years to pay for it.
Neoliberals one and all. It amounts to government-haters running the government into the ground, creating distrust and loathing; a negative feedback loop. Milton Friedman is grinning in his grave. Government isn't the problem, this government of, by, and for wealth, is. Bubbles are just the tinyest part of it. The Gilded Age v2 is the goal, and we're almost there.
Don't forget Bush:
"Offering FHA mortgages with no down payment will unlock the door to homeownership for hundreds of thousands of American families, particularly minorities," said HUD's Acting Secretary Alphonso Jackson. "President Bush has pledged to create 5.5 million new minority homeowners this decade, and this historic initiative will help meet this goal."
No one forgets any of the idiots. Banks were forced to make these loans. Why do you think they created ways to sell these mortgages to each other? Home construction does create millions of private sector jobs, no doubt, but the government created the mortgage bubble, not the banks.
I agree, it started with liberal ideals, but strangely both the GOP and Dems jumped on it. Wall Street didn't care because as soon as a loan was made (and the mortgage brokers weren't exactly Boy Scouts either), they packaged it up with other loans in a multi-tranche CDO, slapped a AAA rating on it and sold it to some bank in Germany, or maybe to your Grandmother's pension fund. Then they went out and got a credit default swap on it, because they knew they were shit and figured "let some other sucker take the loss" (turns out that sucker was the taxpayer).
Watch the PBS documentary "The Warning", on how Larry Summers, Robert Rubin and Alan Greenspan created and ten destroyed the US economy. One brave low level Clinton admin patriot sounded the alarm and nearly got destroyed in the process:
http://www.pbs.org/wgbh/pages/frontline/warning/
Great, I didn't see that one. It fascinates me how all this happened. Alan Greenspan was the worst culprit. I suspect he had a complex that he needed to be liked, that's why he never took his foot off the gas. The faster he drove the economy the more people worshiped him. We would have been far better off if Paul Volcker was still running the fed (he never would have let this happen).
Great post, both. Like I have been saying for a long time, not all people are going to have a good lifestyle. It is just the way it is.
People these days want guarantees. GenerationMe had reared their ugly heads.
http://www.generationme.org/