Forum Post: I Don't Care What You Say!
Posted 13 years ago on Oct. 25, 2011, 1:37 a.m. EST by HitGirl
(2263)
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I will not and do not believe that both parties are equally culpable. As Norman Goldman would say, "that is just LAZY!" I will not give the Republican tea party a pass as they deliberately create economic hardship in hopes of capturing the presidency in 2012! There are no Republican moderates. I'm not happy with the Democrats...But the Republicans got to go!
You do know that this economic failure started with the housing crash right? That was a direct result of bad loans by banks. the loans were then bundled and sold as tradeable securities. This was done by laws sponsored and passed through committe by Barney Frank and Chris Dodd directing Fannie Mae and Freddy Mac to initiate unsound lending practices
Critics charged that the CRA forced banks to approve mortgages for poor, unqualified buyers who could not maintain payments and went into default or foreclosure, causing the housing market to collapse. That charge was also leveled often at the affordable-housing goals of Fannie Mae and Freddie Mac, federally sponsored enterprises that buy mortgages made by private lenders.
But the Financial Crisis Inquiry Commission established by Congress concluded in January that the 1977 law designed to prevent redlining was “not a significant factor in subprime lending or the crisis.” Ben Bernanke, chair of the Federal Reserve, had made a similar statement two years ago, but the criticism continued.
Also http://www.nytimes.com/2008/07/14/opinion/14krugman.html?_r=1&adxnnl=1&oref=slogin&adxnnlx=1319501238-S+pSXgIjk81A+Na/PatCZQ
Truth is bad policy by both Democrats and Republicans are to blame. George W Bush did pass legislation that removed the down payment requirement from the FHA loan program though.
In Feb 2004, President Bush passed the "Zero-Down Payment Initiative." By the end of 2005, the Nat'l Association of Realtors reported that More than four out of every 10 recent first-time home buyers financed their purchases with no-down-payment loans. The median down payment first-time buyers was just 2 percent. For all buyers, it was 13 percent.
Our current economic crisis was caused by politicians from both parties who perverted the American Dream by treating home ownership as an undeniable right rather than what it really is, a privilege.