Posted 11 years ago on Oct. 10, 2011, 7:05 p.m. EST by WELLinformed
This content is user submitted and not an official statement
Washington pushed CRA (community reinvestment act) and other programs with Barney Frank and congress encouraging Fannie Mae & Freddie Mac to loosen lending standards and expand home ownership to those who would not otherwise qualify.
Market bubbles & collapses
Washington lends money to banks- Bank of America received $45 billion and repaid the money with approximately $5 billion in interest (10% return for the government) [much better than the $100's millions in favors crammed into health care bill that are non health care related or $500 million to solar energy company that went BK)
Washington passes Dodd/ Frank and limits banks income streams (ie- caps on merchant credit card fees)
In response Bank of America imitates $5 monthly fee receiving robust public opposition and scrutiny from Congress
Final: Congress created the entire mess, blamed banks, then made it worse and blamed banks again.
Why? If the housing market did not bubble creating false wealth- politicians would face answering for diminished or negative GDP and lose their jobs.
Congressman bribe other Congressman by offering millions$$ in special grants and funding for their constituents in order to pass a headline (ie-healthcare) bill so they may be re-elected. Citizens are jailed for bribery.
Get off of Wall Street and onto Pennsylvania Ave.
Think of it this way: if the speed limit is 60- people drive 60 (or fined); if speed limit is 75, they drive 75 (or fined).