lIBERAL LEVEL PLAYING FIELD

[Classact]

The current housing bubble was created during the President Carter administration because of the inability of the liberal left to make a level playing field when the people involved are not level.

The thousands of mortgage defaults and foreclosures in the "subprime" housing market (i.e., mortgage holders with poor credit ratings) is the direct result of thirty years of government policy that has forced banks to make bad loans to un-creditworthy borrowers. The policy in question is the 1977 Community Reinvestment Act (CRA), which compels banks to make loans to low-income borrowers and in what the supporters of the Act call "communities of color" that they might not otherwise make based on purely economic criteria.

The original lobbyists for the CRA were the hardcore leftists who supported the Carter administration and were often rewarded for their support with government grants and programs like the CRA that they benefited from. These included various "neighborhood organizations," as they like to call themselves, such as "ACORN" (Association of Community Organizations for Reform Now). These organizations claim that over $1 trillion in CRA loans have been made, although no one seems to know the magnitude with much certainty. A U.S. Senate Banking Committee staffer told me about ten years ago that at least $100 billion in such loans had been made in the first twenty years of the Act. Read the entire article here.
http://www.lewrockwell.com/dilorenzo/dilorenzo125.html

The idea is to lift up those who will not lift themselves up. Can those not equally qualified for credit be given credit? Would you loan a drug dealer or alcoholic money? Then why did congress encourage the banks to loan money with lesser qualifications to PEOPLE OF COLOR?

[mundame]

The idea is to lift up those who will not lift themselves up. Can those not equally qualified for credit be given credit? Would you loan a drug dealer or alcoholic money? Then why did congress encourage the banks to loan money with lesser qualifications to PEOPLE OF COLOR?


Well, it didn't work out well. The Wall Street Journal confirms that most --- that's MOST --- of the subprime loans were made to blacks. Their foreclosure rate started rising rapidly in March 2007, and that was the beginning of the trouble. Interbank credit froze up worldwide August 6, 2007, and we are not out of the woods yet.

I have never seen the Wall Street Journal print such apolcalyptic text: they constantly say they are afraid of the demise of American capitalism; afraid of the collapse of our financial system.

That can happen, you know. Weimar Germany, 1921-23. Argentina, more recently. Zimbabwe, with their 15,000% inflation now.

So no, giving credit to people who haven't earned credit is not an experiment likely to be repeated soon.

[Hagbard Celine]

The current housing bubble was created during the President Carter administration because of the inability of the liberal left to make a level playing field when the people involved are not level.
Read the entire article here.
http://www.lewrockwell.com/dilorenzo/dilorenzo125.html

The idea is to lift up those who will not lift themselves up. Can those not equally qualified for credit be given credit? Would you loan a drug dealer or alcoholic money? Then why did congress encourage the banks to loan money with lesser qualifications to PEOPLE OF COLOR?

I think you answered your own question here. They were probably trying to stimulate the economy by pumping up a sector of it that would have generally remained stagnant due to those people's lack of credit and/or income. It didn't work not because it was a bad idea, but because it was poorly executed. If mortgage companies had exercised prudency instead of proverbially throwing wads of cash out of a moving car to anyone and everyone who wanted it we wouldn't be in the shape we're in now. It has nothing to do with "libs" as you so desperately want it to, it has everything to do with predatory lending practices.

[red states rule]

The current housing bubble was created during the President Carter administration because of the inability of the liberal left to make a level playing field when the people involved are not level.
Read the entire article here.
http://www.lewrockwell.com/dilorenzo/dilorenzo125.html

The idea is to lift up those who will not lift themselves up. Can those not equally qualified for credit be given credit? Would you loan a drug dealer or alcoholic money? Then why did congress encourage the banks to loan money with lesser qualifications to PEOPLE OF COLOR?

Is it me or do people put more time into doing research, and their homework when they buy a big screen TV or a microwave; then they do the biggest purchase they wil ever mnake - their home?

I do have any pity for people who bit off more then they could chew. Or they whine they did not lnow their mortgage was an ARM and they did not know their rate would go up. Or lied to get the loan

If you are to lazy to read the documents, hire a lawyer who will read them and explain them to you

[avatar4321]

I think you answered your own question here. They were probably trying to stimulate the economy by pumping up a sector of it that would have generally remained stagnant due to those people's lack of credit and/or income. It didn't work not because it was a bad idea, but because it was poorly executed. If mortgage companies had exercised prudency instead of proverbially throwing wads of cash out of a moving car to anyone and everyone who wanted it we wouldn't be in the shape we're in now. It has nothing to do with "libs" as you so desperately want it to, it has everything to do with predatory lending practices.

how do you act prudently when the government tells you you have to make bad offers to people?

[Classact]

Is it me or do people put more time into doing research, and their homework when they buy a big screen TV or a microwave; then they do the biggest purchase they wil ever mnake - their home?

I do have any pity for people who bit off more then they could chew. Or they whine they did not lnow their mortgage was an ARM and they did not know their rate would go up. Or lied to get the loan

If you are to lazy to read the documents, hire a lawyer who will read them and explain them to youThe banks in Puerto Rico cannot sell a mortgage without a lawyer representing the client. If you get duked then you sue the lawyer that failed to represent you and the bank with another lawyer. Every place you sign is a statement that you have read and that the lawyer and the bank agent has explained all contained on the document.

[April15]

So the concept of unethical practice's by the mortgage brokers and subsequent bond holders plays no part in the sub prime loan equation?

[5stringJeff]

So the concept of unethical practice's by the mortgage brokers and subsequent bond holders plays no part in the sub prime loan equation?

A few mortgage brokers may have acted unethically, and they are being investigated. Most did not. So it probably plays a very small part in the big scheme of things.

Subsequent holders of mortgage-backed securities have nothing to do with it.

[trobinett]

Well, it didn't work out well. The Wall Street Journal confirms that most --- that's MOST --- of the subprime loans were made to blacks. Their foreclosure rate started rising rapidly in March 2007, and that was the beginning of the trouble. Interbank credit froze up worldwide August 6, 2007, and we are not out of the woods yet.

I have never seen the Wall Street Journal print such apolcalyptic text: they constantly say they are afraid of the demise of American capitalism; afraid of the collapse of our financial system.

That can happen, you know. Weimar Germany, 1921-23. Argentina, more recently. Zimbabwe, with their 15,000% inflation now.

So no, giving credit to people who haven't earned credit is not an experiment likely to be repeated soon.

Pretty much says IT ALL.:salute:

[red states rule]

The banks in Puerto Rico cannot sell a mortgage without a lawyer representing the client. If you get duked then you sue the lawyer that failed to represent you and the bank with another lawyer. Every place you sign is a statement that you have read and that the lawyer and the bank agent has explained all contained on the document.

So if you did not read what you signed, why should you be bailed out by the taxpayers?

[trobinett]

So if you did not read what you signed, why should you be bailed out by the taxpayers?

There you have it, you shouldn't.:coffee:

[emmett]

The rate of interest softened the market. Poor credit folks allowed to purchase due to financial institutions being forced to loan to them made them charge high interest rates to allow for the potentia defaults. All it takes is listening to Clark Howard or Dave or any of the financial guru's on the radio for a show or two before going in to apply and you will be fine. The folks have no excuse. Folks get too excited and sign anything. Saying they were not aware of the ARM is no excuse.

Stupid is spelled S T U P I D. Why should the burden of a bailout be placed on folks who were smarter with their important decisions. Just like with everything else in this clusterfuck of a country, because there are more stupid people than smart, majority rules result in the smart bailing out the dumb.

Ask a lumber broker how he is doing nowadays.

[midcan5]

If I ever read a piece posted by a conservative in which it is not a liberal's, Clinton's, Kennedy's and now Carter's fault I will know the earth has stopped spinning.

[midcan5]

Stupid is spelled S T U P I D. Why should the burden of a bailout be placed on folks who were smarter with their important decisions. Just like with everything else in this clusterfuck of a country, because there are more stupid people than smart, majority rules result in the smart bailing out the dumb.

Why exactly? Well maybe because we are all in this together you think.

http://www.counterpunch.com/whitney04122008.html

[red states rule]

If I ever read a piece posted by a conservative in which it is not a liberal's, Clinton's, Kennedy's and now Carter's fault I will know the earth has stopped spinning.

They all have so many failures it does take time to list them all :lol:

[actsnoblemartin]

william " i failed to tell the truth" clinton

Jimmy" I failed to be fair " carter


They all have so many failures it does take time to list them all :lol:

[trobinett]

Why exactly? Well maybe because we are all in this together you think.

http://www.counterpunch.com/whitney04122008.html

Absolutely NOT, or YOU fucking brain dead.

How is YOUR mistake MY mistake?

Please, I'd like to hear this.........:poke: