Republicans trick people into voting for them ( Archived) (236)

Yep! Your right!

And you can trace that right back to November 12, 1999: Bill Klinton's repeal, at the behest of democratic lobbyists, of the Glass-Steagall act. Bill is the man who started the whole sub prime debacle....

I heard the same thing too. His cronies were involved with Freddie and Fannie. Hard to believe.

Freddie and Fannie were democratically controlled entities from the beginning. 100% the fault of democrats. And Pelosi has the GALL to stand up there and say "Don't look at us: it's not OUR fault"!!!! What a blatant liar and fraud!

A snippet of a conversation with a mortgage lender:

"I have been in the lending industry for many, many years and the fact that you're right, government has been the problem. In the late nineties, Fannie was given charge because the administration at the time wanted to expand home ownership to everyone, and I acquired assets for large banks, and we did not do what's called conforming or Fannie Mae type product. But Fannie Mae was extending its portfolio and creeping into areas that we had traditionally bought. We had higher yields, higher risk, and were acquiring that. And all of a sudden Fannie Mae was creeping into it, and it became a word in the industry, Fannie Mae Creep. And those portfolios expanded. And the only way that the private groups and their securities could make any money was to expand the risk of their criteria given the yield. And not to try and make it too technical, the key is with the expanding portfolio characteristics of Fannie, the private groups having to expand theirs, it created a very unrealistic and unsustainable demand, thus values went through the roof unrealistically. Now they're coming back down to where they should have in the first place."

"Money was cheap, the yield spread that the guys on the street with the rating agencies could show was worthwhile. But as soon as the yield curve flattened, when the Fed raised rates, then it became uninteresting for the private securitizers, I mean the Fannie's and Freddie's had all the ability to securitize what they want because of the government backing. The other guys found it not worthwhile to do any more because the yield curve had gone flat. At that point, appreciation did not drop, it simply stopped. But everyone was so highly leveraged in their homes that then they could not refinance, and then the snowball started coming back downhill."

"And while all this is going on, Fannie Mae and Freddie Mac are doling out campaign contributions out the wazoo to who? Democrats. At the top of the list, Christopher Dodd. Number two on the list, Barack Hussein Obama. I mean, this thing has been a little playground for Democrats in Congress for the express purpose of doling out money to their friends, fellow politicians, interest groups, and so forth. It got to the point where being involved in the mortgage industry was a side light to the real purpose of all this. "

Once the Glass-Steagall act was nullified: the whole industry was doomed to go down the toilet....

You're absolutely right, Hondo... the dems during Clinton's administration tightened the noose by strengthening the CRA and virtually FORCING banks to start handing out bad loans - even though they were repeatedly told is was a very bad business model and would fail..... But because it was a "Do Gooder" campaign and sounded so pretty on their campaign platforms, they overlooked that fact and went ahead with it. Now we are reaping the rewards of their idiocy.

Pulosi KNOWS this is B.S. but she is counting on her voters to continue being the blind sheep that helped get her elected and fall for her story hook, line and sinker. Fortunately, this is one glaring error we are not going to let her get away with...


From Wikipedia...

The Community Reinvestment Act (or CRA, Pub.L. 95-128, title VIII, 91 Stat. 1147, 12 U.S.C. § 2901 et seq.) is a United States federal law that requires banks and thrifts to offer credit throughout their entire market area and prohibits them from targeting only wealthier neighborhoods with their services, a practice known as "redlining." The purpose of the CRA is to provide credit, including home ownership opportunities to underserved populations and commercial loans to small businesses.

The CRA was passed into law by the U.S. Congress in 1977 as a result of national grassroots pressure for affordable housing, and despite considerable opposition from the mainstream banking community. Only one banker, Ron Grzywinski from ShoreBank in Chicago, testified in favor of the act.

The CRA mandates that each banking institution be evaluated to determine if it has met the credit needs of its entire community. That record is taken into account when the federal government considers an institution's application for deposit facilities, including mergers and acquisitions. The CRA is enforced by the financial regulators (FDIC, OCC, OTS, and FRB). In 1995, as a result of interest from President Clinton's administration, the implementing regulations for the CRA were strengthened by focusing the financial regulators' attention on institutions' performance in helping to meet community credit needs. These changes were very controversial and as a result, the regulators agreed to revisit the rule after it had been fully implemented for five years. Thus in 2002, the regulators opened up the regulation for review and potential revision.

Sure...give loans to people with virtually NO ability to pay them back.....who couldn't see *that* coming?

Oh yea, I forgot....Pelosi, NoBama and the entire democratic party!

But what the hell...if it *feels* good....do it!

Or if it "Sounds" good do it...

McCAIN FOR PRESIDENT

You give them money then tax that.

Whatever it is, he will make it sound "Pretty." That's all that counts.