Fairness in home ownership

abe23 said:

So the CRA forced the sub-prime lenders to offer loans to people with no income or assets and allowed them to bundle them with good mortgages and poison the whole financial system?

I agree with you that some of the policies dems have been pushing to increase homeownership set the stage for the subprime crisis and it's definitely related, but to claim that that's what caused this mess is a stretch. Why didn't these prescient republicans fix the problem when they had the white house and congress for 6 years?

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Don't you know the republicans walk on water and shit gold pellets.

abe23 said:

So the CRA forced the sub-prime lenders to offer loans to people with no income or assets and allowed them to bundle them with good mortgages and poison the whole financial system?

I agree with you that some of the policies dems have been pushing to increase homeownership set the stage for the subprime crisis and it's definitely related, but to claim that that's what caused this mess is a stretch. Why didn't these prescient republicans fix the problem when they had the white house and congress for 6 years?

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The CRA requirements forced banks to write the sub-prime loans. The banks didn't want to get caught holding them so they bundled them and sold them. I agree they should be held accountable for doing that.

As for regulation, there should have been more of an effort but who wants to be the guy squashing home loans for poor minorities. Besides, Bush tried but the Dems blocked it in Congress.

Anyway, the point is, the whole idea was messed up to begin with. That is the whole point.

RickWhite said:

The CRA requirements forced banks to write the sub-prime loans. The banks didn't want to get caught holding them so they bundled them and sold them. I agree they should be held accountable for doing that.

As for regulation, there should have been more of an effort but who wants to be the guy squashing home loans for poor minorities. Besides, Bush tried but the Dems blocked it in Congress.

Anyway, the point is, the whole idea was messed up to begin with. That is the whole point.

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they can bundle up and sell anything they want. but to classify something that's a junk bond as something A, AA or even AAA in some instances is just wrong....

the government had some policies in effect that created the crazy mortages, but banks and greed were the ones that created the mess....

the lack of oversight, and the SEC standing by and not doing shit when they KNEW these types of things were going on should be considered unacceptable... a guy named MADOFF stole 40billion dollars, and masked it as a legitimate company, and the SEC just stood by and watched him do it.......

the SEC gets all this money and this and that, and they don't do shit, except close small banks down, and sell them at 10-11 cents to the dollar.....

where does it end?? it won't....

RickWhite said:

The CRA requirements forced banks to write the sub-prime loans. The banks didn't want to get caught holding them so they bundled them and sold them. I agree they should be held accountable for doing that.

As for regulation, there should have been more of an effort but who wants to be the guy squashing home loans for poor minorities. Besides, Bush tried but the Dems blocked it in Congress.

Anyway, the point is, the whole idea was messed up to begin with. That is the whole point.

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So the banks need to held accountable for bundling this stuff and selling it and there was a failure to regulate. We agree then...

What's the problem with giving poor people federally-backed loans? It worked well throughout the 90s. In fact it the shit only hit the fan last year.

Also, republicans controlled congress and could have made a bill for bush to sign for the six years they controlled congress....just like the tax cuts, that weren't paid for and cost more than the current senate healthcare bill by the way.