And You Thought the Housing Crisis Was Over!

[Locutus]

Do you remember that thing about how the banks wouldn't lend to blacks and Hispanics because they were racists? And do you remember how they passed the Community Reinvestment Act so that banks were forced to reduce down payments practically to zero and lend to a lot of people they knew were bad credit risks? And do you remember how Wall Street bundled all these risky subprime mortgages and sold them to investors around the world so that when it became clear that those people weren't going to be able to pay their mortgages banks everywhere were left holding the bag and all five of the Wall Street investment houses either went under or had to be bailed out by the federal government?

more

The American Spectator : And You Thought the Housing Crisis Was Over!


Well do you? :lol:


Anyway, h/t to sda

What Could Possibly Go Wrong?

http://www.smalldeadanimals.com/archives/020943.html#comments
http://www.smalldeadanimals.com/archives/020943.html#comments

 

[Kreskin]

When Mitt provides his tax returns all the whiney rednecks can have their say. Until then, Mr Tucker can shove it where the sun don't shine.

 

[Niflmir]

Do you remember that thing about how the banks wouldn't lend to blacks and Hispanics because they were racists? And do you remember how they passed the Community Reinvestment Act so that banks were forced to reduce down payments practically to zero and lend to a lot of people they knew were bad credit risks? And do you remember how Wall Street bundled all these risky subprime mortgages and sold them to investors around the world so that when it became clear that those people weren't going to be able to pay their mortgages banks everywhere were left holding the bag and all five of the Wall Street investment houses either went under or had to be bailed out by the federal government?

No, I do not remember.

What I do remember was hispanics and blacks being given bad interest rates on their loans compared to whites with identical credit profiles.

A good credit score did not protect Latino and black borrowers | Economic Policy Institute

The problem wasn't that they were not being given loans. The problem was that they were given loans at a high interest rate as if they were bad risks when they were not high risk individuals at all.

The fact that these individuals were given higher rate mortgages than they should have been contributed to the default problem, as they otherwise would have remained solvent.

Subprime Debacle Traps Even Very Credit-Worthy - WSJ.com

 

[damngrumpy]

Most of this is opinion from what i can tell, they mix some fact with the anti Obama line
of the day. The truth is the whole economy is about to go south and not just in America.
People propped up the system and the first thing the corporations did was pay the old
bonus checks to senior executives.
The banks and lenders combined with Wall Street were only partially to blame. Some
of it goes to previous governments that unrestricted day traders and others to the point
where accountability was out of control. Freddie Mac and Fanny May were also major
contributors to eh mess that is true.
The biggest sing threat to the world? Derivatives, the amount outstanding is estimated
in some quarters at around a quadrillion dollars ten times the gross national product
of the world. If that collapses the recession will last more than half a century.
The crisis is not over, in fact the other half of the financial hurricane will be worse than
2008 and its closing in fast.

 

[TenPenny]

I wasn't aware that the banks were FORCED to lower down payments to zero.

 

[mentalfloss]

Another ****ty, biased thread by Loc.

Quel surprise.

 

[CDNBear]

Another ****ty, biased thread by Loc.

Quel surprise.

Are your toes OK?