Quote:
|
Originally Posted by Guest
CRA wasn't the problem.
Derivatives/CDO's, that were contrived by mixing in high risk loans and low risk ones then rated AAA for the whole package...WAS the root of the problem.
If the high risk loans stood on their own, then the secondary mortgage market would have rejected them and banks/mortgage companies would have stopped (or vastly reduced) the number of high risk loans they made...because they couldn't dump them off on someone else.
Those who try to lay the problems at the feet of a political party...are just ignorant simpletons. 
My biggest disappointment with Obama, is that he didn't put a whole bunch of the rating agencies scumbags...in prison!! 
Deepest Sincere Wishes:  |
I noticed that you did not mention the fault of Fanny/Freddy in the mortgage collapse. Giving loans to anyone, regardless of their ability to make payments is irresponsible. To even allow private citizens, to push private citizens into adjustable rate mortgages was irresponsible. And after five years when those ARM's suddenly increased in interest rate and those home owners decided to walk away from those loans, that was also irresponsible. And Obama allowing them loan forgiveness was only condoning such irresponsible practice.
Bush attempted on many occasions to get Fanny/Freddy audited, but Barney Frank refused. I am not blaming anyone in particular for this mess, but banks being forced to give loans to EVERYONE is part of the problem. Clinton said "everyone should own a home" in America. I don't agree. Not everyone can afford a home in America.