Make no mistake – this is NOT a Republican/Democrat issue. You can go back to Bill Clinton and find where this took hold in 1995, if you’d like. If the banks didn’t offer subprime mortgages to inner city families, poor, and low income families, they would be fined millions of dollars. But the only way these families could afford their ‘$200,000’ home on an income of $25,000 was to take the ARM, the low mortgage, negotiate a way to lower payments, etc… and then the house can’t repay the original loan and thus, the house forecloses and the bank has a house they can’t sell for a price high enough to get their loan back.
But hey, thanks to the Democrats philosophy of ‘everyone deserves good things and nice lives and college educations, etc….’ we have this conversation:
No money? Fine. No down payment.
No money? Fine. Subprime interest rate.
No money? Fine. No credit check.
You’re a poor family and can’t afford this $200,000 house? You really should only be financing a $100,000 house but YOU REALLY WANT THIS HOUSE? Fine!!!!
Greed! The bankers AS WELL AS THE people of this country, the people who live past their means are to blame for this. You can’t just blame the nearest Republican – that’s silly!
Here it is……
Fannie Mae tells the banks to make whatever loan they want and that they’ll be guaranteed. Home ownership shot up as did home prices. But then interest rates rose, gas prices shot up, so people got laid off and were on a tighter budget. Borrowers couldn’t pay and so then the banks stopped loaning money. The subprime lending created actually BY DEMOCRATS so people could afford the giant houses and beuatiful homes on their $30,000 salary DRIED UP COMPLETELY. Guess what came next, boys and girls, FORECLOSURES!!!! What does that mean? Few buyers and a CRAP LOAD of sellers (Banks and homeowners). Guess what? All the homeprices started to drop through the floor and guess what? People stopped paying their notes EVEN MORE than before and Fannie Mae had a bunch of ‘guarantees’ that were now completely worthless. Banks collapsed because the govt. couldn’t back up the loans anymore and people started losing jobs then we arrive at Sept. 28, 6:45pm and we’re in trouble with no hope in sight……(Anybody here heard of BAILOUT?) Yeah, well this bailout isn’t going to fix it. It’s made to increase confidence – it’s psychological. These banks can request $200,000,000 dollars in less than a month. You say it’s Republicans? The Democrats expanded the ‘Community ReInvestment Act’ instead of letting home prices increase with inflation. Is it their fault completely? No. But this whole ‘IT’S GEORGE BUSH’S FAULT!’ is just silly. Whose fault? HUMANS! WHY? GREED!! And I hate to break it to y’all but Democrats are greedy too.
We all want everyone to own a home. BUT IF YOU MAKE $30,000 – YOU CAN NOT BUY A $250,000 HOME BECAUSE IT’S NO MONEY DOWN–and THAT is Democratic prinicpal. Regulation is shot to hell and NEEDS AN OVERHAUL – that stupidity falls on the Republicans. What does this mean – The taxpayers will flip the bill – as always. Why am I mad? BECAUSE I DONT LIKE THE GOVT. RUNNING ANYTHING! This is what happens when they do.
LESS FED. GOVT—MORE CITY/STATE GOVT – period,