TAT asked:
It becomes government policy that everyone should have the opportunity to own a home. The government cajoles private lending institutions into making irresponsible loans with promises to buy those loans and shield the financial institutions from liability. Financial institutions that don’t go along with the lending frenzy are punished. There’s a rush to buy homes as the government-guaranteed loans flood the landscape. High demand forces home prices up. People see increasing home values and are convinced they can still their loans when the interest rates increase by simply refinancing. The bubble starts to burst when some borrowers realize that they aren’t going to be able to repay their loans and the refinancing isn’t available. Home values crash. Lenders and homeowner find themselves upside down. Financial institutions once worth billions crash and burn.
Anita
It becomes government policy that everyone should have the opportunity to own a home. The government cajoles private lending institutions into making irresponsible loans with promises to buy those loans and shield the financial institutions from liability. Financial institutions that don’t go along with the lending frenzy are punished. There’s a rush to buy homes as the government-guaranteed loans flood the landscape. High demand forces home prices up. People see increasing home values and are convinced they can still their loans when the interest rates increase by simply refinancing. The bubble starts to burst when some borrowers realize that they aren’t going to be able to repay their loans and the refinancing isn’t available. Home values crash. Lenders and homeowner find themselves upside down. Financial institutions once worth billions crash and burn.
Anita
Holly
nah, we’ve got it on YouTube:
DEMOCRATS AND FANNIE MAE:
Comment by Enzyte Bob's 5th Clone — August 23, 2010 @ 6:55 pm
Melissa
The financial crisis was caused by the repeal of the Glass–Steagall Act at the behest of the banks
Comment by Françoise H — August 26, 2010 @ 8:26 pm
Shannon
I know democrats don’t want to hear this but Clinton was the biggest factor in the mortgage crisis…then people like Pelosi and Frank didn’t help much when Republicans were calling for regulations and dems were saying everything is fine with Fannie and Freddie.
Comment by bluestatebobby — August 27, 2010 @ 4:12 am
Nicole
No, but they’ll be so busy listening to him that they won’t notice that suddenly they no longer have any money because they have to spend it on taxes for public stuff that isn’t really necessary and not very many people want. Then they’ll forget about it.
Comment by Marcus — August 28, 2010 @ 2:52 pm
Viola
Conservatives will not loose site of the actual cause.; Liberals never saw the cause because they were told not to see it.
JD
Comment by JD7 — August 28, 2010 @ 3:00 pm
Allen
The o-bots probably will. They don’t remember when Obama called the American public “the pitchforks” when he told the bankers that he was the only thing between those two groups.
Comment by ahandle101 — August 29, 2010 @ 6:31 pm
Elsie
It has never been government policy that everyone should own a home. It was the financial institutions that pressed for deregulation so they could make more loans. It is the same financial institutions that created the complex system of variable rate loans that have forced people into the bankruptcy binds that have led to the bursting of the bubble. The perpetrators have already gotten their piece of the pie and moved on to other schemes, leaving the rest to hold the empty bag.
Comment by fangtaiyang — September 1, 2010 @ 6:48 am
Jeanne
Clinton and Greenspan deregulated the financial firms in 1999. that is the basic cause of the depression.
Comment by scaramonga — September 3, 2010 @ 11:58 am
Patrick
I will not.
Comment by Michael — September 6, 2010 @ 7:20 am
Elizabeth
Only the liberals and the people who blindly follow Obama and think he can do no wrong.
He is using several of Alinsky’s Rules for Radicals to redirect/misdirect attention from the true issue:
”
“A Marxist begins with his prime truth that all evils are caused by the exploitation of the proletariat by the capitalists. From this he logically proceeds to the revolution to end capitalism, then into the third stage of reorganization into a new social order of the dictatorship of the proletariat, and finally the last stage — the political paradise of communism.” p.10
“10. “The major premise for tactics is the development of operations that will maintain a constant pressure upon the opposition. It is this unceasing pressure that results in the reactions from the opposition that are essential for the success of the campaign.”
“13. Pick the target, freeze it, personalize it, and polarize it. In conflict tactics there are certain rules that [should be regarded] as universalities. One is that the opposition must be singled out as the target and ‘frozen.’…
“…any target can always say, ‘Why do you center on me when there are others to blame as well?’ When your ‘freeze the target,’ you disregard these [rational but distracting] arguments…. Then, as you zero in and freeze your target and carry out your attack, all the ‘others’ come out of the woodwork very soon. They become visible by their support of the target…’
“One acts decisively only in the conviction that all the angels are on one side and all the devils on the other.” (pps.127-134)
Comment by 63vette — September 6, 2010 @ 3:56 pm
Floyd
Cons throw out a few words that sound like their supporting your cause but. Never any proof. Americans know that cons lie about as often as they change their underwear. How does a gov cajoles? IF they passed a bill that forced banks to make bad loans what law or bill is it? Or does ot even exists? Most likely not. What republicans call for more regulations? Republicans don’t like regulations they always oppose regulations they want a (Free Market). Sorry con without proof that you all NEVER supply America won’t believe a word you say.
Comment by David R — September 9, 2010 @ 4:56 am