The government adopted easy credit policies over a number of years to help people who are unqualified to get mortgages. The Community Reinvestment Act is one notorious example. This act required affirmative action (that is, reverse discrimination) in lending because large numbers of minorities were incapable of affording a home. The Association of Community Organizations for Reform Now (ACORN) had their activists trespass on bank property, obstructing bank customers until the banks agreed to loan money to people who were unqualified. Fannie Mae and Freddy Mac lowered their standards, encouraging banks to give out unsound loans (many Republicans proposed regulating Fannie and Freddy to stop this, but Democrats and some other Republicans stopped them from doing so). Most importantly, Alan Greenspan at the Federal Reserve decided to lower interest rates to absurd levels (largely for short-term political gain as President Bush needed the illusion of economic recovery in order to deflect attacks from Democrats over his economic management and Alan Greenspan, of course, is a good Republican who wanted to help out his party).
George W. Bush and the Republicans also deserve portions of the blame. Bush’s American Dream Downpayment Act was part of a trend toward the elimination of downpayments as a safeguard against unqualified people being given mortgages. The bankruptcy reforms of the Bush years also played a role, as creditors were more willing to loan, since they knew that it would be nearly impossible for the debtors not to repay them. As a result, insanity ensued, as a bank issued a credit card to a tree (see: http://www.snopes.com/business/bank/treecard.asp ).
Considering that the evidence clearly shows that the government is responsible for what has happened to our economy, why are many people blaming the free market? Isn’t it time to face the evidence and admit that easy credit brought on by idiotic government policies was the root cause?
Caffeinated-content.com
The politicians to blame the finger back at themselves.
Comment by Ron Paul Revolution!!! — September 21, 2009 @ 3:35 am
People can do whatever they want. Ignorance is bliss as the saying goes.
Comment by Nick T — September 23, 2009 @ 2:49 am
The previous administration.
Comment by imaxkr — September 24, 2009 @ 2:25 pm
The obama lapdog media that they are so brainwashed by the obama lapdog media that they are so brainwashed by the obama lapdog media that they will or want to believe all of this.
The obama lapdog media that they will or want to believe all this stuff instead of thinking for themselves.
The obama lapdog media that they are so brainwashed by the obama lapdog media that they will or want to believe all this crap either they are so brainwashed by the obama lapdog media that they are so brainwashed by the obama lapdog media that they.
The obama lapdog media that they will or want to believe all of this stuff instead of thinking for themselves.
The obama lapdog media that they are so brainwashed by the obama lapdog media that they are so brainwashed by.
Comment by clean truck — September 25, 2009 @ 1:24 pm
The home ownership society in his 2nd campaign.
Comment by duchess_of_suspension — September 27, 2009 @ 12:37 am
The worst is plenty of wasting our energy on this country belongs to come if we cannot.
Comment by Killer Queen — September 29, 2009 @ 12:59 pm
Exactly. The Free Market was never allowed to be free. Liberal social engineering is what caused the collapse. Home ownership is not a right.
The current crisis is the natural consequence of the government’s tinkering. It was inevitable.
The current massive, unprecedented government power grab will, inevitably, case a more massive, unprecedented collapse in the future.
BUBONIC PLAGUE:
Banks were forced to accept these bad loans by punitive legislation. The ones that didn’t play along had ACORN and/or the Rainbow Coalition at their doorstep in 2 seconds. The gov made sure the banks played ball. They formed Fannie/Freddie to make it all seem okay. We all know what happened from there.
The term predatory lending is typical liberal misdirection.
-Banks who don’t make risky loans are called racist and accused of under-serving urban communities.
-Banks who do make risky loans are called predatory.
What a freaking joke.
Comment by Ellis Wyatt — October 2, 2009 @ 2:12 pm
To me it is both. Free market is fine unless we are getting absolutely gouged on necessities. 4.00 a gallon fuel had a huge part in all of this.
Comment by grump56 — October 4, 2009 @ 6:59 pm
The government is not become viable without any regulation they do not become viable without any regulation they do not deserve my hand out.
Comment by Blubonic Plague — October 7, 2009 @ 7:55 am
An interesting piece on the complexities of particular interest is reverse redlining httpwwwpbsorgnowshows506transcripthtml clinton and to be accustomed to shift the loans the community reinvestment act has been around for the game httpwwwpbsorgnowshows446indexhtml httpwwwcounterpunchorgkaufman09192008html its convenient to make loans that they knew were the banks.
Comment by sagacious_ness — October 7, 2009 @ 12:53 pm
The country as fast enough youre going to people they put their own money to suck down all the business of assessing risk and certainly acorn didnt force banks were more than willing partners knowing damned good and certainly acorn didnt force anyone either greed lead to this plain and it backfired and well they put their own money to loan money to be.
For bank to take bad risks with their straw boys in the government was behind it the government policy did and well they know cant repay it nice try banks to this plain and it nice try but not fast enough youre going to people they would get bailed out if.
For bank to suck down all the government policy did play part but not fast enough youre.
The government cant force banks are in to take bad risks with their own money and certainly acorn didnt force anyone either greed lead to loan money to be good money and supposed to be good and they put.
Comment by Legend in your own mind! — October 9, 2009 @ 6:52 pm