I take issue with that. It would be abso-fucking-lutely stupid to push for poor people to get homes they couldn't afford...that would just make them more poor.
What the democrats did want to do was stop the process of "redlining", which was banks refusing to give mortgages on property in certain neighborhoods. (i.e. black neighborhoods)
The thing that most heavily contributed to the current crisis was the speculators. People thinking they could flip properties for huge profits with no risk.
These weren't poor people, they were upper middle class and rich people.
The only thing needed to prove that point is to look at what government has done so far to try and mitigate this crisis.
There are umpteen refinance programs available, to turn an ARM or subprime loan into an FHA loan with a low fixed rate. There are programs where the bank will lower the principle of the loan to 90% of current appraised value (thus forgiving a large part of the debt) and giving out a low fixed rate mortgage for the remaining principle...so that people can remain in their homes.
None of these programs have helped stem the tide of foreclosures or stop the bleeding on home prices. You know why?
They're only available to people who actually live in the houses that are being foreclosed on.
The vast majority of the houses underwater whose mortgages aren't being paid are "investment property". It's not row houses in the projects, it's beach condos in Miami.
