The little talked about Community Reinvestment Act the start of a housing bubble
 

Welcome to the world of subprime

http://en.wikipedia.org/wiki/Community_Reinvestment_Act

https://youtube.com/watch?v=H5tZc8oH--o

only 25 percent of subprime mortgages fall under cra. Deregulation pushed by phil gramm caused this. CRA was passed in 1977, gramm got deregulation pushed thru 1999. The reason the law Glass-Spiegel Act was created after the depression so this didnt happen. Gramm got this taken away and thats why we had this. Gramm was rewarded for this he is now vice chairman of a bank.

So its Clintons fault for not vetoing a bad bill?

In a way yes. A lot of people responsible for this mess. Politicians in both parties sat with their thumbs up their ass while mortgage brokers and financial institutions raped consumers in this country.

Ya thats kinda what Im getting at. We forget that BOTH dems and reps have advisers that have very very close ties to banking. Many of which are getting billions right now. And the fed is always harping at the president to do what is in the best interest of the fed.

i didnt read the link, but wasnt that carter's baby?

Give me a break. It says you have to lend in your community. Not that you have to make bad loans.

Oh yea?

Lend or get sued!

This means... you lend when you shouldn't

Yeah or bundle those loans so fucking cares if they pay because your not holding them and trade them like junk bonds.

Bullshit and you know it. it was designed to avoid redlining so yeah if you are avoiding certain areas then you get in trouble. This is one of stupidest excuses for this problem I have seen but nice try.

What about the subprime mortagages... who were they given to? According to the Wall Street Journal as much as 60% of these loans were given to people who qualified for prime mortgages. WSJ speculates that alot of these loans were given to speculators...

I am not saying that Democrats didn't have anything to do with it... because they created the conditions that allowed the Bush Administration to actually cause this problem when they raised the cap on leveraging to 40X from 10X.

So... let's keep it real... everyone shares in the blame...