The Dems caused this crisis...OBAMA I...

The Dems caused this crisis...OBAMA IGNORED IT.

Posted in the Hampton Forum

Swami

Virginia Beach, VA

#1 Sep 29, 2008
It’s very important for everyone to understand why this happened.

Okay...here you go...

The root cause of the current economic crisis is the housing foreclosure situation. The housing bubble caused it. What caused the housing bubble?
Sub-prime mortgages...Risky mortgages to low income, bad credit borrowers. Where did they come from?

Google this: "Community Reinvestment Act".

Jimmy Carter and the Democrats passed this. It gave incentives to help low income borrowers get a home. Not a bad idea...if done right. It helped a little. but only a little...until 1995 when the Clinton Administration made some changes to it. The Democrats added massive new provisions. That forced banks to issue ONE TRILLION dollars in new "Sub-prime" loans. This created Sub-prime Mortgage Securities. Bear Stearns was the first to do it. Remember them?
Fannie Mae added fuel to the fire. Sub-prime mortgages started to grow. Home prices started to rise. Fannie Mae is a "Government Sponsored Enterprise." Fannie Mae guarantees mortgages then Fannie sells them to banks and investors. The more mortgages the more money Fannie makes. How do you increase the number of mortgages? Simple...you move DOWN the income ladder with "affordable" mortgages. Remember, the banks had to issue Sub-Prime Mortgages or pay big penalties.(Clinton’s bill said so) How do you keep them affordable?
No money?
No money down!
Interest only! "Low" Variable rate!
No income verification!
Bad credit? No credit? No problem!!!
Just sign right here!!!
In 2004, 92% of Fannie Mae Sub Prime Loans were VARIABLE RATE. In 2005 it was 91%.
Fannie tells the banks to make the loans...we'll back them!
Home ownership kept rising and so did prices. Big problem!! Interest Rates Rose Too!!!
Gas prices shot up. Paychecks got squeezed!!
(especially low income paychecks!)
Some borrowers stopped paying on their loans so banks stopped lending. This caused the sub-prime market to collapse. Foreclosures started piling up. No buyers. Only sellers. Home prices fell. More borrowers stopped paying on their loans. Fannie Mae guarantees were now worthless. Banks collapsed due to worthless government securities issued by Fannie Mae. Jobs started to disappear.
Now here we are.

John McCain saw the writing on the wall in 2005 by co-sponsoring a bill (The Housing Enterprise Regulatory Act S.190. Look it up. www.govtrack.us Make sure you use 2005 as the year) but the Dems voted against it.

Obama didn't bother to vote at all. Let me repeat that….OBAMA DID NOT BOTHER TO VOTE ON THIS.

In fact, in 2003, BUSH tried to thwart this crisis that he saw coming. The Dems blocked it. Barney Frank made light of it. Melvin Watt scoffed at it.

JWG

Since: Jul 08

Williamsburg

#2 Sep 29, 2008
Does it not bother anyone Obama's has a "Truth Squad" that is going around the country threating arrest to anyone or a TV station or Radio station that say anything bad about Obama?
THIS IS THE USA! NOT CUBA!

“I pity the fool !!”

Since: Jan 08

Hampton, VA

#3 Sep 29, 2008
Is one thread not enough for you guys to repeat the same thing over and over again.
American

Poquoson, VA

#4 Sep 29, 2008
Think 1st wrote:
Is one thread not enough for you guys to repeat the same thing over and over again.
Gotta try to get the word out before Obama's "Truth Squads" show up...

Heil Obama!
Obama Supporter

Virginia Beach, VA

#5 Sep 29, 2008
Think 1st wrote:
Is one thread not enough for you guys to repeat the same thing over and over again.
No.
THJ

South El Monte, CA

#6 Sep 29, 2008
Everyone who voted for the democrats share the blame for this mess. Force companies to lend money to those with no means or motivation to repay them. The buying of votes by democrats has really screwed the rest of us.
Obama 08

AOL

#8 Sep 29, 2008
JWG wrote:
Does it not bother anyone Obama's has a "Truth Squad" that is going around the country threating arrest to anyone or a TV station or Radio station that say anything bad about Obama?
THIS IS THE USA! NOT CUBA!
They are simply making sure Republicans do not make untrue, slanderous accusations, which is all they really know how to do. I hope they go after Limbaugh, Hannity, Boortz and all those other lying, recist, spewers of hatespeak that flood the airways every day. Why can't our Democrats enact an emergency Fairness Doctrine from now until election day so these criminals won't destroy Obama's reputation like they did John Kerry's.

JWG

Since: Jul 08

Williamsburg

#9 Sep 30, 2008
Obama 08 wrote:
<quoted text>
They are simply making sure Republicans do not make untrue, slanderous accusations, which is all they really know how to do. I hope they go after Limbaugh, Hannity, Boortz and all those other lying, recist, spewers of hatespeak that flood the airways every day. Why can't our Democrats enact an emergency Fairness Doctrine from now until election day so these criminals won't destroy Obama's reputation like they did John Kerry's.
It about FREE SPEECH you dumb %$*&^@!
WTT

AOL

#11 Sep 30, 2008
THJ wrote:
Everyone who voted for the democrats share the blame for this mess. Force companies to lend money to those with no means or motivation to repay them. The buying of votes by democrats has really screwed the rest of us.
Everyone who bought a house knowing full well they couldn't afford it are also to blame for this mess.

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