Lou, I may get around to researching this. However, 1994 is not 2004. The lending standards of the banks did not decline under Clinton like they did under Bush. And Democrats were a minority in Congress at that point.Just for Cway:
At President Clinton’s direction, no fewer than 10 federal agencies issued a chilling ultimatum to banks and mortgage lenders to ease credit for lower-income minorities or face investigations for lending discrimination and suffer the related adverse publicity. They also were threatened with denial of access to the all-important secondary mortgage market and stiff fines, along with other penalties.
The threat was codified in a 20-page “Policy Statement on Discrimination in Lending” and entered into the Federal Register on April 15, 1994, by the Interagency Task Force on Fair Lending. Clinton set up the little-known body to coordinate an unprecedented crackdown on alleged bank redlining.
The edict — completely overlooked by the Financial Crisis Inquiry Commission and the mainstream media — was signed by then-HUD Secretary Henry Cisneros, Attorney General Janet Reno, Comptroller of the Currency Eugene Ludwig and Federal Reserve Chairman Alan Greenspan, along with the heads of six other financial regulatory agencies.
I've said this a million times... the banks volunatarily made bad loans knowing they'd keep the payments and get the property by default as well, which was good in a time of rising real estate value.
The game blew up in their faces when the supply of housing peaked and demand fell. Home prices dropped and the banks now suddenly had thousands of homes below market value.
Please... please... please... try to remember this.
But suffice to say, I give up on both Parties. A plague on both their houses.