This video puts things in pretty clear perspective... (if this is the one on the hearings. i can watch it at work)
Some are suggesting that these small loans to poor people is not the problem. that there simply arent enough of them to really matter.
but that is really a misdirection.
The Federal Government using the force of law, created regulation that reqiired banking institutions to offer loans to people who had previously been unqualified.
The stated goal was to get poorer people into home ownership. So Banking institutions created new types of loans that would allow these people to get loans.
that was the launching pad. Fannie and Freddie further complicated is by buying up these loans encurraging more of them, then based on the fact that everyone considerd these mortgages to have government backing, Fannie and Freddie sold many of them into the market.
Complicating matters was the fact that the Fed kept the federal funds rate exteremely low, thus allowing even more sketchy loans to inter the system.
then, once these new "instruments" had been created to service this government demanded segment, those loans were "out there" for anyone to take advantage of. Middle Class people and even businesses all the sudden qualified for loans that were vastly larger than they had previously been able to qualify for.
Now these loans, that were created to get poor people with bad credit into home ownership were being offered in general to everyone.
and everyone thought it was a good idea. This is the snowball.
The root here was the government regulation that required banks to come up with ways to loan money to unqualified people but that root grew well beyond that because once a the cat is out of the bag, you cant shove it back in.
In the video, you will see Maxine Waters clearly praise Franklin Rains for comming up with these new types of loans.
__________________ If I do something stupid blame the Lortab!
Oh, but they still point the finger at us republicans!, starting with Nanci Peloski .(sp?)
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Rom.8:38,39-For I am convinced that neither death nor life, neither angels nor demons, neither the present nor the future, nor any powers, neither heigth nor depth, nor anything else in all creation, will be able to seperate us from the love of God that is in Christ Jesus our Lord.
Someone wanted me to tell you that you can continue your lies and scare tactics, but he and other Obama supporters will continue to blindly believe the mouth of the Prophet and pull the lever in his favor.
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When a newspaper posed the question, "What's Wrong with the World?" G. K. Chesterton reputedly wrote a brief letter in response: "Dear Sirs: I am. Sincerely Yours, G. K. Chesterton." That is the attitude of someone who has grasped the message of Jesus.
Someone wanted me to tell you that you can continue your lies and scare tactics, but he and other Obama supporters will continue to blindly believe the mouth of the Prophet and pull the lever in his favor.
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