But unfortunately you have the mind of a toddler.
Always with the personal ad hom from this one, sigh...
https://www.redstate.com/diary/nikitas3/2009/06/18/how-democrats-created-financial-crisis/
The Community Reinvestment Act (CRA) of 1977, passed by a Democrat Congress and signed into law by Democrat president Jimmy Carter, forced banks to make mortgage loans to “low-income” people and forbade banks from ‘redlining’, a practice in which banks would not loan money in certain neighborhoods seen as risky areas. CRA eventually led to mortgages not only for “low-income” people but for “low- and moderate-income” people, which is the way that socialism always expands itself… incrementally. Most of these loan recipients had little, poor or no credit history, had poor employment histories and prospects, and eventually had high rates of default on loans. None of them should have owned homes in the first place, but should have remained renters.
Association of Community Organizations for Reform Now (ACORN) is a left-wing activist group that has accessed huge amounts of money from the federal government. Besides engaging in massive fraud in voter registration, ACORN has used pressure tactics like on-site protests and legal filings against banks that ACORN has claimed were not loaning enough money to “the poor”, leading banks to make trillions in bad loans to people who could not pay the loans back. Obama was closely associated with ACORN in the 1990s.
The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corp. (Freddie Mac) are government-sponsored agencies founded, run and staffed by Democrat liberals. These agencies for decades purchased the risky loans that the CRA and ACORN were forcing banks to make. Since these agencies were buying the loans, banks felt comfortable making the loans because the government (the taxpayers) then was assuming the risk when it purchased the loans.
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Qberto (1139)
5 years ago
Pt. 2:
Trillions in bad ‘subprime’ loans are the spark that caused this whole financial crisis to explode.
The Clinton administration in the 1990s started to agitate for more home loans for poor people even after CRA. Between 1997 and 2001, Andrew Cuomo, Clinton’s secretary of Housing and Urban Development, advocated a system where poor people needn’t even have had an income nor a job (No Income No Job or NINJA loans) to get a bank loan that then would be purchased by Fannie and Freddie. Andrew Cuomo is the son of Mario Cuomo, the liberal former governor of New York state and a big-time Democrat activist.
Democrat US representative Barney Frank of Massachusetts and Democrat US senator Christopher Dodd of Connecticut, two of the most powerful people in Washington both said in public statements over several years that Fannie Mae and Freddie Mac were sound institutions. Frank said so as recently as July 2008. Yet both agencies went into conservatorship in September 2008. Meanwhile Republicans John McCain and George Bush warned repeatedly in public statements that Fannie and Freddie were not sound. Dodd also got a sweetheart mortgage deal for his personal mortgage from Countrywide Financial.
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