Kaizar said:
Kasz216 said:
Again... that's not really what it shows though. Look at the above article. If you want to suggest the banks changed what they did, that's one thing... that they were never allowed to do it under Clinton? That's is a lie. Stated Income loans had always been legal until Dodd Frank. Clinton, and later Bush, distorted the market so that employees would be seen as valuable based on the quantity of the mortgages they signed, rather then the quality, as banks now essentially had "quotas" for people of lower income levels and minorities. Banks took this, and increased subprime loans and stated income loans and the crazier default credit swaps that led to issues. (Which mostly failed because all housing markets in the US collapsed at once, something that wasn't even accomplished during the Great Depression.) Need more home loans for specific groups but nobody fits federal guidelines? Offer the ability to just state your income more widely rather then demand proof. All kinds of people will be willing to lie assuming they can keep up with the payments. As for the people "Working for the big guys" it's worth noting... these were very specifically the people who were writing "Liar Loans" in the first place. Banks likely knew there was something fishy, but they were pushed into the quantities game and had to keep up... and generally felt secure in the knowledge that real estate pretty much has never bottomed out everywhere at the same time. .Suggesting that banks knew the GFC would happen and didn't care is silly because they had more to gain over a medium period of time by not causing the GFC... and these people were already rich so it's not like they needed a get rich quick scheme.
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Well 60 minutes & Anderson Cooper 360 have said in their own seperate programs that there was a lot of regulations on the housing market on Bill CLinton that George W. Bush de-regulated. The news also said that there was a lot of regulations on e stock market too that george W. Bush also de-regulated, which allowed for such risky transactions to ever be legal when it use to be illegal under Clinton.
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You say this. Yet can't actually provide any of those regulations.
I can't help but feel you misunderstood soomething they said. To give an example, Mother Jones, is basically one of the most liberal websites on the net... and one that wouldn't give George W Bush credit for just about anything....
Check out their timeline. Keep in mind President Bush started in 2001.
http://www.motherjones.com/politics/2008/07/where-credit-due-timeline-mortgage-crisis
You'll note... No regulations removed or gutted, outside of specific state regulations. The only federal regulation mentioned is the Responsible Lending Act... which was never passed. Only introduced... and mentioned to highlight that politicians special involvement/have something in the Bush years.
They only blame Bush for inaction.