You might want to familiarize yourself with the Community Reinvestment Act. kthxbai

The problem with this statement from Obama, is what he is talking about putting in the bill to stop this is the same provisions that's in Medicare.

Being thousands of illegal aliens are on Medicare, saying none would be on this plan is just wrong.

  Yes, I am familiar with it, but that didn't cause landing institutions to start handing out loans to people with no income and no jobs, didn't force consumers to take those loans, didn't cause the lack of regulation in the shadow banking, those had nothing to do with the government, and were just as big if not bigger causes

Did the government force them to give out the loans to people with no income or jobs, nope, did the government force people to take it, nope, did the government cause continued lending even when it was clear the market was over leveraged, nope, did the government cause the lack of regulation of the shadow banking, bait and switch, and other predatory lending practices, nope, all those were not the government.  I thought your right wingies were all about personal responsibility, none of that was the government, so you can't say it was the government's fault if you talk about personal responsibility, people acted stupid, and they are to blame

So let me see if I fallow you.

Banks were only lending out 60% of the population homes loans. The government comes along and says "we want that number to be 66%. Give that extra 6% home loans. and if the fail, we will cover you". 

So the bank now has a risk free opportunity to make money They would be stupid not to take advantage of it.

Because we now have 10% more home owners, the cost of houses goes up. This is good for government (taxes), so they say to the banks "this is working well, go ahead and give 75% of the population loans, and we will cover any over 60%"

So banks do what government is telling them to do, and still, it's not governments fault?

What in a perfect would should the banks have done? Had someone come in for a home loan and tell them "You qualify under this government plan, but I just don't think you should have a house"?

I can just see that Bank exec at his share holders meeting "Yes, the government gave us the opportunity to make hundreds of millions of risk free dollars, but I just thought we should take the moral high ground, and not allow these people to buy homes".

Give me a break. Stop trying to rewrite history. Government screwed this one up.

The first line in my post was "The problem was everyone".

And the government didn't just say "loan money to whomever you want". The government PAYED the banks to loan money to people the banks would not otherwise loan money to, and told them the loans would be covered by the government.

So it was basically the government cosigning on a loan. If I am bankrupt, don't have a job, never plan to work, and Bill gates cosigns on a loan for a house, you think it's stupid to give that loan out? Any bank would be crazy not to give out that loan with Bill Gates on the hook for it.

The mistake would be Bill Gates, because he is guaranteeing a loan that I will never pay. So, he has to pay it. In this case, it was government paying the loans. Except they cosigned on more then they could pay back, and everything fell apart.

@Mafoo, that's a ridiculous comment to make, because first off you still suffer, if your loan defaults, even if you're the bank that made the loan because of the government paying you to do so, you experience losses, so the idea that you make stupid loans is still your fault and your problem, same with the consumer who takes the loans. Everyone knew the market was over leveraged and going to experience a downturn, and the lenders still gave them out.

Secondly as I pointed out, there were far more than just the government subsidized loans that played a role in this, the shadow banking system, which acted as a way of lending between businesses collapsed when the market went under, they had little regulatio nor protections, so that was billions lost there, the government wasn't at fault for that.

Or predatory lending where Banks would get people to take out loans with loan terms that the borrowers couldn't handle, the government didn't do that.

As I pointed out, your argument also falls flat on the basis of your own beliefs, on personal responsibility, doing something stupid and then whining that the government made it too easy for you to do that stupid thing only shows that you were an idiot, it was their responsibility not to give out bad loans, and the consumers not to take them, so blaming the government is disingenuous, the government didn't forec them to make bad decisions.

Hardly. People are still responsible for making or accepting bad loans, sure, but the government is also responsible for incentivizing such reckless behavior.

Well, I am of a somewhat 'radical' (and unpopular) belief that an amnesty should be declared for all illegal immigrants unless they are found to be breaking any law other than entering the country illegally.

At that point we get to what I think should happen with all immigrants. I.E. - if you're not from the EU you shouldn't be entitled to any welfare system until you've paid taxes for two years - if an immigrant wants anything other than emergency care they will have to pay for it, either up front, or with a state-provided loan.

Sigh..

I am not saying it's not the people who took the loans outs fault. I am saying it's everyones fault. Your saying in no way is it governments fault, and that's absolute bullshit.

If I had to lay the least blame on someone, it would be the banks. They were getting paid either way, and it is not there responsibility (nor should it be), to be concerned with your credit. All they should worry about, is if leaning people money is a good investment. The government made sure the answer to that question was yes when for many people it should have been no.

That's the governments fault. Plain and simple.