Question:
Banks in fact made most of their subprime loans when they started bypassing Freddie Fannie, so they could....?
Smoking Joe
2013-08-03 05:10:05 UTC
...ignore basic legal lending requirements, and just loan money to anybody in a hot market.
Why do conservatives constantly misrepresent these simple facts?
http://www.americanprogress.org/issues/housing/report/2012/09/06/36736/7-things-you-need-to-know-about-fannie-mae-and-freddie-mac/
Seven answers:
I hate onions
2013-08-03 05:17:45 UTC
Before the crash, conservatives were claiming that the CRA and the GSEs were getting in the way of getting risky subprime mortgages to risky subprime borrowers.



"Back in 2000, Cato had a different line on the CRA. Jeffrey Gunther wrote an article in a Cato journal arguing that the CRA should stand for “Community Redundancy Act” because competitive forces in the market made it unnecessary — lenders seeking profits would not discriminate against particular communities."

http://baselinescenario.com/2009/11/19/cra-bashing-nth-generation/



"Wallison Criticized Fannie & Freddie for Making too Few Loans to the Less Wealthy



Wallison's critique of Fannie and Freddie emphasized their failure to make more subprime loans and loans to minorities."

http://therealnews.com/t2/index.php?option=com_content&task=view&id=555&Itemid=



After the crash, the same conservatives who were claiming that the CRA and F&F were an obstacle to lending, started to lay all the blame on them.
TheKitten
2013-08-03 12:22:11 UTC
Because it goes against the narrative. The narrative is what they're trying to preserve. This is the narrative that says bankers, the ones who were advantaged by the system, must remain at the helm. They don't care, at this point, that this will collapse society if left unchecked; they've made up their minds that the power structure was to remain intact at all costs.



So in order to preserve that, any story - no matter how selective in its look on reality - will do.

The rich haven't made a bobo, That's impossible the rich are the good. They are our betters. We must keep deferring to them.

Let us find poorer people to blame.

And of course, they find them and they become ethe scapegoat because in the world of the conservative, rich men in suits doing business can do no wrong.



This is not something new and exciting in history. It's very old and rehashed stuff: It's called an aristocracy.

And in France, sadly, their aristocracy did not understand the necessity of granting more access to the levers of power until they saw the guillotine.

American conservatism's attitude reminds me very much of that of the French Aristocracy: Deep down, they knew their houses of cards were falling apart, but the thought of a more exclusive society, where (oh, mon Dieu!) peasants may have a say was just too much for them to bear. So they kept on holding to their privileges, powers and tittles to the bitter end.
anonymous
2013-08-03 12:12:44 UTC
You LIE and You just keep refusing the TRUTH



Fannie Mae Eases Credit To Aid Mortgage Lending



http://www.nytimes.com/1999/09/30/business/fannie-mae-eases-credit-to-aid-mortgage-lending.html



In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.



The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans.



!!!!Fannie Mae officials say they hope to make it a nationwide program by next spring.



Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
?
2013-08-03 12:48:15 UTC
Conservatives have a difficult time twisting reality as the motives of the ruling class become ever more transparent. If ever there was an incident that clearly illustrates the ordering of our society and exactly how the deck is stacked, it is the collapse of 2008. It is a clear example of thieves utilizing the government to reward and protect them for the impoverishment of the middle class.
?
2013-08-03 12:16:09 UTC
LOL



Frank Dodd



scares liberals



like all facts do



you are a great fiction writer sir



Here is Obama policy



that democrats run from



Obamanomics: As the president began the first year of his second term, the U.S. poverty rate rose to a level not seen since the 1960s. What we have here is a colossal failure of government policy.

The Census Bureau says that 50 million Americans, roughly one in six — almost 17% — are living below the poverty line, which is defined as earnings of less than $23,021 a year for a family of four. Apparently 20% of the nation's children are living in poverty



you were saying?



CHECKMATE Lib
Victor Meldrew
2013-08-03 12:27:22 UTC
They lost more money on selling private insurance than they did on mortgages. Private insurance meant you could not get government insurance.



And Bush bailed out the banks not Obama. Selective memory. It was the Emergency economic stablization act of 2008 before he took office in 2009 January. https://en.wikipedia.org/wiki/Emergency_Economic_Stabilization_Act_of_2008
?
2013-08-03 12:11:38 UTC
SO WHY DID OBAMA BAIL THEM OUT?


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