What did the democrats do to put us in the subprime lending economical meltdown? ?
Tara for OBAMA! asked:
Im a democrat. Voting for Obama.
Im a democrat. Voting for Obama.
I want to be knowledgable on this topic and know the facts. Who mainly contributed to our current economic situation via the subprime lending market? Please be concise!
Thanks to everyone! Please dont be rude!
<3
Clinton Admin pushed for Fannie Mae.. Here is an article from the NY Times…
Democrats, being the majority in Congress, have had responsibility for oversight. They fell asleep just as the Executive Branch did, and they bear partial responsibility for the mess we are in now.
People trying to buy more house than they could afford have caused this as well as lenders loaning people the money knowing its beyond their miens. We American’s are greedy by nature.
Just answer this question for someone else.
In my opinion as a nation there is enough blame to go around. Our economy is not tumbling solely because of the sub-prime crisis. I agree that there is a mess that was foreseen but it was not this crisis. Our government leaders did not manage:
Welfare Department - parents that don’t pay child support, generation of families on the subsidies and undocumented families getting benefits when they have an American born baby.
Social Security - Benefits not increase to meet longer living Americans
Pell Grants - Given to students that go to Private Post-secondary Trade School. These are business are for profits and they get school exemptions credits. This is call double dipping.
I can go on but I think you know where I am going with this. If you are under 30 and want to have a financial future in America get involve and volunteer in your local Legal Aid Foundation and learn where your money is going before you start saying yes Dictator not President.
Wrong party..ask Phil Gramm..read about the Keating 5 too.
about 100 of the Democrats in the house and one Democrat senator voted yea on the Gramm-Leach-Bliley Act of 1999 while Clinton signed it.
Lets get rid of everyone who said yea on that bill, even after being warned by Senator Byron Dorgan.
“this bill will also, in my judgment, raise the likelihood of future massive taxpayer bail-outs. It will fuel the consolidation and mergers in the banking and financial services industry at the expense of customers, farm businesses, family farmers, and others….”
-Senator Byron Dorgan
May 6, 1999
So lets get rid of everyone who voted yeah on it and repalce them with their oposition.
Check out the book “Bad Money”. It explains everything right from the beginning. And for the record, both parties created this mess.
Only 5% of the subprime mortgages had anything to do with the government at all. Most of these mortgages were done by private mortgage brokers who were unregulated.
And the existence of the subprime mortgages themselves aren’t the problem. It’s the way they were graded as investments and repackaged in mutual funds and resold to the public - because the market was entirely unregulated and the regulations that existed were unenforced. Plus the $60 trillion shadow market which was betting on these instruments and was the most unregulated market of all.
Being forced (by Democrats) to lend to people who could not afford it or as in the case below, could not or would not make an effort to pay it back
Maybe it’s me, but nowhere did I see where it forced banks into doing anything they didn’t want to do. I believe the word used was spur, as in hoping to spur banks, that doesn’t sound like forced to me. That article is also offensive where it tries to put the blame of the backs of blacks. Many of the highest rates of foreclosure have been in the wealthy end, people with second ‘vacation’ homes.
One other little fact. Congress when this was passed, was held by republicans. Greed by the wealthy got us to where we are today, period.
First not just one party or person can be held responsible for this mess. Just about all of us have some responsibility and the seeds of this next depression can be traced back a long way.
Both party presidential candidates need to take some responsibility as they were both voting members of the senate, although I think McCain needs to take more responsibility as he’s been a part of the problem longer then Obama.
The citizens of this country have to take some responsibility. After all we voted them in and allowed them to run wild.
Also responsible are the people who didn’t bother voting, the people who didn’t vote intelligently, the people who knew that votes were not being counted correctly and stood by quietly and the people who didn’t hold their leaders and representatives accountable.
The Supreme Court who made a decision they were not really allowed to make (deciding that GW was President). The officials who knew there were irregularities in the voting process and yet stayed quiet. BOTH political parties.
Government officials and leaders who don’t bother looking at the consequences of their actions, who don’t just vote on bills but add pork to them, businesses who only look at short term profits, the boards that reward CEO’s for bad business decisions. and the CEO who take the money but don’t feel they are accountable for their actions. Why do businesses believe we owe them this bailout yet they didn’t offer to share their profits. It should work both ways.
The rich who feel that their money is the most important thing in the world and people be d*mn*d. They have the money to bail this situation out but aren’t doing it.
The school system and teachers who have not bothered teaching civics in school so that people understand their DUTIES to their country and their role in being citizens.
The sad thing is that those that are innocent in this whole mess are the ones holding the bag. We have sold our children and grandchildren into slavery.
I think the time has come to impeach EVERY leader and representative that had a hand in the deregulation of things, the bad choices and the plain thievery that has been going on for a long time. It’s goes from the top on down. It’s time to clean house. Maybe we need more parties and more control of our representatives. Perhaps their pay should be tied to what happens.
All this being said I won’t be voting for either major party candidate. I’m voting for honesty this election.
I can tell you what I know thru my experience working at a Mortgage Company when this was starting to happen. Fannie Mae came up with a mortgage that was based only on a person’s credit score. Customers didn’t have to send in paystubs, or investment statements or bankstatements, so they were allowed to get a mortgage based only on their ability in the past to pay their bills. They used a scoring based on what the customer told us, if the customer told us they made 8,000.00 per month, that’s what we put on the application, if they said they had 100,000.00 in the bank, that’s what we put on the application, as long as their credit score was above 700, they didn’t have to prove anything they said. These loans were pushed thru, no questions asked, and alot of these loans were for more than 500,000.00. Another loan was created, based only on a persons income, same deal. Now, what happened is that people’s situations changed, people lost that great job, or they got divorced and now thier credit isn’t so great with only one income. Another problem that happened was that rates were great back in 1998 thru 2005, and then at the end of 2005 and on, rates started to rise. People were talked into getting a great rate by taking a loan with an Adjustable Rate Mortgage, some were based on 3 or 5 years, which means that they got a fixed rate at say 3.5%, but after 3 or 5 years, that rate adjusts to the current rate. So if a person gets a home for 100,000.00 and is paying 3.5% interest rate, giving them a monthly payment of 650.00, and then the rate changes to 8.9 or more, the monthly mortgage payment goes up from 650.00 to 1,190.00, thats 540.00 more than what they were paying. Customers weren’t informed of this, and taxes and Homeowner’s insurance in included in a mortgage payment as well, which go up periodically all the time. I’m not so sure that the customers were effected by the fact that Fannie Mae or Freddie Mac sold the mortgages to banks, that would seem to effect the banks more than the customer, if the customer can no longer pay the loan. As for the Mortgage Co. well, the one I worked for pushed the loans thru at all costs, the bottom line was that we didn’t get paid if we declined a loan, we only made money for selling mortgages. Our President sent out an e-mail, (after stuffing his pockets along with the Share holders and CEO,) that said he was leaving his job as President to pursue his dream job of being a teacher. Is that the most ridiculous thing you ever heard of or what. As for who gave the go ahead to Fannie Mae? All I know is that when corporations got incentives to send our work out of the United States and out of the watchful eye of fellow Americans, alot of rich people got richer, American workers got shafted, Other countries got our jobs, and G.W. Bush was in the drivers seat while this was going on. Did his friend of a lifetime, McCain stand by the man who allowed this to happen, and not know what was going on? I don’t know.
they did nothing im a democrat. Voting for Obama 2