Quote:
Originally Posted by DaddyHalbucks
Of course, the scam worked for a while! All scams work for a while. However, when things started changing and interest rates started rising, guess what? The fabric unravelled.
Last I checked, the Dems controlled Congress.
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That "scam" didn't account for many of the bad loans at all. Read my previous post. CRA loans were a small percent of the loans and were not the ones that ended up on the second hand market. The had lower interest rates and were more regulated. Most of the bad loans were done by investment banks that didn't have to abide by CRA.
And the Dems didn't control congress when these loans were given out. I'm not saying they aren't to blame for some of the stuff, but the Republicans had full fucking control of everything for awhile and the power to change whatever they wanted.
There are a lot of culprits on both sides of this mess. It goes back to our government telling everyone that they should buy a home. Giving massive tax breaks to those with mortgages. Eliminating capital gains tax on the first $500,000 of our home. We basically told everyone that they were dumb if they didn't own a home. That it was the greatest investment we could have. Both administrations did this heavily. Throw that in with Greenspan's fuckups by lowering interest rates to too low of levesl early in the decade, and you have this mess. You can also throw in dumb borrowers and greedy lenders.
To blame this whole mess on an Act passed over 30 years ago that has been working just fine till now is laughable.