Jimmy's Community Reinvestment Act forced .gov to back bad loans. George Bush tried to stop them in 2003, but fannie mae/freddie mac had powerful Democrat friends in the Senate who stopped him: Barney Frank, Chris Dodd, and Barack Obama.
John McCain tried to stop them in 2005, but was blocked by Senate Democrats when he sponsored the Housing Enterprise Regulatory Act. He tried again in 2007.
Jim Johnson and Franklin Reins bankrupted these companies: what did Obama do? HE HIRED THEM INTO HIS PRESIDENTIAL CAMPAIGN!!!!!!!!!!!!!!
The Clinton administration took the ball, and repealed the Glass-Steagle act (the banking act of 1933, which held the money boys in check till 1999) and forced the bankers to give loans to people who could not pay them back. Janet Reno promised to prosecute any lending organization that refused credit to a borrower just because he couldn't afford it.
The short sighted pukes that try to blame the Bush administration make me laugh, especially when The Democratic Congress of 2006 put the car into high gear and steered for the ditch.
If the first companies to show difficulty had been allowed to fail, you can bet there would have been a different scenario. Yes, there would have been a tough time, but it would be short and sharp, and better business practices would have been the rule of the day from then on.
Instead we had Barney telling us everything was fine, as the walls were beginning to crumble.
He should be in Prison, celled up with Bubba. (Probably would like it)
Tin man, Reno promised to prosecute lenders who did not make the bad loans. The bankers were forced to issue them. A new class off businesses took off as mortgage brokers, springing up everywhere. I knew several people who got into this, thinking they had the Holy Grail.
The Clinton administration took the cuffs off the bankers. Toxic or not, the loans were packaged together as MBS (mortgage backed securities) items, and then after being sold they were bunchd into CDO's (Consumer Debt Obligations).
Once the rottenness of those notes was plainly evident, it was looming over AIG and Freddie and Fannie like a rotten tree ready to fall.
I don't think you are a short sighted puke but maybe you need to read a little slower. My post referred to the Clinton stiff-arming plainly. The link has a very good synopsis, watch and be edified.
If you ever listened to Bob Brinker's "Money Talks" radio show on weekends, in the years following the dot.com recession (post Y2K - sound familiar?), he would continually remark how the only thing positively driving the economy was the "real estate boom". According to Brinker, the real estate boom was creating the 6+ million jobs and drove the Dow up into the 14,000s. Fast forward to 2008 and we finally find out that the majority of those home purchases during the real estate boom were made by people who can't afford to pay. Result? You're looking at it right now.
"he said he had to put the taxpayers on the hook for a TRILLION DOLLARS!! so his buddys could keep their crooked effin banks."
This was the 770 billion in TARP money that the sleazy banks made enough off of to repay it back nearly in it's entirety already. Guess it turned out to ba a better deal than the so called "stimulus" money that was never even used before, according to Bernanke, "the recession was over in June of 2008". LOL
CBS DID NOT MAKE THE MOVIE!!! Sony did. The link above was an interview with Ferguson the producer of the movie.
Both parties are at fault because they are both controlled by the same outside intrests. The banks alone could not have perpetrated the fraudulant finacial dealings without the help of government deregulation over the past 30 years. It actually began when Nixon decoupled our currency from gold in 1971 because we ran out of gold to pay our bills. And from there every president since has been involved.
I guess no one has seen the film and I will have to wait a month for it to come north.