Its official...Bill Clinton and democrats caused the Market Meltdown!!

Badmutha · #1 (**permalink**) 09-26-2008, 05:57 PM

With so many fingers being pointed...one would wonder...WHO REALLY CAUSED THE MORTGAGE CRISIS???...the ensuing credit crunch....and market meltdown.

It turns out...the NY Times is good for something besides the litter box....from 1999...the Clinton Years

Fannie Mae Eases Credit To Aid Mortgage Lending - New York Times

Quote:

Fannie Mae Eases Credit To Aid Mortgage Lending

By STEVEN A. HOLMES
Published: September 30, 1999

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.
In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.

''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''

Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.

In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.

''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''

Under Fannie Mae's pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 -- a rate that currently averages about 7.76 per cent. If the borrower makes his or her monthly payments on time for two years, the one percentage point premium is dropped.

Fannie Mae, the nation's biggest underwriter of home mortgages, does not lend money directly to consumers. Instead, it purchases loans that banks make on what is called the secondary market. By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.

Fannie Mae officials stress that the new mortgages will be extended to all potential borrowers who can qualify for a mortgage. But they add that the move is intended in part to increase the number of minority and low income home owners who tend to have worse credit ratings than non-Hispanic whites.

DEREGULATION DIDNT CAUSE THIS MESS!! THE FREE MARKET HASNT FAILED!!

IT WAS OVER-REGULATION!!...government was "encouraging"(forcing) banks to lend to people (mostly libs) they normally would have denied.

Another instance of a helping liberal hand.....lighting the fuse....and making the hand-off....and then pointing the finger when it explodes

The mortgage bomb....the WTC bombing...dotcom-bomb.....Clinton sure did light a lot of fuses

....enter Chris Countrywide Dodd (D)....and Barney Cocksucker Frank (D).....it only gets better

1999 NY Times Article Revealed True Cause of Current Fannie Mae Crises | NewsBusters.org

crowonapost · #2 (**permalink**) 09-26-2008, 06:01 PM

Nice try. It's been covered already. Catastrophe Capitalism.

Good luck bad-propaganda...you'll need it.

Amazed · #3 (**permalink**) 09-26-2008, 06:02 PM

(smile) Doesn't make it any less true. The Media just won't cover it, and the Partisan's like you won't believe the truth.

Badmutha · #4 (**permalink**) 09-26-2008, 06:08 PM

Quote:

Originally Posted by crowonapost

Nice try. It's been covered already. Catastrophe Capitalism.

Tell me Crow....in regards to the NY Times article....do you dispute it??

...I mean it is the NY Times....your bible....you probably had this very article framed back in 1999.....

Quote:

Good luck bad-propaganda...you'll need it.

No luck necessary....the facts are enough

Agent_Grey · #5 (**permalink**) 09-26-2008, 06:10 PM

Quote:

Originally Posted by Badmutha

Tell me Crow....in regards to the NY Times article....do you dispute it??

...I mean it is the NY Times....your bible....you probably had this very article framed back in 1999.....

No luck necessary....the facts are enough

Yeah, you keep trying to pass this mess off onto us, but the american people seem to pretty clearly know whose to blame.

Badmutha · #6 (**permalink**) 09-26-2008, 06:18 PM

Quote:

Originally Posted by Agent_Grey

Yeah, you keep trying to pass this mess off onto us, but the american people seem to pretty clearly know whose to blame.

Passing what off????.....IT WASNT CONSERVATIVES buying houses they couldnt afford!!!!!!....or else they werent true conservatives...they were liberals

It was lberals...like teenagers with a credit card....who were issued credit because democrat nanny state government mandated it....it was regulation...NOT deregulation that caused this...

Grey...its right there in black and white for you....now that was 1999.....add a few years for ARM's to adjust.....the liberal foreclosure wave builds......and Clinton's mortgage bomb explodes

Amazed · #7 (**permalink**) 09-26-2008, 06:20 PM

Quote:

Originally Posted by Agent_Grey

Yeah, you keep trying to pass this mess off onto us, but the american people seem to pretty clearly know whose to blame.

No, but the mess IS a Bi-Partisan effort.....but you folks can't help use it as a Football.

UGLYGUTS · #8 (**permalink**) 09-26-2008, 06:25 PM

working out how best to avoid this crap in the future is paramount, pointing fingers at people we know damn well will never suffer a winks loss of sleep over it is a waste of time, justice only punishes the rest of us.

crowonapost · #9 (**permalink**) 09-26-2008, 06:26 PM

I understand you like things in simplistic terms so I'll explain it in ways you might get.

Clinton had a 93 Chevy Malibu (Fannie) that he put a big carburetor on. It opened it up & allowed it to run faster. Bush came in & confiscated the Chevy because they broke a law by putting in too big a carburetor ( cooking the accounting books). Why would he do this? Because he watched his buddies do it to thier Ford (ENRON). Now once Bush got a hold of the 93 Chevy Malibu he put a 700 horse power engine, twin Carbs, 2 Turbos in it & then took the brakes out (deregulated it with some good predatory lending to boot) Then crashes the thing into a wall & asks US to pay to fix it.

Then you guys dig back & try to place the blame on Clinton for the much smaller infraction & completely disregard what Bush did once he got a hold of the car.

Sorry Bad used car salesman the bullshit don't sell anymore.