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Posted by Chuck on October 10, 2008, 7:58 am
HeyBub wrote:
> hallerb@aol.com wrote:
>>> *** THE END IS HERE ***
>> well things are bad, but dont panic, it will get better eventually.
>>
>> howeever the days oif easy credit are likely gone forever, and
>> probably should be.
>>
>>
>> recovery will be very slow, way too much debt, which is leading to
>> hard fall
>>
>> plus a major factor is the fact people dont trust bush
>>
>> given his track record
>
> It was the Community Development Act of 1977 (Carter) and the new
> regulations imposed on lending institutions in 1995 (Clinton) that opened up
> the sub-prime market. These regulations mandated that loans be made without
> regard to credit history, employment, ability to repay, etc. Further,
> institutions that did not have a significant presence in "underserved"
> communities would be sanctioned. These regulations were imposed in
> furtherance of the belief that "everyone should own a home."
>
> When borrowers reached their balloon payment, they (or the morgtage holders)
> simply sold the home for its inflated price. Eventually this Ponzi scheme
> collapsed when the housing market caught up with the number of otherwise
> ineligible people - the supply of homes exceeded the demand.
>
> Once again, perhaps more spectacularly than other endeavors like homlessness
> and education, we see a societal failure directly attributable to an
> up-stream liberal program.
>
> Bush had nothing to do with creating the problem, although he could have
> said something about it.
>
>
He did speak about it, but the Media refused to pass the word onto us.
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