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re: Just paid over $3 for gas

Posted on 1/26/21 at 10:26 am to
Posted by Bayou_Tiger_225
Third Earth
Member since Mar 2016
10882 posts
Posted on 1/26/21 at 10:26 am to
quote:

I remember when Democrats demanded everyone have the right to own a home that lead to that economic disaster.

some how Wallstreet was blamed for it...
This is the truth of the housing crisis and proof that propaganda works. The Government set the stage for the housing crisis. Wall Street just continued to do the same thing they were doing, and the in the end took all the blame.

Nobody wants to talk about how the government forced fannie mae and freddie mac to be stuffed with up to 50% sub prime mortgages, all on the name of "equity". Yeah, the pushed minority housing initiative fricked up the world economy. But every NPC in the country just thinks it's because of the evil corporations.

What blows my mind is that about 10 years later, we are back in the same boat. The US government playing russian roulette with the economy in the name of "social equality" . What a load of horse shite.
This post was edited on 1/26/21 at 10:29 am
Posted by SoDakHawk
South Dakota
Member since Jun 2014
8659 posts
Posted on 1/26/21 at 9:22 pm to
The government forcing Fannie and Freddie to underwrite high LTV loans was part of it. So was sub prime lending. The real culprit was securitization and bundling tranches of crap loans with good loans. The real issue was not being able to properly assess the risk of the securities because there was so much crap buried in them. It brought into question everything and then the meltdown ensued.

If you securitize a bundle of crap loans the market would be fine because it would be able to grade it appropriately. The problem is those loans would be at premium rates due to their risk and that would be unfair and racist.

Cliff notes: get ready for housing meltdown 2.0 because the government learned nothing from the last meltdown.
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