Look at the CEO's who got "special payments" right before bailout! We got "fleeced" by both Parties! Conservative Republican Ron Paul has a high IQ and was completely passed over by GOP!
He saw it coming!
The relaxed regulations for mortgages came at the insistence of Democratic Congresscritters such as Barney Frank. When Republicans warned that the new, relaxed regulations at the FMs could lead to a massive housing crisis, Rep. Frank was quick to accuse them of manufacturing horror scenarios which could never possibly come true. In another thread I noted that Snopes has taken official notice that Republicans warned of possible disaster in the mortgage loan sector back in 1999, and Rep. Frank denied that there was any risk.
It now turns out that Rep. Frank's main squeeze during the 1990s was Herb Moses, who was then the assistant director of product initiatives at Fannie Mae--the only way he could succeed in that position was to get the federal government to deregulate the mortgage industry. It's probably no accident that the two broke up shortly after Moses left Fannie Mae.
Even former President Clinton admits that the main source of the problem wasn't Republicans. "I think the responsibility that the Democrats have may rest more in resisting any efforts by Republicans in the Congress or by me when I was president, to put some standards and tighten up a little on Fannie Mae and Freddie Mac," Clinton said recently.
Without the relaxed standards for mortgages and the opportunities for fraud which they opened up, the housing construction slowdown wouldn't have caused a financial-services sector meltdown. There would simply have been a few more carpenters and plumbers drawing unemployment checks for a while. Allowing people to get residential mortgages and/or home equity loans for up to 120% of the property's assessed valuation without ironclad documentation on how the borrower would pay off the mortgage led to disaster as soon as housing prices started to slip a bit.
War, oil prices, and all the other red herrings you keep trying to drag in were, and still are, irrelevant. $200,000 mortgages on houses which were worth $180,000, are now worth $140,000, and whose borrowers knew they couldn't make the monthly payments on the original loan were the cause of the problem.
I agree with mostly that has been sid thusfar. However, the politicos from both sides are much to blame here for America's and the World's economic downturn.
This is why politicians are like diapers; THEY NEED TO BE CHANGED AND NEED TO BE CHANGED OFTEN!
By the way, one of the few bailouts coming will be for the auto makers. Buy F and buy aggressively!
Voting in another Republican in will NOT be my problem either..
November 4, 2009 I 'll advise people to stay at home!!
Enjoy the Bailout for Rich Friends of the Republicans by nothing for the middle class but lip service and Sorry pay the Inflated prices of the Manufacturers who shipped all the jobs to China..
Let`s not forget the regulations that were removed to protect from what we have now.
Interest only loans were garbage from day one.
Our elected officials outsourcing good paying jobs has alot to do with this mess also.
How many people lost their homes because they ,lost their jobs???
That`s all Bush did was run around the world trying to get rid of jobs that made mortgage payments and paid tax revenue.
How anyone can defend this guy is unreal.