Sunday, 4. July 2010
On Aug.31, Bush urged Congress to allow the Federal Housing Administration to insure larger loans and to suspend the practice of counting surpluses from canceled mortgages as taxable income.
All of a sudden, even staunch Bushites are crying and whining.
What Bush did was actually too little, too late.
In the 90s, the market for subprime housing loans exploded, and wild growth allowed new and first-time buyers to purchase property, opened lenders to increased profits.
Lenders, (many of them Republicans), believed that home prices would rise interminably, allowing borrowers to pay off their loans with the equity they’d squeeze out of their homes.
Then, borrowers began to default and the market for subprime loans contracted rapidly.
Then, last April, New Century Financial, one of the nation’s largest subprime lenders, filed for bankruptcy.
Up till now, Bush has supported unfettered subprime lending, mostly to benefit his banking supporters.
Now…he’s the homeowner’s "friend."
The glaring truth is that the situation he’s trying to "fix" is one that he, himself helped to create.
Ya, tenthamend…and the lenders were forced at gunpoint to grant the loans. Sheesh.
THANK YOU, Karl M. for that experienced input!.
But, as Karl alluded, the lending institutions were MORE than willing to grant the loans, just like credit card companies want you to borrow money. Just try to pay one off in full some time and SEE what happens…
Does any sane person believe that many of these lenders weren’t Republicans? What were they thinking?
E-Z money?
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