Remember the Dodd/Frank  and the Clinton/Cisneros boys?  It was called the economic collapse and housing bubble!  It looks like they are going to try a redo on this and see if we can do a better job at failure this time.    It seems that Cisneros and Clinton had the Community Reinvestment Act beefed up to force mortgage lenders to relax their lending standards to allow more economically disadvantaged borrowers to buy a home.  Plus, in 1999 Clinton repealed the Glass Steagal Act which had ensured a separation of commercial banks and investment banks.  Before these two things happened subprime loans were only 5% of the mortgage market; but, after the repeal it jumped to 30%.   Example:  People could buy a million dollar home with no money down and with interest only loans (they fooled the people to think they were going to end up with a lot of equity in the home – but, it did  not happen) – people could buy homes with no money down with sellers paying the closing costs, where the buyer had income of $50,00 per  year buying $400,000 homes–and all the while the government was pushing  this.  The end result was not good with a lot of people holding the empty bag.  Although a lot of people did not fall for this bag of tricks — then — so —  are they going to try again to see how many more people will fall for this again.  Me, I would run the opposite direction and say “hey, put it where the sun don’t shine”!

kommonsentsjane