Who's to blame for the mortgage meltdown?

[shocker147]

No one is blaming the poor or minorities. The government, via unnatural social and economic engineering, once again gave them the shaft.

[myfletcher]

We lived in Detroit in the mid 90s when the bank regulations loosened up. I saw house prices double in 5 years in my neighborhood.

As the neighborhood got worse and worse, prices kept going up. I thought that was strange. When I saw my first news report on subprime loans......it all made sense. "Predatory lending" is a comical term which entails loaning money to an idiot who can't pay it back. Who is the idiot in this scenario, borrowers, lenders or taxpayers?

[guatay]

hmmm, let's see...AHAH! so the house-flippers are to blame. Haha! so funny! Nevermind abt personal responsibility on the part of borrowers, they're just a bunch of innocent kindergartners who didn't know diddly abt personal finance. eh heh, yea, right...Those ignoramuses brought the world's economies to their knees! Dumbarsses!

[RightStuff10]

Experience should teach us to be most on guard to protect liberty when the Governments purposes are beneficent. Men born to freedom are naturally alert to repel invasion of their liberty by evil-minded rulers. The greatest dangers to liberty lurk in insidious encroachment by men of zeal, well-meaning but without understanding.

—United States v. Olmstead, 277 U.S. 438, 479 (1925) (Brandeis, J., dissenting)

[j4g39]

Isn't in the nature of those too inexperienced in economic policies to twist logic around and then call it bigotry? This video is a prime example. So we force the banks to make loans which are too risky and then get mad at them for foreclosing? You should be mad at the CRA for misleading lower income citizens into becoming indebted their whole lives to huge bankers. Another form of evildoers with money tricking the poor through feigned sympathy, and their retarded followers blindly submitting

[NuBN247]

Thank you! This is the clearest, most informative video I have seen on the subject. While I know it won't convince those who believe 'minorities' are the cause of every problem, for those with any intellect it is an eye opener. Again, thank you!

[dave777blaster]

we are consciousness

doctors promote sickness with over medication

church destroys spirituality

university destroys knowledge don't want too many smart people do we

govt destroys is freedom they are not there to serve us

major media destroys information can  have the truth floating around out there can we

lawyers destroy justice there to make money only

it is all upside down and you wonder why main street has no idea

we are given a movie that is upside down as a reality

[calligraphypen]

Very educational video.

[coalreigoncoalcracke]

Thankfully there is always somebody out there willing to post the truth over all the propgaganda out there. I do disagree with both sides however on some principles. Predatory lending was a bad thing, but so was anybody locking into a variable rate mortgage. Wall Street is to blame for sure, but so is Main Street. This is a full broad scale area of blame that everyone must accept. Regulation however no widely accepted through both parties is the only viable answer to preventing this in he future

[coalreigoncoalcracke]

racist and flat out stupid. get an education please.

[coalreigoncoalcracke]

moreso than anything what caused this meltdown is due to deregulation the ceo's of these mortgage and securities companies wrote their own severence packages in the excess of tens of millions in some cases. This ensured them that even if high risk investments failed they'd still get out with a large chunk of change, so they were essentially gambling with the houses (investors) money with zero risk of them to lose money, and the incentive to make huge gambles for huge potential profits.

[calligraphypen]

Don't the rest of your videos support McCain?

[Turtlehands]

These loans were set up to fail so that Wall street would take them over after a certain time and make a profit.

That's WHY Wall street bought them!!

You thought they were just being nice, I bet?

That's naive.

Once the real estate market hit the high point, this evil scheme failed.

Yeah, blame the guy who wanted his own home.

You guys are going to lose this election BIG TIME.

You need to spend more time making up for your sins.

Oh, yeah, Wall street needs a bail out because their scheme failed?

[123angelsrforevr]

everyone must VOTE

[heretic1211]

Yes, voting works. Like the time Gore won, but Bush became president.

[123angelsrforevr]

remind me I don't recall that happening DUMBASS heretic hahahh

[heretic1211]

Sure it did. When Bush Jr. and Gore ran, Gore was pronounced the President. Then all of a sudden, FOX network was saying the opposite. It was the state of Florida that "miscounted" their votes. Bush's brother is the Governor for the state of Florida. It was all fucking rigged. Then people were stupid enough to vote for the motherfucker 2nd time around. You see how strong our great nation stands now.

[123angelsrforevr]

Florida SUCKS anyway...It's the stopping place before ya die..... boy they fucked up the election

[therealcaptobvious]

Anyone who blames the CRA does not know how the fundamental of economics works.

The CRA blame is irrelevant in the mortgage crisis. Whites got 72.5 percent of subprime mortgages, Blacks got 16.2 percent of subprimes, while the Hispanics got only 6.2 percent, less than their share of the population. According to Compliance Technologies. a provider of information to banks and government agencies.

[digableDVD]

Thank you for your sanity! It is so sad to see the way people fall for the views, skewed by hatred and bigotry, advanced by the right wing. Though I do want to add that the repeal of Glass Steagall passed with an overwhelming bipartisan majority and signed into law by Clinton. Democrats are not free from blame for this mess, but it is NOT because of an anti-discrimination act, but because of their participation in the deregulation mania that started under Reagan and amplified under Clinton.

[Txbertie]

Yes, Carter started it. I actually voted for that embarassment! Our "misery index" reached all time highs. Unemployment, inflation, interest rates so high no one could finance a home. I remember when we were only allowed to buy gas every other day. I doubt you have a clue what all Carter screwed up. Give the Blame-Bush thing a rest. Liberalism and crooks caused the crisis w/Freddie & Fannie. Some Republicans may have helped but Democrats caused it. Bush, McCain actually tried to prevent it.

[bjefant]

NOthing to do with discrimination...some people regardless of race simply cannot afford a mortgage. A mortgage is a priviledge, not a right.

[Guest4000]

First of all, there *has* been discrimination. Minorities with the *same* credit ratings as their white counterparts were still being denied at much higher rates. But that's not even the point. You're right that some people regardless of race cannot afford a mortgage, which is why they shouldn't have been given crappy loans, and that happened because of lax regulation not because banks were somehow "forced" to make *risky* loans by the CRA (which actually says that lenders should *not* do so).

[SwampMidget]

FACT: 1995 CRA was vastly expanded rasing the number of subprime loans issued by %400 over the following years.

FACT: the CRA sanctioned loans are responsible for %80 of the subprime defaults.

Play the race card all you want, but there's no avoiding hard numbers. CRA is the root cause of this credit crisis after the mortgage bubble burst. CRA is a creation of liberal democrats as yet another entitlement program for minorities.

[Guest4000]

Hard numbers? They're not that hard when you simply pull them out of your ass. For example, that 80% number you just mentioned? That's the other way around; the majority of subprime loan defaults originated under lenders that were not regulated under CRA. Incidentally, CRA also explicitly prescribes that all loans should be made in accordance with safe and sound lending practices. The fact is that lenders were simply caught up in the promise of ever greater profits due to the housing bubble.