Democrats in their own words Covering up Fannie Mae, Freddie Mac scandal

For some reason, this vid ("Shocking Video Unearthed Democrats in their own words.") is being scrubbed from Youtube. Many bloggers have embedded this vid only now to find the 6 million plus hits video has been pulled. Please grab a copy and re-post to your favorite site. Don't let history be re-written!



See here: http://www.liveleak.com/view?i=55e_13...


Menderman

• Category

  News & Politics

[cmluongo]

The time it takes to build 10+ million new homes explains the lag time between the 1994 CRA initiative and the burst. When supply finally equaled demand and prices stopped rising the mortgage backed securities were downgraded and the bubble burst. As usual, the government policy to increase home ownership among poor minorities had unintended consequences that disproportionately harmed the people it was intended to help.

[cmluongo]

What ensued was basic economics; home ownership rates jumped from a 50 year average around 60% to 72-76%. Sudden increase in demand resulted in a sudden increase in prices. Initially the default rates among subprime borrowers was low. This is because of the skyrocketing home values caused by the shortage in supply. In the event a subprime borrower got behind on the mortgage they could always sell the house for more than the value of the note.

[cmluongo]

Its so much more complex than just subprime lending. Clinton used the DOJ to block mergers under the auspice of the CRA. In order to be CRA compliant banks had to originate loans to low income individuals. At the same time the Mac's were told to buy up the securitized subprime notes. The goal of the Mac's was to hold 50% subprime debt, if they reached this goal the executives got a bonus.

[AllBobsAllTheTime]

Is this clown Meeks a total ass-wipe or what?!?!?

[Whitese7en]

What I will never understand, is how the Repubs who at the time controlled both Houses, allowed the Dems to win the Freddie/Fannie battle.

I'm guessing the fact that it was an election year had something to do with it.

[Whitese7en]

In 1999 Clinton repealed Glass-Steagall which doing so allowed banks to regulate themselves. When nobody was watching them they engaged in practices which destabilized our banking and financial sectors. In this video the Repubs are attempting to reign in F&F in hopes of stabilizing the shaky financial system but the Dems blocked them. Because the Repubs allowed the Dems to win the pissing contest in this video, our economy collapsed. I hope that explains it.

[Mike Buffa]

This video was much more effective and informative before it got edited.It used to be about eleven plus minutes long.I wish it were in its original length.

[bealsins]

I agree. Disgusting that they have are trying to scrub this from the internet. The dirty left.

[ijnhibnhbih]

but their dream of owning a home is not unreasonable, but maybe you shouldnt have bought that huge home in the expensive town, its tough but not everyone can have the nicest of things.