The Clinton administration's "BANK AFFIRMATIVE ACTION" forced banks to make BAD LOANS. This is indeed how it began. The Sarbanes-Oxley Act of 2002 brought a new standard of regulation to the banks. But what good is more regulation if the government is going to undermine your efforts. Click below to see Andrew Cuomo caught on C-SPAN threatening the banks with prosecution if they would not lend to unqualified, low income minorities ... the origin of the Alt-A and Subprime Loan. http://www.youtube.com/watch?v=ivmL-lXNy64
This is feeling more and more like and economic war. We are printing our asses off and the rest of the world is buying our dollars. They are paying for it, they have no choice. I may need medication soon, but the more I see other countries collapsing while we print away with no inflation + foreigners hording US debt... If this wacky theory has any truth, both parties caused it, and in the end we will be more powerful.
Oh, so so the millions going into foreclosure across the country didn't have sub prime mortgages? lol Get real!!! Regardless of what the SEC did on April 28th, 2004, doesn't matter, as these sub prime loan packages would have been sold regardless of that ruling. Who started this mess of creating sub prime loans to eventually be packaged and sold to investors??? BILL CLINTON!!! You must obviously be a Demo'crap' making a weak ass argument to defend clowns like Clinton for ruining the U.S. economy with his idiotic economic policies.
ABSOLUTELY right my friend!!!!!!!!! Oh, but we can't blame o'l slick Willie Clinton, can we??? He was too busy getting his dick sucked by fat ass gov't clerks (Lewinsky), allowing the 9/11 hijackers free rein to enter and leave the country, while they were conducting dry runs, and plotting the final stages of the 9/11 attacks. He was also concerned with lying under oath in court depositions, getting impeached, possibly going to prison, and having his marriage go down the toilet. Nice to see o'l "CLIT" on put the welfare of the USA at the top of his priority list.
Why do I even bother? Where did I say the bulk of homes going into foreclosure were not sub prime? So regardless of the removal of the 'net capital rule' these 'sub prime loan packages' would have been sold with 35:1 leverage as well? Do you know what the net capital rule was? Whatever trade you wish to put on, let me know. I will gladly be your fill.
You are stupid. Sub-prime lending was only 1% of the over leveraging problem. Go watch some more cable news.
Agreed. It all started with voodoo economics and Ayn Greenspan. Those that think a fucking political label makes any difference whatsoever has their head stuck too far up their own ass to hear a word otherwise.
you are all joking with the "have to go back to Reagan" comments...seriously right?...He had more to do with economic strength then any Prez in 1900's...come on cats...
We would all still be enjoying the Golden Age of Prosperity if asset inflation was kept in check and debt levels rose gradually. All the goats we are pointing out, from Carter to Bush, would be heroes of capitalism. All it takes is to look at any chart to see that an uptrend starts gradual then accelerates, some going parabolic before capitulating and crashing. So went asset inflation and debt. I think phenomenon is not necessarily a reflection of any financial or political policy, but of human nature.