New GOP talking points: bad loans to "poor people" (wink wink) caused the financial crisis

Yes indeed, the laws that made "red zoning" illegal - and the liberals that supported these anti-discrimination lending laws - brought down Wall Street.

I kid you not.

The New Mantra

:puke:

websites and such. Sad.

.... which just illustrates in Technicolor how shameless and morally bankrupt Republicans are. Republicanism is like a brain-eating bacteria.

So much for Harvard and Yale MBAs.

Blame the victim.
That's the wide stance party way.

Even Mika was blaming people for borrowing and not the banks for lending

They get to bash "poor people" - and we ALL know who they are....

They get to bash "liberals" for "anti-discrimination laws"

It is all a pack of fucking lies but it plays well to McSame's "base"....

I've listened in on various Reich-wing talk shows over the past few months, and have heard this come up a few times. It's all the Democrats fault for forcing banks to lend money to minorities who couldn't afford to pay back the loans.

Bunch of racist fucks, every one of them.

Poor people are completely shut out of anything that requires credit--new houses, new cars, anything. Poor people miss utility bill payments and can't pay medical bills. Their credit is so bad that it might as well not exist.

What happened is that middle-class people without good, secure sources of income were lured into mortgages that they couldn't ultimately afford by banks and financiers. When the rates went up, they went into default, and that was that.

The shitty job market due to outsourcing, the lack of government regulation of the banking industry, and the greedy Wall Streeters who sold their snake oil to people who didn't understand what they were getting into are to blame. Very, very little of that blame belongs with the people who got the mortgages. How could they have known that their job would be shipped to India? For all we know, if the job market was healthy, a big chunk of these "sub-prime" borrowers might have been able to easily keep up with their payments.

It's a clusterfuck of a mess that there IS no simple answer for, save for one thing--at the heart of all of the twisted, poisonous branches of this disaster, some shitty Republican policy can be found.

I'm solidly middle class and at the height of the real estate market, I had banks offering me $2million dollar loans. I was absolutely flabbergasted. There was no way someone in my income bracket should be handed a $2million loan. I laughed and walked away, but so many didn't.

medical expenses (back when you still could do that) and within 5 years we were being offered loans of $250,000. This ,considering I was just starting to work a low-end civil service job, and my wife was on SSI disability, was absolutely nuts, but we got maybe a hundred offers over several years time.

We still get loan and credit card offers, but not so often or so much money.

FWIW, I have retired, and we paid off and disposed of all but 2 credit cards, and will have those paid off in a few months.

I don't plan on borrowing money ever again.

But I still get these "great offers".
mark

"see,you can get this much larger new house over HERE for the same monthly payment as this smaller, older one over there" with the builder's sales rep pushing the inevitable creative financing. Of course when the property taxes are triple the second year because the assessor's office has caught up with the value of the house......and they don't have the money....or the monthly payment increases because of the escrow account...

"See, you can refinance this house and take $$$ cash, pay off your credit cards, pay other bills, take a trip......and your monthly payment will be the same or lower than your current one.....(for a while)"

"See, you can take a Home Equity Loan to do the work on your house, pay credit card bills, with this low (introductory) rate.....


I used to work with the loan sales sharks, and hear the results of the builder's push to the buyer; when HELOC loan payments started going up due to the rises in the prime rate, that is when the panic calls first started coming in to our service lines. That was the tip of the iceberg; the 'creative financing' iceberg, that has the main loan on an adjustable and the HELOC increasing every month. The real shit started to hit the fan when the first round of Adjustables reset, and interest rates were so out there that even a refinance to roll everything together wouldn't help.

Now admittedly, we were able to channel some of these customers into a sensible refinance that ditched the HELOC and got them into a good solid fixed loan. But most of them we could not.

and it isn't POOR people. It is either people who want more than they can afford, or people who have lost jobs, suffered illness, had accidents, or people who were lured by the pretty shiny thing and vested all their self respect into the house, the car, the clothes, the trips.

I am glad for my fixed rate VA loan and glad we aggressively paid additional principal whenever we could. The original pay off date was 2028, we have it down to 2018 already.

Thanks to the incessant effort by conservatives to DENY wage increases to hard working Americans ...

THEY got what they wanted: Wage slaves ..... and now they want to blame them ?

BULLSHIT ....

You cannot spend a good 30 years reducing wage earners pay, and then mock them for not having enough money ...

The fact is: The conservatives got what they wanted: workers without wage increases ... and they starved the economy of willing buyers of their goods ... They killed their own profits by drying up the consumer marketplace ...

Fucking idiots ...

1) The Community Reinvestment Act was passed in 1977. How could it then be the proximate cause of a market meltdown in 2007-2008? Indeed, it was probably passed before the talking head who asked Frank about it was even born.

2) The Community Reinvestment Act didn't force banks to make loans to unqualified borrowers. It prevented banks from turning down qualified borrowers based on location. The loaning of money under weird financial instruments to completely unqualified borrowers really began in the 2000's, and there is so much documentation and history on this that only a complete liar would claim otherwise. You can track pretty clearly how loans went from "show bank balances/W-2's," to "show W-2's" to "claim your income," to "whatever, here's the money."

3) The Community Reinvestment Act refers to thrifts and community banks, who were not the entities making outrageous and unjustifiable loans. That was the mortgage brokers, like Countrywide, who are not covered or asked to do anything whatsoever by the CRA. The thrifts and community banks, in fact, have largely been spared the crisis.

4) The real problem was not anybody being forced to loan money to unqualified borrowers. They did that on their own as a result of the emergence of CDO's and other "mortgage" and "asset" backed securities. Essentially, the lender had zero risk on a bad loan, because it would be immediately packaged and sold as a security to some investment bank, which would itself turn around and sell it, packaging "strong tranches" with "weak tranches" in order to hedge the deeply irresponsible loans.

5) Nobody forced banks and mortgage brokers to create and irresponsibly market Adjustable Rate Mortgages and zero down loans. They created these instruments and marketed them to unqualified borrowers on their own accord.

:hi:

Banks weren't forced to change their underwriting criteria.

The banks were just forced to show that they were not red-lining to make sure there was no discrimination. This probably forced some banks to go to neighborhoods they were purposely ignoring, but they didn't have to hand out bad loans. If the person did not meet the criteria the banks just had to keep proper records.

Joe was totally blown away by it; made fun of it for the rest of the show. I wanted to drag Kudlow out into the streets and string him up.

Bake

I heard a national conservative radio commentator say yesterday that the economic crash is all Jimmy Carter's fault. It is because during the Carter Administration, the Community Re-investment Act was passed. That prohibited redlining, which was used for decades by banks in refusing to issue any mortgages in the inner cities.

Of course, many of the foreclosed homes have nothing to do with minorities in old houses in inner cities - they are in suburbs of Las Vegas and high rise condos in Miami.

No average consumer can ok their own loan, it's up to the people at the financial institution. when I mention this to conservative/industry friends they rapidly try to change the subject. It's a tenacious but easily refuted meme. I've even heard die hard liberal friends of mine repeating it

Man....I wonder what it would feel like never having to take personal responsability for anything.