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- Topics: Active | Unanswered
- Randall Flagg
- Rep: 139
Re: Bush Asks Congress for $700 Billion Bailout
So I guess Obama's affiliation with Ayers and Wright (to name a few) is an exercise is extraordinary judgement. None the less, you didn't argue with the facts as to why we're in this crisis. The same policies enacted under Clinton that caused this crisis are the same policies Obama would continue, only with greater government control over private entities.
Paul nailed it on the earlier article. You can't call this a collapse of the free market when it was government intervention that created the problem. Banks shouldn't be forced to loan money to people that more than likely won't be able to repay their loans just because it makes liberals feel good inside.
Re: Bush Asks Congress for $700 Billion Bailout
None the less, you didn't argue with the facts as to why we're in this crisis.
You mean the Gramm Leach Wiley Act?? Named after Phil Gramm, McCains Senior Economic Advisor??
This isn't just about giving loans to poor people RF. It's not that simple. It's about the Fed drastically reducing Prime interest rate during the first Bush recession in an effort to stimulate the economy. Since stocks were down, the thought was lower interest rates to boost home buying. Coorporations, who had little regulation, were dishing out mortgages left & right. This drove the home prices to rise. Coorporations, whose CEO's only look at quarterly reports & stock prices, milked it, with little to no foresight into down the line. As long as their stock was up, they were doing a good job. Then, it came back to bite them, as the prices reached ridiculous prices, it soon began to sink. People who bought $300k houses were now valued at $250K. If they were in a risky ARM mortgage, which could rise after 3-5 years, they could not afford the "new" monthly payment. With no option to sell, as they'd lose the $50K, their only option was to walk away & no longer pay. I'm not solely blaming Republicans on this but it is due to their overall beliefs & ideas of less regulation.
And if you think these are the dumb poor people, think again. What areas were hit worst by the housing bust?? Southern California, Vegas, Phoenix & Florida. With their $500K- $1million houses & all. THAT is where this problem lies. I live in Philadelphia, foreclosure isn't a big problem here because they never rose out of control. I guess the rich don't want to live in my city but whatever.
