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Old 09-26-2008, 02:43 PM   #9
firstdown
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Join Date: Oct 2004
Location: chesapeake, va
Age: 61
Posts: 15,817
Re: Housing Mess Started With Bill Clinton In 1999

Quote:
Originally Posted by Sheriff Gonna Getcha View Post
First, Clinton didn't pass any new laws. The Constitution does not permit the President to pass any legislation. Moreover, the Community Reinvestment Act was enacted in 1977, not 1999.

Second, the collapse of the housing market cannot be attributed to minorities becoming home owners. The CRA was designed to benefit low income areas, which includes inner cities and rural areas (predominantly white areas). Moreover, banks were making money hand over fist on those sub-prime loans. As long as home prices kept skyrocketing, the banks were reaping huge rewards and not incurring many risks. The CEOs running those lending institutions knew the market could collapse, but they were far more concerned with making great profits on a quarterly basis.
The reason the CEO's where making all those loans is because a bill was passed in the 1990's allowing banks to sell these loans so they could get off the loan without all the risk involved. Fed & Fan ended up holding the notes to these loans and the rest is history. I know Clinton did not creat all of this on his own I was just making the point that it goes way back and everyone involved shares the blame. I also know Clinton cannot make laws but he got the mandate passed (which he signed) to force lenders to make allot of these bad loans. If you read the entire article the banks then came up with those Arm Loans so they could make these loans which was mandated that they do. All you have to do is type in Clinton and 1999 home loans and there is a bunch of stuff that changed in those years.
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