O_baa_ma asked:
“…his administration went to ridiculous lengths to increase the national homeownership rate. It promoted paper-thin downpayments and pushed for ways to get lenders to give mortgage loans to first-time buyers with shaky financing and incomes. It’s clear now that the erosion of lending standards pushed prices up by increasing demand, and later led to waves of defaults by people who never should have bought a home in the first place.”
“Here’s an excerpt. Read it closely and you can see the seeds of disaster being planted:
For many potential homebuyers, the lack of cash available to accumulate the required downpayment and closing costs is the major impediment to purchasing a home. Other households do not have sufficient available income to to make the monthly payments on mortgages financed at market interest rates for standard loan terms. Financing strategies, fueled by the creativity and resources of the private and public sectors, should address both of these financial barriers to homeownership.”
Note the praise for “creativity.” That kind of creativity in stretching boundaries we could use less of. Mason puts it well: “It strikes me as reckless to promote home sales to individuals in such constrained financial predicaments.”
http://www.businessweek.com/the_thread/hotproperty/archives/2008/02/clintons_drive.html
I don’t claim that the Bush administration carries no blame for continuing the process? Or maybe for not reacting quickly enough. But this entire problem exists BECAUSE OF CLINTON.
g-
How old are you? Do you own a home? They refinanced, they were on 5-year ARMS, they were on land contracts.
These were all the “creative” ways Democrats pushed to get people who couldn’t afford a home into a home.
grob-
This was an extention of the CRA.
because hes not a republican
Yep Blame Clinton for everything….
weak
And I’m sure that on January 20, 2001, George W. Bush proposed ending all of those Clinton policies. Right?
go against one of their own, that would make them non-hypocrites, we can’t have that now.
This is perhaps the worst assessment of the housing crisis to date.
Ask yourself this, if adjustable loans and balloon payments and interest only loans weren’t allowed to be hoisted on the poor, would we have had the housing bubble bust?
If Clinton failed it was in not regulating the mortgage industry more. But at the time the Republicans controlled the house and senate and were all about deregulation.
That is what allowed banks to write punitive loans to people who would not be able to keep up as soon as interest rates inevitably rose.
Listening to republicans discuss economics is like listening to a creationist explain evolution.
For the same reasons you monkeys let Bush off the hook for the mess we’re in now.
Can we do like cons and blame anythng bad on his republican congress.
because it doesn’t make sense…
it took poor people who couldn’t pay their bills 10 years to go into foreclosure? on what planet does that happen… lol
if this was the case the bust should have been in 1997, not 2007… how did poor people pay impossible bills for 10 years?
they all made it throught the 2000 recession? how? magic?
You Americans are lucky that you get tax returns for paying a mortgage. We don’t get that in Canada.
the major cause for the Housing Crisis was…
The REPEAL of Glass-Steagall
( it was the wall between the brokers and the banks )
the repeal passed 90 – 8 in the republican controlled Senate
and
362 – 57 in the republican controlled House
Special Thanks to republicans Phil Gramm & Jim Leach for introducing the repeal and pushing it through with their unwavering endorsement and total approval.
For one, many don’t believe he did it.