Have a look at the Community Reinvestment Act...
The Community Reinvestment Act is a United States federal law that requires banks and savings and loan associations to offer credit throughout their entire market area. The act prohibits financial institutions from targeting only wealthier neighborhoods with their services...In other words it requires banks to give mortgages to poor people. Poor people aren't famous for paying back loans. It wasn't the Republicans that did that! In fact it was Jimmy Misery-Index Carter.
The purpose of the CRA is to provide credit, including home ownership opportunities, to under-served populations...
The CRA mandates that each banking institution be evaluated to determine if it has met the credit needs of its entire community...
As if that wasn't bad enough, old Bubba Clinton had his hands in it as well:
In early 1993 President Bill Clinton ordered new regulations for the CRA which would increase access to mortgage credit for inner city and distressed rural communities. The new rules went into effect on January 31, 1995 and featured: requiring numerical assessments to get a satisfactory CRA rating; using federal home-loan data broken down by neighborhood, income group, and race...Yeah... income group... Sound financial judgement there, requiring banks to make loans to poor people. Thanks Bubba! If only you had paid more attention to humping hideous hose beasts and left the economy alone.
Yeah but the Bush administration didn't do anything to avert this catastrophe right? they simply fiddled while the economy went to hell in a hand basket right?
Bzzzt! Wrong answer:
"The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago...That move was opposed by the democrats because it would limit those organizations' ability to make loans to low-income borrowers...
A new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac..."
Again, because poor people are so famous for paying off loans...
In response Barney Frank said:
"The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."FYI, "Affordable housing" is a liberal code word, double speak for "sub-prime mortgages".
Finally in 2005 John McCain co-sponsored the Housing Enterprise Regulatory Act... Remember, Obama says McCain is a "De-regulator"... The dems say we Republicans are "De-regulators"... We are to blame. Seems to me that Nero was fiddling while Rome burned. They wanted NOTHING to interfere with their cash-cow. They blocked McCain's effort to enact regulatory oversight on Fannie Mae and Freddie Mac...
Here's some educational viewing that the democrats tried to silence (god knows they hate the truth and free speech):
...and another gem:
Now we're left with the unsavory prospect of coughing up $700,000,000,000.00 to pay for another hair-brained leftist social experiment. The folks over at the Sniper blog have a must-read little post that puts that number in harsh perspective.
You know what Barrack... If we have to pony up $700 BILLION to bail out your mess. I think you ought to pony up the $126,349.00 that you received in donations from Fannie Mae and Freddie Mac! Oh and stop trying to stuff PORK into the bail-out bill for your party sponsored institutionalized liberal voter fraud machine ACORN!