I noticed a fellow trying to blame our troubles on George W. Bush but he forgot to tell the whole story. yes, Bush should have made the housing financial problems public even though the Democrats controlled Congress.
Years ago, ACORN, their lawyer (Obama) and the Black Caucus members of Congress came to President Clinton asking he pass a bill making every American eligible to own a house whether they could afford the payments or not. This sounds nice but someone has to make the payments and now we find out it is us. The majority of these loans were made through Freddie Mac and Fannie Mae.
They took their large commissions on these loans; then, sold 50 percent of the risky loans to other companies who thought they were insured by the federal government which is not true. Since 1964 Freddie Mac and Fannie Mae are no longer federal banks but private. Bush went to Barney Frank (head of Congress’s banking committee) five times asking Frank to reel in these loans but Frank refused to present these concerns to the banking committee for a very good reason.
Not only are they in the top two contributors to the Democratic Party, but many of the top Democrat staff plus a couple Republicans moved to these companies receiving very large salaries.
Bill Clinton recognizing the snowball effect of these risky loans said “I wish I had never signed the bill.”
Other banks and real estate agencies saw this as a way to sell homes at over appraised prices and they banked their large commissions.
By paying over appraised prices for the homes the buyer raised all of our property taxes. Only in America!
Gene Bremner
Kent
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