HankScorpio

Interesting stuff coming up from the archives, being slanted politically.

In 1994, there was a class action law suit against a large american bank for alleged racism because it's claimed they were turning down mortgages to lower income black families and claiming that white families in similar circumstances were being given those mortgages.
This is fair enough and if true, totally wrong.

The reason this is coming up now is people are claiming this "forced" the banks to start lending on less rigorous criteria (despite the lawsuit being race related and I don't think race is usually a question on a mortgage form???) and one of the lawyers in the suit:

Obama, Barack H. (Illinois)

It's pretty laughable that he's now being blamed for the whole thing but you can imagine how the press and public will latch on.

Another great find is this press release from the White House in 2003:
Bush Speech
in which Bush says:

"One of the biggest hurdles to homeownership is getting money for a down payment. This administration has recognized that, and so today I'm honored to be here to sign a law that will help many low-income buyers to overcome that hurdle, and to achieve an important part of the American Dream. "

Yay - let's help low income people buy houses without thinking of a future when interest rates will go up and house prices down. Hey GW, do you not think helping them get higher paid jobs might have been a better way to help them...?

Janspeed

iTrader: (1)

Good research.

Well like I said, greed above anything else including common sense!

SWRTWannabe

Was talking to someone about this earlier. Apparently after the Great Depression in the USA, they introduced a lot of regulation on the financial markets.

In the 1970's and again in 2005, the bankers persuaded the powers that be that they could be trusted and the regulations were relaxed.

Funnily enough, it seems that they couldn't be trusted after all

Janspeed

iTrader: (1)

LOL such short memories ppl have!

cster

I believe that in the US, you can just walk away from a negative equity situation - unlike here (in theory anyway).
Therefore, it seems to me, that if banks want to loan to high risk individuals, that is their look out.
You can't really blame the legislators for unproffessional banking practices, can you?
Then again, these bankers are pretty smart f*ckers, and maybe they know if they mess up, the government will pick up the pieces?

swampster

iTrader: (1)

Working in the opposite direction, but shows it takes place (and probably in either direction)...

American Thinker: Fannie Mae Strong-Arm Monitoring of Race