PDQ wrote:

According to one source - in 1977 Jimmy signed into law the "Community Reinvestment Act" which was passed by his Democratic controlled Congress.

Apparently this act required depository institutions to help meet the needs of the communities in which they operate.

So began the sub-prime mortgage fiasco.

In 1995 Billy further loosened the purse strings.

What most will not believe - in 2003 the shrub tried to correct this and in 2005 so did McCain.
On both occasions the Democrats shot it down.

The politics of "Affirmative Action for Affordable Housing" sure cooked the books for Fannie and Freddie.

P D Q


That's certainly part of the problem, but there's a bigger picture
here that is being ignored by the so-called conservatives (because
they were complicit in it) and denied by the liberals (because they
originally were the authors of this larger picture):

1a) Government spends too much money for 7 decades - overwhelmingly on
social programs.

1b) Government "guarantees" loans for crackwhores,
education, small business, farmers, auto manufacturers,
airlines, steel companies, etc.

2) 1a + 1b = Government gets into great big huge debt.

3) Government drives interest rates down hoping to stimulate
the economy and generate more tax revenues AND devalue the
dollar to pay off old loans with the resulting weaker currency.

4) The lowered interest rate environment encourages people to
take on more and more debt, at increasing levels of risk

5) 1b) + 4) causes the Wall Street banks to manufacture new
derivative instruments to spread the risk. By now, they've
figured out how stupid the public is, and how corrupt the
government is, so they lay off the worst risk to the sheeple
(via government bailouts) and keep the best paper for themselves.

6) The system implodes as Adam's Smith's "invisible hand" does
its job.

7) The liberals blame "free markets", the "conservatives" either
join in or refuse to refute this absurd allegation. Together
they unintentionally form a new movement: The Neo-Coms:

http://heracletus.wordpress.com/2008...-the-neo-coms/

NONE of this would have taken place if government, and thus the
general population had lived within its means. Personally, I'm
cheering for the Wall Street oligarchs. Thus far, anyway, I see
no evidence of fraud. They are geniuses at spotting the vast
stupidity of the sheeple and the congress critters and exploiting
it legally. I wish these money merchants the very best.
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Tim Daneliuk
PGP Key: http://www.tundraware.com/PGP/