"HeyBub" wrote in message
...
George wrote:

But the current events aren't normal ups and downs. Investors were
participating in a rigged game without knowing it. I want to see
regulations and oversight that will give transparency. No one will
ever have confidence without that. The current system because so
convoluted and opaque because of greed that most of the big
institutions can't even put their finger on the actual value of
assets they control.

Greed is good. The players didn't make the rules so it's silly to
criticize them for playing by them.

The actual rules which caused this mess started back in 1976 with the
Community Redevelopment Act under Carter. This caused little discomfort
in the equity business because the system was robust enough to absorb the
problem. It started spiraling out of control in 1995 Clinton-era with new
regulations requiring lending institutions to provide mortgages to
non-credit worthy applicants.

This continued to work as housing prices climbed. When the balloon
payment kicked in, people who suddenly saw their house payment rise from
$300/month to $2200 simply re-financed. The Ponzi scheme collapsed when
there were no more poor people who could be enticed.



Interesting take on the problem. But, you have drawn a conclusion, without
vital information. The American Dream Downpayment Act, was like throwing
gasoline on a fire, to put it out.

The ARM's started @ various years. The most common are the 1 & 3 year ARMs.
With the loans being started in 2004 for the Dream Downpayment, it puts the
Dream Act right in the thick of the problems.

http://www.whitehouse.gov:80/news/re...0031216-9.html


There was some of that, true. But the Republicans introduced several
bills to provide oversight of Mae & Mac (e.g., McCain was a co-sponsor of
such a bill in 2005), but these bills never got out of committee.

Actually, there was only one bill (S. 190) under the 109th Republican lead
Congress.
http://www.govtrack.us/congress/bill.xpd?bill=s109-190
The bill was sent to the banking committee for an amendment. Rick Santorum
(R) , kinda held this up.
http://banking.senate.gov/public/_files/s190_amd3.pdf
The bill was then S.1100, under the 110th Congress. Where it was sent back
to the banking committee.
http://www.govtrack.us/congress/bill.xpd?bill=s110-1100

Meanwhile, Democrats introduced a similar bill, and well, you can follow it
here.
http://www.govtrack.us/congress/bill...110-1427#votes