Origins of the Mortgage Crisis


The New York Times sounded the alarm about the subprime mortgage snafu nine years ago. From September 30, 1999:

Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits. . .

In moving, even tentatively, into this new area of lending [subprime mortgages], Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.

''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''


Comments

Of course it's Bush's fault. The object of the Clinton program was to get homeownership in larger numbers among the poorer folk, so when they can't pay the government should bail them out. My Stalinist Brother told me that. Also, Bush signed the bill that bundled the crappy loans in with the other loans, causing this crisis. My Stalinist Sister-in-Law told me so. She also said that the brush fire that started Sunday in Los Angeles was his fault too, because of all the foreclosed homes in some new subdivision I had never heard of, that left the subdivision so empty the fire was able to spread through it. I of course had heard nothing of this, and believed the fire to be due to the firebugs being drawn out by the Santa Ana winds. Come to find out later that there were hardly any homes in the Sunday fire. Talk about Bush Derangement Syndrome.

Posted by: Windy Wilson at October 15, 2008 1:26 AM
Post a comment









Remember personal info?


- SPAM safe, Email address is NEVER displayed to the public
- all your comments are belong to us.  
- No HTML.
- Comments may be closed on posts older than 30 days.






(c) Ravenwood and Associates, 1990 - 2014

About Ravenwood
Libertarianism
Libertarian Quiz
Secrets o' the Universe
Email Ravenwood

reading
<Blogroll Me>
/images/buttons/ru-button-r.gif

Bitch Girls
Bogie Blog
Countertop Chronicles
DC Thornton
Dean's World
Dumb Criminals
Dustbury
Gallery Clastic
Geek with a .45
Gut Rumbles
Hokie Pundit
Joanie
Lone Star Times
Other Side of Kim
Right Wing News
Say Uncle
Scrappleface
Silflay Hraka
Smallest Minority
The Command Post
Venomous Kate
VRWC


FemmeBloggers


archives

search the universe



rings etc

Gun Blogs


rss feeds
[All Versions]
[PDA Version]
[Non-CSS Version]
XML 0.91
RSS 1.0 (blurb)
RSS 2.0 (full feed)
 

credits
Design by:

Powered by: Movable Type 3.34
Encryption by: Deltus
Hosted by: Bluehost

Ravenwood's Universe:
Established 1990

Odometer

OdometerOdometerOdometerOdometer