Bankers were only following the law
Re. the Guest Editorial, “Big boys are not that bright”, 3rd. Para.:
“We’ve got a bunch of geniuses on Wall Street who led our nations mortgage financing industry into disaster, backing kinky loans made by predatory lenders who behaved like the creeps who hand out razer-blade-filled apples to kids on Halloween.”
No, we’ve got a bunch of bankers following the law; in 1977 the CRA (Community Re-investment Act) passed by our congress encouraged banks to loan to people with less than perfect credit (Who was President then?) In 1995 they put teeth in it, and REQUIRED banks, Etc., to make home loans to people who really didn’d have the ability to repay them. (Who was President then?) So the banks did as they were required, and immediately told the bad loans to Fannie May & Freddie Mack. Who can blame them?
Now, I said all that to say this: you do a dis-service to your readers when you publish crap like that editorial.
P. S. DO NOT EDIT this letter, I do not want the meaning changed to suit your beliefs.
Lynn Goetz
Ballwin
New York Times
White House Philosophy Stoked Mortgage Bonfire (Link)
December 20, 2008
From his earliest days in office, Mr. Bush paired his belief that Americans do best when they own their own home with his conviction that markets do best when let alone.
He pushed hard to expand homeownership, especially among minorities, an initiative that dovetailed with his ambition to expand the Republican tent — and with the business interests of some of his biggest donors.
Come on Lisa, even you have to admit that NY Slimes piece was a hit piece written by “journalists” with no objectivity what so ever.
Lynn Goetz:
“P. S. DO NOT EDIT this letter, I do not want the meaning changed to suit your beliefs.”
Your insults are unwarranted. Jamie Riley and her staff have been exceptional in editing for newspaper publication which is often necessary for clarity and permissible space but not a single one of more than 30 of my published letters has had the meaning changed.
I have never had even incorrect punctuation changed in any letter on the blogs, it appears that a copy and paste operation is used.
Find something else to cry yourself to sleep over.
Oh yes, let’s blame the Democrats for this mess. Wake up Lynn, this is the result of our politicians being bought out. Both Democrat and Republicans are to blame for this mess. Do you really believe that one party is to blame? They both receive “funding” from these banks.
I think it is time that we face the fact that companies run our government and stop blaming one party or the other. We need to blame ourselves for continually electing these corrupt pieces of s***.
By the way, many economists are saying that CRA had no impact in this housing mess.
Bill, I will slightly agree with you. However, this is a DEMOCRAT disaster. It was Barney Frank and Christopher Dodd you threatened lawsuits again mortgage companies plus much more. What is ever more pathetic that these same people are in charge of cleaning up their mess. Yes, they are democrats.
Really? Then tell me what the Republican controlled government from 2000-2006 has done to change “Clinton’s mistakes”? Let’s not forget that Republicans could have decided not to pass Clinton’s bill in 1995. Congress and the Senate were Republican controlled. Yes, everyone is at fault here. Make a couple of people the scapegoats so that other Democrats and Republicans get away unscathed, when in reality EVERY politician in office during that time is to blame. Do you really believe that only 2 people were involved in this mess?
Anyway you look at it one party can be blamed, but I choose to blame both of the money grubbing scum parties.
While I agree w/ Lynn, there’s a more systemic problem that supports things like CRA: welfare. And what is it that drives states into this self-destruction around the world - over and over?: The moral ideal of altruism (other-ism) that has taken hold of our country. It is a view that each of us lives for the sake of others, and you can see that it is increasingly driving policy, and increasingly - in more ways than just taxation - eating us alive.
To Lynn Goetz,
Would you please post the text of the law that forces banks to loan to people without visible means of repayment? This is such a bogus argument. The original law was meant to make monies available for loans in previously red-lined areas. Note the word AVAILBLE. It did not require banks to make unsecured loans. These defaulting loans are mostly the result of policies internal to the mortgage company management to make loans and then bundle them in packages to be sold on the open market. They encouraged their loan officers to skip checking on employment, salaries, etc. So please quit spreading this myth.
Listen to this 1 minute video. Pay attention to the graph. The bankers, mortgage companies, Bush, and Wall-Street created this greedy mess.
Clinton, Barney Frank, and Chris Dodd didn’t put these words in Bush’s mouth…
http://www.youtube.com/watch?v=t6u_2MNwmos
Frank and Dodd are very much to blame, yet they accept none of it. Republicans also are not innocent. CRA is to blame. Banks don’t give away money to make them feel better. They must be forced to do it, which is the only reason why they would consistent make bad loans. Fannie Mae and Freddy Mac are very corrupt organizations supported extremely heavily by Democrats.
The cleanup of this mess has been poorly handled. Money has been simply thrown out to the greedy bankers without any accountability. Yes, these are the same bankers that hand out bonuses galore, rape their working partners by fining them for every little mistake and live off of getting people into debt.
Good letter Lynn.