Poorly thought-out government policy created the conditions for this mess. Sure, the markets did the actual damage- lending money to people who couldn't afford it, but those loans would never have been approved under the old rules. The Democrats forced Fannie and Freddie to take on more and more speculative debt. Now that the entire scheme has imploded, they are running around screaming, "It's all Bush's fault! Bush did it! He ruined your lives! He destroyed the U.S. economy! But give us a chance and we'll fix it!" Right.
http://en.wikipedia.org/wiki/Subprime_mortgage_crisis#Government_Policies The U.S. Department of Housing and Urban Development<http://en.wikipedia.org/wiki/U.S._Department_of_Housing_and_Urban_Development>'s mortgage policies fueled the trend towards issuing risky loans.[80]<http://en.wikipedia.org/wiki/Subprime_mortgage_crisis#cite_note-79> [81] <http://en.wikipedia.org/wiki/Subprime_mortgage_crisis#cite_note-80> In 1995, Fannie Mae and Freddie Mac began receiving affordable housing credit for purchasing mortgage bank securities which included loans to low income borrowers. This resulted in the agencies purchasing subprime securities.[82]<http://en.wikipedia.org/wiki/Subprime_mortgage_crisis#cite_note-81>Subprime mortgage loan originations surged by a whopping 25 percent per year between 1994 and 2003, resulting in a nearly ten-fold increase in the volume of these loans in just nine years. [83]<http://en.wikipedia.org/wiki/Subprime_mortgage_crisis#cite_note-82>As of November 2007 Fannie Mae a held a total of $55.9 billion of subprime securities and $324.7 billion of Alt-A securities in their portfolios[84]<http://en.wikipedia.org/wiki/Subprime_mortgage_crisis#cite_note-83>. As of the 2008Q2 Freddie Mac had $190 billion in Alt-A mortgages. Together they have more than half of the $1 trillion of Alt-A mortgages.[85]<http://en.wikipedia.org/wiki/Subprime_mortgage_crisis#cite_note-84>The growth in the subprime mortgage market, which included B, C and D paper bought by private investors such as hedge funds, fed a housing bubble that later burst. A September 30, 1999 New York Times<http://en.wikipedia.org/wiki/New_York_Times>article stated, "... the Fannie Mae Corporation is easing the credit requirements on loans... The action... will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough... Fannie Mae... has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people... borrowers whose incomes, credit ratings and savings are not good enough... Fannie Mae is taking on significantly more risk... the government-subsidized corporation may run into trouble... prompting a government rescue... the move is intended in part to increase the number of... home owners who tend to have worse credit ratings..."[86]<http://en.wikipedia.org/wiki/Subprime_mortgage_crisis#cite_note-85> On Tue, Sep 30, 2008 at 3:21 PM, Gruss Gott <[EMAIL PROTECTED]> wrote: > > RoMunn wrote: > > Gruss' explanation that Fannie and Freddie didn't make the loans is just > an > > excuse. > > If you're right, then you should easily be able to tell us what > percentage of the subprime loans Fannie and Freddie made to subprime > lenders? > > So, tell us. Give us the numbers. What percentage of subprime loans > did fannie and freddie make? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:271649 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
