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Politics : President Barack Obama
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To: Lizzie Tudor who wrote (37032)10/8/2008 2:47:39 AM
From: Little Joe  Read Replies (2) of 149317
 
Well Lizzie I have news for you, whether you like it or not both parties were complict and the fact that loans wereknowingly made to people who could not pay for them was a big part of the problem.

However, I agree they are scapegoating the poor. Once the thieves realized they could make money by lending money to people who couldn't pay, they started making loans to middle and upper middle class people. I know this because I have clients who were in the business. They described situations where $1,000,000.00 no doc, no money down loans were made. I don't think this was for poor people or for entry level housing, but the government gave the lenders an inch (I do think it was a well intentioned attempt to help low income people afford housing) and the lenders took a mile. Nonetheless, between congress refusal to regulate (which even Bill Clinton complained about) and HUD's pressure for these shall we say non-traditional loans, we ended up with this mess. As it turns out it would have been far less expensive to subsidize low income people to help them buy.

Lastly, I certainly do not blame the poor who bought the houses, I blame the regulators for letting it happen. In fact there is a part of me that says we ought to forgive everyone of these mortgages and let the suckers go under. But I suppose that is impractical.

Little joe
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