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Politics : View from the Center and Left
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To: Bread Upon The Water who wrote (228960)8/8/2013 2:43:47 PM
From: koan  Read Replies (1) of 543529
 
The issue of the 08 housing crash makes me nuts it has been so manipulated by the banks and right wing.

What happened was 100% the fault of the banks and no fault of the middle class at all. I know exactly how it happened as I have sold real estate for 20 year and researched it.

Then to add insult to injury the banks have not only laid all the blame on the borrower, but they have made a fortune using them as a scapegoats to raise fees they get. Banks just released profits and they were through t the roof . As well they are still engaged in the same risky gambling that brought 08 upon us.

And Obama did nothing to prevent this from happening again or help the innocent middle class; and he could have done so much. Specifics I can list.

Here is what happened. It started with the banks making "no doc loans" for the full appraisal value. Including refinancing! So everyone was using these loans to buy and flip property or whatever. Had the banks continued to refinance only 80% of appraisal and check credit scores and income qualification (no doc loans) we would not have had that bubble as people would have continued buying most houses to live in.

Then when they allowed the banks to "gamble" with credit default swaps, and the banks to sell bundled junk (collateralized Debt obligations CDO's) to the world market stamped triple AAA, when they found they could not be collateralized because they didn't know what was in them, the real estate market fell so hard it pulled the good people and loans down with them. This happened in one day! The libor went ballistic.

Just like the big sell off (1987) took the good with the bad.

And this is where Obama could have stepped in and helped the people who had good credit and just got caught temporarily in the downdraft. But he did nothing at all and the banks fleeced everyone. I saw it as I was dealing with them.

Obama let the banks take advantage of the situation and if they get rid of Fannie and Freddie the banks will take advantage of us once again, I fear.

It is all part of the ongoing neo con effort to privatize everything from schools to prisons and it is destroying the country and I fear Obama is playing right into their hands.
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