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To: Land Shark who wrote (61705)	10/17/2008 1:24:24 PM
From: E. Charters	2 Recommendations Read Replies (2) \| Respond to of 78411

Yes, they did. They absolutely put a gun to their head and said, "Make these loans or we will kill you, sell your children into slavery and torture your pets." You better believe it. Or perhaps they just made it so attractive to make the loans that they just couldn't say no. I would not legislate that if you operate a brothel that filching wallets was now only a misdemeanour. Government policies allowed the banks to drive brokers into bankruptcy and become bigger and bigger. If banks could have formed without all the government interference then they would not be such a power that could corrupt the entire financial system. EC<:-}

To: Land Shark who wrote (61705)	10/17/2008 7:52:21 PM
From: Valuepro	3 Recommendations Read Replies (1) \| Respond to of 78411

"So... Govt. FORCED all those nice banks to give out those bad loans????? Ridiculous." No, that is actually correct. Mortgage lenders were indeed forced to drop standards under threat of discrimination law suits from the federal government. Red lining, formerly a reasonable underwriting standard was outlawed, as was the barrier to loans based on income. What the government did not do, however, was force the securitization of the mortgage industry, and the derivatives that came out of that.