WHO forced the "EVIL" Bankers to DESTROY OUR ECONOMY ?

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WHO forced the "EVIL" Bankers to DESTROY OUR ECONOMY ?

Posted By: LetFreedomRing
Date: Friday, 7-Sep-2012 12:49:28

IT was the DEMOCRATS. Forcing them to give loans to those who could not repay the loans was the initiative the Dems did to the banks. The Banks - not wanting to "eat it" , passed these WORTHLESS loans on to others. The ECONOMY and WE THE PEOPLE suffer as a result. OBAMA has CONTINUED the LOANS TO LOSERS MANDATE. COLLAPSE IS GUARANTEED - NEXT TIME MAY CAUSE HITTING BOTTOM. >><> ((SNIP)) 22 September 2008 Jimmy Carter, Bill Clinton Share Blame for Subprime Mortgage Recession, Government Overshoot The current Wall Street quakes have their origins in the Jimmy Carter administration of the late 1970s, and the "affirmative action" banking laws Carter instigated. Bill Clinton only made things worse by adding more muscle to affirmative action banking enforcement.To hear today's Democrats, you'd think all this started in the last couple years. But the crisis began much earlier. The Carter-era Community Reinvestment Act forced banks to lend to uncreditworthy borrowers, mostly in minority areas. Age-old standards of banking prudence got thrown out the window. In their place came harsh new regulations requiring banks not only to lend to uncreditworthy borrowers, but to do so on the basis of race. These well-intended rules were supercharged in the early 1990s by President Clinton. Despite warnings from GOP members of Congress in 1992, Clinton pushed extensive changes to the rules requiring lenders to make questionable loans. Lenders who refused would find themselves castigated publicly as racists. As noted this week in an IBD editorial, no fewer than four federal bank regulators scrutinized financial firms' books to make sure they were in compliance. Failure to comply meant your bank might not be allowed to expand lending, add new branches or merge with other companies. Banks were given a so-called "CRA rating" that graded how diverse their lending portfolio was. It was economic hardball. "We have to use every means at our disposal to end discrimination and to end it as quickly as possible," Clinton's comptroller of the currency, Eugene Ludwig, told the Senate Banking Committee in 1993. And they meant it. In the name of diversity, banks began making huge numbers of loans that they previously would not have. They opened branches in poor areas to lift their CRA ratings. Meanwhile, Congress gave Fannie and Freddie the go-ahead to finance it all by buying loans from banks, then repackaging and securitizing them for resale on the open market. That's how the contagion began. http://alfin2100.blogspot.com/2008/09/jimmy-carter-bill-clinton-share-blame.html