DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Are the Democrats responsible for the U.S. financial crisis?

**cmruloah** · 09-24-2008, 04:47 PM

Ramo, you are on crack. Freddie and Fannie were the entities most exposed to sub prime mortgages.

No. They weren't (unless you're using a bizarre definition of "exposed"). Because Fannie and Freddie were more regulated than the rest of the market, mortgages they offered required large down payments and for borrowers to document their incomes. They engaged in far less risky behavior than the rest of the market.

Every party when in power loves to crow about home ownership numbers, but it was the Democrats from Carter on who legestlated that banks must have a certain percentage of their loans be made to sub prime borrowers. They created the very concept in the first place, and this is the logical conclusion.

This is only one piece of the puzzle of course, but to pretend the Democrats are not at the heart of this problem is fantacy.

Utterly ridiculous spin. Subprime mortgages took off in the past few years because of legislation passed decades ago to stop banks from using race and marital status as proxies for risk. Yeah, right.

Are these really the right's new talking points?

09-24-2008, 04:47 PM	#19
cmruloah Join Date Oct 2005 Posts 490 Senior Member	Ramo, you are on crack. Freddie and Fannie were the entities most exposed to sub prime mortgages. No. They weren't (unless you're using a bizarre definition of "exposed"). Because Fannie and Freddie were more regulated than the rest of the market, mortgages they offered required large down payments and for borrowers to document their incomes. They engaged in far less risky behavior than the rest of the market. Every party when in power loves to crow about home ownership numbers, but it was the Democrats from Carter on who legestlated that banks must have a certain percentage of their loans be made to sub prime borrowers. They created the very concept in the first place, and this is the logical conclusion. This is only one piece of the puzzle of course, but to pretend the Democrats are not at the heart of this problem is fantacy. Utterly ridiculous spin. Subprime mortgages took off in the past few years because of legislation passed decades ago to stop banks from using race and marital status as proxies for risk. Yeah, right. Are these really the right's new talking points?
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