Posted by bad_luck on 11/7/2013 11:29:00 AM (view original):
Posted by MikeT23 on 11/7/2013 10:33:00 AM (view original):I am. But almost all subprime lenders weren't subject to CRA regulation (only banks were subject to the law, most subprime loans were made by other types of lenders). The bad loans weren't made because of government pressure. The bad loans were made because Wall Street really wanted the loans.
Posted by bad_luck on 11/7/2013 10:26:00 AM (view original):Are you familiar with the Community Reinvestment Act? Rewritten by Clinton in the early/mid 90s to put pressure on banks to loan to low income individuals.
Posted by MikeT23 on 11/7/2013 10:15:00 AM (view original):Pretty sure it was under regulated banks giving the loans. Not Clinton (or Bush).
Didn't the economy crash, in part, because loans were given to people who had no means to pay them? If so, I'm pretty sure that started under Clinton.
The bad loans were made because (a) the Clinton Administration encouraged that such loans be made, and (b) people were stupid enough to take out loans they couldn't possibly afford.
I may have mentioned this before, but I'll mention it again. When my wife and I were shopping for our current house in 1996, we were "pre-approved" for a mortgage that was around $175k more than we felt confortable spending, Had we been stupid and went with a much larger and more expensive house, there is around a 0% chance that we would have been able to afford to still be there.