again, tax money is allso an investment into the economy, a regulated one, which can be more effective then private spendings.
and the crisis is the banks fault, i think the whole world exept US rightists agree on that. think about it, if the blame is taken away from the banks, you can save the system, which is ofcourse now the top priority of these people.

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The banks were forced by Government to give loans to people who wouldnt pay.

One thing I WILL say is the banks fault is giving out ajustable rate mortgage loans when intrest rates are at historic LOWS. The rates have nowhere to go but up!! When the rates when up, and people started defaulting, the banks should have contacted people and set up a way of refinancing the loan at a lower fixed rate so that maybe some of the homes could have been saved. However, the banks dont do this because they are getting actual homes, solid property, for pennies on the dollar. In about 10 years, these poor pitiful banks will be rolling in TRILLIONS!

Hey, I cant blame the banks 100%, though. People were STUPID for getting an adjustable rate at historic lows.

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how, exactly?
sure if people were better informed, they should have gone with this.
its not just a problem of some US law that saius that poornpeople should be able to have loans too, you know. thats putting the blame in something that can be politically save your ass. the problem is international, that the fiunance system can cleate money that doesnt exist, and then when sometihng lik your housing market collapses, it all goes down. eventualy something would have gone wrong, if not your housing market, maybe somethikng in asia or europe. the point is, that that system is made out of hot air.

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personally I love how the libertarians are hanging to that re-investment law. It is, after all, their only hope.

Janet Reno, Clinton and several community groups are responsible for the coercion of major banks that occurred in the mid to late 90's. This lead to the subprime lending that became popular mainly because Fannie and Freddie were there to pick up the tab. The banks would have never made interest only, no money down, adjustable rate, no income loans if democrats hadn't provided a scapegoat. Socialized lending has directly lead to this financial mess.

which leads to the folowing questions:
why did it lead to a crisis, if this f&f (whatever that is..) was to pick up the tab?
werent there other , wiser ways to interpretit that law? im sure there were.

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F&F is Fannie Mae and Freddie Mac ... in which the government had a good deal of "ownership" status.

The idea about all these bad loans is essentially a statement that it's the civil right / entitlement of everybody to have their own home - the fulfillment of the American Dream. With F&F incredibly irresponsible loans were made and they basically had nothing to back up those loans.

Real banks had strict requirements for giving loans - good credit history, enough % of money to make a down payment for a home loan, collateral to back up the loan so that if something did go wrong the bank could sell the collateral in order to recoup some of its losses - there were rules and regulations.

So F&F, by whatever means - corruption, collusion, lobbying or whatever made it so that normal, real banks also HAD to make some of these loans to ineligible people if they wanted to stay in business. Also, some loan operations like Countrywide, etc. that popped up for the sole purposes of providing low cost loans for purchases of a house.

The deal was - give low cost loans to people who did not make a lot of money (and consequently couldn't come up with a downpayment as required by a real bank); people who were poor; people who had no job at all - so that they could have the American Dream. These people "bought" homes they could not afford.

In other words - all this F&F business was an attempt to socialize housing - and it has ultimately failed miserably - and we are now faced with a hell of a mess and the government wants higher taxes from everybody to pay for it.

this doesnt add up. you eighter have a law that sais; banks must give out these loans, or you do it out of free choice. a lobby is only a lobby, corruption is illegal,thats not a gouv. telling a bank what to do.

ive asked this before on other boards as well, but noone seems to know, so it sounds like a blame game to me.
banks thought they could get away with bad loans, because they were supposed to be bailed out by F&F, if the loans went bad, and because poeple would have depths to banks, and thats how a bank makes money, interest over loans.

so still teh same questions, why didnt F&F cover all those bad loans, like you say they should have?
and, how did F&F force banks to give out bad loans? did they get penalies if they didnt?

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Oki - you just can't get your head wrapped around anything other than a socialist way of life.

Real banks are private corporations. They are generally owned by shareholders and have boards of directors. They have rules and regulations by which they have to operate. They operate under the premise that "we will give you a loan if you can prove to us that you can afford to repay the loan. We do not want to lose our investment." Government has nothing whatsoever to do with ownership, day to day operation, or financial gains or losses of real banks. Real banks act responsibly in their financial dealings.

F&F are basically government controlled entities - they were created to give loans to people who couldn't ordinarily get loans from real banks because they were not creditworthy, or couldn't afford to pay back the loans for a variety of reasons. The government essentially "backed" these questionable loans that were passed out irresponsibly.

A major lobbying factor was this ACORN group - they created a bullying situation whereby real banks were literally forced into granting irresponsible loans - or they would see that banks were put out of business altogether. This was discussed at great length in various threads.

Yes - corruption is illegal - but people engage in corruption all the time - by unions, corporate execs more interested in greed and power than the good of the company, and yes - by government officials.

the mess of miss spent money in the west still not taught anyone anything yet?

Communism and socialism are disasters waiting to happen.

Someone has to say this so I will.......

No one has the "right" to eat, they have a need to eat..... get rid of food stamps.

No one has a right to medical help... they have a need for medical help.....

Get rid of Medicaid.

No one has the right to a roof over their heads they have a need for a roof over their heads.

True capatalism needs to tell everyone the cold hard truth......

Ya have to take care of yourself.... society should not have to be responsible to take care of the individual.

Welfare was never intended to go from generation to generation but that is what it has inevitably done..... not every family but many families.

How many people did ya know when you where a kid that where on welfare and now ya see their children on it as well.

People believe that they have a right to all these things, that is a bunch of crap that has been put into peoples heads over the last 40 years or so as the system has just gotten bigger and bigger and bigger and eaten up m,ore and more and more of our tax dollars.

There is a old biblical saying that says "If a man will not work than he will not eat". wE NEED TO GET BACK TO THAT WAY OF THINKING.

Department of social services should have their budgets cut each year by 20 percent for the next 5 years giving people the chance to change and adjust.

Work programs to rebuild our road and infra-structure upgrade our electrical and gas lines and waterways.

All people on welfare should be put on work fare and if they refuse they should get 0 in benefits.

Viking