Do you think American are working together to cheat the foreigners’ money to buy up our real estate?

Deal Score0

America issued debt obligation, pretending that there are very secured investment; sold them to foreigners. In fact we put the money into very risky home loan and make profit out of it. Those mortgage warehouses which did not act quick enough suffered and all the foreign investors even suffered more. No one will trust American anymore.

http://www.responsiblelending.org/issues/mortgage/quick-references/cra-is-not-to-blame-for-blame-for-the-mortgage-meltdown.html

Very few of these sub-prime predatory loans were made by CRA backed institutions, most were made by these big mortgage companies like countrywide which are now bankrupt. And most of the mortgage defaults were people who re-financed, not firts time homebuyers. It was this whole system of commercial banks making these predatory loans and selling the mortagages to investment banks and investment banks selling the mortgages in derivatives to global investors. Now this whole derviative bubble burst and all these global investors have AIG in case they loose money. It was awful greed and corrpution on wall street that caused this mess. Instead of giving trillions of dollars to investment banks to kep donig the same things they have been doing, how about giving the money to homeowners to elimenate mortgages?
true- CRA never forced any bank to make high risk loans, it just ended redlining.
http://news.morningstar.com/newsnet/ViewNews.aspx?article=/DJ/200812021226DOWJONESDJONLINE000492_univ.xml

Bernanke said this himself.
well stl many people were scammed by this whole predatory lending system.
I also have a link by Bernanke saying CRA wasn’t to blame, certainly not a democrat.

12 Comments
  1. Reply
    delfamily
    January 29, 2011 at 6:00 pm

    It’s all a conspiracy!

  2. Reply
    Gem
    January 29, 2011 at 6:47 pm

    Yep, at least the Americans in government and the heads of the major banks. But NO not the average person who is losing their jobs, their homes and their futures. I promise you THEY weren’t in on it.

    Do you think the people who made the commissions care? Not yet.

    Do you think the banks that sold the bad notes care? Not yet.

    Do you think the American government that made billions in taxes care? Not yet.

    But they will soon. It is not just the foreign investors that were screwed over. It is EVERY middle class American who will lose their jobs, homes and futures.

    And that is a horrible thing.

  3. Reply
    ☻Ädam☻
    January 29, 2011 at 6:55 pm

    I blame all our current problems on the American way of life for the last 30 years. Every citizen every congressman and woman. Every President they are all to blame. Its not because of one single person. We needed to change and this will hopefully open our damn eyes and get us off this consumerism lifestyle we have.

  4. Reply
    Boss H
    January 29, 2011 at 7:32 pm

    CRA doesn’t do anything that talk radio claims it does either.
    It is nothing more than the same thing right-wingers did after September 11, 2001….. PR the whole thing to blame Democrats.

    The CRA doesn’t force banks to give loans to people without checking their credit history. It doesn’t force banks to give loans to people who cannot afford them. And it definitely did not allow banks to consolidate nearly all asset related services, or make Credit Default Swaps exempt from government regulation and oversight.

  5. Reply
    jdm
    January 29, 2011 at 8:14 pm

    While there are a lot of factors that lead up to this mess, the addendums to the CRA and the results of passing such law did help a lot.

  6. Reply
    J O
    January 29, 2011 at 9:09 pm

    What you are failing to mention is that a lot of pressure was put on these banks by organizations like Acorn, and CRA to make bad loans. Then the government passed laws to allow Freddie and Fannie to buy back this bad paper thereby providing incentive to continue the practices. Then it became a battle for business. Once one business started, the other jumped on board, otherwise they would risk being put out of business by the Competition. You either participated, or you were left behind and dying in the weeds.

    This whole economic “crisis” started when the government got involved in setting our lending practices.

  7. Reply
    Another Day Another Dollar
    January 29, 2011 at 10:03 pm

    People must be going back and watching all those FOX News programs they Tivo’d last year but never had the time to watch.

    (Because they’re newly unemployed perhaps?)

  8. Reply
    seekerinnm
    January 29, 2011 at 10:12 pm

    To a degree, I feel the same way; except I had suggested that the government buy up the mortgages, and then the homeowner would make payments directly to the treasury through their banks, at 30% of income.

  9. Reply
    Bob
    January 29, 2011 at 11:03 pm

    The center for responsible lending is like to republicans like Fox News is to democrats. This is a left leaning organization and of course they will protect the CRA. I can find other reports to show otherwise.

  10. Reply
    ladydreamer24
    January 29, 2011 at 11:54 pm

    The government, under Clinton’s administration, twisted arms to make the mortgage companies loan to people who did not qualify. The applications were filled with lies and income was not verified. This is what the democrats do in Washington. They give and give to the very poor and then drop them like a hot potato when the news gets bad. That is what is happening now. Obama wants to do the same, give and give to the poor, then raise the taxes so high that it will trickle down to the poor and place more burdens on them. The costs of everything will go up when taxes are raised as much as Obama has to raise them now with all this wasteful spending. We will pay, all of us. The very rich will find a way around it. NAACP intends to file lawsuits against mortgage companies because of the fraud in lending to people that could not pay. They actually need to file against the government. If anybody. Everybody is responsible for their own mistakes.

  11. Reply
    Stl_6string
    January 30, 2011 at 12:33 am

    “Sub-prime predatory loans.” Has anyone witnessed in real life these “sub-prime predatory loans” hunting down innocent victims?

    Victims, who were living their peaceful lives, minding their own business when suddenly were viciously attacked by a “sub-prime mortgage lender” who jumped out of no where and forced a “sub-prime loan” upon them.

    Sounds like the making of a National Geographic documentary. Sleek and stealthy “sub-prime mortgage lenders” stalking in the high weeds of the inner city. Innocent would be victims milling about their business in the streets. Suddenly, out of no where and attack. Victims scrambling. Chaos. Mayhem. Carnage. And then, it happens.

    The stealthy “sub-prime mortgage lender” spots the weak and feeble. Closes in on the victim. Lunges. A cloud of dust ensues. And then…

    The “sub-prime mortgage lender” emerges from the cloud with it’s poor innocent victim. Throat in mouth, signing mortgage papers on a new house the victim is being forced to buy…

  12. Reply
    Oh really now?
    January 30, 2011 at 1:04 am

    You can’t use an opinion site to back up a factual claim. Martin Eakes who is the CEO for “The Responsible Lending Center” is a democrat. Look it up. He was at the Democrat national convention to give a speech. Your source isn’t valid due to biased political views.

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