Weren’t the bank bailouts justified since the goverment forced Wall Street Bankers to make home loans to?

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people who could not repay them?

In 2006 I asked my next door neighbor who was a mortgage broker if it was wise for him to make $ 750,000.00 loans with no money down, no credit check and no income verification to people working at Burger King and he told me that he could face up to 20 years in prison if he didn’t do it.

He told me that Barney Frank would have him jailed.

7 Comments
  1. Reply
    FOOD FIGHT!
    May 14, 2011 at 1:32 am

    You still have not figured out that mortgages had nothing to do with bank failures. 85% of losses were on derivatives which every administration and congress has failed to regulate. Your premise is very wrong.

    The failures were World wide not just banks that could do business with Fannie and Freddie that should give you a clue.

    I was really a mortgage banker not somebody with fake friend making Jumbo loans that were never eligible for government backing so I also know you are lying.

  2. Reply
    Ed
    May 14, 2011 at 2:06 am

    The government never forced the banks to do anything. bush asked the banks to make it easier for lower income folks to get a mortgage, or did that fact elude you?

  3. Reply
    jaker
    May 14, 2011 at 3:02 am

    It wasn’t just the Wall Street bankers.

  4. Reply
    logan
    May 14, 2011 at 3:13 am

    There was nothing in the law that forced the banks to make idiotic loans like the one you describe. The mortgage companies only did that because they saw dollar signs. The law was intended to make getting a loan a little easier for people with a lower credit rating. The only thing wrong with the law is that it loosened the regulations for the mortgage companies. They were then able to make those idiotic loans to anyone and everyone they pleased. Not so bright people got caught up in it all.

  5. Reply
    ksantimia
    May 14, 2011 at 3:41 am

    no, because the people in the government used to work for wall street. They used their power and influence to obtain government positions and then made the government force the loans.

    shrink the government, vote Ron Paul 2012

  6. Reply
    teagan
    May 14, 2011 at 4:24 am

    Clinton’s no documentation loans created predatory lending practices and the banks knew full well what they were doing. They took profits over sustainability. They took the risky loans and spread the risk securities throughout wall street, when the chickens came home to roost they all lost their hats. They deserved to fail and the bailouts only rewarded bad behavior. Barney Frank and his buddies at Fannie Mae and Freddie Mac made out really well before the bottom fell out and they should be jailed for it.

  7. Reply
    Mister2-15-2
    May 14, 2011 at 5:02 am

    First it is hundred percent propaganda that banks were forced to make loans. At one point government did set up criteria to make sure certain groups were not being red lined, not sure if that is correct term used that only came into play when highly qualified applicants were denied loans mortgages.
    The problem came from bank holding companies bundling loan and getting rating companies to give them triple A ratings and being able to sell JUNK as high quality securities. banks bought all the JUNK mortgage companies could write. View CD House Of Cards. Feel Barney Frank is a very intelligent man so only way he let the scam continue is there must be a very big Swiss Account somewhere with his name on it. Banks bond and share holder should have been wiped out. Author of Freefall describes what and why should have happened, but we got Bush and Obama rewarding out and out thieves from taxpayers, sticking taxpayers with non-preforming mortgages while leaving a very distressed real estate market. Saw a news article half year ago that some of the better performing mortgages where held by lower income people, which is surprising with huge increases they had to deal with in local taxes from loss of revenue sharing and utility bills from de-regulation. They bought their homes to live in and not to flip as an investment.
    Keep hearing of down payment insurance, but never saw one story were lenders got their money for an investment property were buyers just walked away. The CD House of cards talks about people like your friend. The maddening part is they are still allowing bundling of mortgages by bank holing companies. Fanny would hold classes that low income people had to pass to get a mortgage, but you rarely hear about the positive things that occurred by big mouth JERKS on the radio being well paid to spread propaganda.

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