What does it mean in this article on sub-prime that TX is under a protective BUBBLE?
“Ground Zero” Mortgage Crisis 7/14/08
CBS 7 Staff
July 14, 2008
It’s being called “Ground Zero” for the sub-prime mortgage crisis that surfaced last summer.
The savings bank called Indymac in California was overcome with roughly six billion dollars in bad loans.
Loans they made for houses to people who could not afford them.
The scandal has ruined millions of lives.
Texas is living under a protective bubble, however, and depositors here have nothing to fear.
John West, President & COO Community National Bank in Midland, said, “The housing industry in Texas is strong and good. So, I would not worry about a savings bank in Texas. I would worry about a savings bank in California or Florida.”
The FDIC warns more failures are to come, and they’re hiring more people to handle the work.
90 banks are now on their watch list, and they estimate eventual losses at over one trillion dollars worldwide.
considering their loaning to illegals?
More Information on the Role of Illegal Aliens in the Financial Crisis
The Sub-Prime Mortgage Mess and Illegal Aliens
Politically Correct loans and low interest mortgage policies(remember Freddie Mac, Fanny Mae, and anti-redlining?) helped fuel the financial crisis by making race-based loans regardless of the borrowers’ financial status or ability/desire to ever pay the mortgage. Even worse, there is evidence that the core of the problem may have been illegal aliens and the rush by business to get their government guaranteed money, the GOP desire for amnesty because these new homeowners might vote Republican (the Bush-Rove Strategy, see link below), and the Democrats seeking new voters, legal or not.
It is no accident that the bulk of the foreclosures, and thus the financial crisis, originated in California, Nevada, Arizona, Texas, and Florida; states burdened with the most illegal immigrants.
The word is Illegal not undocumented!