Comments on: Mortgage Scandal a Bipartisan Affair

By: Interested

Interested — Wed, 16 Jul 2008 11:07:47 +0000

Lets just get Europe to bail us out, they can set up a relief fund and just send over the money. Later we can complain that they didn’t send enough.

By: Michael Merritt

Michael Merritt — Wed, 16 Jul 2008 02:36:37 +0000

I found it interesting that the government is so willing to keep these lenders propped up. Just proves that neither party can actually claim true fiscal conservativeness.

I remember during the whole Bear Stearns fiasco, some of the far-right economic conservatives were screaming their heads off at the involvement of the government.

By: Chuck Norton

Chuck Norton — Tue, 15 Jul 2008 23:46:55 +0000

Michael - Government sorda has to act - why? It is government regulation and taxes that have caused a great deal of this problem. Laws such as the Community Reinvestment Act etc that force lenders to give marginal loans on properties that have declining values to avoid "red-lining" and charges of racism. What lenders do is make the loans that they KNOW are VERY risky to keep the feds coming down on them, and then they sell these loans to Freddie Mac and Fannie Mae and walla - they fail as property taxes go up and energy and food prices go up and causing an overdue housing adjustment to become a full fledged crash. Banks keep most of the good loans and dump the bad ones to Freddie and Fannie.

By: Bob A

Bob A — Tue, 15 Jul 2008 18:26:16 +0000

Ah.. its being called for what it is.. a scandal first, a crisis second.