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Democrats Hiding Their Culpability in this Mess???

By Russ Msrtin

Mortgage and Lending with Perl Mortgage

September 29, 2008 08:34 AM

Here is an interesting video floating around the net. While I don't want this to turn into a Democrat vs Republican love fest, I think this video does point out some of the major issues that got us into this mess - unchecked lobbying and bad social policy.

The video would have been more credible though if they spent a little more time focusing on the greed of Wall Street as well. Greed certainly exacerbated the bad social policy of the Democrats in this mess. I mean no one was forcing Wall Street to make some of these garbage loans (you know, the 100% stated investors loans to buy the crappy condos in Miami Beach).

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Lou Ludwig

Ludwig & Associates - Boca Raton, FL

Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Hi Russ

I have always voted for the person and not the party. There has been a rush to get this bill done, but were was the senate over sight on the banking before last week? This mess goes back to 1992 and Bernie Franks in right in the middle.

Good luck and success

Sep 29, 2008 08:54 AM

Travis Neliton

Caliber Home Loans CHL NMLS# 15622 - Portland, OR

Travis Neliton NMLS 283894

Russ,

Wow, that is unbelievable, I can not believe this is not main stream, well I know why it is buried and not made main stream, but you think at least Fox would be playing this. :)

Thanks, that is shocking!

Travis

Sep 29, 2008 09:00 AM

Russ Msrtin

Perl Mortgage - Chicago, IL

Residential Mortgage Advisor

Yeah... surprised it isn't generating more commentary. Maybe the crickets chirping tells us something... The mainstream media won't run with it as it doesn't fit the greedy wall street banker story that is selling right now. The reality is that there is enough blame to go around, but the very beginning of this mess was a push to provide "affordable loans" to underserved populations. At some point though it went from that to just all out greed by everyone.

Sep 29, 2008 09:15 AM

Susan Haughton

Long and Foster REALTORS (703) 470-4545 - Alexandria, VA

Susan & Mindy Team...Honesty. Integrity. Results.

Russ, you are absolutely right. There is enough blame to go around, for sure, but you are right, there was a push to provide affordable loans to those who could not afford them. (Community Reinvestment Act, thanks Jimmy Carter). FIRREA was enacted in 1989 (thanks, Bush 42) in an attempt to increase oversight. Then along comes Bill Clinton with new regulations for CRA (1995), which increased access to mortgage credit for undeserving borrowers.

Many members of Congress were guilty of contributing to this mess - and ironically, many are the same members who are attempting to lay the blame on the current administration. There are many "community organizers" who certainly had a hand in shaking down politicians (research ACORN for starters) and corporations in order to get what they wanted. At the end of the day, though, we went from affordable loans to undeserving parties to a full out greedfest where everyone wanted their piece of the pie and at that point, this totally crossed all lines.

Thanks for shedding light on this issue and getting this video out there.

Sep 29, 2008 09:55 AM

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