Why did they coin the term “Predatory Lending”, when banks were strong-armed into giving out bad loans?
This led to all kinds of financial tricks, trading in derivatives, etc.
A few things here.
The repeal of parts of the Glass-Steagall act under the Clinton administration
The expanded Community reinvestment act, under Clinton
Bad loans forced by policies, and a refusal to regulate Fanny Mae and Freddie Mac, by Barney Frank and Chris Dodd. (Oddly enough, the same dynamic duo who wrote the “Financial Reform Fiasco”)
So, forcing banks into bad loans, got turned around on them, as “Predatory Lending”. A phrase of art, only a progressive liberal could appreciate.
Who is responsible for signing for a loan, and the payback thereof?
Republicans in the Bush years continually called for regulation of Fanny and Freddie, and it was blocked by Barney Frank and Chris Dodd. Democrats are mainly to blame for this financial meltdown; yet somehow it gets portrayed as Republicans being at fault.
The deregulation contributed somewhat to it, but the main issue was Fanny and Freddie pushing bad loans and they knew it. Even Franklin Raines had to leave in disgrace. Oddly enough, he’ll be back with the Chicago Carbon Credit Exchange, if the Obama Cap and Trade fiasco gains any support
Through Scam after Scam, Progressives continue to rewrite history
Answer by Mayhem
Because they view the world through “liberal colored glasses”.
EDIT
The next time you go to your bank, go to the lobby and read the notices posted on the wall pertaining to the Community Reinvestment Act. This notice clearly states that a quota system is in place, based on race, when loans are made by an FDIC insured bank.
Answer by El Tecolote
Because Democrats are at fault, (Frank and Dodd,) and Bush warned them against it. Repeatedly. Kinda flies in the face of the media’s position that it was Bush and not the Democrats who screwed everything up.
FOX NEWS BUSINESS is working on this…..
You forgot to tell how banking deregulation by the republicans contributed to it as well. How convenient you missed that.
Further, Laissez-faire economics is a guarantee for financial trouble.
http://moneymorning.com/2009/01/13/deregulation-financial-crisis/
Nobody “strong armed” these banks into making these loans, and the bank officers who signed off on these loans can be expected to have been aware of the ethical questions regarding this lending practice.
The majority of the banking community was able to stay away from these shenanigans.
Because they get their information from economists rather than YA Politics,
Because the libs must blame someone else but themselves for the disaster and the media are nothing more than propagandists for the left.
Absolutely!
President Clinton “liberalized” the rules allowing less-than-qualified borrowers greater access to Federally subsidized home loans.
Not necessarily a bad thing.
But Chris Dodd and Barney Frank, heads of Congressional budgetary committees, PUSHED HARD FOR Freddie and Fanny to lean on lenders to make ever-more questionable loans…especially to unqualified MINORITIES.
Even president Bush approved of the policy which turned into a financial nightmare for our country as the interest rates rose and those “balloon payments” came due, and those unqualified borrowers defaulted by the MILLIONS, costing taxpayers and the Banks hundreds of Billions!