Dow Down 778 Points, $1.1 Trillion in Wealth Lost Today, Where Does California's Congressional Deleg
Posted by: The Gadfly on October 01, 2008
Oh your going to blame the lack of regulation of Fannie Mae on Bush or the Republicans? I detest Bush, but lets not try to revise history. The laudable, but unrealistic MANDATE to get more low income families into home ownership is what caused this mess. The low income families could not afford the loans, nor did they have the credit. So the Dems FORCED Fannie Mae to lower their standards. To get these undeserving folks into homes they had to CREATE the sub-prime market with no checks and balances. No Job needed, No Credit, No down Payment...ridiculous on it's face and clearly financially irresponsible. And now the rest of us hard working tax paying citizens are left holding the bag for the Democratic Party's mistake. We have to now pay for people who should never have been given a loan. How did we help them? How does getting them into a home they cannot afford helping them? How has it helped our society? This fiasco proves that Socialism harms those it is intended to help. I say NO BAILOUT and let the Free Market take care of liquidating these assets. The Market will come back on its own...the Banks will loan again, on their own, they have no choice if they want to exist, the rest can fail, who cares.
Dow Down 778 Points, $1.1 Trillion in Wealth Lost Today, Where Does California's Congressional Deleg
Posted by: The Gadfly on October 01, 2008Oh your going to blame the lack of regulation of Fannie Mae on Bush or the Republicans? I detest Bush, but lets not try to revise history. The laudable, but unrealistic MANDATE to get more low income families into home ownership is what caused this mess. The low income families could not afford the loans, nor did they have the credit. So the Dems FORCED Fannie Mae to lower their standards. To get these undeserving folks into homes they had to CREATE the sub-prime market with no checks and balances. No Job needed, No Credit, No down Payment...ridiculous on it's face and clearly financially irresponsible. And now the rest of us hard working tax paying citizens are left holding the bag for the Democratic Party's mistake. We have to now pay for people who should never have been given a loan. How did we help them? How does getting them into a home they cannot afford helping them? How has it helped our society? This fiasco proves that Socialism harms those it is intended to help. I say NO BAILOUT and let the Free Market take care of liquidating these assets. The Market will come back on its own...the Banks will loan again, on their own, they have no choice if they want to exist, the rest can fail, who cares.
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