Mortgage disaster

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One more time

Our mortgage disaster and the fallout that is killing the general real estate market was created by Fannie Mae and Freddie Mac. As government policy, instituted by Jimmy Carter and then Bill Clinton, low cost loans were given to people who could not pay for the loans. Over a 6-8 year period, around 50 per cent of the loans covered by Fannie Mae and Freddie Mac were politically supported loans of this type. Political pressure and threats of control were exerted on the mortgage industry by Congress to make these subprime loans.

Democrats were in charge of these two quasi-government agencies while Democrats in Congress (i.e., Barney Frank of Massachusetts and Christopher Dodds of Connecticut in particular) carried their water and looked the other way when trouble surfaced. Then they blamed the Bush administration for failing to provide oversight. Later, these two Congressional leaders said all was OK. This was followed by the massive Democrat stimulus package and the government taker-over of US corporations was underway. … the right jack