Subprime Suspects

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  • Posted By: Chris.L @ 10/08/2008 9:26:49 AM

    I lived in the CA Central Valley in the 80's/ Early 90's and they DID NOT build homes that people could reasonably afford. They flooded the market with McMansions for the Bay Area crowd fleeing the rising prices down there. It wasn't "greedy" homebuyers. There was report after report of low income people being squeezed out as homebuilders made huge profits building homes low income people could not afford. Rents skyrocketed and I had to move out of state. You can live within your means when there are homes available within your means. And then to be bombarded daily buy banks claiming "Don't worry, we'll get you in". It's listen to the smiling guy in in suit, live Southside and risk your kid getting shot, or move. Not much of a choice.

  • Posted By: Fortemiked @ 10/08/2008 9:25:40 AM

    Quit voting republican or democrat. It's time to put someone in office that has no interest in money. Only in the greater good. We need someone in office that will cooperate with foriegn powers instead of pissing in their cornflakes. We need someone that will create an equality between the have and have nots. The greed that controlls our government dictates that if you are not a shark, then you are food. I personally don't care if I can afford a mansion or a personal cruise ship. I don't need a $100,000 car. I don't need thousand dollar suits. All I want is what I earn, and that's it. And now thanks to corporate greed, my nest egg is getting smaller and smaller. Just because I chose not to be a shark? Just because I care about my nieghbors enough to not rape them like the government and anyone else in finance does? How can any voter today still be buying into the hype of those two empty suits? "because they said that they would do this or that Mike"! How many times have we heard, "the check is in the mail", or " this will only hurt a little", or even " I'll only put the head in". Lies, lies, lies. Quit being so nieve America! Obama/Mcain only have one agenda. And it is not you.
    Vote for me. Michael Forte. A man with nothing that asks for nothing.

  • Posted By: WestCoastMessenger @ 10/08/2008 9:24:31 AM

    This writer is so right on. It's time for the right to step aside, much like McCarthy had to in the 1950s, and let the Democrats run with the ball for a change. And to Mr. Krauthammer, who I hope reads this, have you no dignity sir?

  • Posted By: A New York fan @ 10/08/2008 9:06:53 AM

    Yes Obama is going to save the world, only problem is he is a part of the very system that allowed the problem to fester. Deregulation had it's roots back when Jimmy Carter was president ( I do believe he was a democrat) but politics has nothing to do with it. The system was allowed to run untethered by Bush, Clinton Big Bush and Carter, under Republican and Democrat control.Yes no doc loans were out there for years but the criteria for qualification became lax. Credit scores for instance would automatically qualify for a no income no asset verification loan. But lee226 I think you are blinded by the liberal juice, as I said it was the programs that were created both through Fannie and Freddie and Wall street that opened the flood gates. Lets face it the original vision to help serve all income brackets and communities was valid but the over sight to keep it in check was never implemented and back when there were discussions on reigning it in the Democrats led by Barney Frank fought it as if it were a witch hunt. Maybe you need to go back and use the internet to read more so you can understand. MyCommunity mortgage for example was created for underserved neighborhoods to qualify you could have a debt to income ratio in the 60% range, back by Fannie it was designed to help serve these communities but noboby in a 60% debt to income ration can afford to keep a house. FHA allows up to 45% with exceptions and even sub prime had limits up to 55%. There was abuse yes and these very programs allowed others in higher income bracket sto buy over their heads too. But please wake up not Obama or McCain are going to change anything. Reforms were put before the senate over a year ago, passed by congress and Bush would have signed but theysat stalled in the senate ( that;s right the very senate Obama and McCain came from) until last Feb when Bush finally forced the issue. No while I agree minorities aren't the fault I do believe the desire to help opened the doors to abuse. Remember all the risky loans Fannie and Freddie purchased were sold as AAA rated securities to Wall Street, Pension Plans, foreign investors, and others when in fact they weren't . Now because the bad mortgages are worth pennies on the dollar even the performing loans are worthless. Our leaders both Republican and Democrats never had the forsight to see that their had to be some oversight. I relized it years ago that the growth could not continue never has never will. The head of Fannie MAe, Franklyn Raines stood before congress and stated that these were safe loans and growth would continue to keep them safe. Oh yes the very same Franklin Raines that is now an Obama campaign advisor yes Obama will bring change he has the background to substanciate it, the advisors to lead him in the right direction and oh yes he speaks so well. Wake up Bush had Chaney and look where we are today.

    • Posted By: Factuss @ 10/08/2008 9:24:20 AM

      Deregulation started with the Nixon administration: It's the brainchild of conservation republicans who believe that government should completely stay out of the markets. Jimmy Carter was not a deregulator: get your facts right, please.

  • Posted By: KMKuz @ 10/08/2008 9:14:01 AM

    There are just a lot of silly comments here on both sides. What makes no sense in this article is painting "the right" (because conservatives/Republicans are OBVIOUSLY one big monolithic piece of groupthink like the Borg from Star Trek, right?) as having a view of the poor or minorities to blame for this crisis. That's a complete strawman from the start in this article.

    Where people (like me) take issue with Fannie Mae, Freddie Mac and the Community Reinvestment Act (which only allowed these nutty subrime mortgages from 1995 under the Clinton Administration in response to facts_not_opinions idea of why this has not been going on since 1977) is that this is what allowed MANY people to go after mortgages they clearly could not afford.

    I could care less about whether they were white, African-American, Latino, middle class, lower class, blue collar, upper middle class, etc. There are huge swaths of people across all of these groups who signed up for mortgages beyond their means. There are people being bounced out of $500K and $750K homes because of idiotic adjustable rate and interest only loans. THAT is where the issues lies.

    For Daniel Gross to paint all of this as being a class/race issue is just pathetic and shameful.

    • Posted By: spideymn @ 10/08/2008 9:21:53 AM

      posted in the wrong place, sorry pdoff, not aimed at you. But KMKuz see reply below...oops

  • Posted By: pdoff @ 10/08/2008 9:12:04 AM

    Poor people can't afford their houses not because their poor but because they are charged higher interest rates. Making it impossible to have the American dream the rich get richer as long as they hold poor down on their knees paying rent or living on the tax payers nickel in subsidized housing.

    • Posted By: spideymn @ 10/08/2008 9:20:01 AM

      why is it shameful to paint something as a race or class issue? Is this not a stratified society in which we live. Are you saying that modern americans, of all people, have moved beyond issues of race and class? Its a class issue because the poorest are hit hardest. Its a race issue because minorities are disproportionately afflicted by poverty. Is this not true?

  • Posted By: A New York fan @ 10/08/2008 9:16:12 AM

    The only way we will ever see change si to get rid of the deadwood in the house and senate both Republican and Democrat, both are to blame. The president still needs approval for moet things from the both houses of congress. Remember this current problem has been festering for a long time maybe Henry Waxman should have been more concerned with this instead of Steroids in Baseball.

  • Posted By: spideymn @ 10/08/2008 9:15:46 AM

    comment jro961. Oh the abusive relationship analogy. What was so bad about that? Isn't that another case of blaming the victim? How is it different?

  • Posted By: bbeans @ 10/08/2008 9:07:24 AM

    Thank you for writing piece. Let the truth be said. And you said it well.

  • Posted By: facts_not_opinions @ 10/08/2008 9:06:50 AM

    It amazes me how Republicans start a war in Iraq for no reason and then argue with the Democrats about who was right or wrong about the surge. The war was wrong. There would have been no need for a surge if there was no war, Next the Republicans fought to deregulate the financial sector and now argue with the Democrats about who was right or wrong about Fannie Mae and Freddie Mac. Deregulation was wrong. There would have been no need to rescue or regulate Fannie Mae and Freddie Mac if regulations had remained in place. Those are facts not opinions!

  • Posted By: facts_not_opinions @ 10/08/2008 8:58:14 AM

    I agree personal responsility is key. But let us not blur our onw opinions with facts. Left wing or right wing, we allow our prejudices to influence rational thought processess and begin to make idiotic assertions.

    Nimbus can you explain how CRA made money "easy" to loan? And why it took 31 years for CRA to blow up if it is the true cause of this mess. Why did subprime lending not blossom out of control in 1977?

    The Community Reinvestment Act applies to depository banks. I challenge you to call up your local depository banks and ask to see their CRA numbers and the number of subprime loans they have made and the number that are in foreclosure.

  • Posted By: Omnius @ 10/08/2008 8:53:42 AM

    Typical that the repugnant ones are trying to blame minority lending and trying to get monorities into home ownership. It's part of their racist approach to blaming the politically convenient. The real blame lies at the feet of Ronny Raygunz and his Voo Doo Tinkle Down economics that have left our economy all wet with the wrong kind of Golden Shower. Fannie Mae and Freddie Mac were not supposed to lend to anyone who came in through the door but to give minority borrowers a hand up to buy their first home. Plenty of white people took out loans that are now going bad because there was no supervision of the process the past 8 years. This mess didn't happen on Clinton's watch.

    I so enjoy laughing at the poetic justice that this whole global financial crisis is blowing up in "MBA Dunce" Bush's watch and is sinking "Bush Hugger" McCain's campaign. The biggest laugh I got last night wasn't from the Daily Show or Colbert Report but a little after 11PM Pacific time just before I turned off the tv and CNN went to breaking news that Japan's markets melted 10% and other asian market dropped 5%. I couldn't stop laughing to go to sleep knowing that the world's markets are doing the wave, waving bye bye to trillions in wealth.

  • Posted By: Chris.L @ 10/08/2008 8:49:53 AM

    Thank you. I can not believe this attempt to rewrite history in favor of the super rich white guys who OWN everything. Way before this crisis I listened to stories on NPR about how mortgage companies were making a mint conning people into loans they couldn't afford. And when it blows up the rich walk away and its all the poors fault as they sleep in their tents or shoot themselves in the chest. We need change.

  • Posted By: spideymn @ 10/08/2008 8:46:19 AM

    oh yeah poor minorities are the blame, the ones who control nothing, have no political power, even less money, and the piss poorest education in the country. They should've read the fine print. That's like blaming women in abusive relationships for not leaving. The standard american's perspective is too myopic to see past his/her own self interest, upbringing, environment and ideologies to even consider that the US is drastically different in some places than in others. Not everyone starts off with the same hand, so how the hell do you expect everyone to end with the same results? Jesus, are you people even capable of thought beyond your living rooms?

  • Posted By: spideymn @ 10/08/2008 8:42:08 AM

    poor minorities don't exactly have the power to influence public school curriculum. Not to mention their school systems generally suck. PYHOYA buddy.

  • Posted By: jro961 @ 10/08/2008 8:37:41 AM

    Everyone in the process shares the blame...including the consumer of the loan.
    Not knowing all the possibilities of what the loan would cost you is not only reckless, it is plain stupid.
    There is something to be said for READING THE FINE PRINT. Maybe they should drop one the silly mandates that public schools require to be taught , and replace it with a basic economics and budgettng course

  • Posted By: nimbus @ 10/08/2008 8:35:30 AM

    Typical left wing, take no personal responsiblity article.
    Facts sometimes are not pleasant. There is a LOT a blame to go around, Wall street, Barnk Frank, Chris Dodd, President Bush, CEO's and lets include people that had no business taking out a mortgage or a loan! The CRA made money 'easy' to loan; period!
    This is why I no longer read snoozeweek

  • Posted By: lee226 @ 10/08/2008 8:31:08 AM

    ONCEUPONTHETIME, i AM A CONSERVATIVE AND DO NOT LIKE WELFARE CAPITALISM EITHER.
    THIS IS NOT LEFT THIS GREED AND DEREGULATION OF 1999.
    We already has socialism to a degree but that does not change the republic.

    What you need to fear, is the neocon fascist in the white house.

  • Posted By: lee226 @ 10/08/2008 8:26:40 AM

    To answer about loans offer. Mortgage companies were doing No Doc loans and overlooking the percentage ratio of debt to income....let's face it this was another way for the business, banks, and corporations who build homes to make money at the expense of the middle class, the large number of people...who work and pay taxes. Face it people it was a rip off to place good mortages adn bad mortgages in bundles and sell them off to banks everywhere in the world.
    No one will trust us anymore, this is bad, I hope Obama will be elected and restore credibilty to this country.

  • Posted By: onceuponatime @ 10/08/2008 8:23:28 AM

    Typical. This article is full of left-wing mis-information and falsehoods. Mr. Gross' political agenda comes through loud and clear. Unfortunate that many people are ignorant enough of the facts to allow emotional rantings to shape their thinking. If Mr. Gross can get enough people to agree with him, he and others like him may just succeed in their endeavor to outlaw capitalism in favor of socialism.

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