The Housing Collapse Caused The Economic Collapse

The Democrats and the main stream media blame Ronald Reagan and George Bush for the economic collapse. And in turn the housing collapse.  They blame the tax cuts that in reality spurred economic growth and have tried to hide the true cause.

In 1977 with Jimmy (the peanut farmer) in the White House and a Democrat controlled Congress they passed the "Community Reinvestment Act."  This law was the beginning of the lax lending the government started forcing on banks.

Then in 1991 the "Home Mortgage Disclosure Act" required the applicants race on every application.  ACORN used that data to find minority applications were between 1.6  and 3.4 times more likely to be rejected.

In ACORN words, "In cities across the country, ACORN members have seen their communities devastated by banks, 'systemic' refusal to make loans  in low-income neighborhoods and to people of color."

Bill Clinton in 1994 had the "National Partnership in Home Ownership."  This is where the real problems started.  This made home ownership more affordable , expanded "creative financing,' simplified the home buying process, and reduced transaction costs.

There was the "Fannie Neighbors" program to increase home ownership and promote revitalization in minority, low, and moderate income and/or minority census tracts.
James Johnson, CEO, of Fannie Mae, proudly pointed out that Fannie Mae spent $7 billion between 1994 and 1997 on "underwriting experiments."

On three separate occasions Geo Bush tried to address the looming Fannie Mae / Freddie Mac home finance problem.  The likes of Barney frank and Chris Dodd scoffed at Bush and adamantly said there was no problem.  Barney Frank sang the same tune just months before the collapse started.

We all know no there was a huge problem.  We have the housing and economic collapse that started in late 2008.  The Democrats and main stream media conveniently blame Bush and the 'greedy' banks for the collapse.

The democrats through intimidation and threats forced banks to lend to people who were not qualified.  The democrats even told the banks to count food stamps, welfare checks, and unemployment checks as income to qualify for loans.

The Democrats say it's everyone's 'Right' to own a home.  The problem is home ownership isn't a right guaranteed by the government.  It is something you work for and earn.

The Democrats never learn from their failures.  Our economy is on the verge of collapse.  Eric Holder is on a witch hunt against 'biased' banks.

In several cases, the government has ordered bank defendants to post in all their branches and marketing materials a notice informing minority customers that they cannot be turned down for credit because they receive public aid, such as unemployment benefits, welfare payments or food stamps.

Among other remedies: favorable interest rates and down-payment assistance for minority borrowers with weak credit.

"It's absolutely outrageous after what we've just gone through," said former Representative Ernest Istook.  "How can someone both be financially stable enough to merit a mortgage at the same time they're on public assistance? By definition, you don't have the kind of employment that can support such a loan."

Barack Obama and his administration are working hard to finish the job of destroying the American economy.  Still though the main stream media refuses to tell America and even lies for the corrupt Obama.

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