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Thread: What caused the financial crisis?
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[quote=GEARBOX,355744]In a word .... The Democrats. I'm not quite sure how everyone missed this, but here is a quick overview. Fannie Mae was created by Franklin Roosevelt in 1938 to aide American families to purchase a house, which is of course the all American dream. A very worth while jesture at that time. They started out as a Federal agency and in essensence bought/guaranteed mortgages from banks, which in turn allowed the banks to lend more money to new home buyers. Needless to say, the banks would only lend to credit worthy borrowers, such as people with stable jobs who had a chance of re-paying the loan. But here is when it started to go south, the Democrats started to use this agency for their own gain. In the early 70's, Obama, when he was with the Acorn group, sued a group of banks for not lending to less desirable credit risks, i.e. people with little or no job history, bad credit, etc., which were composed mainly of minorities. The charge was that the banks were "Red Lining" solely for the reason of racisim. Despite the banks argument of credit risk, and the adversion to bad loans, Obama countered with Fannie Mae who would buy up most of these loans and it was the banks responsibility to lend to these higher risk borrowers. Guess what, he won and down the slipperly slope we went. When Jimmy Carter (Democrat) entered office, he decided that Fannie Mae was such a solid on going concern, he decided to "Privatize" the agency but didn't want to create a monopoly. So he created Freddie Mac, which did the same thing as Fannie Mae and was also a private company. And guess who got the CEO and high executive positions? Democratic party leaders and officials. Then when Bill Clinton (Democrat) entered office, he deregulated the reporting requirements for both companies and instructed them to start buying even higher risk loans before he left office. And guess who was the CEO of Freddie Mac who just stepped down after the crisis? Bill Clinton's White House Financial Advisor! Now here is the funniest part, Franklin Raines was the CEO of Fannie Mae in 2001/2 and was fired because he was "manipulating the books" and falsifing documents. But did he face any criminal charges? NO! Was he allowed to keep his $50 million dollars in bonuses? YES! But that is not the funny part, the funny part is that he is now the new Financial Advisor for Obama! If it wasn't so halarious I would cry. [/quote]
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