I’m sure you’ve all been watching the news about our current global economic crisis.
Everyone’s pointing the finger of blame at the Republicans for the crisis. But it was actually the Democrats who started the financial meltdown of this country’s economy.
Remember back when president Bill Clinton’s administration pressured banks into lowering credit restrictions so people with poor credit histories could afford homes?
Well, at the time, no one thought to say, ‘hey, what happens if all these people who have a history of not paying their bills, defaults on these loans?”
The Clinton administration guaranteed the “no money down” loans through Fannie Mae by promising to purchase the high risk mortgages thus removing the bad debt off the bank’s books.
So everyone was happy.
Lower income people with poor credit histories could now afford to be homeowners, and that was supposed to be the happy ending to the story.
Except that corrupt bankers, mortgage lenders, real estate agents, and politicians got greedy.
In the above video, shot in 2004, watch as the Democrats try to protect their cash cow (Fannie Mae) from the Republicans who wanted more regulations on the agency.
At the 7:29 mark, Frank Raines, the disgraced ex-Fannie Mae CEO, and now Obama’s unofficial economic adviser, basically says, ‘what risk? there’s no risk in home loans.’ By the way, Raines just purchased a $4.9M condo with the money he stole.
