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Anatomy of a Train Wreck
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<blockquote data-quote="The Other Side" data-source="post: 409810" data-attributes="member: 17969"><p><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><p style="text-align: left">Here is a sample of what was SAID about this crisis, not a crisis in the 1990's. A DIRECT blow to the BUSH administrations "Home Ownership Society". It was President BUSH that directed the home mortgage industry to switch to ZERO DOWNPAYMENTS, not Carter, Reagan, Bush1 or Clinton. Only this current President was dumb enough to suggest this in his <strong><em>ZERO DOWNPAYMENT INITIATIVE</em></strong>..this cannot be disputed. No other President or member of congress shares this blame. In this report, the author clearly spells out that the ZERO DOWNPAYMENT loans are EXACTLY the cause of this problem along with problems that occured AFTER the initial creation of the problem.</p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">"After the government succeeded in weakening</span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">underwriting standards, mortgages seemed to require</span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">virtually no down payment, which is the main</span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">key to the problem, but few restrictions on the size</span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">of monthly payments relative to income, little examination</span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">of credit scores, little examination of</span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">employment history, and so forth also contributed."</span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: black">(this is the Home Ownership Society program alltogether)</span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">"This was exactly the government’s goal."</span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: black">(the Bush Administration 00/08)</span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">"The weakening of mortgage-lending standards</span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">did succeed in increasing home ownership (discussed</span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">in more detail later). As home ownership rates increased</span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">there was self-congratulation all around.</span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">The community of regulators, academic specialists,</span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">and housing activists all reveled in the increase in</span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">home ownership and the increase in wealth brought</span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">about by home ownership. The decline in mortgage underwriting </span><span style="color: red">standards was universally praised as an</span><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">“innovation” in mortgage lending.</span></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"> </span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">The increase in home ownership increased the</span></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">price of housing, helping to create a housing “bubble.”</span></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">The bubble brought in a large number of speculators</span></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">in the form of individuals owning one or two</span></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">houses who hoped to quickly resell them at a profit.</span></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">Estimates are that one quarter of all home sales were</span></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">speculative sales of this nature.</span></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">Speculators wanted mortgages with the smallest</span></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">down payment and the lowest interest rate. These</span></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">would be adjustable-rate mortgages (ARMs), option</span></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">ARMs, and so forth. Once housing prices stopped</span></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">rising, these speculators tried to get out from under</span></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">their investments made largely with other peoples’</span></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">money, which is why foreclosures increased mainly</span></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">for adjustable-rate mortgages and not for fixed-rate</span></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">mortgages, regardless of whether mortgages were</span></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">prime or subprime. The rest, as they say, is history.</span></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">In good times, strict underwriting standards seem</span></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">unnecessary. But like levees against a flood, they serve</span></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="color: red">a useful purpose."</span> </span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px">(the disaster waiting to happen)</span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px">Comprehension goes along way. As has been stated before, all presidents from John friend. Kennedy to Bush2 have used the Home Ownership to help americans, however, it was President Bush who under advisement, REMOVED safeguards relating to home buying and encouraged GREED to take over.</span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px">This greed was uncontrolled by everyone in charge Democrats and Republicans alike. As long as money was being made, everyone looked the other way.</span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px">You should research the Home Ownership Society created by and promoted by President Bush, look at each sector carefully and find out that each of the sectors responsible for the housing crash began on June 17, 2002.</span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px">Here are the White links to read for yourself.</span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><a href="http://www.whitehouse.gov/infocus/achievement/chap7.html" target="_blank">http://www.whitehouse.gov/infocus/achievement/chap7.html</a></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><a href="http://www.whitehouse.gov/news/releases/2007/12/20071220-6.html" target="_blank">http://www.whitehouse.gov/news/releases/2007/12/20071220-6.html</a></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><a href="http://www.whitehouse.gov/news/releases/2002/06/20020617.html" target="_blank">http://www.whitehouse.gov/news/releases/2002/06/20020617.html</a></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><a href="http://www.whitehouse.gov/news/releases/2008/07/20080701-5.html" target="_blank">http://www.whitehouse.gov/news/releases/2008/07/20080701-5.html</a></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px">(pay close attention to the last paragraph on this page)</span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px">Who's out of touch with reality?</span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"></span></span></span></span></p></span></span></span></span></p><p style="text-align: left"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"></span></span></span></span></p><p><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"></span></span></span></span></span></span></span></span></p><p><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"><span style="font-family: 'AGaramond-Regular'"><span style="font-size: 12px"></span></span></span></span></span></span></span></span></p></blockquote><p></p>
[QUOTE="The Other Side, post: 409810, member: 17969"] [FONT=AGaramond-Regular][SIZE=3][FONT=AGaramond-Regular][SIZE=3][LEFT]Here is a sample of what was SAID about this crisis, not a crisis in the 1990's. A DIRECT blow to the BUSH administrations "Home Ownership Society". It was President BUSH that directed the home mortgage industry to switch to ZERO DOWNPAYMENTS, not Carter, Reagan, Bush1 or Clinton. Only this current President was dumb enough to suggest this in his [B][I]ZERO DOWNPAYMENT INITIATIVE[/I][/B]..this cannot be disputed. No other President or member of congress shares this blame. In this report, the author clearly spells out that the ZERO DOWNPAYMENT loans are EXACTLY the cause of this problem along with problems that occured AFTER the initial creation of the problem. [COLOR=red]"After the government succeeded in weakening[/COLOR] [COLOR=red]underwriting standards, mortgages seemed to require[/COLOR] [COLOR=red]virtually no down payment, which is the main[/COLOR] [COLOR=red]key to the problem, but few restrictions on the size[/COLOR] [COLOR=red]of monthly payments relative to income, little examination[/COLOR] [COLOR=red]of credit scores, little examination of[/COLOR] [COLOR=red]employment history, and so forth also contributed."[/COLOR] [COLOR=black](this is the Home Ownership Society program alltogether)[/COLOR] [COLOR=#ff0000][/COLOR] [COLOR=red]"This was exactly the government’s goal."[/COLOR] [COLOR=black](the Bush Administration 00/08)[/COLOR] [COLOR=red]"The weakening of mortgage-lending standards[/COLOR] [COLOR=red]did succeed in increasing home ownership (discussed[/COLOR] [COLOR=red]in more detail later). As home ownership rates increased[/COLOR] [COLOR=red]there was self-congratulation all around.[/COLOR] [COLOR=red]The community of regulators, academic specialists,[/COLOR] [COLOR=red]and housing activists all reveled in the increase in[/COLOR] [COLOR=red]home ownership and the increase in wealth brought[/COLOR] [COLOR=red]about by home ownership. The decline in mortgage underwriting [/COLOR][COLOR=red]standards was universally praised as an[/COLOR][FONT=AGaramond-Regular][SIZE=3][FONT=AGaramond-Regular][SIZE=3][COLOR=red]“innovation” in mortgage lending.[/COLOR][/SIZE][/FONT][/SIZE][/FONT] [FONT=AGaramond-Regular][SIZE=3][FONT=AGaramond-Regular][SIZE=3][COLOR=#ff0000][/COLOR] [COLOR=red]The increase in home ownership increased the[/COLOR] [COLOR=red]price of housing, helping to create a housing “bubble.”[/COLOR] [COLOR=red]The bubble brought in a large number of speculators[/COLOR] [COLOR=red]in the form of individuals owning one or two[/COLOR] [COLOR=red]houses who hoped to quickly resell them at a profit.[/COLOR] [COLOR=red]Estimates are that one quarter of all home sales were[/COLOR] [COLOR=red]speculative sales of this nature.[/COLOR] [COLOR=#ff0000][/COLOR] [COLOR=red]Speculators wanted mortgages with the smallest[/COLOR] [COLOR=red]down payment and the lowest interest rate. These[/COLOR] [COLOR=red]would be adjustable-rate mortgages (ARMs), option[/COLOR] [COLOR=red]ARMs, and so forth. Once housing prices stopped[/COLOR] [COLOR=red]rising, these speculators tried to get out from under[/COLOR] [COLOR=red]their investments made largely with other peoples’[/COLOR] [COLOR=red]money, which is why foreclosures increased mainly[/COLOR] [COLOR=red]for adjustable-rate mortgages and not for fixed-rate[/COLOR] [COLOR=red]mortgages, regardless of whether mortgages were[/COLOR] [COLOR=red]prime or subprime. The rest, as they say, is history.[/COLOR] [COLOR=red]In good times, strict underwriting standards seem[/COLOR] [COLOR=red]unnecessary. But like levees against a flood, they serve[/COLOR] [COLOR=red]a useful purpose."[/COLOR] (the disaster waiting to happen) [COLOR=black][/COLOR] Comprehension goes along way. As has been stated before, all presidents from John friend. Kennedy to Bush2 have used the Home Ownership to help americans, however, it was President Bush who under advisement, REMOVED safeguards relating to home buying and encouraged GREED to take over. This greed was uncontrolled by everyone in charge Democrats and Republicans alike. As long as money was being made, everyone looked the other way. You should research the Home Ownership Society created by and promoted by President Bush, look at each sector carefully and find out that each of the sectors responsible for the housing crash began on June 17, 2002. Here are the White links to read for yourself. [URL]http://www.whitehouse.gov/infocus/achievement/chap7.html[/URL] [URL]http://www.whitehouse.gov/news/releases/2007/12/20071220-6.html[/URL] [URL]http://www.whitehouse.gov/news/releases/2002/06/20020617.html[/URL] [URL]http://www.whitehouse.gov/news/releases/2008/07/20080701-5.html[/URL] (pay close attention to the last paragraph on this page) Who's out of touch with reality? [/SIZE][/FONT][/SIZE][/FONT][/LEFT][FONT=AGaramond-Regular][SIZE=3][FONT=AGaramond-Regular][SIZE=3] [/SIZE][/FONT][/SIZE][/FONT][/SIZE][/FONT][/SIZE][/FONT] [/QUOTE]
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