[Studbolt X]

the GOP against home ownership?

[netjr]

And both due to bought off democrats in Congress that opposed proper regulation...

[McB]

No, they are against idiots loaning money to idiots. Look no further than the Democrats who deregulated and pressured mortgage companies into giving outlandish loans to losers.

[desertviking_00]

The laws which created both were written by the Chairman of the House Banking Committee, Representative Fernand "Andy" St. Germain of Rhode Island. The first one, which led to the mortgage crash of today was the Community Reinvestment Act of 1977. It required banks and lending institutions to issue mortgages to poor people who didn't have the financial resources to repay the loans. President Clinton (a Democrat) signed an Executive Order to extend the law to cover those with bad credit ratings and to have the two quasi-governmental agencies, Freddie Mac and Fannie Mae, guarantee the loans. The second one deregulated the Savings and Loan Industry. After 28 years in the House, the good people of Rhode Island voted St. Germain out of office. The next day he became a lobbyist for the Savings and Loan industry.BTW, St. Germain was a Democrat in a Congress controlled by the Democrats.

[toothie]

The mortgage crash was due to the government wanting more home ownership. Throughout the years (and even when our government was under Democrat control), the government has been urging banks to be more relaxed with their lending practices. Both Clinton and Bush (W) bragged about the rise in home ownership, especially among minorities. Banks reluctantly loaned money to folks who couldn't afford to pay their mortgages, or didn't want to step on any toes. The government in turn bought these mortgages, and funded it with investment companies like AIG. It's a big mess, and has nothing to do with the GOP. There was also a boom in the economy in the late 90s, which sent housing prices up into unrealistic territory. On the West coast especially in parts of California, the prices of housing became so ridiculous that no one short of a millionaire could afford to buy a home. People got loans in which they would pay the interest only to keep the payment low, in hopes of selling the house later and paying it off. Inevitably, those inflated prices didn't last, and now these people are left owing hundreds of thousands of dollars on homes that aren't worth that much. They are giving the homes back to the bank, and the banks are losing millions of dollars in the investment. Again, this has nothing to do with the GOP.For years, after 9/11, the economy was humming right along. It seems that at the end of every presidents term (D or R) there is a downturn in the economy. Every time, it's "the worst". I am feeling the effects of this too, as unemployment and foreclosure are both realities in my life right now. However, I know that we will get through this, and it won't matter if McCain or Obama becomes the next president. None of these men are magical, no matter what some people may think.