Post by Ticket Mouse on Sept 8, 2008 16:40:56 GMT -5
This whole subprime/Freddie Mac/Fannie Mae mess is a direct result of the participation ribbon society. However, the PRS was a front for lying, cheating, and scamming millions out of billions...all propogated by..................................the Clinton administration. Nicely done. You almost made it 8 full years out of office for the bricks to start crumbling. The govt should have taken over these companies back in 2004 when Clinton appointee and former Freddie CEO Leland C. Brendsel made off with millions. Now he's forced to pay $13 million in fines but the issue itself has cost taxpayers several hundreds of MILLIONS of dollars. While things were cleaned up a bit in '04 the Bush administration should have reacted in a stronger and swifter way.
The jist is that they convinced certain people that a certain branch of society was being discriminated against by lenders and that everyone should and deserves to be a homeowner, dispite their inability to handle their money. ***Once again, removing any hint of personal responsibility*** So these two companies were created to GUARANTEE loans to the lenders that those at the top knew good and well would be worthless in a handful of years. The lenders were hesitant but the genius running HUD said that more poor people with bad credit needed loans and got legislation passed that forced lenders to do so. They had quotas to meet but some went overboard b/c it was so easy and the money was good. So for several years, these two companies were making hand over fist and Brendsel was making over 20M a year. Eventually the people began to default on their loans but they had to be guaranteed to the lenders. The lenders got their money and Freddie and Fannie were subsidized by the govt so they got theirs too. Those that didn't lost their homes saw property values fall. And that's how we're in this mess right now. Don't you love it when the government tries to run shit? Can't wait to see what they do with healthcare!
Another day. Another tax dollar thrown away by my goverment to pay for someone's incompetency, criminality, and inability to put their country first.
The jist is that they convinced certain people that a certain branch of society was being discriminated against by lenders and that everyone should and deserves to be a homeowner, dispite their inability to handle their money. ***Once again, removing any hint of personal responsibility*** So these two companies were created to GUARANTEE loans to the lenders that those at the top knew good and well would be worthless in a handful of years. The lenders were hesitant but the genius running HUD said that more poor people with bad credit needed loans and got legislation passed that forced lenders to do so. They had quotas to meet but some went overboard b/c it was so easy and the money was good. So for several years, these two companies were making hand over fist and Brendsel was making over 20M a year. Eventually the people began to default on their loans but they had to be guaranteed to the lenders. The lenders got their money and Freddie and Fannie were subsidized by the govt so they got theirs too. Those that didn't lost their homes saw property values fall. And that's how we're in this mess right now. Don't you love it when the government tries to run shit? Can't wait to see what they do with healthcare!
Another day. Another tax dollar thrown away by my goverment to pay for someone's incompetency, criminality, and inability to put their country first.
