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Reply to "Negative campaigns backfire"

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Originally posted by Buttercup:
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Originally posted by Lets Go Jeepin':
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Originally posted by Buttercup:

Wrong. Lies on behalf of lending institutions and unregulated investment banks started that dive. It's true that people should not have taken out adjustable-rate mortgages, knowing the payment would go up. But it was also wrong for underwriters to make loans to any and everyone without checking employment, salary, etc. I work in the banking industry, Jeepin', and they're not innocent in this.



Lending institutions had a lot to do with it as well, but it was the housing bubble that pushed us over the edge. If Fannie and Freddie hadnt been securing those loans with the government (aka Clintons) backing, they would have never made those risky loans in the first place. Banks arent out to loose money, the only reason they were willing to take the risk is someone told them the govt was backing the loans and taking the risk for them.....


Investment bankers made money alright, on risky investments, and they caused stockholders in this country to lose everything.

According to Weiss Ratings, some of the larger banks are still vulnerable and a few that call the Southeast home have a "D" rating.

Fannie, Freddie and Clinton aren't responsible for this; greedy bankers are:

http://www.moneyandmarkets.com...rable-39170?FIELD9=2


Historically, for nearly one hundred years, people bought homes valued at 2 to 3 times their income (2.5 times income was optimal). The presence of two entities, Fannie/Freddie, ultimately backed by the US government caused the amount funds in the housing market to double to $13 trillion. This large amount of money drove up the cost of homes. Borrowers paid 4 to 5 times or more their incomes. Freddie/Fannie provided half of the $13 trillion, about $6.5 trillion. If Fannie/Freddie didn't exist, the bubble wouldn't have happened. True, credit rating firms, like Moody, do bear some blame for rating the derivatives and mortgages at unrealistically trustworthy levels. Why investors haven't sued, I don't know!

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