Question by Davis: Why do conservatives try to blame low income people for the housing crisis?
Right wingers claim that the housing bust was caused by “liberals’ making it too easy for lower income people to buy homes. This of course is a lie but who cares, it sounds good!
The housing crisis was caused by the massive de-regulation of the mortgage industry. Just go to Las Vegas and see the blocks of foreclosed homes that were bought for a half million dollars by people who could only afford a two hundred thousand dollar house. These homes were bought at inflated prices through ARM loans, and interest only loans. They were told the home would go up in value to the point where at the end of three to five years they could either sell the home for a large profit, or else refinance. These were the six figure yuppie types that bought these places, not lower income people.
The government did not “force” banks to loan money to anyone. This is a Limbaughesque lie.
As for Bush seeing the crisis coming and trying to stop it is laughable. I saw a speech on You Tube where Bush is speaking before a group of Realtors in 2002. He says and I quote, “Just because people have lousy credit does not mean they have to live in a lousy home.” He encouraged people with “poor credit to work with Fannie and Freddie.”
Yes, after the roof started caving in the Bush Administration told Congress to do something. If Bush was as on top of this as right wingers claim, why did he never mention it in any of his state of the union speeches?
Mortgage companies are who we ought to blame. They were lending money to people with NO CREDIT checks, and lying about people’s incomes to get them into expensive homes.
The Republican National organization of Realtors were cheering as well.
Lower income people did not get ARM loans and interest only loans, the got standard FHA loans.
When Bush ran for re-election in 2004 he boasted at every campaign stop about all the new and “minority” home ownership.
The Real,
Even Alan Greenspan said that blaming the “Community Reinvestment Act” is nonsense.
low income people did NOT buy homes on anything but standard FHA loans.
White Power,
Bush did not warn anyone until the ship had sailed. Bush ran for re-election in 2004 boasting of all the new home owners. Low income people DID not get loans with balloon payments. Six figure types did.
Turn Rush,and Hannity, off and get real facts.
Why did Bush not ONE TIME mention this impending crisis in any of his State of the Union Speeches?
Warren,
The banks were NOT forced to loan money. They loved the government backed loans because they could make money with little risk.
Bush bragged in 2004 about all the new “minority home owners.” It was part of his “ownership society.”
Best answer:
Answer by Nesquick
It wasn’t low income housing people, it was house flippers and house investers that did it.
Greedy people wanting to make a fast buck buying over priced houses to resell them at a ridiculous profit but then the housing bubble burst and the prices dropped and now they’re stuck with houses they paid way too much for and no way to unload them with out losing tons of money.
What do you think? Answer below!
