Quote:
|
Originally Posted by Frame57
Quote:
|
Originally Posted by Mikhayl
Yes that's what he said. If you read only 1 word out of 3.
|
It was in his summary statement... Funny though that everyone thinks that a democrat will put food on their tables. The housing and bank situation was started by them, it started with a thing called "community re-investment". It is bad business to give loans to those who cannot afford them to begin with. Would you give me a personal loan knowing I could not pay it back? |
Actually, repayment rates are highest among low-income people, they're often better bets than rich people.
The CRA didn't force credit rating agencies to put high ratings on less-than solid debt. It made absolutely no mention of debt trading.
The CRA didn't force hedge funds or invenstment banks to run insane leverage ratios.
THe CRA didn't force homeowners to see a housing bubble as a rock-solid rise in value, and take on high-interest loans in the belief that they could remortgage later.
What it did do was extend lending to lower-income households, which often have lower default rates than higher-income households, partly because the sums invested are lower, and easier to manage.
You can't say that this was started by a single political party in a single country.