OK, so those vids show all those Dems saying how great Fannie & Freddie are or whatever in 2004-2005.
These vids make a great case for the Right. They just say HEY! Look at this! SEE! These Dems were pushing this in 04-05!! That's what caused the CRASH!!
But lets rewind 10 years back (1998). Didn't Brad just tell me that McCain was calling out Fannie & Fredie WAY BACK then??
So here's my Question. Bush came into power in 2000 and the House was filled with Republicans from 2002 thru 2006. So basically the Republicans had Full power back then. Or am I incorrect? If I'm correct, then why didn't the Republicans do anything about Fannie and Freddie back then? I mean they did know about the problem! Remember? McCain told them in about it in 1998. :unsure:
I won't pretend to be any sort of poli sci specialist...or even knowledgeable in the subject...but my understanding is that Barney Frank has been in charge of the oversight committee for all this. Someone please correct me if I am wrong.
From what I gather, Clinton had this mindset of "a chicken in every pot"...in short, he thought that everyone deserved to be able to buy a house. So...he did what he could to put pressure on the banks, and Freddie and Barnie who under right the loans, to allow folks that really can't afford, or don't have the credit, to be able to actually buy houses.
For a long time, all was good. You could buy a house, keep it for four years, then sell it and put money in your pocket. This was unheard of just 20 years ago. When I bought my first house, then got premature orders (military) out of that state, I lost $12k on that house. Every dime I put into it to fix it up, every penny I put down as a down payment, plus the cost of a new septic system when I sold it. This was reality back then. It took 4 or 5 years just to have the hope of breaking even on a house...let alone make profit.
Anyhow, the bubble burst...
- All the folks that bought houses with the thought that they can just resell them in a couple years, couldn't, because their house was worth less then they owed on it.
- All the investors that bought houses because they could hold them for a couple years and make 10s if not 100s of thousands of dollars on them, walked away from them when they couldn't even break even on them (why keep them, it was a business...it lost money, they let them get foreclosed on).
- All the folks that got negative amortization loans under the pretence that they could just sell their house in 4 years before it reset, or would refinance it in that time period, could not sell it, and could not refinance it, because it was never worth what they paid for it in the first place. Now their payments go way up because they now owe more on the house, than they paid for it in the first place, because they have not even been paying the interest on the house...let alone any principle.
- All the folks that got into ARMs, under the thought they would refinance them in five years to a fixed mortgage, found they couldn't when they reset...because they owe more on the house than it was worth.
20 years ago...you busted your butt to put money away. You saved up at least 10% of what a house cost, and more commonly 20%. Then when you bought a house, and something went wrong, the bank came out OK, because you had equity in the house when you bought it. I mean...the housing market could reset 20%, and you still only owed on the house what it was worth.
Why the republicans could not, or did not fix it, I don't know...but the root of it (in my understanding) goes back to Clinton. Odd that Clinton makes it sound like he tried to fix it...but I don't know of anything he did to try to fix it before he left office (did he mean after he was no longer president??). It appears from the videos, that the republicans tried to fix this before it happened...why couldn't they??
Again, I am not equipped to have a debate on anything political. I find that a lot of folks spu a bunch of stuff that seems over my head, then when I look it up, most of the time I find it was just BS.
If anyone sees anything that is wrong in my post, please feel free to correct me. I have no problem learning...or hearing another mature opinion.
As an FYI, when I walked way from my first house, I put $750 in my pocket. That's right...I lost $12k, but still had some pocket change out of the closing...because when I bought it, I put a down payment on it, I paid all the closing costs out of my checking account, and did not finance them into the home loan. I put a new heat pump on that house, new water heater, new oven, dishwasher, septic system to include a pump tank, etc, etc, etc...but I paid for all that stuff...I did not finance it into the home loan, or leave it on a charge card for years.
These days folks think its normal to finance everything...they think it is normal to bounce a check or two on a regular basis...etc...etc. I have made one late payment my whole life, and have never bounced a check. When I mention to my friends that I am saving money up to help my kids pay for college...they look at the ground, and change the subject.
I find the fact that I do all this stuff, and am doing the right thing...but will now have to pay for the bailout of financial institutions that gave loans to folks that never should have qualified for them, and pay for cell phones for folks that could probably afford them, and probably already do own one, before this program....i find this...frustrating...but there will be a chicken in every pot.
Did you know, that if I save up $30k for my kids college, and my neighbor, that makes the same amount of money, pisses all his money away on bass boats, and four wheelers, that his kid is more likely to get financial aid from the government for school than mine?? That is right, I will be penalized for saving up money for my kids college. There is something wrong with america...and the "chicken in every pot" mindset is part of it. What's the use of being succesfull and saving up money for the future if you are only going to be penalized for it??
Now...if you have not bought a house in the last 3 years, you can get up to $8k back in your taxes if you buy one this year...so now I gotta help pay for everyone elses house too?? A buddy of mine just bought his first house. Him and his wife spent over $200k on their first home. A nicer home than I have ever owned, or will ever own. They make less than the married cap...so he gets $8k back at tax time...so I gotta help pay for his house?? I will say, that during his 20+ years in the military, him and his wife saved up a bucket of money to use as a downpayment...kudos to that.
This is turning into a diatribe...so I will get off my soap box now...but look forward to reading the input of others.
Sean
's and wake the hell up and read the dam costitution were it says "we the people"! please let me know when the revolution is going to happen,I AM WELL STOCKED!! MIKE.
