des1954
DIS Veteran
- Joined
- Aug 10, 2007
It's nice to blame the democrats, but CRA had very little to do with this, Fannie & Freddie did have a lot to do with it but so did the deregulation of Wall Street and the artificially low rates that the Fed introduced the investment banks and mortgage brokers/originators.
Consumers had a lot to do with it too. How many people do you know who are in McMansions that they over bought? Maybe not too many, but people who kept trading up and bought expensive 2nd & 3rd homes for speculation are another big part of this.
OMG!! For once, I have to agree with my brother!! Actually, we can look back to Reagan and thank him for the start of deregulation of industries. One I can definitely cite is the telco industry. Before dereg, you didn't have $11 or $12 monthly fees and surcharges tacked on to your monthly service. Oh yeah, you have the freedom to choose carriers now, but you will not avoid any FCC charges (which actually goes into telco pockets) and all the other absurd fees. How many of you have a monthly fuel surcharge tacked on to your power bill that you never saw in the 1980's? When we moved to our second home in 1987, the best mortgage interest rate we could get was from our Credit Union, and that was 11.87%!! Could it be that 20 years later we are finally feeling the effect of "Reaganomics"?