Ann Coulter locates a New York Times story about the roots of the Mortgage Meltdown back during the Clinton Administration:Fannie Mae Eases Credit To Aid Mortgage Lending, [By Steven A. Holmes, September 30, 1999.]
She adds emphasis and comments:
[F]annie Mae, the nation`s biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people . . .
THANK YOU, BILL CLINTON!
In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates — anywhere from three to four percentage points higher than conventional loans.
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980`s.
CONSERVATIVES WARNED ABOUT THE RISK:
“From the perspective of many people, including me, this is another thrift industry growing up around us,“ said Peter Wallison a resident fellow at the American Enterprise Institute. “If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.“ . . .
Fannie Mae officials stress that the new mortgages will be extended to all potential borrowers who can qualify for a mortgage [I.E. YUPPIE SCUM HOUSE FLIPPERS]. But they add that the move is intended in part to increase the number of minority and low income home owners who tend to have worse credit ratings than non-Hispanic whites.[HOW POLITICAL CORRECTNESS CAUSED THE RECESSION, February 26, 2009, 12:02 PM]
Ms. Coulter,Â a loyal Republican,Â prefers to blame the Democrats rather than former President Bush for most of this stuff, and while Bush`s fingerprints are all over the recent subprime crisis, to the extent that he`s responsible, it`s true that he did it by acting like a left-wing Democrat. In some of his speeches on the (no down payment) ownership society, you can almost see him biting his lip.