The housing market mess!

How did the government get so deeply involved in the housing market? In a free market system this should not happen or at least not happen that much, yet my dad did some digging and hwta he found made me go hmmm? Excuss the adjectives dad is a 60's republican yet the facts are true.

1. President Carter in 1977 signed the Community Reinvestment Act - Pushed Fannie and Freddie to aggressively lend to minority communities.

2. 1993 on - Clinton extensively rewrote Fannie's and Freddie's rules. He turned the two quasi-private, mortgage-funding firms into a semi-nationalized monopoly that dispensed cash to markets, made loans to large various voting blocs and handed favors, jobs and money to political allies.

3. 1994 Clinton unveiled his National Homeownership Strategy, as a way to open the door for minorities to enter the middle class by way of housing and not ecconomic stability.

a. Rather than submit legislation that the GOP-led Congress which would have almost surely rejected it, Clinton ordered Robert Rubin's Treasury Department to rewrite the rules in 1995

b. Banks were given strict new numerical quotas and measures for the level of "diversity" in their loan portfolios. Getting a good CRA rating was key for a bank that wanted to expand or merge with another.

4. Clinton's HUD secretary, Andrew Cuomo, made a series of decisions between 1997 and 2001 that gave birth to the country's current crisis

A) They were changes that let Fannie and Freddie get into subprime loan markets in a big way. Since they could borrow at lower rates than banks due to implicit government guarantees for their debt, the government- sponsored enterprises boomed.

B) By 2007, Fannie and Freddie owned or guaranteed nearly half of the $12 trillion U.S. mortgage market.

5. Cronyism – The reason Fannie and Freddie were not investigated.

• Fannie and Freddie became home to out-of-work politicians, mostly Clinton Democrats
• 2-to-1 dominance of Democrats over Republicans
• From 1989 to 2008, some 384 politicians got their coffers filled by Fannie and Freddie.
• GSEs spent $200 million on lobbying and political activities
• Millions more on think tanks and radical community groups
• From 1995 to 2005, minorities made up 49% of the 12.5 million new homeowners
• Many of those loans have now gone bad, and minority homeownership rates are shrinking fast

6. Bill Clinton and the democratic socialist in Congress now wants the taxpayers to bail out their “failed” socialist program. In the process the government is forced to take over a segment of our economic system. The Socialist will have it both ways with a bailout!!!!

Additional Notes
Raines, went from the Carter Administration to Fannie Mae, and then to the Clinton Adminstration, and then back to Fannie Mae to be their CEO, networking all the way, raking in lots of cash, and passing out cash to keep that money machine untouched by Congress.

A statistic ------------ 25% of these bad loans were made to illegal aliens.

Now, McCain wants to hire Andrew Cuomo as head of the Securities and Exchange Commission in his administration!