Quote from: Oliver the Second on August 29, 2024, 04:07:05 PMIsn't this how the last housing crash started?

Indeed it was. Clinton era policies under the guise and umbrella of anti racism legislation forced banks to demonstrate a certain percentage of underwriting in impoverished neighborhoods. Lest their CRA ratings be negatively impacted which is what was commonly known as " a stock price plummeting event" at the time. Thus forcing banks to get very creative with how they structured their financing plans to meet the payee's inability to both secure the loan in the first place and continue making the 360 payments needed to honor the covenant.

Because people in these targeted areas neither had the initial down payment nor enough funds in their monthly budget to sustain a monthly payment well above their earnings potential subprime and negative amortization was born. Couple with adjustable rate loans and you have the best example of predatory lending practices I can think of in my lifetime. Literally targeted at mostly the black and Latino communities.

Think about that for a second. The ingenious way they actually targeted the most vulnerable with inverted tactics. Say this is an anti racism policy when in fact it's about as racist a policy as any sane person can imagine and WaLa! you can enact a policy that will further destroy the communities you obviously have disdain for

The democrat mind is a well of wickedness.

what else can you call a program where, when a person goes to sell a house they realize they can no longer afford, at closing they learn that they literally have to pay tens of thousands of dollars just to unload? I literally, with my own two eyes, witnessed closings where the seller was blind sided and could not come up with an eye popping sum of money to sell their home forcing the entire closing to be cancelled. With the fucking buyer sitting right there in the room! Right there! Ready to buy and relieve this poor soul of a financial burden he should have never been encouraged to undertake in the first place.

and what happened next?

Well this very same seller simply discontinued trying to make payments, declared bankruptcy and the house ultimately foreclosed several years later after the process had wound it's way through the sluggish court system. By this time though the damage to the housing market in the locale had already been done. You had an artificially inflated market where homes in an otherwise poor and impovished neighborhood were now selling for 60 to 70% above where they were several years prior. Thus making it even MORE difficult for the black and latinos to achieve home ownership.

and what became of the players? The initial buyer declared bankruptcy thus dumping ALL of his financial burdens on the U.S tax payer (including the credit card debt he accumulated once he realized the road he would ultimately travel) and The bank wrote off the loss (once again dumping the financial burden on the US tax payer) and then auctioned the property which was now years in disrepair to some slum lord for pennies on the dollar and you really had to wonder if this was not the intended goal of the initial legislation in the first place.

this is why I hate democrats. They do far more harm with their policies than any good but their constituents are simply too stupid to think far enough to see the play

And that's exactly how the vermin cockroaches in the democrat party want it. Feel good. Feel joy. Watch the bbl bitch twerk on stage! While we look down on you from our towers and VIP boxes.

*spits.    Traitors to our republic. Every last one of them

Quote from: Oliver the Second on August 29, 2024, 04:07:05 PMIsn't this how the last housing crash started?

Making high risk loans to individuals whose ability to pay them off were both dubious (at best) and wholly contingent on a currency whose performance didn't resemble a rollercoaster? Pretty much.

Remember how Obama "solved" it by ceding greater fiscal power to the banks? Someone somewhere is clearly angling for a reenactment.

Isn't this how the last housing crash started?

I thought it was a zero interest loan that only non US citizens could apply for and then default on after tying up mortgage companies in foreclosure proceedings for 5 to 10 years?