This guy, Trevor Phillips, is so full of crap it’s coming out his ears. In the socialists’ warm and fuzzy world, bankers are not in the business of making money and safe guarding investments, they’re there to ‘spread the wealth’ and to help create that utopian society that is always just around the corner and well within reach.
The credit crisis is a direct result of government sticking its nose where it didn’t belong, with Democrats Barney Frank and Chris Dodd leading the charge in forcing banks to make bad loans to people who could never have paid back the loans, while the foisting the problem that they created upon the backs of the US taxpayer. KGS
NOTE: H/T to Fjordman who also says: “Yes. It was white racists who were evil when blacks didn’t get money, and white racists who were evil when they did get it. In short: Whites are evil racists just for being born. Everything we do is evil as a matter of principle.[1:15:10 PM] Norwegian Infidel: What else is new?”
More here (if you want to read his grossly racist and stupid drivel), here’s what really happened:
RUSH LIMBAUGH: Now, technically he is right. He’s sitting over there at Fannie Mae, Barney Frank’s Fanny Mae. And he’s getting orders — GSE means government sponsored entities. They tried to say that these were private sector companies run by the government, which, if the government runs it, it’s not private sector. So you had Chris Dodd and Barney Frank in the Senate and the House respectively demanding that under the title of affordable housing, they had to get people in homes that had no business being in homes because they couldn’t afford it.
But it was unfair they couldn’t afford it, so we’re going to get ’em in there anyway. The banks were forced to make loans, Fannie Mae was forced to buy the mortgages like they do. That led to the creation of mortgage-backed securities, all kinds of new investment products, insurance for what everybody knew was bad paper, and so here’s Mudd, he’s basically saying the same thing Greenspan did, overinvestment in housing.
Translation: We put too many people in houses that had no business being in houses. “I believe in retrospect origination standards slipped,” meaning we didn’t look at who was being put houses. In fact, we looked the other way. We did not disqualify anybody that wanted to get into a house. We just lent them the money. “Home ownership rates probably rose too high.” Well, that means we had too many people in houses that didn’t belong there, which, by the way, elevated and led to the bubble, led to the housing prices going up. And then he says the GSEs, which Fannie Mae, Freddie Mac, were chartered to expand and increase home ownership.
So they were told to go right along with the banks in the subprime deal. And he says in doing so, Fannie Mae and Freddie Mac contributed to the crisis but they didn’t precipitate it. What he means is don’t blame us, we were just following orders, we didn’t start this, this wasn’t our idea. This idea actually originated with Clinton. I remember Janet Reno calling banks and threatening big investigations if they didn’t continue to make these loans.
What we’re learning here, all of this financial crisis stuff, what people are admitting to now, it wasn’t Wall Street per se, like Obama and everybody has been blaming. They’re not blameless, but now that the truth is being told by people who are no longer part of the game, we are learning that the subprime lending was actually the problem that started all the other dominoes to fall, and I’ve thought it a long time and a lot of other people have, which means ultimately that the fault of all this can go back to Bill Clinton, Barney Frank, and Chris Dodd. You’ll remember that Bush actually tried to get a bunch of regulators in there and testifying to stop this, and Barney Frank just ran roughshod over ’em. I remember seeing some of the videotape from the hearings.