Avorysuds
Gold Member
WOW- you're one of those who attack without facts or an argument to debate... Are you an Obamabot too?
The sub-prime mortgages were a bad idea, but as long as the person had a job they were sustainable. The economy was weakening in the middle of 2007 and by mid 2008 we were seriously shedding jobs. When people lost their jobs, they couldn't pay the mortgage and defaults happened.
Now, this is fine in a normal situation. But the banks had bundled the mortgages and sold them and bundled them and sold them, etc. until you couldn't extract the bad ones. So when the defaults happened, all the assets had to be devalued because no one could identify just the sub-primes.
Why was this allowed to happen? Well, the GOP Congress in 1999 repealed the Glass-Steagal Act so banks were free to do all this stupid shit. The total number of sub-prime mortgages went from 5% in 2000 to 30% in 2008, and they were all bundled and sold and were in a mess.
So there you go. It wasn't the sub-primes defaulting, it was the fact the banks could no longer separate those mortgages out for devaluing that brought the whole house of cards down.
And now that I've explained that, care to take another stab at how this is all Obama's fault?
The bill that ultimately repealed the Act was introduced in the Senate by Phil Gramm (Republican of Texas) and in the House of Representatives by Jim Leach (R-Iowa) in 1999. The bills were passed by a Republican majority, basically following party lines by a 5444 vote in the Senate[15] and by a bi-partisan 34386 vote in the House of Representatives.[16] After passing both the Senate and House the bill was moved to a conference committee to work out the differences between the Senate and House versions. The final bill resolving the differences was passed in the Senate 908 (one not voting) and in the House: 36257 (15 not voting). The legislation was signed into law by President Bill Clinton on November 12, 1999
Yeah it's wiki lol - Glass
Owned, give up, you're dumb and just face fucked yourself.