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WASHINGTON The Bush administration backed off proposed crackdowns on no-money-down, interest-only mortgages years before the economy collapsed, buckling to pressure from some of the same banks that have now failed. It ignored remarkably prescient warnings that foretold the financial meltdown, according to an Associated Press review of regulatory documents.
"Expect fallout, expect foreclosures, expect horror stories," California mortgage lender Paris Welch wrote to U.S. regulators in January 2006, about one year before the housing implosion cost her a job. This administration seems to have a penchant for shooting the messenger.
Bowing to aggressive lobbying along with assurances from banks that the troubled mortgages were OK regulators delayed action for nearly one year. By the time new rules were released late in 2006, the toughest of the proposed provisions were gone and the meltdown was under way.
"These mortgages have been considered more safe and sound for portfolio lenders than many fixed rate mortgages," David Schneider, (Find and tar feather this MFer.) home loan president of Washington Mutual, told federal regulators in early 2006. Two years later, WaMu became the largest bank failure in U.S. history.
The administration's blind eye to the impending crisis is emblematic of its governing philosophy, which trusted market forces and discounted the value of government intervention in the economy. Its belief ironically has ushered in the most massive government intervention since the 1930s.
In that it happened on his watch, he does bear responsibility for this. Not the only one, but he was in charge at this time. When the ship runs aground, you blame the captain on watch.
On the other side, if the money lenders had not made these loans so easy to get, the borrowers would not have gotten them, and we might not be in this mess today. Granted the people were greedy or stupid or just uniformed, but the Bankers, come on, this is their job. They knew what they were doing and went for the big bucks.
Bush screwed the Pooch.
He and his adminisration were warned this would happen. THAT IS A FACT people.
This is going to be a big part of his leagacy.
He did NOTHING when a timely change in law would have prevented the vast majority of the problem.
ITS HIS FAULT!
In that it happened on his watch, he does bear responsibility for this. Not the only one, but he was in charge at this time. When the ship runs aground, you blame the captain on watch.
On the other side, if the money lenders had not made these loans so easy to get, the borrowers would not have gotten them, and we might not be in this mess today. Granted the people were greedy or stupid or just uniformed, but the Bankers, come on, this is their job. They knew what they were doing and went for the big bucks.
9/11 happened on his watch and all the Conservatives do is blame Clinton who actually used CIA advice and shot a missile into a cave that supposedly had Bin Laden and he wasn't there. Funny how none of them blame Bush though
Bush screwed the Pooch.
He and his adminisration were warned this would happen. THAT IS A FACT people.
This is going to be a big part of his leagacy.
He did NOTHING when a timely change in law would have prevented the vast majority of the problem.
ITS HIS FAULT!
Bush screwed the Pooch.
He and his adminisration were warned this would happen. THAT IS A FACT people.
This is going to be a big part of his leagacy.
He did NOTHING when a timely change in law would have prevented the vast majority of the problem.
ITS HIS FAULT!
Lobbying and blissful ignorance led Bush to back off regulation
Yahoo News
WASHINGTON The Bush administration backed off proposed crackdowns on no-money-down, interest-only mortgages years before the economy collapsed, buckling to pressure from some of the same banks that have now failed. It ignored remarkably prescient warnings that foretold the financial meltdown, according to an Associated Press review of regulatory documents.
"Expect fallout, expect foreclosures, expect horror stories," California mortgage lender Paris Welch wrote to U.S. regulators in January 2006, about one year before the housing implosion cost her a job.
Bowing to aggressive lobbying along with assurances from banks that the troubled mortgages were OK regulators delayed action for nearly one year. By the time new rules were released late in 2006, the toughest of the proposed provisions were gone and the meltdown was under way.
AP IMPACT: They warned us, but US eased loan rules - Yahoo! News
Bush shares some blame.
Along with millions of others.
