I read an interesting article this morning on the Wikipedia.org website. It is about the subprime mortgage crisis. I found it explained the issues involved and also the history and causes of the crisis.
http://en.wikipedia.org/wiki/2007_subprime_mortgage_financial_crisis
The foot notes 22 and 23 mention the Community Reinvestment Act as one of the causes for the crisis. This was an act the was designed to help low income people, but apparently got out of hand.
I also found interesting the comments on world economic involvement, and the term "too big to fail." Does this mean no business should become too big to fail, legally?
Well this is my Saturday morning reading, any comments would be interesting.
Hope all is going well, love to you all, Marsha
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2 comments:
marsh
Read the article. Yes, the subprime crisis began during the Bush administration but actually began during the Clinton administration when Freddie Mac and Ginner Mae were directed to reduce the criteria for provding home mortgages to less than qualified candidates.
barb
Marsh: The problem began with the "Acorn" project in ILL with Obama getting a court resoulution to require that banks (Freddie Mac)provide high risk loans and the Cllinton Admin just expanded it to everyone. Thus began the road to ruination started by the Democrats
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