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Did you know the New York Times warned us about our economic crisis in 1999?

If you think Bush caused our economic crisis then have you read this article put out by the New York Time article?

Fannie Mae Eases Credit To Aid Mortgage Lending
By STEVEN A. HOLMES

Published: September 30, 1999

In a move that could help increase home ownership rates among minorities and low-income consumers, theFannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.

Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.

''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''

Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.

In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescuesimilar to that of the savings and loan industry in the 1980's.

''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''

Under Fannie Mae's pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 -- a rate that currently averages about 7.76 per cent. If the borrower makes his or her monthly payments on time for two years, the one percentage point premium is dropped.

Fannie Mae, the nation's biggest underwriter of home mortgages, does not lend money directly to consumers. Instead, it purchases loans that banks make on what is called the secondary market. By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.

Fannie Mae officials stress that the new mortgages will be extended to all potential borrowers who can qualify for a mortgage. But they add that the move is intended in part to increase the number of minority and low income home owners who tend to have worse credit ratings than non-Hispanic whites.

Home ownership has, in fact, exploded among minorities during the economic boom of the 1990's. The number of mortgages extended to Hispanic applicants jumped by 87.2 per cent from 1993 to 1998, according to Harvard University 's Joint Center for Housing Studies. During that same period the number of African Americans who got mortgages to buy a home increased by 71.9 per cent and the number of Asian Americans by 46.3 per cent.

In contrast, the number of non-Hispanic whites who received loans for homes increased by 31.2 per cent.

Despite these gains, home ownership rates for minorities continue to lag behind non-Hispanic whites, in part because blacks and Hispanics in particular tend to have on average worse credit ratings.

In July, the Department of Housing and Urban Development proposed that by the year 2001, 50 percent of Fannie Mae's and Freddie Mac's portfolio be made up of loans to low and moderate-income borrowers. Last year, 44 percent of the loans Fannie Mae purchased were from these groups.

The change in policy also comes at the same time that HUD is investigating allegations of racial disc

Asked By: Mrs Queentutt - 11/8/2008
Best Answer - Chosen by Asker
Yes we know that it was the democrats that are always for any handout program, it was their fault. They are and their followers are like immature school kids on the playground, always saying "no he did it". never owning up to anything, only misplacing the blame.

Now they want more stimulus packages, I thought they criticized the Republicans for the same thing?. Their own ignorance and lack of boundaries will be their own demise. They cannot survive without us balancing them, I am looking forward to a great fall!.

President Bush did do a great job protecting our country Bon Bon, you were right. I saw a clip of him waving, and I got tears in my eyes. I waved back at the t.v. and said goodbye, we will miss you. Our country will miss the last Godly man they will ever see in office. Boy does his face look like an angel compared to the devil they are gonna put in there.

Queentut I look forward to your questions, please be diligent, don't give up the good fight. It is you and your tenacity and service to our country that is the glue that holds us all together.
Answered By: *me* - 11/8/2008
Additional Answers ()
There are many warning. The stocks falling is when people finally realize it is screwed up.

It started with deregulation by Regan. Clinton get the ball rolling. Bush acknowledged there was a problem in 2003 but congress ignored him. Congress pushed the loans and the banks finished it by mortgage meltdown.

Over many many years.
Answered By: Joe - 11/8/2008
I never read the New York Times, I hope they go bankrupt! All I know is that anything printed favorable to the Bush presidency, they will probably disavow. Thanks for the information, it makes me feel better knowing that there are other people out there that did not forget 9/11 and the remarkable job that our President did to keep us safe since then. God Bless the USA.
Answered By: Bon Bon - 11/8/2008
Yes, the Klinton Administration really screwed us up. Just proves once again that government getting involved is worse for Americans.


Scariest sentence known to man: "I'm from the government and I'm here to help."
Answered By: Truth - 11/8/2008
It is all to convenient to put the blame for all of our countries ills on Bush. No doubt he has to carry it for many things, but not everything. The foundation for the current "crisis" was laid in the Clinton era. The deregulation started the ball rolling there.
Answered By: knappneedleman - 11/8/2008
Sadly, not many people read that left wing liberal rag "The New York Times" Good info though so thanks.
Answered By: Bethany J - 11/8/2008
Yes I had heard about this and read the Article, I would also like to correct Joe, deregulation started with the Carter Administration with the Community Reinvestment Act, this is what started and eventually ended the Savings and Loans business and cost the US citizens boat loads of money then, today's crisis is costing us more than any boat could handle and things are going to get a lot worse for our economy.

If we had have had some bipartisanship back then we could have avoided this whole mess we are in today, instead we had special interest groups that fought against the warnings instead of fighting to fix the problems.

Look at how much we have already allocated, $300 billion a few months ago to bail out Bear Stearns and others, $80 billion for AIG and now $700 billion for Fannie and Freddie, meanwhile the CEO's of these companies are still raking in their huge bonus checks each year.

Answered By: justgetitright - 11/8/2008
The New York Times was smarter than our Congress. The loans that HUD pushed are now helping to bring down the financial system.
I could go on but I'm too disgusted.
Answered By: scramble4202 - 11/8/2008
Goes to show, there is enough blame to spread around.
Answered By: some dude - 11/8/2008
Yes I did and tried to tell people what was happening but I was looked at as a radical that did not know what he was talking about. When I told people to read the NY Times article they either ignored me or said they did not have time. Now I am beginning to believe that even if they could read it they do not have the comprehension to understand it and these people are the ones that voted Obama into office. Pure ignorance,plain and simple.
Answered By: unionjack07 - 11/8/2008
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They've admitted the data is not true, yet they continue to post it. Why are they continuing to claim they've saved or created jobs in districts that don't even exist after it's been proven and they've admitted it's a lie? http://abcnews.go.com/Politics/jobs-saved-created-congressional-districts-exist/story?id=9097853 Dastardly, presenting information known to be false as true is lying, does this really need to be explained to you?
8 answers - Asked By: libs, almost as smart as lint - 11/24/2009
Http://abcnews.go.com/Politics/jobs-saved-created-congressional-districts-exist/story?id=9097853 I understand the desire to show that your policies are working-but outright lying isn't the way. Is this the "transparency" and "change we can believe in?" Cookie--Nice-I forgot about that.
9 answers - Asked By: MADDOG - 11/17/2009
I'm 13, and have a few career options I want to learn about. One of them is in politics. If you are, were, or know someone in politics, I would appreciate any info you can give me. What's good, bad, etc. And please don't sugar-coat it because of my age, I need to know. Just the truth, as much you can give me. ~Thanks!
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Advances in technology will soon cause 70-80?nemployment in the USA. How will all those millions of people eat, then? That will lead to a conflict between Social Market-ists (gov't imposed wealth redistribution) and Free Market-ists (no gov't imposed wealth redistribution). First, the Luddite Fallacy. It WAS valid UNTIL machines could do most human mental functions better than humans. Some experts are already saying this, but generally it seems like the American Society and its leaders are proceeding in utter ignorance. You probably know about all the technologies that now exist or will soon be up & running, & which will massively reduce the need for human labor in the economy, thus MAKING MOST HUMANS UNNECESSARY to the economy. Some facts: (1) A couple weeks ago all the toll booth workers on the Golden Gate Bridge were all dismissed because the gov't bought a machine to handle everything. (2) Computer voice recognition already exists, in programs such as Siri and Google Voice and others. But very soon these programs will be so much better. Virtually all the human-staffed customer service call centers will disappear very soon. Human office receptions will be mostly eliminated. (3) McDonald's already has a prototype version of their fast food restaurant with NO human workers on site. (4) Wal-Mart & other retailers already have plans for stores with NO human cashiers. (5) Google's driverless cars and trucks will soon eliminate most drivers of commercial trucks & taxi cabs. (6) IBM's computer "Watson" defeated the best human players on "Jeopardy" about a year ago. Watson had to hear and understand host Alex Trebeck's spoken speech just like the human contestants. IBM created Watson to replace Medical Doctors. The plan is that nurses and nurses practitioners will take data from patients (temperate, blood pressure, reports of pains, etc.), enter that into Watson, and Watson will order tests and make prescriptions and treatment plans. Unlike human doctors, Watson will KNOW EVERYTHING about medical science. Doctor errors currently kill about 100,000 patients per year in hospitals alone. Patients will DEMAND to be diagnosed by Watson (or other equivalent) & have a prescription by Watson, since studies will show that patients fare so MUCH better when Watson is their “doctor,” and the cost will be MUCH less. (7) Computers are now replacing the lawyers that formerly had to spend massive hours read through massive amounts of documents turned over to the opposing side in "discovery" in civil lawsuits. Documents now are turned over in digital form, and computers search in seconds them looking for key words and phrases. (8) Soon publishers will stop printing books on paper. Everyone will have an e-Reader device. That will be the END of every physical library and bookstore. (9) Soon computers will be able to general characters in movies that are indistinguishable from real humans. Not only actors will lose their jobs, but costume people, makeup people, scene construction people, camera operators, key grips, electricians, lighting experts, etc. (10) New machines are replacing the humans who pick vegetables in fields. (11) New machines are replacing human security guards. (12) Human airplane pilots, both in the military and in commercial service, will soon be extinct. The FAA has already approved testing of drone planes for commercial transportation of non-human cargo. (13) Most trades on Wall Street are already being made by computers. (14) The U.S. Postal Service is doomed. Paying thousands of people to drive around in little trucks to deliver little printed pieces of paper to each household each day is going to seem more and more like idiocy. (15) Most of the reviews and analysis currently being done by human accountants, actuaries, tax experts, and other financial analysts and consultants will be done must better, more more quickly, and much more accurately, by computers. (16) Web sites already are using computer programs to write the text for stories that report on sports games. The program integrates the statistics from the game into a story text that seems to have been written by a human being. (17)Most education at the college and high school level will soon be done online, eliminating a massive number of workers. Thus, GIGANTIC UNEMPLOYMENT, in the range of 70-80?is coming soon to the USA. This will result in Rio De Janeiro type slums all over the USA. That will result in calls for gov't wealth redistribution, which will result in Armed Revolution, Counter-Revolution, concentration camps, & Latin American-style death squads. The rich and ultra-rich are never going to let any government get control of their wealth. Huge bloody CONFLICT is coming. * * * Politicians keep repeating the old canard that the solution is to train and retrain Americans for the "jobs of the future." But they are either morons or are lying, since anyone who thinks about it can easily see that even if every American worker had an engineering degree or a computer science degree, the economy just doesn't need that many engineers and computer scientists. * * * * * * * Why don't more people see this? Why aren't more people talking about this? We are facing soon a catastrophe in the USA (and in other places) on par of the plagues in Europe that killed half of the population in certain areas, and on par with the depopulation in Europe brought about by WWI and WWII. Sure, you can just repeat the Luddite Fallacy, and proclaim that the economy will always create enough jobs for most people to survive. But there is no law of economics that says that any law of economics will always operate the same. Laws of economics are not like the laws of physics. Economies and life forms can and do evolve in fundamental ways that make former economic models and ways of life obsolete. I'm sure the last tribe of Neanderthals were certain that nothing was ever going to change, right before the Homo Sapiens swooped down on them, chased them into a dead end canyon were other Homo Sapiens were lying in wait with big clubs. * * * * * * * * * In the past the Luddite Fallacy was valid since machines always needed the mental acuity that only human operators could provide, and machines frequently needed maintenance by skilled human hands and minds. But now machines have mental functions that equal or surpass what humans can provide in most work functions. And computers aren't so much repaired anymore as just thrown away and replaced. How many cell phone repair shops have you ever seen? Even most laptop computers are replaced rather than repaired. More and more laptop computers never even need to be repaired for years and years. In short, when the economy has no use for most Americans, all h*ll is going to brake loose, & that's coming soon. * * * * *
2 answers - Asked By: Perro Americano Invicto - 5/16/2013
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