Off-Topic: MM...the truth hurts

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	Name:	architect -
	Subject:	MM...the truth hurts
	Date:	2/5/2012 7:30:29 PM

Phil Gramm pushed through deregulation which had the banks falling all over themselves lending to for unwise projects and unqualified people because they knew they could bundle the bad paper with the good and sell it to others (Freddie and Fannie included) at a big profit. Some of the loan bundles changed hands double digit times with big profits at each change over. We very quickly became an economy largely tied to passing paper around rather than selling goods or services. HUD did restrict discrimanatory lending but specifically stated that nothing in the CRA required any lender to offer any loan to an unqualified borrower. They simply could no longer refuse a loan to a borrower who was qualified. The banks took the Gramm deregulation and the CRA and ran with it. As for borrowers who couldn't afford the loans...well as Billy Carter once said when asked whether he felt any guilt on accepting big speaking fees offered only because his brother was President "Well if they're dumb enough to offer me the money I'm smart enough to take it."

I discussed this a couple of years ago with a now retired community bank executive (a strong Republican BTW) who confirmed exactly what I describe above. Her own bank got burned by rushing, against the advice of several officers including her, to get on the gravy train through commercial construction loans in 2003 - 2006. They came back to bite them badly in 2008 - 2010. Even conservative economists, including McCain's own adviser during the campaign, give basically the same opinion. Only Tea Party nuts, Wall Street bigs and the fringe crowd at Lake Martin try to pass the blame to the mostly blameless.

Now MM...I suggest you make an effort to educate yourself to the truth, remedial or otherwise!!