Comments | spazska: How the Subprime Mortgage Crisis Has Everything to do with Government Overinvolvement

spazska

How the Subprime Mortgage Crisis Has Everything to do with Government Overinvolvement

Oct 09, 2008 02:17

The current economic crisis has been lauded lately as an indictment against free-market capitalism, and "what happens you don't regulate." This view is embraced by democrats who are taking advantage of the fact this for some reason this plays well for Obama (which should settle any doubt that he's a socialist), and by 'modern' republicans who think ( Read more... )

Comments 6

tuanscott October 9 2008, 14:55:35 UTC

Scarily enough, I agree with you on this one. Owning a home is a privilege, not a right (like many things here that people seem to be losing sight of). And because of Obama's involvement in this (among many other reasons), I will most certainly not be voting for him.

mechagodzilla12 October 10 2008, 02:24:11 UTC

Oh c'mon, don't feed him already.

tuanscott October 10 2008, 02:24:54 UTC

I was never on the Obama train. The latest news just makes me no longer feel guilty about it.

mechagodzilla12 October 10 2008, 02:33:28 UTC

I was a Clinton supporter originally, but I'm down with Obama, and I think Joe Biden is pretty great.

But you can't seriously be voting for McCain / Palin, right? Palin? I mean, seriously people.

verysmallcat October 9 2008, 17:15:46 UTC

actually, people who study this shit would disagree.

http://www.traigerlaw.com/publications/traiger_hinckley_llp_cra_foreclosure_study_1-7-08.pdf

spazska October 9 2008, 18:22:18 UTC

That study was commissioned by someone with a vested interest in this trying to spin facts to prove their point- law firms don't do this shit in their spare time. A few things I noted right off the bat- "High Cost Loans" only included loans that either started out high or had teaser rates- not regular ARMs which have also gone up significantly. It also cites CRA banks held on to their investments instead of selling them- well, guess how Countrywide is doing right now? It does mention anything about who took out home equity lines of credit based on a temporary increase in the value of their homes and now would have to pay thousands of dollars to sell their homes. And finally, and most significantly, it only studies 2006, before the bubble had popped.