Caslon17000 saidOr it could be said as...
US Government posts biggest payment on the failed financial regulatory laws puts in place by the Repubs after rescinding the laws that kept us safe since the Great Depression, and to safe the asses of financiers who took huge risks and almost totally killed the economy of the United States.
The "risks" you refer to were imposed by our government (led by democrats) which ordered the banks to take those risks while simultaneously backing any potential negative outcomes with taxpayer dollars. How many more times are you going to parrot this fictitious and ridiculous version of what happened?
Those of us who are well-informed about the 30 years of conservative policies that led to the financial meltdown will continue to remind those of you who have bought into Republican party line about its causes each time you bring up your "fictitious and ridiculous version of what happened."
Conservative policies did not cause the crisis though, liberal policies were. The conservative policy would be to leave things alone (which would not have resulted in the collapse), the liberal policy is to interfere and manipulate in order to create the desired effect --- which, in this case, was aimed at "helping" lower income people to afford homes and passing on that risk to taxpayers. Everything about the housing crisis was rooted in liberal policies.
One, the housing crisis was driven primarily by non-government backed mortgage lenders like CountryWide, not institutions which had federal backing.
Two, the housing crisis did not cause the financial crisis; unregulated derivatives did.
Since fannie and freddie were required to push into mass buying of bad loans, they created the environment for demand which made it profitable for mortgage lenders, including countrywide, to engage in bad practices which they normally would not have done --- the commercial banks looked up to Fannie and Freddie as "too big to fail" and as authorities on what were good and acceptable practices. Any risk of failure could be absorbed through FDIC, however.
And now let's look at the PC and pseudo-compassion that played into WHY countrywide engaged in those egregious practices:
"Countrywide agreed to a settlement with New York state attorney general Elliot Spitzer to compensate black and Hispanic borrowers improperly steered by Countrywide salespeople to higher-cost loans. The company also agreed to improve training and oversight of its loan officers and to pay New York state $200,000 to cover costs of the investigation.
Countrywide subprime documents show a policy of lending to families with as little as $1000 of disposable income, often compromising their ability to pay living expenses. This guideline was not established by Countrywide, but rather the investors to whom they sold their loans [THESE PEOPLE DIDN'T CARE BECAUSE THE GOVERNMENT, OH WAIT, TAXPAYERS BACK EVERYTHING AND THE INVESTORS WERE INTERESTED IN MAKING A STATEMENT ABOUT HOW "GOOD" AND "COMPASSIONATE" THEY WERE]. However Countrywide had no qualms in following through despite it knowing those families would likely fail to make monthly payments [WHY WOULD THEY CARE WHEN THE GOVERNMENT BACKS ANY POSSIBLE FALTERING WITH YOUR MONEY?]: these loans would be sold to investors shortly after anyway. Employees were given scripts as a sales aid when talking to customers about taking out loans.
Economist Stan Liebowitz writes that the Fannie Mae Foundation singled out Countrywide Financial as a "paragon" of a nondiscriminatory lender who works with community activists, following "the most flexible underwriting criteria permitted." The chief executive of Countrywide is said to have "bragged" that in order to approve minority applications, "lenders have had to stretch the rules a bit." Countrywide's commitment to low-income loans had grown to $600 billion by early 2003"[NO DO-GOODING HERE AT ALL, RIGHT? JUST EVIL GREEDY BANKERS WHO WANT TO MAKE A BUCK---WHICH I'M SURE THEY DID WANT THAT TOO!] --- Bank Of America Home Loans (Wikipedia)
This all seems like the workings of "conservative" policies to you, right?