This is a follow up to the previous two entries--importing a comment from AOL under the story described in the "Foreclosure 'Crisis'" entry. The AOL comment shows just how far leftists will go to blame Republicans for everything that goes wrong. My response also notes what the comment on this blog itself (under that Foreclosure Crisis entry) says: "aggressive lending" HELPS people get loans, and that is fine so long as the borrowers can pay them back. When a bubble bursts, however, some people are inevitably trapped. Here is the imported comment, and my reply:
"The Senate Banking, Housing, and Urban Affairs Committee received
an executive branch communication from the Federal Housing Finance
Board, chaired by John T. Korsmo (R) in 2003 which relaxed the
lending criteria for sub-prime mortgages. So subprime rules were
relaxed when the Republicans chaired the board, committee and
were the majority in Congress."
The above show how leftists operate on EMOTION and PROPAGANDA, rather than thinking.
First, leftists WANT poorer people, or people with lower credit ratings, to be able to buy houses (except when it does ot suit their present arguments). Relaxing of suprime "requirements" HELPS people get houses.
Second, the government (until leftists--Obama type--take over) does NOT force lenders to give loans. Anyone who thinks that the bursting of the housing bubble (not just subprime loans) was the result of government action is an IDIOT. A "bubble" was created by irrational exuberance, by both lenders and borrowers. The "bubble" burst (causing house prices to fall, trapping people in loans they could not afford and depriving them of the option of selling the house). What is hard to understand here? It is economics 101.