History has been utterly destroyed (not broken) by journalism to absolve government interference in “affordable housing” from the slightest mention in the little matter of the recent, resulting worldwide economic crash. In Greece and Europe, the matter is not so little.
ACORN and Obama and FNMA, FMAC, the CRA (Community Reinvestment Act, sounds benign, right?), and Andrew Cuomo, strong-armed banks to write bad loans that any banker would never write without a gun to his head. Government, including Bill Clinton, Obama, George Bush, took great credit for “expanding home ownership,” BY GOVERNMENT ORDER. FNMA and FMAC BUILT THE GOVERNMENT SPONSORED INDUSTRY of camouflaging bad loans by bundling them up, and advertising the resulting ticking time-bomb securities as “guaranteed by the US government.”
Government blames only its perennial punching bag, greedy Wall Street types, for the resulting disaster; and journalism resonates.
Ironically, the biggest damage from CRA, Obama and ACORN’s “affordable housing” has struck, in socialist Europe, and particularly in the most socialist of Europe, which is Greece. The euro may have been entirely destroyed, from Chicago across the North Atlantic via ACORN and Obama.
Not so ironically, Greece is mad. Greece threatens to sue. Europe may sue.
The US government continues down the path of its affordable housing dementia, keeping the pressure up on free-market bankers to write more bad loans.
And, to re-write bad loans at lower interest rates, for unqualified borrowers.
An important economic metric is suddenly, the “re-default rate.”
Who conned innocent Americans into taking out loans too big for them to repay? The US government did. So government could claim expanding ownership.
However, the ludicrous claims by the US government that it has increased home ownerhsip in the United States have gone silent, for now.
Last update: 12:01 AM ET, May 16 Greece May Take Legal Steps Against U.S. Banks for Crisis, Papandreou Says
Greece is considering taking legal action against U.S. investment banks that might have contributed to the country’s debt crisis, Prime Minister George Papandreou said.
“I wouldn’t rule out that this may be a recourse,” Papandreou said, in response to questions about the role of U.S. banks in the crisis, in an interview on CNN’s “Fareed Zakaria GPS.” The program, scheduled for broadcast today, was taped on May 13. Neither Papandreou nor Zakaria mentioned any banks by name.
U.S. stocks fell and the euro slumped on concern that Europe wouldn’t be able to contain the debt crisis stemming from Greece.
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