(don’t worry, some of their best friends/clients/neighbors are minorities)

Next up: Don Tabor blame the homeless dude who died in fire AND the government because the homeless guy was trying to stay warm with a poorly constructed space-heater that was only made that way because the government didn’t impose the right regulations on the manufacturer.

When a mortgage broker ‘helps’ a person in an unstable neighborhood get a ‘no money down’ variable rate mortgage they really can’t afford to pay when interest rates go up, and housing prices drop below the balance owed, who gets hurt?

Not the broker, he sold the loan to Fannie Mae.

Not the investors, the government implicitly guaranteed Fannie Mae investments from the beginning.

But the guy who was ‘helped’ to get the loan now has a house he can’t sell for what he owes, a note he can’t pay, and he will be bankrupted and lose not just the house, but any other savings or assets he had accumulated before taking the bait.

Had government not interfered in the marketplace, that guy would have been renting and maybe putting aside some money toward his retirement or to put money down on a house he could afford with a fixed rate and enough equity on day one to be able to sell out if he had too.

As Henry D Thoreau put it, the most frightening thing he could imagine was to learn that someone from the government was coming to help him.

This link takes apart Don’s regurgitated bullsh!t.

It was the fault of the political hacks who coerced banks into making those loans and who created Fannie and Freddie with such regulatory advantages that other lenders could not compete unless they went along with the sub-prime formula.

Those hacks would be Jimmy Carter, Bill Clinton and the Community Organizers of Acorn who exploited the Community Reinvestment Act to extort banks to offer those mortgage snares with which to trap both lenders and borrowers.

You have got to be kidding me! That is all they have been talking. I have yet to hear anyone blame this situation on the poor and members of minority populations. God job on trying to place the race card.

No one is talking about the banks which wanted the regulations tossed out the window so they could profit off making bad loans….d’uh.

buzz…buzz….