Nine years ago this month, the New York Times proved to be rather prophetic:
Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980’s.
”From the perspective of many people, including me, this is another thrift industry growing up around us,” said Peter Wallison a resident fellow at the American Enterprise Institute. ”If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.”
Home ownership has, in fact, exploded among minorities during the economic boom of the 1990’s. The number of mortgages extended to Hispanic applicants jumped by 87.2 per cent from 1993 to 1998, according to Harvard University’s Joint Center for Housing Studies. During that same period the number of African Americans who got mortgages to buy a home increased by 71.9 per cent and the number of Asian Americans by 46.3 per cent . In contrast, the number of non-Hispanic whites who received loans for homes increased by 31.2 per cent .
This whole mess was inspired by rabble-rousing left-wing groups who felt (not thought) that blacks were not getting enough mortgages.
Note, however, that when whites (31%) or Asians (46%) are on the losing end of this equation, it is apparently NOT evidence of any racism. Right, ACORN?
Despite these gains, home ownership rates for minorities continue to lag behind non-Hispanic whites , in part because blacks and Hispanics in particular tend to have on average worse credit ratings.
– Steven A. Holmes, “Fannie Mae Eases Credit To Aid Mortgage Lending” , New York Times , 30 September, 1999.
We’re all Homeowners Now
Cover Up of Fannie Mae/Freddie Mac in 2004 Exposed
This video is an informative look at the factors that are causing our current financial and economic crisis. It discusses policy changes 13 years ago that unleashed the sub-prime mortgage-backed securities market, which accelerated prices erratically, inviting speculation and loose lending practices which were both condoned and encouraged by existing regulation and carried out by risk-blind executives and Fannie Mae and Freddie Mac.
Heartland Democratic Presidential Forum 12/07
Here’s a video from a forum exclusively for thousands of community organizers including Gamaliel and ACORN people. Obama said that ACORN and friends (responsible for voting fraud and the subprime crisis) are going to be shaping policy for an Obama presidency.