As the value of real estate plummeted causing the value of their property to submerge and take their loans “underwater”, in addition to higher unemployment rates in fields like construction, roofing, remodeling and the like that MANY, MANY illegal aliens gain their employment in, huge numbers of the illegal population defaulted and simply walked away from their mortgages because they really didn’t have anything to lose by doing so.

A certain recipe for financial meltdown in the housing market. Smart people saw this coming a mile away and shorted the U.S. real estate and mortgage markets. This is where the initial $350,000,000,000,(half of the first $7 billion TARP), went. It went to pay off the derivitive traders and credit default swap market players who, wisely, I might add, bet against this bubble and their gamble paid off IN A BIG WAY.

Henry Paulson LIED to Congress AND to us Americans when he said that the TARP funds would immediately be used to inject liquidity to the credit market. He and others, including Tim Geithner, who had attended a big world economic “summit” as far back as 2003’s World Economic Forum in Davos, Switzerland knew this freight train was coming WAY BACK THEN!

Many of our politicians were all too aware of this as well and they are also aware that these contracts had to be honored, even by LYING to us about where the initial TARP funds were headed. Anybody who followed the easing of credit terms could see that this bubble was bound to burst IN A BIG WAY sooner or later and it sure did.

Now it is left, tragically, for millions of American taxpayers, their children AND their grandchildren to shoulder the economic burden via future inflation, higher taxes, higher fees, higher tolls, stricter regulations, stricter restrictions, more gov’t mandates, et al.

Sadly, the next THREE generations of American WILL NOT experience the same type of economic freedoms that past generations of Americans have been so fortunate to have had the opportunity to earn.

There’s the REALITY folks, y’all better get used to it and, please…please, don’t tell me I didn’t tell ya so.

I think you’re right with regard to the percentage of foreclosures involving second mortgages. But the basic problem has the same roots – if banks are forced to lend to people who can’t afford payments on their first, second, or third house, foreclosure is the result.

“Community organizers” and leftist politicians force banks to make risky loans, ostensibly to help the poor. Freddy and Fanny (the taxpayer, really) back those loans. Greedy bankers, home buyers, and investment bankers move in on the new reality mandated by the politicians, trying to make money off of it. The system collapses, taking down tremendous REAL wealth with it. Plenty of blame, but it all starts with “do-gooders” on the left.

You’re saying that the mortgage collapse was due to Obama’s efforts to increase loans to blacks and the poor?!? I guess you don’t realize that most people who’ve foreclosed are white and aren’t necessarily poor! Most people who’ve foreclosed did so because of SECOND mortgages- which blacks and poor get less often! Most people who can’t afford the houses they live in are in the middle-to-upper-middle class, which blacks and poor aren’t typically apart of.

Try getting a little bit of fact behind your argument, especially when you’re making a total ass of yourself!

-Darren

Of course they do. They don’t know anything.

Sources point to Obama as a possible starting point to the domino affect that lead to the housing crises we are now facing. Check the provided links and judge for yourself.

“In a 1995 case known as Buycks-Roberson v. Citibank, Obama and his fellow attorneys charged that Citibank was making too few loans to black applicants, “victimized” by home mortgage lenders, and won the case. As one commentator noted in May 2008, legal “successes” such as this were probably responsible for the sub-prime mortgage crisis of 2007 AND 2008. That is, banks were not loaning to blacks whose credit was poor. When the law forced them to lend money anyway, the inevitable collapse occurred.”

Buycks-Roberson v. Citibank Fed. Sav. Bank

Obama’s Early Legal Career: Heavy on Advocacy for Blacks

A trillion here, a trillion there, pretty soon we’re talking about real money

Obama had a part in the lawsuit that started the government on a course of forcing lenders to give more loans to those who had poor credit. Lending companies were forced to come up with imaginative ways of fulfilling the quota that was required. Sub-prime lending was born as a result. The mortgage crises was forecast by many who were able to look beyond the quota.

This New York Times article (.pdf) clearly forecast the mortgage meltdown.

In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders, … under increasing pressure from the Clinton Administration.

“Fannie Mae has expanded home ownership for millions of families in the 19902 by reducing ddown payment requirements,” said Franklin Raines, Fannie Mae’s chairman and chief executive officer. “Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.”

Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 percent of loans in the conventional loan market.

In moving, even tentatively, into this new area of lending, 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 of the 1980s.

“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.”

Sources and links here:

http://www.theobamafile.com/ObamaWorks.htm#Buycks

LINK: Obama at UAB

Sen. Barack Obama exhorted an overflow crowd of 11,000-plus emotional supporters Sunday afternoon to change America, delivering a message of hope, unity and change in an event that was part rock concert and part old time church revival.

“There is nothing we cannot do if the American people decide it is time,” Obama told the cheering crowd at UAB’s Bartow Arena. “There is a moment in the life of every generation, if it is to make its mark on history, its spirit has to come through. This is our moment.”

Then in the soaring rhetoric that has marked so many of his speeches over the past month, Obama brought the crowd to its feet….as the crowd filled the arena with shattering applause and shouts of, “Obama, Obama, Obama!”

One of the thousands pushing in around Obama as he worked the rope line after his speech was Chris DeHaven, 62, of Hoover. A lifelong Republican, DeHaven said he has finally found someone to vote for, and not against.

Why? “Because he wants to bring us together. He will bring us together,” DeHaven said. “He speaks from the heart, and he speaks the truth in a way I have not heard since Ronald Reagan and Robert Kennedy 40 years ago.”

rlc came along the same time as this guy and has the same outlook, even if separated by differences in cultures.

Likewise, it’s going to be important for Obama to speak of substance beyond stirring up enthusiasm.