Financial shit hit the fan when the "adjustable" part of "adjustable rate mortgage" became a reality. Partisanship has fuck-all to do with it. Jesus christ, man, you seem like a good guy, but drop the fucking "red vs blue" tunnel vision.
The fact of the matter is that blaming bush is just silly.
Here is how this went down and i dare anyone to contradict me with facts:
1. Fanny and Freddy pushed for more home ownership by poor people who could not qualifiy due to poor credit scores and no down payment. This is clear and obvious to any thinking person.
To do this, they lowered the requirements of traditional mortgages and also endorsed new loan products like sub-prime and different types of arm type loans.
2. Realtors steered people into expensive homes they knew the people could not afford and sold them on a monthly payment versus the actual cost over time, etc.
3. Mortgage brokers submitted phony and doctored applications containing bogus income amounts, assets, etc. They often used the fact that many applicants had poor credit to push them into subprime loans and riskier loans because they would be paid more and that was the only type of loan available to these people. Many of these fools did not understand what they were signing up for, but are still to blame for not asking enough questions.
4. The mortgage brokers steered these loans to appraisers they knew would come back with a high appraisal, often times justifying the 100% or 100/5 financing for the property.
5. At the closing, not only did the mortgage brokers charge upfront points, but got paid on the back end thousands of additional dollars from the banks to make these loans. Many of you have no idea how much mortgage brokers made off of these loans. These brokers were paid everything upfront and had no risk of losing their commisions if the loans went into default.
6. The banks who actually wrote these loans did not keep them long and often sold them to other banks. These banks did not due any due diligence on these applicants since they relied on the docs submitted by the mortgage brokers. It only got worse as these loans were sold and re sold.
7. Many of these loans were iin good standing while the teaser rates were still in effect and the arms did not reset. Thus, they were classified as good loans and marketed to other banks as such before they reset.
8. The banks often bundled these loans into mega products while they were in good standing and sold them to each other not realizing that they were buying garbage that would be a ticking time bomb. These banks also did not realize that many of these loans were only in good standing because the arms did not reset and mortgages typically dont go into default in the first year.
9. The banks, when trying to realize what happened, realized that they bought nothing in reality and that the actual house and property secured by the mortgage were basically not worth nearly the paper it was written on due to fake appraisals, etc etc.
10. Many of these subprime loans were to illegal aliens, flippers, scam artists, and phantoms who are untraceable and have no assets to sieze.
11. Other than blame themselves for their failure to do due diligence, they are seeking the taxpayer to bail them out.
The Democrats are certainly to blame to helping push this whole disaster in motion, but there are many other responsible parties as well, including what I listed above.
