Citibank Gets $306 Billion
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Citibank Gets $306 Billion
| Mon, 11-24-2008 - 1:21am |
Detroit needs to hurry up and come up with a plan.
| Mon, 11-24-2008 - 1:21am |
Detroit needs to hurry up and come up with a plan.
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It seems that you have insight into the portions of the law that you suggest support your assertion, but you refuse to share them with me.
Sopal
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"It seems that you have insight into the portions of the law that you suggest support your assertion, but you refuse to share them with me."
A link to the legislation's been provided.
Sopal
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"Unfortunately it appears there are some
"Just give me a hint.
I get all that. Having now read the wiki link that was provided, I see that my guess was correct. The actual guarantees to make the loans happen were funded by Fannie Mae. However, the CRA states that loans have to be made soundly and responsibly. I imagine that Fannie Mae equally has some requirements along those lines. It IS possible to make responsible loans to people with low incomes, but it means that you have to make many small loans to meet the targets.
Anyway, the point is that I can not see anything in this whole chain of events that would justify either making the kinds of loans that verified neither employment nor income or reselling irresponsibly made mortgages as securities. From what I have read, the entire system was based on the assumption that RE prices can only go up. The softwares used to calculate the risks did not allow for either a stagnation or a fall in RE prices. As far as I can judge, that was the main problem. It was probably a dumb move for the government to flood the market with easy credit, but it still does not justify how the banks reacted and how the feds abdicated oversight.
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