That was the banks being greedy, not your upper-middle class parents
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· 8 years ago
Back when you could make a joke and laugh but now...now the times of jokes have passed and since died down, a new thing has arrived, THE TIME OF BEING AN ASSHOLE HAS BEEN SET UPON US
the fuck are you talking about
I'm talking about banks offering subprime loans to people with virtually no income that resulted in a huge housing bubble that burst in 2008
The '08 recession was the result of the Community Reinvestment Act, combined with an expansion of subsidized housing programs, the growing influence of GSE's and the Department of Housing and Urban Development, which severely distorted the real estate market and forced banks to abandon proper underwriting guidelines which they'd successfully adhered to for decades. The CRA required banks to make more loans to the poor and inner city minorities, many of whom were unworthy borrowers who previously would have been denied. This increase in regulation pushed the banking industry away from safe practices. The credit default swaps, and CDOs certainly made the problem worse, but the original problem was the direct result of government intervention.
Right...right...you can't afford a house on your salary after earning your Women's Studies degree or Art History or Modern Dance, but,of,course it's someone else's fault. Probably the generation that includes the two people still paying your cell phone bill.
I'm talking about banks offering subprime loans to people with virtually no income that resulted in a huge housing bubble that burst in 2008