Why some of us won't vote for Obama--Part II Who is responsible for the mortgage mess? (889 hits)
In response to the question regarding the Democrats being responsible for the Fannie Mae, Freddie Mac meltdown , I wanted to offer an analysis.
The Senate Housing committee makes these types of decisions. As of last July members such as Sen Chris Dodd (D) Conneticut, Rep. Barney Frank,(D) Massachussetts,both Chairmen, of their respective committees issued statements as to the soundness of Fannie Mae and Freddie Mac.
It was under Bill Clinton's stewardship that these agencies flourished. Clinton called our "Nations' First Black President" (you will do well to remember this,) a moniker given to him by Maya Angelou, was beseeched by civil rights leaders to help African-Americans as much as possible.
And he did.
In cooperation with the Real Estate and mortgage companies, the banks created the types of loans that would have afforded any lower middle class person an opportunity to own their own home. "The American Dream."
From my own experience, this is what I observed. I lived in Las Vegas during the 90's, and you also know I was a member of the Republican Party in that State, for a reason.
Las Vegas beyond the Strip was and remains racist. Here is a real scenario, (the only way I offer an opinion) my white neighbor who lived in publiclyy aided housing -with no schooling, out of a shelter, and her children by an African-American father who was in jail, secured a job as a maid. Her salary waS $17,000.00 a year. With help, she saved $3,000.00 and put a down payment on a house in the Eastern part of Las Vegas, a lower working class neighborhood for $86,000.00 dollars. (1995.) Citibank was the lender, I assume however, that she is doing well.
Based on your experience do you think she could afford a variable mortgage? I jut would like to point out that the same opportunity was NOT available to an African -American women. And the same opportunity WAS available to the predominantly Mexican American home buyers, and Black American males.
What activists such as Jesse Jackson told Clinton, is that there was a racial disparity, and to make housing as affordable as possilbe. Who is to blame? the Democrats? Bill Clinton? The Senate and House Banking Committee? Reverend Jesse Jackson and all of the community activists who fought for this "equalizer"?
Do we have the stats on who really benefited? and who really took advantage of the policies? My Wachovia Bank Manager, Helen Baunhuber explained to me what happened. In their zeal to be homeowners, people depended on income from family members who assumed they would remain to pay of the mortgage, when a crisis hit they were not prepared. I.e. someone moving on, losing one's job etc. Moreover, haven't the financial pundits for ever and a day advised that one should have a minimum six month's expenses to live on? precisely for this reason?
I no longer like Bill Clinton, due to his pulling the race card in this election,but I do not hold him to the fire for trying to help Americans become homeowners. I have read blogs, where mortgage companies and other homeowners have zero sympathy for buyers who do not do their homework before purchasing. That blog from financial experts in real estate was posted two years ago!!
Dont' pass the blame. So no it's not Obama's fault, in answer to the question.
