Who is Responsible for the Housing Credit Bust?

Published on March 31, 2008 By Dr Guy In US Domestic

Hillary Clinton. While all the fingers on the left are trying to point to Bush, it is telling that 3 of those fingers are pointing straight back to Hillary.

It seems that Hillary is already starting to hand out plums, as her campaign manager, Margaret Williams, "miraculously" got a position on the board of Delta Funding just after they went bankrupt. Unlike some of the other companies that just have gotten caught with bad loans, Delta was in the loan sharking business! (OK, not quite). While the average loan rates were between 6 and 7%, this company was hustling borrowers for loans between 11 and 14%!!!

Not only that, they are either being indicted or are under investigation by several states for discriminatory lending practices - charging minorities higher rates than others.

While the current "crises" has seen an increase in foreclosures to over 2% nationwide, this company was running foreclosures of 5%! Over double the national rate!

So what does Hillary do? Gets her campaign manager a spot on the board. And "Maggie" is not guiltless as she worked for the company while they were screwing home borrowers for years prior to her "elevation".

Hillary can talk the talk, but when it comes to walking, she is a cripple. Perhaps she should be less concerned with where Obama prays, and more concerned where her money is coming from, and going to.

Comments

just john

on Mar 31, 2008

I think there is really only one place to point the blame. It rides on the back of the consumer. I could go down and buy a car at the break your legs car lot, where the juice is always running. I don't because that is stupid. It's the same thing with the housing market. People saw something that was too good to be true and took it knowing that what seems too good never is.

Benmeister

on Mar 31, 2008

Another bad decision by Hillary. The problem with the housing market was caused by deregulation, though.

Dr Guy

on Mar 31, 2008

I could go down and buy a car at the break your legs car lot,

Sorry about the double casts.

But ultimately, I agree. I just thought it was funny that some of those fingers hillary is pointing are aimed at her. The delta fiasco is not really about the housing crises, but about very dirty practices that should be aired in public so that people can see where the real slime lies.

Dr Guy

on Mar 31, 2008

Another bad decision by Hillary. The problem with the housing market was caused by deregulation, though.

No, it was caused by Politicians whose "intentions" were "good", but actions sucked.

Zoologist03

on Mar 31, 2008

Whew...I thought it was me there for a second.

~Zoo

Dr Guy

on Apr 10, 2008

Whew...I thought it was me there for a second.

YOu cant do everything Zoo.

Paladin77

on Apr 10, 2008

I know this is sort of off topic but I feel I have to chime in here. My business is real estate in Florida. I have been in the real estate business since my parents bought their first apartment building in Brooklyn NY and used my sister and I as slave labor. Five years before the bubble burst I saw it coming. Everyone who was serious in the business saw it coming and warned of people getting homes they could not afford. In Florida it is illegal to give a mortgage to someone that can not afford it. So for these people to be foreclosed upon they had to lie on their credit application with the help of the mortgage broker. These people did it to themselves and the lenders for the most part had little to do with it. Delta is an exception to the rule. They went out with the intention of gouging people and they will pay for it. As for the people that lost their homes, I have little sympathy for them as they created their own downfall.

Dr Guy

on Apr 10, 2008

Five years before the bubble burst I saw it coming. Everyone who was serious in the business saw it coming and warned of people getting homes they could not afford.

I have never been in the business, but my Uncle owned a firm before he retired, and both my Aunt and Mother sold the stuff around here. SO I have a history of it, and like you, I saw it coming as well. I bought 7 years ago, refinanced when the rates hit bottom (I did not pull out any money, just lowered my rate 2 1/2 points), and have hunkered down.

i figure it will start to rebound here in about 5-6 months. It is not really rocket science, just another example of the law of supply and demand. Supply was limited, and with rates donw at 3-4%, demand was way up!

Paladin77

on Apr 10, 2008

i figure it will start to rebound here in about 5-6 months. It is not really rocket science, just another example of the law of supply and demand. Supply was limited, and with rates donw at 3-4%, demand was way up!

Sorry doc, we are in this mess for a while, New York took a decade to bounce back from their mess back in the 70’s and Dallas took about the same time. Miami took 8 years, we are looking at 6 to 10 years before this mess is done and another region will start the same mess over again with a “new and improved paradigm “.

Dr Guy

on Apr 11, 2008

New York took a decade to bounce back from their mess back in the 70’s and Dallas took about the same time. Miami took 8 years, we are looking at 6 to 10 years before this mess is done and another region will start the same mess over again with a “new and improved paradigm “.

In another article, I wrote that there is no such thing as a National Housing market. There is not. There are hundreds (or thousands) of local markets, and each will perform differently. That is why Richmond, which saw some great run ups, but nothing like the super heated markets, is already recovering, and the markets you mention are going to take longer (hell, detroit never will).

Some markets will take years, because they were built on more porous sand. Others have already recovered. ONe market that I would stay away from like the plague is California. That one is going to take a long time to recover because it has been going on for so long. Nothing (except taxes) rises forever.

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