http://news.investors.com/ibd-editorials-perspective/021513-644751-...
Back in 2007/2008 when we were trying to sell our house and couldn't because of the 'housing bubble', I did some research, and what this guy is saying this is pretty much what I found. The banking industry, in the mid 1990's, was being forced/threatened by the government to lower their lending standards so that housing loans were available to minorities (blacks and hispanics,,,, and oddly not Asian), or face punishment by the government - so they lowered the standards to meet the governments requirements. The banks knew that this was trouble, so to protect their businesses from huge losses they would bundle the 'sub-prime' with prime loans and sell them off, typically to the two Government Sponsored Enterprises (GSE's), Fannie Mae & Freddie Mac. The GSE's then resold many of them again, many to foriegn investors. AIG insured many of these bundles to the foreign banks (my speculation,  = that is why AIG was given $10's of billions in TARP money, much of this was given to European banks with no explanation given).
In 2003 attempts were made to correct the situation by the government but stalled out and did not get through the House Banking & Finance Comittee (Chairman Barney Frank). Freddie & Fannie have been sucking out 10's of billions of our tax dollars every year to keep themselves afloat, so now the citizenry is paying for the governments mis-handling of these GSE's. Note, I said mis-handling not deregulating as the government claims,,,,because the government does not have the gonads to admit that they were behind the whole housing crisis, to them we are all just a bunch of suckers. And guess what ? The government is now doubling down and trying it again, and it will not end well. Pay attention to your house's value, if you see the value escalating as it did in the 90's and 2000's,,, well be ready.

Also, another good read on the subject is Thomas Sowell 'The Housing Boom and Bust',, complete with footnotes.

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Yep, and in 2003 when questions were raised by the Bush Administration about the stability of Freddie & Fannie, Barney Frank and Chris Dodd were strident in their statements that nothing was out of the ordinary and there was no reason for concern.  Nothing to see here, folks!  Those two crooks should be in jail, but then, what else is new?

Oh, and guess which Community Organizer in the 90's was openly working with ACORN in Chicago to harass banks into giving these bad loans ... here's a clue ... his address now is 1600 Pennsylvania Ave, Washington, DC!  

You are quite a smart person, there Mr. Fox.  I did some research on this in other directions and came to the same conclusions.  While people on TV like to say that TARP and STIMULUS was the same thing they were quite different.  TARP was done by Bush and used to stop a run on banks and was to be paid back.  Actually, the last I checked, most all banks did pay back except AIG - and then all of the government entities of Fannie, Freddie, GM, and another GM branch, and Chrysler (maybe on that last one, not sure).  Also it was clear that Fannie and Freddie borrowed about 5 times as much as the large banks and never paid back.   Also as you say, in the mid 90's I think it was, it was a government law that allowed bundling.  And of course later they said that bundling was awful.  Yes, I doubt we will ever hear the real truth of things.  My question would be if this was also going on, why did it come to a head in one given week?  Most odd.  There is another story there someone is not telling.  It is like some giant world bank said "no" one day.  But again, getting the truth is another story.

Since you like to get into truth in news, here is another for you.  The "BP" oil spill.  Why did no reporter ask the obvious question "Why was this oil rig so far out in the water that not even Godzilla could fix it?".  And answer that no one gives is that in about 1995, Bill Clinton signed a law that gave huge tax breaks to oil rigs if they were way out at sea.  Since Bill Clinton was not a dumb man and in fact that last president who balanced the budget, let me guess he did that since enviro-nazis were screaming at him.  So okay, Bill placates the enviro-nazis and signs a bill sending oil rigs far out.  But who said environmentalists were bright?  They apparently did not think far enough that a rig near land could fix leaks but that ones far out were far more dangerous since they could not be fixed easily.  oh oh.  So the well goes bad.  But of course Bill Clinton and the environmentalists stood up and admitted their failure.  Ha ha haaaa ha ha.  Sorry there.  Nope.  Obama said it was the fault of evil Capitalism and they must die die die.  So why did not BP speak?  Let me guess that if they said a word about the law that Obama would say "Well, then, forget about doing business in the town I own".  Yes, TV has become total nonsense.  TV news and politicians could win the "best in fantasy and science fiction award" - but they should not be in that business.

Thanks for looking into this.  I do not doubt you for a second.  Finding the whole truth on this thing though is going to be a monster.  It is well hidden, like Fast and Furious, like Benghazi, like the missing years of Obama.

...in the mid 1990's, was being forced/threatened by the government to lower their lending standards...

I recall seeing something that said one of the principle lawyers involved with taking the banks to court for unfair lending practices was ... you guessed it Barack Obama.

Also, who was outside of these lending institutions picketing if they were not meeting the governments requirements..... drum roll.... ACORN.

Great post, Doug!  Sowell is right too, and here it is, another problem caused by government, forcing laws on us to fix the problem they created.  The problems created by these new laws, will of course, require more laws.  Makes your head spin.  It is all so simple, really.  The financial fragility of the US goes way back, IMO, and this housing issue is one of the prominent symptoms.

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