Politically Correct Recession

[OswaldTheOsprey]

Steve Sailer, never one to shy away from controversy, takes a long look at how the current recession might just be the fault of political correctness (cultural marxism). From VDARE.com.

OswaldTheOsprey

http://www.vdare.com/asp/printPage.asp?url=http://www.vdare.com/sailer/080720_housing.htm

[Peter1469]

There is much truth in your statement.  Banks were too free with credit and took little risk since they sold the mortgages off.  This is an example of where sensible government regulation could have prevented harm.  However, the government wanted as many people as possible to own their own homes (hey- the government doesn't have to pay its debt why should the people?) 

[OswaldTheOsprey]

There is much truth in your statement.  Banks were too free with credit and took little risk since they sold the mortgages off.  This is an example of where sensible government regulation could have prevented harm.  However, the government wanted as many people as possible to own their own homes (hey- the government doesn't have to pay its debt why should the people?) 

Indeed. There is never something for nothing.

OswaldTheOsprey

[Gunit Hussein Sangh]

While I'm sure part of the mortgage mess was due to PC towards minorities .... a large number of white folks are also caught up in this so that can't explain all of it.

The real problem is that Phil "We are whiners" Graham passed legislation that allowed this mess to be created. Getting a mortgage pre-Graham legislation meant the bank looked at your job situtation, proving your income, proving your debts -- in other words the bank would make sure you'd be able to repay the loan.

Post-Graham legislation, the mortgage lender didn't give a rat's ass if you could repay, since they sold the mortgage to someone else, who sold it wall street investment firms, who sold them as low-risk bonds to suckers ... uh ... investors.

THAT's the problem.
 

[Peter1469]

That was indeed one of the prime causes.  I still maintain that these changes were made to open up the American Dream (home ownership) to the poor.  Whether the poor are black, white, brown, or purple, such a policy is based on political correctness (in part) and not based upon fiscal sense, or common sense.  Credit was simply too lose- which by itself isn’t horrible.  But combined with the removal of risk for the initial mortgage brokers was a recipe for disaster.

I am sure that the legislation passed with no support from democrats. 

[OswaldTheOsprey]

While I'm sure part of the mortgage mess was due to PC towards minorities .... a large number of white folks are also caught up in this so that can't explain all of it.

The real problem is that Phil "We are whiners" Graham passed legislation that allowed this mess to be created. Getting a mortgage pre-Graham legislation meant the bank looked at your job situtation, proving your income, proving your debts -- in other words the bank would make sure you'd be able to repay the loan.

Post-Graham legislation, the mortgage lender didn't give a rat's ass if you could repay, since they sold the mortgage to someone else, who sold it wall street investment firms, who sold them as low-risk bonds to suckers ... uh ... investors.

THAT's the problem.
 

Gramm and Robert Rubin, Clinton treasury secretary, worked together on this. Thank God neither holds political leverage anymore.

OswaldTheOsprey