Clinton's 1995 National HomeOwners Strategy reduced capital requirments to 3% on loans that could be purchased by the GSEs.
Allot of the push to lower or "loosen" lending standards started in Chicago and California AND Obama is calling for the lowering of standards through Ginne Mae and FHA.
Yea actually he a pretty big part in the collapse.
First, I'm fine with intelligent cuts -- coupled with intelligent tax hikes and elimination of tax loopholes. The DOD in particular needs a good solid trim, since they are still spending at wartime levels, and the bill for veterans services for the next 50+ years will be huge. And a lot of those cuts have to be phased in over the next 5-10 years, to minimize the negative effect on GDP.You and others seem to believe we need a 3.6 trillion dollar federal govt. when the reality is it is the private sector suffering not the public sector.
Second, almost all of the added jobs over the past 3 years are in the private sector, not public sector.
And yet, that is exactly what the majority of Americans expected when they voted Obama back into office.Higher taxes, more regulations, and Obamacare aren't prescriptions for economic growth and job creation.
Small tax hikes, especially on the rich, won't kill the recovery. Most of that capital is doing nothing -- it's sitting in banks or Treasury bills collecting almost no interest. Heck, even Reagan realized a small tax hike was necessary on occasion.
It should also be screamingly obvious that hacking away at the federal budget will result in job losses and will cut into GDP growth, but that doesn't stop conservatives from advocating it. Go figure.
'What kind of sick and twisted toy factory is this?'
'We are all the sum of our tears. Too little and the ground is not fertile, and nothing can grow there. Too much, the best of us is washed away.'
"Better to be dead and cool, than alive and uncool."