Quote:
Originally Posted by samurai007
Obama (along with Chris Dodd and Barney Frank) are responsible for the economic mess, as they caused the collapse of Freddie Mac and Fannie May. Bush warned against it repeatedly, but was ignored.
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The deregulation of mortgage lenders like Freddie Mac and Fannie May happened under the Bush administration and the Republican Congress.
The failure of Freddie Mac and Fannie May happened months before Obama was even elected.
Bailout attempts were not what cursed these huge mortgage lenders but deregulation in billions in bad loans. Why lend $200,000 at an ARM low interest rate when you can make 50% more money lending $300,000? The only problem is when the interest changes so dramatically so suddenly, then suddenly you have hundreds of millions of dollars in loans that will quickly default.