Good stuff, Hoop, Thanks.
I liked the quote-" Everybody deluded themselves,thinking they could throw out the old rules of banking."
We never,ever, would been involved in this mess if the old rules weren't thrown out, imho.
My understanding of the old rules of needing 20% down to obtain a mortgage and a limit on the amount you could borrow determined by your income was part of the Glass-Spigel act.
That act was thrown out during the Clinton Administration, allowing no down payment and inerest only payment loans. From what i see it was to make houses affordable to everyone and therefore a political move to get votes.
Looks to me like we were sold out for votes.
I would still like to know who initiated and threw out the Glass-Spigel act.
Can anybody shed any light on that?
I have sent my congressman the question of who and why,but feel it will be awhile before i get an answer.