Bush acknowledges financial 'pain'

CNN.com · 09-15-2008, 12:02 PM

Read full story for latest details.

View the full article here.

Tirya · 09-15-2008, 12:30 PM

What I find interesting is the fact that early in Bush's presidency, he was a really strong advocate for "every American should be able to own their own home", which helped prompt the lending institutions to loosen their lending standards in an attempt to meet this goal.

What they failed to recognize is that home ownership is a responsibility, not a right, and there are reasons that people can't/don't own homes.

American Dream Downpayment Initiative - Affordable Housing - CPD - HUD

Quote:

The American Dream Downpayment Initiative (ADDI) was signed into law on December 16, 2003. The American Dream Downpayment Assistance Act authorizes up to $200 million annually for fiscal years 2004 - 2007.

[...]

ADDI aims to increase the homeownership rate, especially among lower income and minority households, and to revitalize and stabilize communities. ADDI will help first-time homebuyers with the biggest hurdle to homeownership: downpayment and closing costs. The program was created to assist low-income first-time homebuyers in purchasing single-family homes by providing funds for downpayment, closing costs, and rehabilitation carried out in conjunction with the assisted home purchase.

If you're not financially responsible or solvent enough to be able to afford the downpayment and closing costs, what are the real odds that you can afford everything else that goes along with home ownership?

But the lure of teaser APR rates, combined with ignorant consumers who were so lured by "The American Dream" that they didn't bother to understand the ramifications of APR resets, directly contributed to today's crisis.

Consumer News - Home Buying: The American Dream Downpayment Act of 2003; Bill Signed By President Bush to help first time buyers; Consumer & Government Guides

Quote:

On December 16, 2003, President Bush signed into law the American Dream Downpayment Act of 2003, which will help approximately 40,000 families a year with their down payment and closing costs, and further strengthen America’s housing market. This legislation complements the President’s aggressive housing agenda announced in 2002 to dismantle the barriers to homeownership.

[...]

President Bush issued America’s Homeownership Challenge to the real estate and mortgage finance industries to encourage them to join the effort to close the gap that exists between the homeownership rates of minorities and non-minorities.

Pain? The pain started in 2002.

Homeownership Policy Book - Chapter 2

Quote:

The Administration also hopes to expand homeownership opportunities by focusing the energy and creativity of the private sector real estate and mortgage-finance industries, as well as the nonprofit sector, on this important goal.

[...]

To that end, the Administration has issued "America’s Homeownership Challenge" to homebuilders, realtors, nonprofits, and government-sponsored enterprises that purchase the mortgages made by lenders, to unite in a concerted, multifaceted and collaborative effort to dismantle barriers to homeownership in each community and increase the number of minority homeowners by at least 5.5 million families by the end of this decade.

[...]

* Aggressively developing new mortgage products so that conventional market alternatives are available to combat the predatory loan products that are disproportionately targeted to minorities;

* Creating new mortgage products to meet the unique needs of recent immigrants;

::sighs, shaking head::

intangible child · 09-15-2008, 12:33 PM

"You're working hard to put food on your family." —Presidential candidate George W. Bush, Nashua, N.H., Jan. 27, 2000

Rod · 09-15-2008, 02:08 PM

Quote:

Originally Posted by Tirya

What I find interesting is the fact that early in Bush's presidency, he was a really strong advocate for "every American should be able to own their own home", which helped prompt the lending institutions to loosen their lending standards in an attempt to meet this goal.

What they failed to recognize is that home ownership is a responsibility, not a right, and there are reasons that people can't/don't own homes.

American Dream Downpayment Initiative - Affordable Housing - CPD - HUD

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If you're not financially responsible or solvent enough to be able to afford the downpayment and closing costs, what are the real odds that you can afford everything else that goes along with home ownership?

But the lure of teaser APR rates, combined with ignorant consumers who were so lured by "The American Dream" that they didn't bother to understand the ramifications of APR resets, directly contributed to today's crisis.

Consumer News - Home Buying: The American Dream Downpayment Act of 2003; Bill Signed By President Bush to help first time buyers; Consumer & Government Guides

Pain? The pain started in 2002.

Homeownership Policy Book - Chapter 2

::sighs, shaking head::

The finace crisis was there long before George W. Bush came along. This whole credit thing has been a balancing act that was predetermined to crash.

A good read for insight she was there.
Solari Update - 08-07-07

When money starts collecting in pools such as retirement funds etc... Someone is going to look for a way to tap into that money. In order to do that one/group will work on convincing whoever may be in charge of lining it up so one can do that.

Example https://www.opensecrets.org/orgs/sum...?id=D000000085

When gamblers get hold of such things as futures markets they are using other peoples money. They can devastate a market and take control or build and bust any given market out there.

Bear Stearns Fraud InfoCenter - securities fraud information
Piper Jaffray Fraud InfoCenter - securities fraud information
Merrill Lynch Fraud InfoCenter – Securities fraud information
Lehman Brothers Fraud InfoCenter - securities fraud information
Goldman Sachs Fraud InfoCenter - securities fraud information

There are too many to list here. The information is out there just start looking.

University of California Office of the President
Just one example of one firm "$1.2 billion" makes a big hit in the overall economy multiply that by however many others are out there and what do you get?
"These prestigious banks and law firms used their skills and their professional reputation to help Enron executives shore up the company's stock price and create a false appearance of financial strength and profitability which fooled the public into investing billions of dollars," said James E. Holst, the university's general counsel. "In return, these firms received multi-million-dollar fees, and some of their top executives exploited the situation to cash in personally."

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