sab3r you are wrong. Bush Jr. made a State of the Union address. One month later, the Federal Chairman Alan Greenspan allowed these subprime loans by encouraging the mortgage industry to come up with new kinds of loans. His goal was to boost the economy even more by making it easier for all Americans to afford a home. And he achieved that goal, but at a huge price. I can’t help to wonder, why this was not foreseen by our Federal Government. Alan Greenspan said that in 2004 and 2005 he raised short term mortgage interest rates and expected long term mortgage interest rates to follow and they failed. The global clamp on mortgage interest rates stayed down while housing values around the world dramatically increased. This housing bubble was well in motion, Greenspan claims; nothing could have been done to prevent the bubble from bursting. However, the banks and Wall Street were taking full advantage of this housing boom. These subprime loans created many mortgage lending companies. Our economy was flourishing like never before. In 1995 Lehman Brothers sent a Vice President to check out a company called First Alliance Mortgage Co. Lehman wanted a piece of this subprime action! First Alliance had been doing business in an unethical manner and Lehman V.P. labeled First Alliance as a financial “sweat shop.” However, Lehman got in bed with First Alliance and loaned them $500 million dollars. Lehman knew the ethics were out the door; however, First Alliance was not breaking any laws. In 2000 Lehman pooled $56 billion in subprime mortgage loans in bonds. By 2005 it was up to $508 billion, and in 2006 the housing market began to show its true colors. Loans started to default all over the country.>>>>>>>>>> AS FAR AS THE MARKET GOES THE FEDs ARE PUMPING THE MARKET UP AT NIGHT!!! (HENCE THE SUDDEN SPIKE THAT PEOPLE SEE THE NEXT MORNING FROM TIME TO TIME)THEIR TRYIN TO AVOID A "W" CRASH!!!! "W" crash is what happened in the 30s, you know, it made the Kennedys super rich. They went from running moonshine to running the country because of the "W" crash. The FEDs pump it up and regular people buy, then the super rich wait for the right moment and buy, then the regular people wonder what the hell is goin on. Im not tryin to piss anyone off, but these statements are facts, Ill provide refrences if you or anyone else would like.
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