News and Politics | December 01, 2008 | 35 comments

Bush WH rejected tougher mortgage rules ignored meltdown warnings in 2005

source: http://news.yahoo.com/s/ap/20081201/ap_on_bi_ge/meltdown_ignored_warnings

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WASHINGTON – The Bush administration backed off proposed crackdowns on no-money-down, interest-only mortgages years before the economy collapsed, buckling to pressure from some of the same banks that have now failed. It ignored remarkably prescient warnings that foretold the financial meltdown, according to an Associated Press review of regulatory documents.

"Expect fallout, expect foreclosures, expect horror stories," California mortgage lender Paris Welch wrote to U.S. regulators in January 2006, about one year before the housing implosion cost her a job.

Bowing to aggressive lobbying — along with assurances from banks that the troubled mortgages were OK — regulators delayed action for nearly one year. By the time new rules were released late in 2006, the toughest of the proposed provisions were gone and the meltdown was under way...

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35 comments // Bush WH rejected tougher mortgage rules ignored meltdown warnings in 2005

  • hallcrash2000
  • samthesixth
  • scoreJ6
  • Ricky84
    • 0
      Ricky84  

    • Wait a second. The reluctance of the Bush administration to outlaw “creative” mortgage practices is just a hold over from the previous administration. Clinton was actually the president who encouraged the predicament that we are in.

    • 3 years ago
  • Robroy1
    • 0
      Robroy1  

    • Informed Texan you should be named mis informed Texan. This world has never been in worse condition, innocent people being killed, countries being ilegally occupied, hurricanes left un cleaned up, , the world hating George W. Bush more than any other leader in history, the lowest approval ratings in the history of America, record gas and oil prices while record oil company profits the entire world on the verge of depression, people looing thier homes by the millions and you have the nerve to say don't blame the supposedly most powerful man in the world. WTF are you nuts. Dumb Ya far exceeded all my expectations way beyond what I imagined. I knew America was in for trouble but he exceeded all of every expecation I ever dreamed of and totally screwed the entire world as we know it not to mention the amount of People who are dead and maimed because of his evil greed. If any person belongs in prison for life it is him then Cheney and the rest of the evil doers that helped in thier diabolical scheme to screw the entire world so they could make money. The day he was born was one of if not the sadest day for mankind.

    • 3 years ago
  • gewohnheit
  • InformedTexan
    • 0
      InformedTexan  
    • Robroy1:

      I don't intend to get into any sort of fight because it's unnecessary and irrelevant to this discussion. I don't think Bush caused the country's issues, I think he's dealt with them in an unprecedentedly poor way. He has not been a good president, I agree. But, I don't think he caused hurricanes, wars, or death. If the country truly thought we were at the will of this one single man, that disapproval rating would indicate a massive population extremely will to revolt against the government itself. But because much that the government can do and does is subject to much more than the decisions of the president himself, many of those disapproving the president are able to see that their dissatisfaction with the president is not directly transferable to dissatisfaction with all the issues plaguing the country. A single man in this country (not a dictatorship) is unable to cause the issues that are so large in scale as to affect the entire nation and the whole world.

      It's not as easy as blaming all of the country's problems on a single man. That won't solve any of the problems and it allows ourselves to forget that we've caused a lot of the problems that plague ourselves every day.

    • 3 years ago
  • Ricky84
    • 0
      Ricky84  
    • Robroy1:

      F Texans, you must be joking right? How can you lump everyone from a particular state into one class and then call from their removal from the union? Holy hell you’re like a hair away from being a Klansman or a Nazi, or a religious fundamentalist, and so on and so on.

    • 3 years ago
  • samthesixth
  • extracrazykiwi2008
  • InformedTexan
    • 0
      InformedTexan  

    • Although shoveling blame on Bush is fashionable, in all sincerity, the fault of the crisis is in the hands of the self-destructive financial companies willingly ignoring risk by indulging in high-return loans issued carelessly to people unable to reconcile their debt. Those supposed to protect us citizens from economic and financial plagues caused by business practices, the government, are not to blame for the crisis itself. They are however the protectors standing idly by without becoming active in the roles which they are expected to play.

      The paralyzed firefighters not acting swiftly to extinguish are not those at fault for the fire's origin and propagation. Their roles are extremely difficult to fulfill, especially in this crisis, and almost no one is fully prepared and able to exactly perform these roles. But to not act at all, in the spirit of tentative reservation on policy due to a lack of information or for other reasons, is a difficult action to perceive. Obviously in hindsight, their actions would have helped to stave off (but not eliminate) this current crisis, but we cannot see whether or not that decision would have been the right one to make at that time, with the information that they had. Now we most certainly see, if they heeded the unfortunately truthful advice of these foretellers of the crisis, their role as protectors of U.S. citizens would have been fulfilled much more so than it has been as of now.

    • 3 years ago
  • gewohnheit
  • InformedTexan
  • csmonut
    • 0
      csmonut  
    • InformedTexan:

      Yes, it was the fault of the banks and mortgage companies, and yes our elected officials should have been watching out for this.
      But I don't think the Bush Admin. and company cared/cares one wit about the people.
      It shows in the fact that all of them voted to bail out the very same companies that screwed us over inthe first place.
      May they all rest in "pieces.":)

    • 3 years ago
  • gewohnheit
    • 0
      gewohnheit  

    • I rarely say such things but ,Justice must be srved to "W".
      If we miss our chance to prosecute GWB for the many crimes of treason against the american peple how can we have a future or a home to live in.

    • 3 years ago
  • unimatrix0
  • samthesixth
  • Mark701
    • 0
      Mark701  

    • As long as the legislative and executive branchs of our government benefit financially from lobbyists this kind of thing will never be fixed.

      It is my contention that the only way to stop this is to give lobbyists the following choice: A) all direct and indirect contacts with government officials are recorded verbatim and placed into the public record or B) you don't do business with the federal government.

      If lobbyists complain that their competitors will know what they are doing then too bad. You shouldn't have to go crawling to the government to outdo a competitor anyway.

    • 3 years ago
  • IMMININT
  • samthesixth
  • hallcrash2000
  • RS57
    • RS57 [removed]  
    • This comment was removed as a violation of community guidelines.
  • csmonut
  • diabolical44
  • laserdog
    • 0
      laserdog  
    • diabolical44:

      Man, it is too bad that Bush's whole legacy got ruined by that guy who used to be president.

      If only he could have done something to stop the juggernaut-like machinations that Slick Willy put in motion to make Bush look like a terrible president!

    • 3 years ago
  • Mike_Johnston
    • 0
      Mike_Johnston  

    • So we revert to locally based economies. Life goes on and it wouldn't be that bad. Produce locally, invest locally. Gradually move back into wider trade. It really isn't that bad overall because we have the infrastructure in place and we could produce energy locally in many areas.

    • 3 years ago
  • shelchak
    • 0
      shelchak  

    • I'm sure the admin knew exactly what would happen, and was already planning to use the 'crisis' to hand out more billions in bailouts to their friends. Imagine criticizing Obama for wanting to 'share the wealth', when that's exactly what they've been doing all along... I'm reading Naomi Klein's 'Shock Doctrine', and wow is it opening my eyes!!

    • 3 years ago
  • diabolical44
  • pakazak
  • diabolical44
  • CalgarC
  • laserdog
  • pakazak
  • intelligenceisacurse
  • pakazak
  • csmonut
  • jubal
    • 0
      jubal  

    • You can rest assured that some company is cashing in big time from the intentional creation of this economic crisis. Perhaps whomever was responsible had already figured out a plan to steal even more money from people.

    • 3 years ago
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