The manufactured crisis

"The reason lenders stopped requiring down payments in the last part of the 20th century was a series of Democrat-supported enactments, including the Community Reinvestment Act (under Carter), which was strengthened under Clinton and Bush, whose HUDs required Fanny Mae to drop or weaken all the safeguards enumerated above (down payment requirements, documentation of employment, etc). To pass this dangerous legislation, the Democrats claimed that minorities were being denied mortgages on the basis of race, when in fact, the minority communities statistically simply did not have enough people with good credit, good jobs and jobs to justify as many mortgages as the Democrats called for. It was — and is — politically incorrect to mention these inconvenient truths. People who now demand fairness in lending are called racists. Community organizers like ACORN, a group that worked hand-in-hand with Barack Obama, used strong-arm tactics to shake down banks and force them to give mortgages to people who could not afford them and then when the loans were, inevitably, foreclosed, the same people who caused the crisis blamed the banks. That way, they could blame the free market and make gullible people believe that America needs socialism, when in fact what we desperately need is less socialism."