Banks had given
mortgage loans to unqualified buyers and these loans defaulted. The Community
Reinvestment Act of 1993 and HUD anti-discrimination rules caused the bad
lending practices. Banks had chopped up these loans and resold them as
“securities” and the defaulted loans were impossible to identify. The Democrats
had sabotaged the mortgage industry.
The primary purpose of
the Federal Reserve is to provide US dollars to US banks. Banks float on this
liquidity and lend the money to individuals and corporations. This provides the
capital required to run the US economy.
The 2008 Meltdown
dropped the Dow Average in half.
On 3/9/09, the Dow
plummeted to 6,726.02. The Federal Reserve increased the money supply by 450%
to save the banks. The Fed lent money to the banks, who lent it to the day
traders, who bought stocks and by 11/11/16 the Dow was at 18,847.66.
Norb Leahy, Dunwoody
GA Tea Party Leader
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