Fast forward to the Clinton years (Bill, not Hill) and the liberals, with the cooperation of RINOs that should have been members of the Democrat Party but had an “R” beside their name instead, started fining banks unless they increased their number of risky loans to a higher percentage of their total risk. All was just fine, although the number of repossessions increased.
Still the banks did not fare that bad, since real estate prices were still rising or at least leveled out.
The housing market started to fall and people, who would not qualify for a single mortgage before were now mini real estate tycoons having leveraged their way into high-risk loans for two or more properties to wait out the housing plateau and wait for the prices to rise again.
They got a rise, but not the one they had waited for. Enter Mr. Murphy, stage Left.
All of a sudden, those adjustable rate mortgages that had extremely low interest rates, started to rise and the payments were harder to make. The interest-only mortgages had their balloon payments due and people no longer qualified to refinance the loans at a higher rate. On top of it all, the value of the houses exceeded the amount still owed on the loans.
Many people just walked away from it all and left the banks holding the bag.
The liberals and three traitorous Republican Party members (the worst of all the RINOs) decided to cure this situation. Headed by Obama and others who never, ever held a job in a business and know nothing about what it takes to run a profitable business are now in charge of saving the businesses.
Enter Mr. Murphy again and again, stage Left.
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