“Hitler did not have to destroy democracy; he merely took advantage of the decay of democracy and at the critical moment obtained the support of many to whom, though they detested Hitler, he yet seemed the only man strong enough to get things done.” F. A. Hayek from his book, "The Road To Serfdom".
In February 2000 the mortgage rates dropped to around 5%. Most everyone was either trying to refinance or purchase a house. The unnamed one was president at the time. in about 2005 the value of housing started to sky rocket and more people started to refinance, taking money out to pay bills. There were also a lot of C and D credit people buying houses before the price went up more. Most buyers and refinancers got into an adjustable rate mortgage which remained constant for 3 years and began to adjust. in 2008 when their rates increased $200 - $500 per month and the price of gas rose to $3.00-$4.00 per gallon people could no longer afford their mortgages.
Roger, with Google at the ready, there's simply no excuse for not knowing who was President and when. Clinton was President in Feb. 2000; Bush 43 was inaugurated on January 20, 2001.
Clinton deregulated Fannie Mae and Freddie Mac in 1999 which opened the floodgates of money...unscrupulous lending practices followed...as Franco said, Bush will take the blame for being asleep at the wheel, but neither he nor his administration "set the table" for the disaster that we are now experiencing.
I was talking about the adjustable rate mortgages adjusting in 3 to 5 years.
(Most buyers and refinancers got into an adjustable rate mortgage which remained constant for 3 years and began to adjust. in 2008 when their rates increased $200 - $500 per month and the price of gas rose to $3.00-$4.00 per gallon people could no longer afford their mortgages."
If you do the math when all the defaults on mortgages took place - 2007, & 2008. If you subtract 3 to 5 years from 2007 or 2008, you will come up with a time period where the price of housing rose to an incredible level. That is when most people that either bought or refinanced and took cash out to pay bills got into trouble.
The price of gas in 2000 was about $1.10 a gallon. Gas prices in 2007 & 2008 were well over $3.00 per gallon.
And you want to blame Bush 43 for ALL of this....right?
Right, blame George W Bush for a failed mortgage market that started under Slick Willy and continued under the 'leadership' of Chris Dodd and Barney Frank.