Saturday, March 17, 2007
“Moral Hazard” is the term Ladies & Gentlemen.
To Protect Sub-prime Borrowers and Nation's Housing Market, NCRC Urges Administration and Congress to Allow FHA to Refinance Loans in Default and Establish a National Rescue Fund
From WRH: This is a repeat of the S&L bailout of the 80s, which was one of the greatest swindles of the American people in history. Under Presidents Reagan and Bush I, the laws were changed that made it easy for S&Ls to invest in high-risk ventures. At the same time, Bush I increased the maximum limit for insured d=savings to $100,000 per account. That set the stage for a huge rip-off of the taxpayers and here is how it worked. Drug criminals. in many cases working for the CIA's Iran-Contra operation, mixed their drug cash in with legitimate proceeds from cash-heavy front companies such as convenience stores, office supply places, and multi-screen cinemas. That cash was deposited in S&L accounts always under the $100,000 limit.