A question I haven’t heard answered is whether or not any bailout proposition asks that the bad lending practises implemented during the Clinton era will be repealed. I have read a lot about how the banks are in trouble (in part) because they were asked by Bill Clinton to give high risk loans to high risk people in order to promote homeownership. All part of the Community Redevelopment Act.
So, will we see those dangerous lending practises condemned and reversed as part of the government fix of the banking and economic crisis underway? I know the plan is to give away $700 Billion to Wall Street as a gift from the taxpayers, on top of the trillion dollars that has been lost in market value already. I would think at the very minimum we would reverse the regulations that got us in the mess to begin with.
Does anyone know the answer to this question? Please educate me.