Responding To RW Blaming Democratic Congress- Subprime Lenders Began Failing in 3/07

[Median Democrat]

The Democrats gained control of Congress on January 1, 2007. However, by that time, the subprime crisis had already begun. New Century Financial was in the process of declaring bankruptcy in March 2007, less than three months into the Democratic Congress. By the time the Democrats gained control of Congress, the crisis had already begun.

http://www.marketwatch.com/News/Story/new-century-woes-could-disrupt/story.aspx?guid=%7BE98A2754%2DF267%2D4E14%2D81DE%2D58DDEFCA8207%7D

/snip

New Century announced Monday that its lenders stopped providing financial support, increasing the chances that the second-largest subprime-mortgage specialist will file for bankruptcy.

Subprime mortgages are offered to home buyers who fail to meet the strictest lending standards. Companies like New Century that specialize in these loans have suffered as housing prices stopped rising and interest rates climbed from record lows.

Subprime lenders rely in part on big banks known as warehouse lenders to finance their operations. These backers require that such lenders meet certain minimum financial targets; otherwise, they have the right to end the business relationship.

"It will be interesting to see how warehouse lenders treat other subprime lenders now," said Zack Gast, an analyst at the Center for Financial Research and Analysis. "Will they shut down lines for everyone?"

/snip

[Jennicut]

1. Hell the whole damned economy was being ruined by Bush and his "tax cuts" plus spending

Starting in what 2001? Of course, Rethugs never take responsibility for anything. What else it new?

[pnwmom]

2. And Bush had a firm policy of vetoing anything that came from the Dems.

I wished they had just passed bills and ignored him though -- let him put his vetoes into the historical record, instead of avoiding them.

[No Elephants]

3. It started with Reagan.