“I hear your complaints,” Bloomberg said. “Some of them are totally unfounded. It was not the banks that created the mortgage crisis. It was, plain and simple, Congress, who forced everybody to go and give mortgages to people who were on the cusp. Now, I’m not so sure that was terrible policy, because a lot of those people who got homes still have them and they wouldn’t have had them without that.
“But they were the ones who pushed Fannie and Freddie to make a bunch of loans that were imprudent, if you will. They were the ones that pushed the banks to loan to everybody. And now we want to go vilify the banks because it’s one target, it’s easy to blame them and Congress certainly isn’t going to blame themselves.”
As Think Progress points out, that’s a load of crap:
While the government sponsored mortgage giants were certainly not blameless, Federal Reserve data shows conclusively that it was private mortgage brokers, not Fannie and Freddie, who drove the subprime housing bubble:
– More than 84 percent of the subprime mortgages in 2006 were issued by private lending institutions.
– Private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year.
Got it? Not only was it not the banks fault, but it wasn’t even necessarily bad policy!
Oh, and also, the Occupy Wall Street protestors should quit complaining and try to change the world and make it better. You know, because the protestors are out there braving police brutality and sleeping on the sidewalk because it’s “fun” and “entertaining.”
Mayor Bloomberg? Your pants are on fire.
[via Think Progress]
[cross-posted at Angry Black Lady Chronicles]