Bigots Guide to the Financial Crisis

How Blacks, Gays and Jews are responsible for the Mortgage Meltdown That Led to the Current Global Economic Crisis

The Blacks
Fannie Mae and Freddie Mac were sponsored by the government because their main purpose was to back loans to low-income, minority home owners. They didn't actually make the loans, but they bought them from those mortgage companies that did. In 1999, the Clinton Administration pressured Fannie and Freddie to loosen their standards and buy more loans made to black people. This seems like a good idea, because home ownership is the best way to build wealth, which if done on a large scale can be a great way to lift up an impoverished people, in this case the measure was targeted directly to black people. Making this seem like an even more essential thing for the government to do, various studies showed white families had a much easier time getting loans (and for better terms) than black people of similar creditworthiness.
But as the government was pressuring Fannie Mae to be more liberal in its lending practices, something else was happening. The housing market was going crazy. Everyone wanted to be a mortgage lender, money was easy to get. And subprime mortgages were great too. With so many traditional lenders willing to offer subprime mortgages to borrowers with bad credit, Fannie Mae was forced to lend even further down the creditworthiness scale.
But when the housing market started to slow, the economy started to weaken, and inflation soared, mostly due to gas prices, that's when the foreclosures started. And that's when these policies to give more homes to black people started to backfire.

The Gays
Barney Frank, the openly gay Congressman from Massachusetts, was in a relationship with Fannie Mae executive Herb Moses, until 1998. Frank's personal life is his own business, but at the time he was serving on the House Banking Committee which was charged with overseeing Fannie. Moses was involved in pushing for deregulation, and coincidentally, so was Frank. Now that doesn't mean that Frank held up any legislation that would have stopped this whole mess, but it does mean he had an obvious conflict of interest. I sincerely doubt that the relationship would have been ignored if it were a straight Congressman's wife working for Fannie. But no one wanted to seem politically incorrect by raising the issue about two gay men.

The Jews
Many of these same banks, brokerages and mortgage lenders which are failing now where making millions, even billions, and handing out huge bonuses just a couple years ago. And we all know the banks are run by the Jews. So how did they make all this money? In a lot of cases it came from offering people mortgages they couldn't afford and shouldn't have been given. This ranged from simply giving people $50,000 more than they normally would have been able to borrow (thereby increasing their credit risk and thusly their interest rate) or approving people who never should have been approved in the first place (once again, subprime loans make more money for the banks, if they are paid off) or misleading borrowers about the terms of their loans (many claim not to have understood their eventual rate adjustment) or offering irresponsible (no money down, zero interest loans) or downright dishonest (the option ARM) mortgage products. While I'm big on personal responsibilty (ultimately it's up to the borrower to make sure he isn't get bilked, misled or overextended) but that doesn't excuse the dishonesty of telling someone they can afford a home they really can't.

Note: What you just read contains a lot of truth. The way it is being presented is purposely skewed to put the blame on the blacks, gays and Jews. Don't get offended. It's just an interesting, unusual way to tell the story. But I hope it helped you understand the mortgage crisis a little better.