Replies to post #225705 on SPDR S&P 500 (SPY)

[tradersrule]

And since you brought up Clinton..... YES the Democrat initiative of the the sub-prime mortgage scandal DID start during the Clinton administration (if you do your research).

This link is one source... http://www.sjsu.edu/faculty/watkins/subprime.htm there are several others

"In the 1990's under the administration of Franklin Raines, a Clinton Administration appointee, Fannie Mae began to demand that the lending institutions that it dealt with prove that they were not redlining. This meant that the lending institutions would have to fulfill a quota of minority mortgage lending. This in turn meant that the lending agencies would have to lower their standards in terms of such things as down payments and the required incomes. These subprime borrowers would be charged a higher interest rate. Having put the lending agencies into the position of granting subprime mortgages Fannie Mae then had to accept lower standards in the mortgages it purchased. That set the ball rolling. If a bank granted a mortgage to a borrower that was not likely to successfully pay off the mortgage then all the bank had to do was to sell such mortgages to Fannie Mae. The banks typically earned a loan origination fee when the mortgage was granted. The lending agencies could then make substantial profits dealing in subprime mortgages."

Good for you..... you're learning. ;-)