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A Feb. 20 letter to the editor, "GOP Wants Cuts for a Segment Growing Poorer," states that the Great Recession was largely caused by the policies of George W. Bush and his administration. There were many causes for the Great Recession.
One of the biggest reasons was the collapse of the housing market and the surge in foreclosures. In 1977, under Democratic President Jimmy Carter, the Community Reinvestment Act was passed, which relaxed some of the rules for people who wished to buy houses. In 1995, under Democratic President Bill Clinton, the act was modified to relax even more rules for obtaining mortgages. Mortgage companies began lending money to anyone and everyone -- people with no jobs, no income, no assets and no credit rating. Mortgage writers did not check information on mortgage applicants. Freddie Mac and Fannie Mae also lowered standards for mortgages. The Bush administration repeatedly warned about Freddie Mac and Fannie Mae becoming too large and failing. The policies of Presidents Carter and Clinton could also be blamed for the Great Recession.
BILL WILSHIRE
Irwin
First Published March 4, 2013 12:00 am
