This is not about Trump.

You are correct its not only about Trump. Both Republicans and Democrats have fallen into the banker myths that let bankers take control. But Trump is making it worse.

The bankers have been successful at fooling the mainstream media in reporting that government attempts to help the poor where the causes of the housing market meltdown.

This is simply wrong!

A prime loan is one that has good prospects of being repaid. It does not depend on high or low income. Low income people with good credit will just as likely repay the mortgage loan as high income people.

Fannie Mae had lending standards. They were the same as the regular bank lending standards in the sense of good credit, income more than three times the mortgage instalment and such, the only difference was a 5% instead of a 20% down payment and often a longer time to pay off (amortization period) than a bank mortgage.

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But then private-label mortgage companies mushroomed in the subprime lending area. Some of their better customers met Fannie’s standard and they could sell those mortgage to it. But when they ran out of qualifying applicants, they engaged mobile mortgage brokers to go out and lure new applicants. They also hired used-car salesman to sell mortgages to people totally unqualified and who became known as the famous ninja loans (see a very good description of the predatory lending techniques in: All The Devils are Here, McLean and Nocera).

The applications were fudged to make it appear as if they met Fannie’s lending standards when they were sold to Fannie.

Investment banks also bought these mortgages, saw that they were fraudulent, disguiesd them in mixed CDOs, and knowingly and wrongly told investors that the bank had independently vetted the applications and that they met lending standards.

Only about eight years later was this fraud uncovered. Sixteen of the major banks pleaded guilty to the fraud as I have described it. It got little fourth or fifth page coverage from the media, so most people still believe the bank propaganda.

All this happened before Trump but he is blindly continuing the policies that harm the very people in economic despair to look to him to be different. Yet, he’s going to make it worse financially for them in ways they cannot see.

Its important that the true causes of the 2008 meltdown are understood so wrong advisors are not appointed and banker friendly policies are resisted just as wrong health care reforms are resisted.

And, of course, there were many people who sounded, and are still sounding, warnings but the economists of influence and the media ignore. I’ll name just a few, there were many more, ignored then-ignored now: Bill White of the Bank of international Settlements; Raghuram Rajan, then at U of Chicago, and especially, Brooksly Born of the Commodity Futures Trading Commission.

Instead of listening to those who were right, the mainstream media gives exclusive publicity to those who wrong! Isn’t it time to give some attention to those who, as you ask, trying to warn us 20 years ago and not the bankers who exploit the poor?