"John Rennie" <john-rennie@[EMAIL PROTECTED]
> wrote in message
news:T4OdneWTiu_hKbzUnZ2dnUVZ8qbinZ2d@[EMAIL PROTECTED]
> http://www.nytimes.com/2008/11/17/business/economy/17gramm.html?hp
>
> "A fierce opponent of government intervention in the marketplace, Mr.
> Gramm, a Republican from Texas, recalled the episode during a 2001
Senate
> debate over a measure to curb predatory lending. What some view as
> exploitive, he argued, others see as a gift.
>
> "Some people look at subprime lending and see evil. I look at subprime
> lending and I see the American dream in action," he said. "My mother
lived
> it as a result of a finance company making a mortgage loan that a bank
> would not make.""
>
> More fool the bank she went to if she did in fact ask for and was
rejected
> for a bank mortgage. In no way was Mrs Gramm a sub prime borrower.
She
> was a nurse, always a valued profession. She had three children and a
> disabled husband - some might consider that only to be a financial
> burden - to a lender it should mean that she was tied down firmly to her
> home. The above really proves that Mr. Gramm has no idea about
sub-prime
> mortgages - he's got qualifications but they are merely academic - he's
> never done any lending. What he fails to understand about the world
> of banking from roundabout 2000 onwards is that it had no relation to
the
> world that he studied long ago at university. Financial institutions
> lent to customers money that they borrowed from other institutions.
That
> means that they immediately lost any connection or interest in the
person
> they lent money to. It became somebody else's problem. That's just not
> proper lending - the only regulation that the mortgage and banking
> industry requires is, to put it very simply, that you may only lend your
> own institution's money. That requirement means that banks will self
> regulate themselves which is what Mr. Gramm wanted but not quite in the
way
> he wanted.
>
Gramm holding forth on why the economy's dive is a media-induced
hallucination and so everybody should stop "whining" about it:
http://www.cnn.com/2008/POLITICS/07/10/mccain.gramm/index.html#cnnSTCVideo
Born too late, Gramm. Herbert Hoover could have gotten away with
peddling crap like that but nobody buys it anymore--not even McCain.
http://www.truveo.com/Obama-responds-to-Mccain-adviser-Phil-Gramm-whiner/id/1495038217
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