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The Democrats supported lowering lending standards so more minorities could buy homes. Now, in 2009, which groups do you think are suffering the most from foreclosures?
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People who lose their jobs and didn't save are a large part of it. But there were lots of middle to upper income people who bought a second, third or forth house because they could with the new lending rules that they used in their favor. When the price of homes went up, they were making money, but when the prices went down, they stopped making payments and with the 80/20 lending, PMI insurance, interest only loans, these investors were able to walk away by foreclosing and leave the banks holding a depreciating asset. Why would they want to pay for a house they can't sell for a profit?
Both groups are to blame, and I would support increasing their taxes for the next 10 years.