LET'S NOT FORGET PART 2

The chairman of Georgia State University's real estate department, Julian Diaz III defined the difference between predatory loans and sub prime loans.  Suprime loans were made to borrowers who didn't qualify for standard or prime loans.  They had the abiliity to repay, but had to pay higher interest rates to account for greater risk.  A predatory loan was a deceptive loan that the lender used to deceive borrowers and convince them to agree to loan terms that were unfair or abusive.  Another important point was the two types of private equity businesses that are buyout firms that purchases all or part of existing companies and sell them later for higher prices, some firms hold investments for years, while others flip properties for fast profits.  Venture capital firms that provide money for businesses to get off the ground, and venture capital funds cash in when one of their compaines becomes viable enough to go public or get sold. The Administrative Branch/Bush Administration and the Legislative Branch (Congress and Senate) one year later have turned the United States Treasury into  Buyout and Venture Capital firms under the disguise of the term "Bailout" a term that they want to disassociate themselves with now.  In September 2007 President Bush stated that he planned a limited intervention and that the proposal was not to help housing investors or lenders.  President Bush said," A federal bailout of lenders would only encourage a resurrence of the problem.  It's not the government's job to bail out speculators, or thoses who made the decision to buy a home they knew they could never afford."