Jeebus or the unsearcher. What universe expelled them.
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Jeebus or the unsearcher. What universe expelled them.
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Originally Posted by ODENTON
Ours.
Thus, the "beteverse" meme.
Reality is "too liberal".
Fantasy becomes the only logical option.
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Sadly this myth won't die
If Democrat policies are to blame, why did it take 30 years for the mortgage securities market to peak and why did it peak at a time when Republicans controlled Congress and the White House?
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October 15th, 2007-Bernanke: "It is not the responsibility of the Federal Reserve--nor would it be appropriate --to protect the lenders and investors from the consequences of their financial decisions."
The members of the Federal Reserve Board are supposed to be knowledgeable about the economy and therefore should not be continually surprised by events. The fact that they have been repeatedly surprised by the weakness in the housing market raises serious questions about their competence. The Fed’s repeated expressions of surprise warrant attention in the media, which they have not yet received.
Read more at http://www.nakedcapitalism.com/2007/...C5AHBrfku4A.99
It's amazing how much faith we put in Helicopter Ben to get the economy back on track after proving he had no clue the housing market was in a huge bubble brought on by "liar loans", zero interest loans for the first two or three years, Option ARMs (suicide loans), low credit scores accepted, lenders not accountable the loans, and bond rating agencies giving bad bond packages AAA ratings. This was a recipe for disaster.
Last edited by flyboy56; 02-10-2013 at 10:55 AM.
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Your answer is quoted below..... maggie, meet your fool.
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He was responding to the OP who premised that it was all the fault of the Democrats.
It is hilarious that you accuse others of what is so blatantly true of yourself. You cannot be this obtuse. Can you?
Last edited by Baltimatt; 02-10-2013 at 03:08 PM. Reason: Personal attack deleted
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This place is like a Jr High cafeteria today.
Today...?
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The Village Voice back in 2008 exposed government meddling in the mortgage market as a cause of the meltdown...
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http://www.villagevoice.com/2008-08-...ddie-mac/full/
Andrew Cuomo and Fannie and Freddie
How the youngest Housing and Urban Development secretary in history gave birth to the mortgage crisis
By Wayne Barrett Tuesday, Aug 5 2008
There are as many starting points for the mortgage meltdown as there are fears about how far it has yet to go, but one decisive point of departure is the final years of the Clinton administration, when a kid from Queens without any real banking or real-estate experience was the only man in Washington with the power to regulate the giants of home finance, the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC), better known as Fannie Mae and Freddie Mac.
Andrew Cuomo, the youngest Housing and Urban Development secretary in history, made a series of decisions between 1997 and 2001 that gave birth to the country's current crisis. He took actions that—in combination with many other factors—helped plunge Fannie and Freddie into the subprime markets without putting in place the means to monitor their increasingly risky investments. He turned the Federal Housing Administration mortgage program into a sweetheart lender with sky-high loan ceilings and no money down, and he legalized what a federal judge has branded "kickbacks" to brokers that have fueled the sale of overpriced and unsupportable loans. Three to four million families are now facing foreclosure, and Cuomo is one of the reasons why....
...In 2000, Cuomo required a quantum leap in the number of affordable, low-to-moderate-income loans that the two mortgage banks—known collectively as Government Sponsored Enterprises—would have to buy. The GSEs don't actually sell mortgages to borrowers. They buy them from banks and mortgage companies, allowing lenders to replenish their capital and make more loans. They also purchase mortgage-backed securities, which are pools of mortgages regularly acquired by the GSEs from investment firms. The government chartered these banks to pump money into the mortgage market and, while they did it, to make a strong enough profit to attract shareholders. That created a tug-of-war between their efforts to maximize shareholder value, which drove them toward high-end mortgages, and their congressionally mandated obligation to finance loans for those who needed help. The 1992 law required HUD's secretary to make sure housing goals were being met and, every four years, set new goals for Fannie and Freddie....
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IMO the reason for the real estate bubble lies at feet of a number of groups:
a. Many builders struck sweetheart deals with banks to get risky buyers in, with little or nothing down. The builders got their cash and now the taxpayers are paying the bill.
b. Selling houses for inflated prices, got to a point, where just about anyone holding a piece of real estate could prosper. It was just too easy.
c. Most real estate agents were glad to participate and enjoyed the inflated commissions, during the boom years. It was no more work for a real estate agent to sell a $300,000 house than a $150,000 house during the peak of selling frenzy.
d. When the interest rates were allowed to fall below the 5% range, many unqualified buyers, who were previously renters, could now be players in the real estate market. The problem was that many of them did not have the discipline to handle the responsibility of home ownership.
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Keep trying to blame the darkies but it is just not true.
JP Morgan, Bear Stearns, WaMu and others knowingly took lousy mortgages and bundled them up into lousy securities and then lied about the quality of the mortgages in order to sell them off to suckers like HSBC and deutsche bank. AIG was stupid enough to sell insurance on securities that anyone with even a modicum of due dilligence could see were absolute junk. Fraud and negligence at a massive scale.
There's a reason that a few people made hundreds of millions of dollars while the financial market fell apart.
http://dealbook.nytimes.com/2013/02/...ref=litigationAt Bear Stearns and Washington Mutual, employees also had the power to sanitize bad assessments. Employees at Bear Stearns were told that they were responsible for “purging all of the older reports” that showed flaws, “leaving only the final reports,” according to the court documents.
Such actions were designed to bolster profit. In a deposition, a Washington Mutual employee said revealing loan defects would undermine the lucrative business, and that the bank would suffer “a couple-point hit in price.”
Ratings agencies also did not necessarily get a complete picture of the investments, according to the court filings. An assessment of the loans in one security revealed that 24 percent of the sample was “materially defective,” the filings show. After exercising override power, a JPMorgan employee sent a report in May 2006 to a ratings agency that showed only 5.3 percent of the mortgages were defective.
Such investments eventually collapsed, spreading losses across the financial system.
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You're forgetting the big thing. The subprime mortgages were hot potatoes so no one had to worry about getting stuck holding a crappy loan. Countrywide would quickly sell the lousy mortgages off to JP Morgan or Goldman Sachs. They would then bundle them up, get a triple A rating and sell them off to somebody else. What could possibly go wrong? The returns were so juicy that some companies suddenly found themselves over leveraged and holding a bag of worthless 'assets'.
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The interesting thing about Greenspan was that he often maintained that the government shouldn't have regulatory oversight in the markets. He held this idea even when parties could find a way to hold information from getting to other parties and then straight up lying about what they were selling. He believed that even when cheating occurs in the market that government should have no involvement, that the market should be what figures it out.
After the debacle in 2008 he changed his tune substantially. Even the most staunch deregulation types should recognize that there should be legal recourse for fraud. Fraud was a substantial catalyst in making securities and insurance take everything down.
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That, coupled with Bubba signing the repeal of the Glass-Steagall Act, thus removing the separation of commercial and investment banking which it prohibited.
As to your point, here's a great explanation of how it happened. (contains graphic language )
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Source: CRA Lending During the Subprime Meltdownloans made by CRA lenders within their assessment areas, which receive the greatest regula- tory scrutiny under the CRA, are significantly less likely to be in foreclosure than those made by independent mortgage companies that do not receive the same regulatory oversight.
First, the data show that overall, lending to low- and moderate-income communities com- prised only a small share of total lending by CRA lenders, even during the height of subprime lending in California. Second, we find loans originated by lenders regulated under the CRA in general were significantly less likely to be in foreclosure than those originated by independent mortgage companies.
Elizabeth Laderman and Carolina Reid* Federal Reserve Bank of San Francisco
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You have to laugh at the recent news reporting claiming the US AG is going after the ratings agencies for giving AAA to the mortgage bonds that were issued by the major banks and mortgage companies. The AG blames these mortgage companies for the housing market crash. Yet just last year when the S&P rating's agency, rightfully downgraded the US government a loud backlash could be heard from the government yelling fowl. If any bank managed it's finances the way the government does they would have closed years ago. Our government is full of hypocrites.
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That's actually fabulous. Thank youThat, coupled with Bubba signing the repeal of the Glass-Steagall Act, thus removing the separation of commercial and investment banking which it prohibited.
As to your point, here's a great explanation of how it happened. (contains graphic language )
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