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DyeHardDylan
Auburn Fan
Member since Nov 2011
5142 posts

Revisiting the 2008 housing crash
I’ve been studying this a lot lately. A lot of people are quick to blame the lenders and banks for the crash in 2008, and rightfully so. But it wasn’t the lack of regulations that contributed to the collapse, it was the government providing an incentive to the banks and essentially forcing banks to lend money to people who couldn’t afford a house. Ever since the 1970s, the federal government has been enamored with this idea that everyone should own a house. The Community Reinvestment Act, the American Dream Act (signed by President Bush 43), are two of the culprits. You essentially had the government forcing lenders to meet certain quotas of how many subprime mortgages they could give out, all the while knowing these people could never pay back their loans. The monstrosity of the federal government is what caused the Great Recession, not a lack of government. And if you look at any crisis in American history, you can reach the same conclusion. Government is the problem, not the solution.


DTRooster
LSU Fan
Dtown, La
Member since Dec 2013
4133 posts
 Online 

re: Revisiting the 2008 housing crash
quote:

essentially forcing banks to lend money to people who couldn’t afford a house.
chicken dinner


BBONDS25
LSU Fan
Member since Mar 2008
35829 posts
 Online 

re: Revisiting the 2008 housing crash
Bush warned congress of the impending crash. He was called, surprise surprise, racist. After the crash he got blamed. Typical.


cajunangelle
Navy Fan
eating a fried oyster/shrimp poboy
Member since Oct 2012
86898 posts
 Online 

re: Revisiting the 2008 housing crash
quote:

it was the government providing an incentive to the banks and essentially forcing banks to lend money to people who couldn’t afford a house.
There is youtube video on some of the more decent republicans warning and Maxine screamed racist.

Although if the R's got some sweet kick backs they would STFU while it went down. They are all snakes in the grass but very few. They will stick in some more Ryan and Amash head fakes to placate.

DC needs a complete reboot.
This post was edited on 6/17 at 7:49 pm


Kino74
LSU Fan
Denham springs
Member since Nov 2013
3328 posts
 Online 

re: Revisiting the 2008 housing crash
quote:

Bush warned congress of the impending crash. He was called, surprise surprise, racist. After the crash he got blamed. Typical.


Very true. Bush made those accusations multiple times to no avail. The Dems didn't care because they knew if a crash happens on his term, the msm will blame him. If the crash happens on a dem presidency, the banks and lending institutions will take the blame.


gthog61
Georgia Tech Fan
Irving, TX
Member since Nov 2009
44332 posts
 Online 

re: Revisiting the 2008 housing crash
quote:

There is youtube video on some of the more decent republicans warning and Maxine screamed racist.



I have seen this, impossible to find now. There were several black dems on the committee, all saying "no problem".


MrCarton
UNO Fan
Paradise Valley, MT
Member since Dec 2009
20136 posts
 Online 

re: Revisiting the 2008 housing crash
Bush Administration's position on whitehouse.gov

Bush endorsed the expansion of home ownership via reduced lending standards, did he not?

If he didn't see it coming, that would be a story.
This post was edited on 6/17 at 8:09 pm


trinidadtiger
Member since Jun 2017
3481 posts

re: Revisiting the 2008 housing crash
quote:

Bush endorsed the expansion of home ownership via reduced lending standards, did he not?


Youre not this stupid or you....nevermind.


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64
BamaCoaster
LSU Fan
God's Gulf
Member since Apr 2016
1823 posts

re: Revisiting the 2008 housing crash
quote:


Bush warned congress of the impending crash. He was called, surprise surprise, racist. After the crash he got blamed. Typical.


Link?


McLemore
Member since Dec 2003
21298 posts

re: Revisiting the 2008 housing crash
quote:

essentially forcing banks to lend money to people who couldn’t afford a house.

chicken dinner


Dems are chomping at the bit for the next one, as an excuse and catalyst for fundamentally changing the United States.

The cultural buffering solution is mixed and waiting.

I'm to tired to complete the chemistry metaphor. The masses are so dumb that it won't take much to go full....


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42
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funnystuff
Member since Nov 2012
4866 posts

re: Revisiting the 2008 housing crash
The community reinvestment act was enacted in 1977. Tough to blame a crisis that was fully rooted in the failures of the 2000s on a policy that existed 20 years prior to that.


Government was a problem, yes. But saying it was THE problem is ridiculous. There was failure at literally every single level of the market. There was no THE problem. There were a dozen problems each amplifying the others.


TigerFanInSouthland
LSU Fan
Louisiana
Member since Aug 2012
22532 posts

re: Revisiting the 2008 housing crash
Y’all can thank that cocksucker Barney Frank for a lot of it.


mwade91383
LSU Fan
Washington DC
Member since Mar 2010
3874 posts

re: Revisiting the 2008 housing crash
quote:

The community reinvestment act was enacted in 1977. Tough to blame a crisis that was fully rooted in the failures of the 2000s on a policy that existed 20 years prior to that.


Government was a problem, yes. But saying it was THE problem is ridiculous. There was failure at literally every single level of the market. There was no THE problem. There were a dozen problems each amplifying the others.


What ACTUALLY happened, for those who paid attention. Doesn't fit poliboard narrative though......


DyeHardDylan
Auburn Fan
Member since Nov 2011
5142 posts

re: Revisiting the 2008 housing crash
Bush is as much to blame as anyone. He was a neocon who never really believed in limited government.


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91
DyeHardDylan
Auburn Fan
Member since Nov 2011
5142 posts

re: Revisiting the 2008 housing crash
No, government was the problem, and you missed the whole point. The Community Reinvestment Act was merely a launching pad for the federal government to be more involved in the housing market. 30+ years of the belief that everyone should own a home is the problem. If you can’t afford to buy a house, you shouldn’t be able to. Bush and the neocons bought into the liberal lie that the government could make sure everyone could buy a house and that there wouldn’t be any consequences.


mwade91383
LSU Fan
Washington DC
Member since Mar 2010
3874 posts

re: Revisiting the 2008 housing crash
quote:

No, government was the problem, and you missed the whole point. The Community Reinvestment Act was merely a launching pad for the federal government to be more involved in the housing market. 30+ years of the belief that everyone should own a home is the problem. If you can’t afford to buy a house, you shouldn’t be able to. Bush and the neocons bought into the liberal lie that the government could make sure everyone could buy a house and that there wouldn’t be any consequences.


I take it you haven't actually looked into it much....


DyeHardDylan
Auburn Fan
Member since Nov 2011
5142 posts

re: Revisiting the 2008 housing crash
Recessions happen cyclically, yes. That’s the nature of the free enterprise system. But government amplified and exacerbated the problem, and prolonged the agony.


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51
funnystuff
Member since Nov 2012
4866 posts

re: Revisiting the 2008 housing crash
Even if that’s the argument you want to go with, there is clearly another party that is hugely to blame here. You even said it yourself...
quote:

If you can’t afford to buy a house
People who know they could not and would not repay their loans were taking out the loans all the same. That is fundamentally amoral behavior. So people are also to blame. Individuals. And you can’t let the amoral behavior of individuals off the hook under the guise of government being the root of all evil.

Government screws up more than their fair share of the things they touch, and they certainly screwed the pooch here. But they weren’t the only ones. Don’t let the myriad of other failures off the hook.
This post was edited on 6/17 at 8:55 pm


DyeHardDylan
Auburn Fan
Member since Nov 2011
5142 posts

re: Revisiting the 2008 housing crash
quote:

People who know they could not and would not repay their loans were taking out the loans all the same. That is fundamentally amoral behavior. So people are also to blame. Individuals. And you can’t let the amoral behavior of individuals off the hook under the guise of government being the root of all evil.


I completely agree. But it is also the responsibility of the banks to deny those loans. Why couldn’t they? Because the government forced them to approve a certain amount of subprime mortgage loans by meeting literal quotas. That is textbook government intervention into the free market system, and the housing market was the first domino to fall before the Great Recession.


cwill
Member since Jan 2005
41099 posts

re: Revisiting the 2008 housing crash
Without a doubt, to a degree, but the securitization of the debt is what fueled the crash...that was where people were making billions smearing shite.


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