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Revisiting the 2008 housing crash
Posted on 6/17/19 at 7:35 pm
Posted on 6/17/19 at 7:35 pm
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.
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Posted on 6/17/19 at 7:43 pm to DyeHardDylan
quote:chicken dinner
essentially forcing banks to lend money to people who couldn’t afford a house.
Posted on 6/17/19 at 7:45 pm to DyeHardDylan
Bush warned congress of the impending crash. He was called, surprise surprise, racist. After the crash he got blamed. Typical.
Posted on 6/17/19 at 7:48 pm to DyeHardDylan
quote:There is youtube video on some of the more decent republicans warning and Maxine screamed racist.
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.
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 6/17/19 at 7:49 pm
Posted on 6/17/19 at 7:49 pm to BBONDS25
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.
Posted on 6/17/19 at 7:52 pm to cajunangelle
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".
Posted on 6/17/19 at 8:06 pm to BBONDS25
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.
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 6/17/19 at 8:09 pm
Posted on 6/17/19 at 8:18 pm to MrCarton
quote:
Bush endorsed the expansion of home ownership via reduced lending standards, did he not?
Youre not this stupid or you....nevermind.
Posted on 6/17/19 at 8:24 pm to BBONDS25
quote:
Bush warned congress of the impending crash. He was called, surprise surprise, racist. After the crash he got blamed. Typical.
Link?
Posted on 6/17/19 at 8:25 pm to DTRooster
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....
Posted on 6/17/19 at 8:28 pm to DyeHardDylan
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.
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.
Posted on 6/17/19 at 8:29 pm to DyeHardDylan
Y’all can thank that cocksucker Barney Frank for a lot of it.
Posted on 6/17/19 at 8:32 pm to funnystuff
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......
Posted on 6/17/19 at 8:36 pm to DTRooster
Bush is as much to blame as anyone. He was a neocon who never really believed in limited government.
Posted on 6/17/19 at 8:39 pm to mwade91383
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.
Posted on 6/17/19 at 8:43 pm to DyeHardDylan
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....
Posted on 6/17/19 at 8:49 pm to mwade91383
Recessions happen cyclically, yes. That’s the nature of the free enterprise system. But government amplified and exacerbated the problem, and prolonged the agony.
Posted on 6/17/19 at 8:52 pm to DyeHardDylan
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...
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.
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.
If you can’t afford to buy a house
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 6/17/19 at 8:55 pm
Posted on 6/17/19 at 9:03 pm to funnystuff
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.
Posted on 6/17/19 at 9:04 pm to DyeHardDylan
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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