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re: Revisiting the 2008 housing crash
Posted on 6/17/19 at 9:09 pm to DyeHardDylan
Posted on 6/17/19 at 9:09 pm to DyeHardDylan
Because they didn’t have to. They rolled them together into CDOs and passed the toxic assets onto someone else.
You really are showing a deep fundamental lack of understanding of what actually happened.
You really are showing a deep fundamental lack of understanding of what actually happened.
0
Posted on 6/17/19 at 9:09 pm to DyeHardDylan
Did you read this?
NBER
NBER
quote:
Utilizing new panel micro data on the ownership sequences of all types of borrowers from 1997-2012 leads to a reinterpretation of the US foreclosure crisis as more of a prime, rather than a subprime, borrower issue. Moreover, traditional mortgage default factors associated with the economic cycle, such as negative equity, completely account for the foreclosure propensity of prime borrowers relative to all-cash owners, and for three-quarters of the analogous subprime gap. Housing traits, race, initial income, and speculators did not play a meaningful role, and initial leverage only accounts for a small variation in outcomes of prime and subprime borrowers.
Posted on 6/17/19 at 9:11 pm to cwill
Read The Big Short. It will get you close enough.
Posted on 6/17/19 at 9:12 pm to DyeHardDylan
That’s not the only reason shitty loans were being made, and if you truly have been researching this issue you would know that.
And I’m sure it’s just being overly casual with the terminology, but you do realize that the banks were not the ones actually making most of the subprime loans, right? They were buying them up in spades from independent mortgage lenders, but not making too many of them themselves. And they did that because they could package those risky loans into complex assets that they could call ‘diversified’, magically making them safe. So the story goes.
They weren’t buying all these shite assets from the subprime lenders because the government made them do it. They bought them because they wanted them.
And I’m sure it’s just being overly casual with the terminology, but you do realize that the banks were not the ones actually making most of the subprime loans, right? They were buying them up in spades from independent mortgage lenders, but not making too many of them themselves. And they did that because they could package those risky loans into complex assets that they could call ‘diversified’, magically making them safe. So the story goes.
They weren’t buying all these shite assets from the subprime lenders because the government made them do it. They bought them because they wanted them.
Posted on 6/17/19 at 9:14 pm to Martini
The documentary “Inside Job” also does a really great job.
The only part they get wrong is the part about taxpayer money “lost”. They were actually loans, all paid back, w interest. Semantics but it’s one part that’s unnecessarily overly dramatic. Overall though, they do a really great job of explaining what happened.
The only part they get wrong is the part about taxpayer money “lost”. They were actually loans, all paid back, w interest. Semantics but it’s one part that’s unnecessarily overly dramatic. Overall though, they do a really great job of explaining what happened.
This post was edited on 6/17/19 at 9:21 pm
Posted on 6/17/19 at 9:18 pm to DyeHardDylan
You speak the truth, my friend
Posted on 6/17/19 at 9:31 pm to DyeHardDylan
Democrats caused it to get their golden goose crack dealer obama
And republicans sealed it with limp wristed RINO McCain going against him
And republicans sealed it with limp wristed RINO McCain going against him
Posted on 6/17/19 at 9:32 pm to BamaCoaster
quote:
Link?
Just so this doesn’t go unanswered and people continue to lie:
White House archives
Video
WSJ
USN&WR
The Fed
It is undeniable that Bush and McCain said that there’s too much linked to subprime mortgage lenders and if they fall, too many other finances will fall too.
Bush is a giant POS for a host of reasons but it infuriates me when people try to blame him.
Posted on 6/17/19 at 9:34 pm to DyeHardDylan
See Jamie Gorelick and Andrew cuomo
Posted on 6/17/19 at 9:42 pm to DyeHardDylan
Yep and those loans being available to everyone caused a hot housing market and artificially inflated costs of homes. Then they kept giving loans to these people that they really couldn’t afford, on a house that was sold for twice it’s actual value. So when foreclosures started to happen everywhere the market corrected, housing prices plummeted, and banks couldn’t recoup their money they loaned out by selling the homes.
It was an incredibly stupid policy
It was an incredibly stupid policy
Posted on 6/17/19 at 9:42 pm to DyeHardDylan
that was the pet project of thew DNC and lead by barney frank forcing freddy and fanny to give 250k loans to everyone even though they made less then $20k yearly incomes.
then they set up the loans so people can just go bankrupt and walk away clean since few put more the $2k down to buy the house to begin with and uncle same ends up holding the bag
then they set up the loans so people can just go bankrupt and walk away clean since few put more the $2k down to buy the house to begin with and uncle same ends up holding the bag
Posted on 6/17/19 at 9:42 pm to Martini
quote:
by Martini
Read The Big Short. It will get you close enough
^^^ I loved the movie too
Good drama
But movie was democrat diversion tool produced by ultra lib blaming crisis on banks banks banks
Banks were forced to give no document loan to the poor that couldn’t begin to afford a house payment
Forced record numbers of foreclosures gathered up by hedge funds that bought off politicians
Politicians got filthy wealthy with money and real estate
Shell game
OP is right in that government has always been the reason for crashes, you’ve just gotta follow money trail
This post was edited on 6/17/19 at 9:44 pm
Posted on 6/17/19 at 9:43 pm to DyeHardDylan
OP you are correct, but don't ignore the pump and dump speculators that were involved.
Posted on 6/17/19 at 9:52 pm to funnystuff
quote:
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.
This is the correct answer.
I would even take it a step further.
While government was pushing banks to have laxer lending standards, the government was doing so on Fannie/Freddie loan guarantees, those weren't the loans that blew up.
What blew up were subprime mortgages, and those had zero government backing, those were all private capital loans, those were the ones wrapped up in credit default swaps, that was Wall Street run amuck. And plenty of individual borrowers ready to sign a loan they had never qualified for before.
If anything, the mortgage crisis was a case of the government not having enough regulation, which I say, as a conservative, very rarely.
Posted on 6/17/19 at 9:54 pm to deeprig9
"Government forced banks to give mortgages to people who couldn't afford them" = False
Posted on 6/17/19 at 9:58 pm to DyeHardDylan
quote:
The Community Reinvestment Act, the American Dream Act (signed by President Bush 43), are two of the culprits.
Clinton signing the repeal of Glass-Steagal was the removal of the last protection to keep that from happening.
Posted on 6/17/19 at 10:00 pm to funnystuff
quote:
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.
Bingo.
The market was a bunch of meth heads and meth dealers, and the government was Heisenberg.
Posted on 6/17/19 at 10:02 pm to DyeHardDylan
Ehhh.
The civil Rights act made it illegal to discriminate based on ability to pay back.
Mark to market, Barney Frank, predatory lending, it all played a part. As another poster said, it was a bunch of things working in concert over a long time that got us there.
Funny thing is, after all was said and done, only 10% of those subprime loans defaulted. Go figure.
The civil Rights act made it illegal to discriminate based on ability to pay back.
Mark to market, Barney Frank, predatory lending, it all played a part. As another poster said, it was a bunch of things working in concert over a long time that got us there.
Funny thing is, after all was said and done, only 10% of those subprime loans defaulted. Go figure.
Posted on 6/17/19 at 10:04 pm to DyeHardDylan
There’s funny video from 2006 or so of black members of congress accusing Bush of racism for attacking lending practices at the time saying he didn’t want low income minorities to have the chance to buy homes.
Tee hee
Tee hee
Posted on 6/17/19 at 10:13 pm to Kino74
quote:
Very true. Bush made those accusations multiple times to no avail.
Here's the 2004 Republican Party Platform.
If you scroll down to the 'Ownership' section, page 42 of 94 there's one on Homewnership.
quote:
Homeownership is central to the American dream, and Republicans want to make it a reality for everyone. That starts with access to capital for entrepreneurs and access to credit for consumers. Both have improved immensely in the past four years, resulting in record levels of homeownership. For the first time, more than half of all minorities own their home.
quote:
We support the President’s goal of increasing the number of minority homeowners by at least 5.5 million families by the end of the decade. Since President Bush announced his initiative in 2002, an additional 1.6 million minorities have become homeowners. The Self-Help Homeownership Opportunities Program helps low-income families purchase a home. The most significant barrier to homeownership is the down payment. We support efforts to reduce that barrier, like the American Dream Downpayment Act and Zero Downpayment Mortgages. The President and Congress have taken action to provide counseling and education to help first-time homebuyers navigate the process of buying a home. The Administration has also taken steps to alert people to the dangers of predatory lending, in an effort to help Americans maintain a positive credit history.
They owned that shite as much as anyone.
This post was edited on 6/17/19 at 10:23 pm
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