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re: Revisiting the 2008 housing crash
Posted on 6/17/19 at 11:16 pm to Green Chili Tiger
Posted on 6/17/19 at 11:16 pm to Green Chili Tiger
quote:
Clinton
I've studied the housing crisis and found that while there were many guilty parties(banks, rating agencies, shadow banking, ninja loans, etc.) Bill Clinton really got the ball rolling.
quote:
Under Clinton's Housing and Urban Development (HUD) secretary, Andrew Cuomo, Community Reinvestment Act regulators gave banks higher ratings for home loans made in "credit-deprived" areas. Banks were effectively rewarded for throwing out sound underwriting standards and writing loans to those who were at high risk of defaulting. If banks didn't comply with these rules, regulators reined in their ability to expand lending and deposits.
These new HUD rules lowered down payments from the traditional 20 percent to 3 percent by 1995 and zero down-payments by 2000. What's more, in the Clinton push to issue home loans to lower income borrowers, Fannie Mae and Freddie Mac made a common practice to virtually end credit documentation, low credit scores were disregarded, and income and job history was also thrown aside. The phrase "subprime" became commonplace. What an understatement.
Next, the Clinton administration's rules ordered the taxpayer-backed Fannie and Freddie to expand their quotas of risky loans from 30 percent of portfolio to 50 percent as part of a big push to expand home ownership.
Fannie and Freddie were securitizing these home loans and offering 100 percent taxpayer guarantees of repayment. So now taxpayers were on the hook for these risky, low down-payment loans.
This article is very interesting and does a good job explaining a different view. cnbc
This post was edited on 6/18/19 at 9:50 am
3
Posted on 6/17/19 at 11:45 pm to DyeHardDylan
frick Bush
Posted on 6/17/19 at 11:55 pm to AUCE05
quote:
frick Bush
There’s the know nothing moron.
Posted on 6/18/19 at 2:44 am to 3nOut
quote:Bush was as much to blame as anyone. He deregulated Wall Street by appointing Donaldson, a Wall Street blue blood, as Chairman of the SEC. Donaldson let the Wall Street firms to virtually value their own assets. The collapse and threatened collapse of Wall Street firms is what sank the listing financial ship.
Bush is a giant POS for a host of reasons but it infuriates me when people try to blame him.
Posted on 6/18/19 at 3:04 am to Bayou_Tiger_225
The when article is very interesting and does a good job explaining a different view You are pretty brave (or unaware) to post a Ludlow and Steven Moore article as "explaining a different view." Those two always pump out in left field economic views. Nothing but uncredentialed, self-promoting, TV talking heads.
Posted on 6/18/19 at 3:10 am to texridder
quote:
The when article is very interesting and does a good job explaining a different view You are pretty brave (or unaware) to post a Ludlow and Steven Moore article as "explaining a different view.
Always attack the messenger when you can't attack the facts.Leftism 101
Posted on 6/18/19 at 3:11 am 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.
You don't have to go back to the 70's.
Janet Reno threatened banks and lenders with the penalty of jail time if they didn't play ball. Surprise surprise, a quick search for the video of her making the threat turned up empty(gee I wonder why that would be), but it's there somewhere. I sent it.
LINKto NYT article praising her for "ending discrimination" in one particular bank
Posted on 6/18/19 at 3:13 am to RD Dawg
quote:Complete horseshite. Bush said all that for sound bites. He was giddy saying how proud he was because his administration would have the highest percentage of home ownership in American history. Read the RNc's platform posted earlier if you want to see what Bush's home ownership plans were-- in black and white.
Complete horseshitee.He tried to reign in Fraddie and Fannie on MULTIPLE occasions along with Barny Frank and Harry Reid...the Dims would have none of it.
Posted on 6/18/19 at 3:14 am to texridder
quote:
Bush was as much to blame as anyone.
Bush was a fricking disaster, but was absolutely right on this. He warned of the problem multiple times years in advance but backed down like a pussy.
Then later the dipshit touted "record minority home ownership."
Posted on 6/18/19 at 3:21 am to RD Dawg
quote:Posting air-headed, 3rd party, useless comments. Dumbass 101.
Always attack the messenger when you can't attack the facts.Leftism 101
What Do you know about Ludlow and Moore? Anything?
This post was edited on 6/18/19 at 4:00 am
Posted on 6/18/19 at 3:43 am to texridder
quote:
Posting air-headed, 3rd party, useless comments. Dumbass 101.
LMAO,,,and you still can't refute facts.
Ok,here are documented FACTS and qoutes about GWB and what is adminstration did and said along with direct qoutes from Reid,Frankk and Dodd
quote:
September: Then-Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact "legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises" and set prudent and appropriate minimum capital adequacy requirements.
September: Then-House Financial Services Committee Ranking Member Barney Frank (D-MA) strongly disagrees with the Administration's assessment, saying "these two entities – Fannie Mae and Freddie Mac – are not facing any kind of financial crisis … The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing." (Stephen Labaton, "New Agency Proposed To Oversee Freddie Mac And Fannie Mae," The New York Times, 9/11/03)
quote:
October: Senator Thomas Carper (D-DE) refuses to acknowledge any necessity for GSE reforms, saying "if it ain't broke, don't fix it." (Sen. Carper, Hearing of Senate Committee on Banking, Housing, and Urban Affairs, 10/16/03)
quote:
April: Then-Secretary Snow repeats his call for GSE reform, saying "Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America … Half-measures will only exacerbate the risks to our financial system." (Secretary John W. Snow, "Testimony Before The U.S. House Financial Services Committee," 4/13/05)
July: Then-Minority Leader Harry Reid rejects legislation reforming GSEs, "while I favor improving oversight by our federal housing regulators to ensure safety and soundness, we cannot pass legislation that could limit Americans from owning homes and potentially harm our economy in the process." ("Dems Rip New Fannie Mae Regulatory Measure," United Press International, 7/28/05)
Plenty more if you can actually comprehend BOOKMARKED and noted qoutes
Here ya go:
quote:
August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying "first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options." (President George W. Bush, Press Conference, the White House, 8/9/07)
August: Senate Committee on Banking, Housing and Urban Affairs Chairman Christopher Dodd ignores the President's warnings and calls on him to "immediately reconsider his ill-advised" position. (Eric Dash, "Fannie Mae's Offer To Help Ease Credit Squeeze Is Rejected, As Critics Complain
This post was edited on 6/18/19 at 3:56 am
Posted on 6/18/19 at 4:22 am to BamaCoaster
Posted on 6/18/19 at 4:44 am to DyeHardDylan
quote:
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.
This was the driving factor - without that business would have progressed as usual and there would have been no bubble to burst.
The cause of the disaster was SOLELY the fault of do-gooder DEMOCRAT activism dating back to Carter and exacerbated by Clinton. Bush tried to warn them but the DEMOCRAT stalwarts of Dodd and Frank openly mocked him = right up until th bubble burst and then started BLAMING him.
DEMOCRATs are the root cause of EVERY domestic problem we have suffered in America since reconstruction.
Posted on 6/18/19 at 5:43 am to DyeHardDylan
quote:
Revisiting the 2008 housing crash
And everything is in place for it to happen again......and again......and again
Posted on 6/18/19 at 6:09 am to DyeHardDylan
quote:
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
1000% correct...
From 2004, we have youtube videos via CSPAN of every black representative in Congress defending the investigation into fannie mae and freddy mac lending practices
Maxine said it was witch hunt....of Franklin Raines
https://www.youtube.com/watch?v=IyqYY72PeRM
A very troubling report
in their own words, ENJOY Facts Democrats refuse to acknowledge happened
Their beliefs, values and policies fail America everytime
Posted on 6/18/19 at 6:16 am to SoulGlo
quote:
Bush was a fricking disaster, but was absolutely right on this. He warned of the problem multiple times years in advance but backed down like a pussy.
Then later the dipshit touted "record minority home ownership."
All of this but the "he was right part"; you can't say "hey this is going to frick us badly and then do nothing"
Posted on 6/18/19 at 6:30 am to DyeHardDylan
I’m going to blame the people with incomes of $40k thinking they could buy 5 houses and flip them. Yea the banks shouldn’t have loaned them money but ultimately people signed those mortgage docs and failed to pay up I blame those people who made agreements and failed to live up to those agreements
Posted on 6/18/19 at 6:44 am to DyeHardDylan
The rating agencies were the biggest culprits in the crash. They were incompetent, dishonest, and in bed with market players when they must be independent to be meaningful.
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