re: Revisiting the 2008 housing crash

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

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Barney Frank also.

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You're a dishonest prick X 2

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You're the queen of dishonesty

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Is there some reason you won't give the link to the one source where you got the information

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Get it your go GD self you lazy POS.Its not that difficult.

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Here's laughing at you.

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Because I presented documented facts?

You're one strange dude.

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CRA loans weren't a big percentage of the subprimes.

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That was my understanding also.

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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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The CRA was like the land a house (the Housing Crash) was built on. It's not really a part of the house but it where the house-building starts.

The CRA was, by itself, solely legislation designed to lessen/remove racial bias from lending in the 1970's by encouraging lending institutions to make loans in areas that were lower-to-middle income (see: "redlining").

In his term as President Bush I tied Freddie Mac and Fannie Mae bonuses to sub-prime lendings.

Bill Clinton allowed banking deregulations in the 90's but predicated a lot of them on their increase of sub-prime lending (even going so far as to threaten to not allow banks to have off-site ATMS or open new branches without promising to meet certain lending numbers).

Housing was getting hot when 9/11 happened. The Fed cut rates to the absolute bone, this ended up being fuel for that fire.

So you ended up with a decade or so of the government pushing sub-prime loans while deregulating then cutting lending rates. Lending institutions took that as direction to do whatever it took to make these sub-prime loans (including preying on the ignorance of customers).

Then the stock market entered the fray. You had some fund managers see all these home loans and thought "Hey, we could bundle these as securities and sell them as an investment package. Most of them won't default and even if they do the federal government is backing them so what's the worst that could happen?"

Well we found out. The worst that could happen is lending institutions making programs purposely to confuse buyers and buyers that were simply not fiscally savvy enough to understand you can't afford a $250k home on a $40k/yr salary (and lenders who were not trying to explain this to them), enough so that when those rising notes started outpacing buyer incomes many of those buyers were more than willing to just walk away from the loan. We also learned that some of these fund managers were cooking some books. All this combined to frick many out of lots of money (ex: tons of retirements were invested in these funds) and left an assload of newly-empty homes sitting around doing nothing.

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prick X 3.

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Is that worse than X 2?

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butthead

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Now this is just downright mean!


Why you so angry bro?

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There must be something wrong with it if you won't post the link.

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I'm honestly enjoying your temper tantrum.

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There must be something wrong with it if you won't post the link.

I'm honestly enjoying your temper tantrum.

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There must be something wrong with it if you won't post the link.