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Started By
Message
re: What Happen with the Sub-Prime Mortgage Crisis
Posted on 3/5/19 at 12:11 am to Wtxtiger
Posted on 3/5/19 at 12:11 am to Wtxtiger
quote:
Bush tried to tell them that everyone did not deserve a home. Everyone couldn’t have a mortgage. They called him racist when he said this. Barney. Frank raised hell about Bush being a racist They we’re giving illegals mortgages with no social security number or any real job. They were giving minorities with no real job or way to pay back the loan mortgages to be fair. That is why we got fricked with the recession.
That's a very succinct and accurate description of what happened. Bush and the GOP caved to political correctness and the race card and we all paid dearly for it. The leftists in this country are despicable.
And Barney Frank. What a piece of shite. Runs a queer prostitution ring with his boyfriend and gets elected to congress anyway. The people of Massachusetts are totally fricked up. Just look at what they have given us. Barney Frank, John Kerry, Pocahontas, multiple Kennedy pieces of shite, Dukakis. For such a little state they sure have done more than their fair share to destroy this country.
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Posted on 3/5/19 at 1:57 am to timdonaghyswhistle
Uh, banks could have done anything they wanted to. They were greedy and used shite business practices. If anyone "told" them anything, they were undet no obligation to do anything other than what they wanted to do.
Posted on 3/5/19 at 2:26 am to BamaCoaster
quote:
Ron Mother fricking Paul Dude nailed this in 2003
When did the US dollar collapse that he also called?
Posted on 3/5/19 at 2:36 am to Tigahhs97
Community Reinvestment Act
Posted on 3/5/19 at 3:34 am to SlowFlowPro
4th was the bank mortgage desks and investment funds buying CDOs and Mortgage bonds without bothering to actually review the risks of what they were buying.
5th was the repeal of glass stegall.
6th was governments assuming the debts of investment banks and saddling their citizens with that debt.
7th was rampant speculation by middle and upper class Americans, Chinese, Icelanders, Dutch, Germans, Irish, and Koreans.
5th was the repeal of glass stegall.
6th was governments assuming the debts of investment banks and saddling their citizens with that debt.
7th was rampant speculation by middle and upper class Americans, Chinese, Icelanders, Dutch, Germans, Irish, and Koreans.
Posted on 3/5/19 at 3:37 am to Bayou_Tiger_225
quote:
Clinton got the ball rolling when he made Fannie Mae and Freddy Mac increase the percentage of sub prime loans taken in order to boost his minority housing initiatives.
This.
Posted on 3/5/19 at 3:43 am to Tigahhs97
Plenty of blame to go around, including your average homeowner. I remember coming out of school in 2005 and there was all of this pressure to buy a house... "A home is your best investment!" or "Home prices have never gone down!". And this was coming from much older, more financially sophisticated people. Many had dollar signs in their eyes trying to cash in on the boom. It seemed crazy at the time, but who are you to question people making good money off of this?
Systematically the issue was that risk (MBS) was decoupled from banks. If they had been forced to carry all of those loans on their balance sheet and accept that risk, they would have taken the punch bowl from the party.
Systematically the issue was that risk (MBS) was decoupled from banks. If they had been forced to carry all of those loans on their balance sheet and accept that risk, they would have taken the punch bowl from the party.
Posted on 3/5/19 at 4:02 am to Dawgfanman
quote:
Banks and Borrowers on equal footing and fault here. Two willing parties to those contracts..
Don[t see how you can blame the banks - they were required by law to provide low-interest to racial minorities. You cannot blame the borrowers either - if the government says you get 'free money' it would take a saint to not take advantage of that.
The blame is m=completely on the government = DEMOCRATs forcing a destructive policy onto the nation for a temporary political advantage of "battling racism"
Bush tried to warn congress that it was unsustainable - Dood/Frank laughed at him and declare "all is well - you racist SOB!!!!"
Then it all imploded - and Bush got the blame. As usual.
DEMOCRATs create a massive disaster - blame GOP for it - rinse, repeat since Reagan.
Posted on 3/5/19 at 5:45 am to Tigahhs97
quote:
Bush
quote:
Clinton
Both are to blame along with Congress.....and the shite that lead to the housing crash in still there.
Posted on 3/5/19 at 5:57 am to Tigahhs97
It was greed by politicians and hangers on. Most of them dems who were supposedly advocating for poor and black folks having access to mortgages. See FannyMae and FreddyMac.
Posted on 3/5/19 at 6:14 am to Tigahhs97
quote:
Watching a Documentary and seems to blame Bush. I thought it was mainly Clinton.
Not mainly Clinton but Clinton's policy to ensure everyone could buy a house by deregulating the mortgage industry created the predatory lending practices that created the bubble. Bush didn't heap by failing to pull he reigns back in largely because he was fighting for public support of his poorly though out foreign policy and ill advised wars in the middle east.
But unlike most I lay half the blame on ignorant (both willful and unsuspecting) people who purchased houses they couldn't afford and further used their equity as a form of credit to continue purchasing luxury items (Trucks, Boats Lavish Vacations) they knew they couldn't afford just to keep up with the Jones'
Posted on 3/5/19 at 6:17 am to SlowFlowPro
quote:
it was primarily people who couldn't afford homes taking out mortgages on those homes 2nd was the ratings agencies for committing fraud by intentionally overrated the MBS's 3rd was the banks for loaning people the money for the mortgages
And the securitization industry that facilitated the banks being able to continue loaning the money.
Posted on 3/5/19 at 6:22 am to Mo Jeaux
The problem was and is....Credit Default Swaps......there was a time when a lending company would do a risk assessment on you to determine if you were a good risk to loan money to buy a house. For the past 30 yrs lending companies have been selling shitty loans that are packaged with other shitty loans to unsuspecting buyers......and making bank doing it. Very very few lending companies have been doing risk assessments, just giving people money bc they're going to sell the loan anyway so they DGAF if you're ever going to pay it back.
Posted on 3/5/19 at 6:31 am to C
quote:
When did the US dollar collapse that he also called?
Can’t always be right.
Posted on 3/5/19 at 6:49 am to Tigahhs97
quote:
Watching a Documentary and seems to blame Bush. I thought it was mainly Clinton.
who produced the Documentary?
"Too Big to Fail"...is directly rooted in "Everyone deserves to own a home"
This lead to aggressive lending practices supported by Democrats such as Cummings, Waters and every single African American in Congress....They fought hard against an audit of Fannie Mae in 2004...inflated books lead to huge bonuses ..another minority by the way receiving unbelievable bonuses...Frank Raines
Waters called it a "Witch hunt"
"We don't have a crisis"
This woman is wrong about everything...
It's on C-Span
For your viewing pleasure
Posted on 3/5/19 at 6:55 am to Wtodd
quote:
The problem was and is....Credit Default Swaps......there was a time when a lending company would do a risk assessment on you to determine if you were a good risk to loan money to buy a house. For the past 30 yrs lending companies have been selling shitty loans that are packaged with other shitty loans to unsuspecting buyers......and making bank doing it. Very very few lending companies have been doing risk assessments, just giving people money bc they're going to sell the loan anyway so they DGAF if you're ever going to pay it back.
You mention CDSs, but then none of your post is about CDSs.
Posted on 3/5/19 at 7:14 am to Tigahhs97
Find the book Reckless Endangerment and read it. You will see the whole picture. Best explanation I have seen yet.
Posted on 3/5/19 at 7:19 am to Tigahhs97
The leftist propaganda arm is the mainstream media, so anything bad will not be blamed on the left.
Community Reinvestment Act. Born under the Carter admin, strengthened under the Clinton admin.
Banks were forced to lend to un-creditworthy borrowers, and then found a way to unload the bad debt.
That bad debt was created by gov’t demand, and it wasn’t going to disappear. The banks didn’t want it, and shouldn’t have been made to create it in the first place.
Community Reinvestment Act. Born under the Carter admin, strengthened under the Clinton admin.
Banks were forced to lend to un-creditworthy borrowers, and then found a way to unload the bad debt.
That bad debt was created by gov’t demand, and it wasn’t going to disappear. The banks didn’t want it, and shouldn’t have been made to create it in the first place.
This post was edited on 3/5/19 at 7:27 am
Posted on 3/5/19 at 7:21 am to SlowFlowPro
quote:
Clinton got the ball rolling when he made Fannie Mae and Freddy Mac increase the percentage of sub prime loans taken in order to boost his minority housing initiatives.
Agreed. This misguided, liberal nonsense started it. Some idiots in academia convinced the democrats to push this.
Those 1990s democrats look like economic geniuses and "budget hawks" compared to today's bunch of leftists.
But all that is not to excuse the idiot "new homeowners" that bought $450,000 houses when their combined household income was $48,000.
This post was edited on 3/5/19 at 7:27 am
Posted on 3/5/19 at 7:24 am to Mo Jeaux
quote:
You mention CDSs, but then none of your post is about CDSs.
But you can't separate CDSs from the Sub-Prime Mortgage Crisis
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