2008 Financial Crisis The Causes and Costs of the Worst Crisis Since the Great Depression

[The Sage of Main Street]

g5000

Thanks for an entertaining read so far. I don't know enough on this subject to either be certain you got everything right or to criticize anything you said, but the story as you've told it lines up with my rather vague understanding of things, with a lot of interesting details I hadn't seen before. Do you have a professional background in finance or something related?

Crushed by Credentialism

Even those who weren't bribed to tell us what to think were professionals. which in Terminal America has come to mean "no-talent brownnoses."

 

[g5000]

Inflation is not necessarily bad as long as it's low and controlled.

It's what makes buying a home affordable

That $1500 mortgage payment is tough to make today...but 20 years from now it becomes very affordable and allows for early pay down

I did not fall for any of these practices, either.

But not everyone has the educational background to smell a rat.

I remember one new housing development going up in my town, and I would visit it once in a while to watch how much the houses cost. While they were still just dirt plots, the prices were skyrocketing.

The developer also allowed a broker to work out of the model house. So I talked to the broker, and I found they were offering some of the worst negative amortization loans I have ever heard of.

I went outside and found the developer, and explained to him that if someone took one of those loans for a $250,000 house, by the time the loan reset in three years, the principal would have climbed to $325,000.

He shrugged and said, "People are buying them."

My whole body went cold.

That, and some internal documents at Washington Mutual that I stumbled across, caused me to become very frightened. So I called two reporters (one print, one television) that I knew, and tried to explain to them the colossal disaster that was coming. Neither one followed up.

I bet they regretted that two years later when it all came crashing down.

I did get a call from a reporter AFTER the crash, and they did a story on me. I did my best to explain what happened, and what was going to happen, but they only had so many column inches.


Just as an aside, the people who bought those houses in that development and took those predatory loans were all middle class white professionals.

At least half of them defaulted. I know because I attended the foreclosure auction in 2009.

My sister is a real estate agent and made a fortune in the housing bubble. She was selling the same house three times in two years.

People were actually thinking that if they could just make those first few payments, they could resell that home for tens of thousands more. What they failed to realize was that they had to live SOMEWHERE. And when the bubble burst...they were living in the most expensive part of their little pyramid.

I actually considered selling my home and renting. That might have worked but I couldn't handle living in an apartment. I bought my house in 85 for $225K and could have sold it in 2004 for $425K.!!! With a lot of recent improvements I eventually sold it in 2016 for $400K...which I found astounding. We may be in a mini (possibly local) housing bubble

Yeah, the houses in my area are selling for far more than they were during the subprime bubble.

I have equity out the wazoo. I bought my house at the bottom of the crash for pennies on the dollar.

Making profits on others misery.......helping drive up the cost til the bubble burst........buying the Real Estate to do a quick turn around hoping not to be stuck with the underwater mortgage when the bubble pops..........

aka......you got yours and to hell with those without a seat when the music stops.............and a country of people were destroyed in the process.

Am I supposed to clap........say yippie...........I don't think so.

I want you to think about what would happen if the supply of MONEY stayed constant while the supply of GOODS and SERVICES increased.

An increase in the availability in goods and services increases the purchasing power of the money when the supply is fixed.

No. What you get is deflation. Very bad for the economy.

 

[g5000]

What Caused the 2008 Financial Crisis and Could It Happen Again?

I still don't understand the cause of the financial crisis. I try to wrap my head around it.

It's not rocket science:

IMPORTANT FACT TO COMPREHEND:
CONGRESS - NOT the President - controls 'the purse strings', the budget, spending, the economy.

During the 8 years Bush was in office $4 Trillion in new debt was added.

In the 1st 6 years Bush was President the GOP Controlled Congress.

During those 6 years - in which the US suffered / experienced 9/11/01, the economic aftermath of 9/11/01, and 2 wars the GOP added $2.5 Trillion in new debt.

The Democrats took over a near super-majority control of Congress - they held that control of Congress for Bush's last 2 years in office and during Obama's 1st 2 years in office.
-- That means DEMOCRATS controlled 'the purse strings', the budget, spending, the economy during Bush's last 2 years in office.
** This is important because this is the EXACT time period Democrats claim the economy started 'tanking' under Bush - which they falsely blame Bush for. ('Falsely Blame'? Yeah - remember CONGRESS and whoever controls Congress controls 'the purse strings', the budget, spending, the economy - not the President~)

During Bush's last 2 years in office $1.5 Trillion in new debt was added. The DEMOCRATS CONTROLLING THE BUDGET added in only 2 years just $1 trillion dollars in new debt shy of what Bush and the GOP had added in 6 years!

WHO controlled 'the purse strings', the budget, spending, the economy in the 2 years before Obama....FROM WHOM did Obama inherit the 'horrific' declining economy?
- IT WAS NOT BUSH AND THE REPUBLICANS - IT WAS THE DEMOCRATS WHO HELD A NEAR SUPER MAJORIOTY CONTROL OF CONGRESS, WHO CONTROLLED THE 'PURSE' STRINGS', SPENDING, THE ECONOMY.....

In 2008 Obama 'enjoyed' a near super-majority Democratic Party controlled Congress - the Democrats controlled the House, the Senate, and the WH.

What was Obama's 1st REAL ECONOMIC SPENDING BILL?
-- THE $1 TRILLION NON-Stimulating STIMULUS BILL

Snowflakes and Democrats now claim they KNEW the economy was doing poorly, claiming they 'inherited' it from Bush, which I just proved / pointed out was FALSE!

OK, they KNEW the economy was in decline … SO THEY THOUGHT THE SOLUTION WAS TO PASS A $1 TRILLION 'JOBS CREATION' SPENDING BILL THAT CONTAINED OVER 7,000 PIECES OF DNC-ONLY PORK?
-- This Liberal 'Tax Dollar-Funded Wet Dream' included funding for things like studies of 'Shrimp On A Treadmill' and a 'research study' to discover 'WHY THE SEX LIFE OF A HOMOSEXUAL ARGENTINIAN MALE WAS BETTER THAN THE SEX LIFE OF A HETEROSEXUAL US MALE'!



Part of those tax dollars went to Diane Feinstein, Nancy Pelosi and other politicians as 'loans' to save their spouses' bankrupting businesses, loans they never paid back. The list of wasteful pork spending and out-right theft of hard-earned tax dollars is long, but the bottom line was this:

The CBO reported that the Stimulus Bill resulted in a COST PER JOB Obama claimed to have created or saved of approx $774,000 PER JOB!

..and let's not forget Obama publicly admitting that there was actually no such thing as 'shovel-ready' jobs which he claimed was also a large part of the justification for passing this DNC Pork Monster!


The debt added in Obama's 1st 2 years was RECORD-SETTING...and part of the reason is obvious....like the Stimulus Bill passed by the Democrats...

A lot of hackery in your post.

The reason the real estate market began tanking in 2007 is because that is the year all the toxic ARMs and Pick-A-Payment loans written in 2004 and beyond began resetting.

 

[eagle1462010]

Inflation is not necessarily bad as long as it's low and controlled.

It's what makes buying a home affordable

That $1500 mortgage payment is tough to make today...but 20 years from now it becomes very affordable and allows for early pay down
My sister is a real estate agent and made a fortune in the housing bubble. She was selling the same house three times in two years.

People were actually thinking that if they could just make those first few payments, they could resell that home for tens of thousands more. What they failed to realize was that they had to live SOMEWHERE. And when the bubble burst...they were living in the most expensive part of their little pyramid.

I actually considered selling my home and renting. That might have worked but I couldn't handle living in an apartment. I bought my house in 85 for $225K and could have sold it in 2004 for $425K.!!! With a lot of recent improvements I eventually sold it in 2016 for $400K...which I found astounding. We may be in a mini (possibly local) housing bubble

Yeah, the houses in my area are selling for far more than they were during the subprime bubble.

I have equity out the wazoo. I bought my house at the bottom of the crash for pennies on the dollar.

Making profits on others misery.......helping drive up the cost til the bubble burst........buying the Real Estate to do a quick turn around hoping not to be stuck with the underwater mortgage when the bubble pops..........

aka......you got yours and to hell with those without a seat when the music stops.............and a country of people were destroyed in the process.

Am I supposed to clap........say yippie...........I don't think so.

I want you to think about what would happen if the supply of MONEY stayed constant while the supply of GOODS and SERVICES increased.

An increase in the availability in goods and services increases the purchasing power of the money when the supply is fixed.

No. What you get is deflation. Very bad for the economy.

Then why do countries deflate their currency to benefit their exports to other countries........Namely CHINA...........lower their value against the dollar to gain better sales to the United States.........even though it decreases the buying power of their citizens............

 

[g5000]

Yeah, the houses in my area are selling for far more than they were during the subprime bubble.

I have equity out the wazoo. I bought my house at the bottom of the crash for pennies on the dollar.

Making profits on others misery.......helping drive up the cost til the bubble burst........buying the Real Estate to do a quick turn around hoping not to be stuck with the underwater mortgage when the bubble pops..........

aka......you got yours and to hell with those without a seat when the music stops.............and a country of people were destroyed in the process.

Am I supposed to clap........say yippie...........I don't think so.

I want you to think about what would happen if the supply of MONEY stayed constant while the supply of GOODS and SERVICES increased.

An increase in the availability in goods and services increases the purchasing power of the money when the supply is fixed.

No. What you get is deflation. Very bad for the economy.

Then why do countries deflate their currency to benefit their exports to other countries........Namely CHINA...........lower their value against the dollar to gain better sales to the United States.........even though it decreases the buying power of their citizens............

You contradict yourself. "Lower their value" is INflation, not DEflation.

 

[eagle1462010]

What Caused the 2008 Financial Crisis and Could It Happen Again?

I still don't understand the cause of the financial crisis. I try to wrap my head around it.

It's not rocket science:

IMPORTANT FACT TO COMPREHEND:
CONGRESS - NOT the President - controls 'the purse strings', the budget, spending, the economy.

During the 8 years Bush was in office $4 Trillion in new debt was added.

In the 1st 6 years Bush was President the GOP Controlled Congress.

During those 6 years - in which the US suffered / experienced 9/11/01, the economic aftermath of 9/11/01, and 2 wars the GOP added $2.5 Trillion in new debt.

The Democrats took over a near super-majority control of Congress - they held that control of Congress for Bush's last 2 years in office and during Obama's 1st 2 years in office.
-- That means DEMOCRATS controlled 'the purse strings', the budget, spending, the economy during Bush's last 2 years in office.
** This is important because this is the EXACT time period Democrats claim the economy started 'tanking' under Bush - which they falsely blame Bush for. ('Falsely Blame'? Yeah - remember CONGRESS and whoever controls Congress controls 'the purse strings', the budget, spending, the economy - not the President~)

During Bush's last 2 years in office $1.5 Trillion in new debt was added. The DEMOCRATS CONTROLLING THE BUDGET added in only 2 years just $1 trillion dollars in new debt shy of what Bush and the GOP had added in 6 years!

WHO controlled 'the purse strings', the budget, spending, the economy in the 2 years before Obama....FROM WHOM did Obama inherit the 'horrific' declining economy?
- IT WAS NOT BUSH AND THE REPUBLICANS - IT WAS THE DEMOCRATS WHO HELD A NEAR SUPER MAJORIOTY CONTROL OF CONGRESS, WHO CONTROLLED THE 'PURSE' STRINGS', SPENDING, THE ECONOMY.....

In 2008 Obama 'enjoyed' a near super-majority Democratic Party controlled Congress - the Democrats controlled the House, the Senate, and the WH.

What was Obama's 1st REAL ECONOMIC SPENDING BILL?
-- THE $1 TRILLION NON-Stimulating STIMULUS BILL

Snowflakes and Democrats now claim they KNEW the economy was doing poorly, claiming they 'inherited' it from Bush, which I just proved / pointed out was FALSE!

OK, they KNEW the economy was in decline … SO THEY THOUGHT THE SOLUTION WAS TO PASS A $1 TRILLION 'JOBS CREATION' SPENDING BILL THAT CONTAINED OVER 7,000 PIECES OF DNC-ONLY PORK?
-- This Liberal 'Tax Dollar-Funded Wet Dream' included funding for things like studies of 'Shrimp On A Treadmill' and a 'research study' to discover 'WHY THE SEX LIFE OF A HOMOSEXUAL ARGENTINIAN MALE WAS BETTER THAN THE SEX LIFE OF A HETEROSEXUAL US MALE'!



Part of those tax dollars went to Diane Feinstein, Nancy Pelosi and other politicians as 'loans' to save their spouses' bankrupting businesses, loans they never paid back. The list of wasteful pork spending and out-right theft of hard-earned tax dollars is long, but the bottom line was this:

The CBO reported that the Stimulus Bill resulted in a COST PER JOB Obama claimed to have created or saved of approx $774,000 PER JOB!

..and let's not forget Obama publicly admitting that there was actually no such thing as 'shovel-ready' jobs which he claimed was also a large part of the justification for passing this DNC Pork Monster!


The debt added in Obama's 1st 2 years was RECORD-SETTING...and part of the reason is obvious....like the Stimulus Bill passed by the Democrats...

A lot of hackery in your post.

The reason the real estate market began tanking in 2007 is because that is the year all the toxic ARMs and Pick-A-Payment loans written in 2004 and beyond began resetting.

aka ..............some got caught holding the inflated properties and they couldn't offload it anymore.........the losers.........

poor things..........do you feel sorry for them..............gambling with a countries future for their Greed and destroy the rest of the country in the process.............

Wow........yippie..........should I call them patriots........hmmmm

 

[eagle1462010]

Making profits on others misery.......helping drive up the cost til the bubble burst........buying the Real Estate to do a quick turn around hoping not to be stuck with the underwater mortgage when the bubble pops..........

aka......you got yours and to hell with those without a seat when the music stops.............and a country of people were destroyed in the process.

Am I supposed to clap........say yippie...........I don't think so.

I want you to think about what would happen if the supply of MONEY stayed constant while the supply of GOODS and SERVICES increased.

An increase in the availability in goods and services increases the purchasing power of the money when the supply is fixed.

No. What you get is deflation. Very bad for the economy.

Then why do countries deflate their currency to benefit their exports to other countries........Namely CHINA...........lower their value against the dollar to gain better sales to the United States.........even though it decreases the buying power of their citizens............

You contradict yourself. "Lower their value" is INflation, not DEflation.

Perhaps those are intertwined.............the cut their own throat to for selling more elsewhere............

So...........How high shall we go before........hmmmm......it resets again...........and should the average American be cheering.

 

[Theowl32]

What Caused the 2008 Financial Crisis and Could It Happen Again?

I still don't understand the cause of the financial crisis. I try to wrap my head around it.

What does this mean?

The Gramm-Rudman Act was the real villain. It allowed banks to engage in trading profitable derivatives that they sold to investors. These mortgage-backed securities needed home loans as collateral. The derivatives created an insatiable demand for more and more mortgages.

I think if I could understand this paragraph I would better understand the financial crisis of 2008.

Have we recovered? Or how long will it be?

Tell me what the Commodity Futures Modernization Act did. When was it passed?

Why the Community Reinvestment Act rewritten? When was it rewritten and what did that do?

Who headed Fannie and Freddie and how did that effect the bubble?

How many times did the democrat Congress ignore the warnings?

Democrats took over power of both the House and Senate in the 2006 midterms and had power of both till 2010. What happened during that time?

What has happened since Republicans began taking power back, beginning in 2010? 2014 the Senate. 2016 the White House.

There you go. Now you have your homework.

Good luck

 

[g5000]

What Caused the 2008 Financial Crisis and Could It Happen Again?

I still don't understand the cause of the financial crisis. I try to wrap my head around it.

It's not rocket science:

IMPORTANT FACT TO COMPREHEND:
CONGRESS - NOT the President - controls 'the purse strings', the budget, spending, the economy.

During the 8 years Bush was in office $4 Trillion in new debt was added.

In the 1st 6 years Bush was President the GOP Controlled Congress.

During those 6 years - in which the US suffered / experienced 9/11/01, the economic aftermath of 9/11/01, and 2 wars the GOP added $2.5 Trillion in new debt.

The Democrats took over a near super-majority control of Congress - they held that control of Congress for Bush's last 2 years in office and during Obama's 1st 2 years in office.
-- That means DEMOCRATS controlled 'the purse strings', the budget, spending, the economy during Bush's last 2 years in office.
** This is important because this is the EXACT time period Democrats claim the economy started 'tanking' under Bush - which they falsely blame Bush for. ('Falsely Blame'? Yeah - remember CONGRESS and whoever controls Congress controls 'the purse strings', the budget, spending, the economy - not the President~)

During Bush's last 2 years in office $1.5 Trillion in new debt was added. The DEMOCRATS CONTROLLING THE BUDGET added in only 2 years just $1 trillion dollars in new debt shy of what Bush and the GOP had added in 6 years!

WHO controlled 'the purse strings', the budget, spending, the economy in the 2 years before Obama....FROM WHOM did Obama inherit the 'horrific' declining economy?
- IT WAS NOT BUSH AND THE REPUBLICANS - IT WAS THE DEMOCRATS WHO HELD A NEAR SUPER MAJORIOTY CONTROL OF CONGRESS, WHO CONTROLLED THE 'PURSE' STRINGS', SPENDING, THE ECONOMY.....

In 2008 Obama 'enjoyed' a near super-majority Democratic Party controlled Congress - the Democrats controlled the House, the Senate, and the WH.

What was Obama's 1st REAL ECONOMIC SPENDING BILL?
-- THE $1 TRILLION NON-Stimulating STIMULUS BILL

Snowflakes and Democrats now claim they KNEW the economy was doing poorly, claiming they 'inherited' it from Bush, which I just proved / pointed out was FALSE!

OK, they KNEW the economy was in decline … SO THEY THOUGHT THE SOLUTION WAS TO PASS A $1 TRILLION 'JOBS CREATION' SPENDING BILL THAT CONTAINED OVER 7,000 PIECES OF DNC-ONLY PORK?
-- This Liberal 'Tax Dollar-Funded Wet Dream' included funding for things like studies of 'Shrimp On A Treadmill' and a 'research study' to discover 'WHY THE SEX LIFE OF A HOMOSEXUAL ARGENTINIAN MALE WAS BETTER THAN THE SEX LIFE OF A HETEROSEXUAL US MALE'!



Part of those tax dollars went to Diane Feinstein, Nancy Pelosi and other politicians as 'loans' to save their spouses' bankrupting businesses, loans they never paid back. The list of wasteful pork spending and out-right theft of hard-earned tax dollars is long, but the bottom line was this:

The CBO reported that the Stimulus Bill resulted in a COST PER JOB Obama claimed to have created or saved of approx $774,000 PER JOB!

..and let's not forget Obama publicly admitting that there was actually no such thing as 'shovel-ready' jobs which he claimed was also a large part of the justification for passing this DNC Pork Monster!


The debt added in Obama's 1st 2 years was RECORD-SETTING...and part of the reason is obvious....like the Stimulus Bill passed by the Democrats...

A lot of hackery in your post.

The reason the real estate market began tanking in 2007 is because that is the year all the toxic ARMs and Pick-A-Payment loans written in 2004 and beyond began resetting.

aka ..............some got caught holding the inflated properties and they couldn't offload it anymore.........the losers.........

poor things..........do you feel sorry for them..............gambling with a countries future for their Greed and destroy the rest of the country in the process.............

Wow........yippie..........should I call them patriots........hmmmm

The blame for the crash is on all of us. Those of us who demanded our 401ks have above average returns. Those who borrowed more than they could chew. The Democrats. The Republicans. Bush. Clinton. The ratings agencies. The financial institutions. The investors. The money managers. The regulators. The Fed.

Everyone.

Do I feel sorry for the people whose monthly payments reset to triple or quadruple their prior monthly payments? Some of them I do, yes. They were victims of predatory assholes who knew these people would blow up. Just so these predatory assholes could get a fee for arranging the toxic loans and then pass them up the food chain.

 

[whitehall]

Barney Frank was the real villain. When democrats took over the House majority mid way into Bush's second term Barney Frank became the chairperson of the powerful "House Banking Committee" which had fiscal oversight responsibility for Fannie Mae. Frank told America that Fannie was doing fine and was solvent while it was in terrible shape and on the verge of collapse. The timing is suspicious. Either Frank was so negligent that he was unaware of what was going on or he deliberately pushed Fannie Mae over the edge as the biggest October surprise in history. When Fannie went under it brought the world economy down with it. Maybe it wasn't Frank's intention of causing a major world wide event but he started it. True to form the criminal conspiracy in the media blamed Bush and didn't even ask Frank what the hell he was doing.

 

[g5000]

It should be noted that Ameriquest would take the paperwork some borrowers signed, and then forge the borrowers' signatures onto subprime loans without the knowledge of those borrowers. Then Ameriquest would feed those notes into the CDO industrial complex.

Just so Ameriquest would get bigger fees for the subprime loans instead of the fees they would have gotten for the standard loans.,

Those borrowers were pure victims.

 

[eagle1462010]

What Caused the 2008 Financial Crisis and Could It Happen Again?

I still don't understand the cause of the financial crisis. I try to wrap my head around it.

It's not rocket science:

IMPORTANT FACT TO COMPREHEND:
CONGRESS - NOT the President - controls 'the purse strings', the budget, spending, the economy.

During the 8 years Bush was in office $4 Trillion in new debt was added.

In the 1st 6 years Bush was President the GOP Controlled Congress.

During those 6 years - in which the US suffered / experienced 9/11/01, the economic aftermath of 9/11/01, and 2 wars the GOP added $2.5 Trillion in new debt.

The Democrats took over a near super-majority control of Congress - they held that control of Congress for Bush's last 2 years in office and during Obama's 1st 2 years in office.
-- That means DEMOCRATS controlled 'the purse strings', the budget, spending, the economy during Bush's last 2 years in office.
** This is important because this is the EXACT time period Democrats claim the economy started 'tanking' under Bush - which they falsely blame Bush for. ('Falsely Blame'? Yeah - remember CONGRESS and whoever controls Congress controls 'the purse strings', the budget, spending, the economy - not the President~)

During Bush's last 2 years in office $1.5 Trillion in new debt was added. The DEMOCRATS CONTROLLING THE BUDGET added in only 2 years just $1 trillion dollars in new debt shy of what Bush and the GOP had added in 6 years!

WHO controlled 'the purse strings', the budget, spending, the economy in the 2 years before Obama....FROM WHOM did Obama inherit the 'horrific' declining economy?
- IT WAS NOT BUSH AND THE REPUBLICANS - IT WAS THE DEMOCRATS WHO HELD A NEAR SUPER MAJORIOTY CONTROL OF CONGRESS, WHO CONTROLLED THE 'PURSE' STRINGS', SPENDING, THE ECONOMY.....

In 2008 Obama 'enjoyed' a near super-majority Democratic Party controlled Congress - the Democrats controlled the House, the Senate, and the WH.

What was Obama's 1st REAL ECONOMIC SPENDING BILL?
-- THE $1 TRILLION NON-Stimulating STIMULUS BILL

Snowflakes and Democrats now claim they KNEW the economy was doing poorly, claiming they 'inherited' it from Bush, which I just proved / pointed out was FALSE!

OK, they KNEW the economy was in decline … SO THEY THOUGHT THE SOLUTION WAS TO PASS A $1 TRILLION 'JOBS CREATION' SPENDING BILL THAT CONTAINED OVER 7,000 PIECES OF DNC-ONLY PORK?
-- This Liberal 'Tax Dollar-Funded Wet Dream' included funding for things like studies of 'Shrimp On A Treadmill' and a 'research study' to discover 'WHY THE SEX LIFE OF A HOMOSEXUAL ARGENTINIAN MALE WAS BETTER THAN THE SEX LIFE OF A HETEROSEXUAL US MALE'!



Part of those tax dollars went to Diane Feinstein, Nancy Pelosi and other politicians as 'loans' to save their spouses' bankrupting businesses, loans they never paid back. The list of wasteful pork spending and out-right theft of hard-earned tax dollars is long, but the bottom line was this:

The CBO reported that the Stimulus Bill resulted in a COST PER JOB Obama claimed to have created or saved of approx $774,000 PER JOB!

..and let's not forget Obama publicly admitting that there was actually no such thing as 'shovel-ready' jobs which he claimed was also a large part of the justification for passing this DNC Pork Monster!


The debt added in Obama's 1st 2 years was RECORD-SETTING...and part of the reason is obvious....like the Stimulus Bill passed by the Democrats...

A lot of hackery in your post.

The reason the real estate market began tanking in 2007 is because that is the year all the toxic ARMs and Pick-A-Payment loans written in 2004 and beyond began resetting.

aka ..............some got caught holding the inflated properties and they couldn't offload it anymore.........the losers.........

poor things..........do you feel sorry for them..............gambling with a countries future for their Greed and destroy the rest of the country in the process.............

Wow........yippie..........should I call them patriots........hmmmm

The blame for the crash is on all of us. Those of us who demanded our 401ks have above average returns. Those who borrowed more than they could chew. The Democrats. The Republicans. Bush. Clinton. The ratings agencies. The financial institutions. The investors. The money managers. The regulators. The Fed.

Everyone.

Do I feel sorry for the people whose monthly payments reset to triple or quadruple their prior monthly payments? Some of them I do, yes. They were victims of predatory assholes who knew these people would blow up. Just so these predatory assholes could get a fee for arranging the toxic loans and then pass them up the food chain.

And we allowed them to gamble with FICA moneys that were separated via the Glass Act............a lesson learned from the Great Depression.......Allowed them to gamble.............nice with Fractional Banking.............Gamble to the moon.................

Yeah...........worked out great..........and Gov't guaranteeing the gambling debt............to some.........They gamble........the American people pay.

 

[g5000]

Barney Frank was the real villain. When democrats took over the House majority mid way into Bush's second term Barney Frank became the chairperson of the powerful "House Banking Committee" which had fiscal oversight responsibility for Fannie Mae. Frank told America that Fannie was doing fine and was solvent while it was in terrible shape and on the verge of collapse. The timing is suspicious. Either Frank was so negligent that he was unaware of what was going on or he deliberately pushed Fannie Mae over the edge as the biggest October surprise in history. When Fannie went under it brought the world economy down with it. Maybe it wasn't Frank's intention of causing a major world wide event but he started it. True to form the criminal conspiracy in the media blamed Bush and didn't even ask Frank what the hell he was doing.

Please see post 58.

 

[LaDexter]

The Gramm-Rudman Act was the real villain.

LMFAO!!!


Graham Rudman was the one bill most responsible for the budget surplus under Clinton.

What caused the depression was government spending. When government spending was FLAT from 1990-1998, the US prospered. When government spending exploded after 1998, that is when our fortunes as a country plummeted, and our debt went from $5 tril to $21.

Government spending is the problem. Cutting government spending is the solution. So sayeth THE DATA.....

 

[Lesh]

What Caused the 2008 Financial Crisis and Could It Happen Again?

I still don't understand the cause of the financial crisis. I try to wrap my head around it.

What does this mean?

The Gramm-Rudman Act was the real villain. It allowed banks to engage in trading profitable derivatives that they sold to investors. These mortgage-backed securities needed home loans as collateral. The derivatives created an insatiable demand for more and more mortgages.

I think if I could understand this paragraph I would better understand the financial crisis of 2008.

Have we recovered? Or how long will it be?

Tell me what the Commodity Futures Modernization Act did. When was it passed?

Why the Community Reinvestment Act rewritten? When was it rewritten and what did that do?

Who headed Fannie and Freddie and how did that effect the bubble?

How many times did the democrat Congress ignore the warnings?

Democrats took over power of both the House and Senate in the 2006 midterms and had power of both till 2010. What happened during that time?

What has happened since Republicans began taking power back, beginning in 2010? 2014 the Senate. 2016 the White House.

There you go. Now you have your homework.

Good luck

You could have read what was written above but obviously didn't. All those questions were answered in detail. Go back and read it again

 

[Lesh]

Barney Frank was the real villain. When democrats took over the House majority mid way into Bush's second term Barney Frank became the chairperson of the powerful "House Banking Committee" which had fiscal oversight responsibility for Fannie Mae. Frank told America that Fannie was doing fine and was solvent while it was in terrible shape and on the verge of collapse. The timing is suspicious. Either Frank was so negligent that he was unaware of what was going on or he deliberately pushed Fannie Mae over the edge as the biggest October surprise in history. When Fannie went under it brought the world economy down with it. Maybe it wasn't Frank's intention of causing a major world wide event but he started it. True to form the criminal conspiracy in the media blamed Bush and didn't even ask Frank what the hell he was doing.

Read above. F&F were NOT the cause but actually (willing) VICTIMS of this mess

 

[Lesh]

The Gramm-Rudman Act was the real villain.

LMFAO!!!


Graham Rudman was the one bill most responsible for the budget surplus under Clinton.

What caused the depression was government spending. When government spending was FLAT from 1990-1998, the US prospered. When government spending exploded after 1998, that is when our fortunes as a country plummeted, and our debt went from $5 tril to $21.

Government spending is the problem. Cutting government spending is the solution. So sayeth THE DATA.....

The national debt had fuck all to do with the BANKING DEBACLE

 

[LaDexter]

The "banking debacle" was directly correlated with GOVERNMENT INVOLVEMENT in HOUSING, specifically

GOVERNMENT INSURED MORTGAGES

to

Democrat voters who COULD NOT PAY

 

[eagle1462010]

The Gramm-Rudman Act was the real villain.

LMFAO!!!


Graham Rudman was the one bill most responsible for the budget surplus under Clinton.

What caused the depression was government spending. When government spending was FLAT from 1990-1998, the US prospered. When government spending exploded after 1998, that is when our fortunes as a country plummeted, and our debt went from $5 tril to $21.

Government spending is the problem. Cutting government spending is the solution. So sayeth THE DATA.....

The national debt had fuck all to do with the BANKING DEBACLE

 

[LaDexter]

BIG BANKS made BIG BUCKS when GOVERNMENT GOT INVOLVED in HOUSING by INSURING MORTGAGES....



End cost to US taypayer = $2 TRILLION

Wealth of FRANKLIN RAINES, political hack responsible = $500 mil







STEALING
LYING
HATING
DISCRIMINATING

it is what DEMOCRATS DO