Discussion in 'Politics' started by blu, Aug 18, 2011.
A bit of related history:
The global financial system was teetering on the edge of collapse when Bush and his economics team huddled in the Roosevelt Room of the White House for a briefing that, in the words of one participant, "scared the hell out of everybody."
It was Sept. 18. Lehman Brothers had just gone belly-up, overwhelmed by toxic mortgages. Bank of America had swallowed Merrill Lynch in a hastily arranged sale. Two days earlier, Bush had agreed to pump $85 billion into the failing insurance giant American International Group.
The president listened as Ben Bernanke, chairman of the Federal Reserve, laid out the latest terrifying news: The credit markets, gripped by panic, had frozen overnight, and banks were refusing to lend money.
Then his Treasury secretary, Henry Paulson Jr., told him that to stave off disaster, he would have to sign off on the biggest government bailout in history. Bush, according to several people in the room, paused for a single, stunned moment to take it all in.
"How," he wondered aloud, "did we get here?"
Eight years after arriving in Washington vowing to spread the dream of home ownership, Bush is leaving office, as he himself said recently, "faced with the prospect of a global meltdown" with roots in the housing sector he so ardently championed.
There are plenty of culprits, like lenders who peddled easy credit, consumers who took on mortgages they could not afford and Wall Street chieftains who loaded up on mortgage-backed securities without regard to the risk.
But the story of how the United States got here is partly one of Bush's own making, according to a review of his tenure that included interviews with dozens of current and former administration officials.
From his earliest days in office, Bush paired his belief that Americans do best when they own their own homes with his conviction that markets do best when left alone. Bush pushed hard to expand home ownership, especially among minority groups, an initiative that dovetailed with both his ambition to expand Republican appeal and the business interests of some of his biggest donors. But his housing policies and hands-off approach to regulation encouraged lax lending standards.
Bush did foresee the danger posed by Fannie Mae and Freddie Mac, the government-sponsored mortgage finance giants. The president spent years pushing a recalcitrant Congress to toughen regulation of the companies, but was unwilling to compromise when his former Treasury secretary wanted to cut a deal. And the regulator Bush chose to oversee them - an old school buddy - pronounced the companies sound even as they headed toward insolvency.
As early as 2006, top advisers to Bush dismissed warnings from people inside and outside the White House that housing prices were inflated and that a foreclosure crisis was looming. And when the economy deteriorated, Bush and his team misdiagnosed the reasons and scope of the downturn. As recently as February, for example, Bush was still calling it a "rough patch."
Bush drive for home ownership fueled housing bubble - The New York Times
Selective memory journalism
First, the Community Reinvestment Act, which forced lenders to give mortgages to lower ethalon consumer who couldn't pay for them, was put back into effect by Bill Fucking Clinton (CRA was originally started by Jimmy Douche Bag Carter). This one act was the main culprit
Second, Fannie Mae and Freddie Mac have been around since the 30s, it wasn't until 90s that Bill Fucking Clinton, with the help of Dodds and Faggot Frank, gave them the power to create an artificial secondary market, where mortgage could be sold at an easy profit and the original investor took little risk!
Third, it was Bill Fucking Clinton that got rid of the Glass-Seagley Act. This BRILLIANT piece of FDR legislation disallowed commercial and investment banks to combine! There was too much of a conflict of interest. I mean the whole CDO bullshit came about because the commercial side made the loan and the wall street investment side package toxic loans together and slapped a AAA rating on them and sold them!
Fourth, it was Bill Fucking Clinton that made student loans nondischargable and we now have seen the highest 20 year increase in college tuition in US history! Heck even the shit school charge $40K-$50K a year! Before college was expensive, but affordable. Now college is so unaffordable that either the upper middle class to rich go to school and the lower middle class have $250K in student loans! Ouch!
Fifth, it was Bill Fucking Clinton that decimated our manufacturing sector making our fragile economy even more dependent on housing market. First, through removing all the barriers to trade with China and propelling China into the WTO. Second, through NAFTA!!!Mexico might start having the illegal immigrant problem!
Umm you might want to check the voting records of congress on those actions...
A. Eighty %+ of bad loans had NOTHING to do with Fannie and Freddie, and they got into this bubble late…
B. Glass-Seagley Act.- all Pubs, and mainly Pubs who voted for it.
C. You are brainwashed...LOL!! Pub perversion of laws, cronyism, and thievery under BOOSH in all cases...
I think Ron started reading my posts around 2000.
Separate names with a comma.