Burning Down The House: What Caused Our Economic Crisis?

[Care4all]

More specious logic from our resident Republicans

The majoirty of homes in default are NOT in slums.

They're in solidly middle class neighborhoods filled with McMansions.

Most of them are in the suburbs. Most of them are ALSO in the sunbelt.

Per usual the Republican partisans are grasping at straws, They're seeking anyway they can think of to blame the Democrats for the problems that the banking community actually caused to happen because they were greedy and shortsighted.

It's totally pathetic.

But what I find most pathetic is that I have not a doubt the people posting these silly arguments actually believe them.

Tell you what, kids..

Check out where the defaulting mortgages are happening, and what sorts of homes are in default and get back to me.

You so don't know what you're talking about, and my explaining it to you won't do you as much good as you doing your own researxch to test your erroneous hypothesis.

i heard only 17% of the subprime loans were issued to black people, less than 10% to hispanics and the 75% left were to whites etc....

 

[Care4all]

Burning Down The House: What Caused Our Economic Crisis?





A highly informative video that traced the cause of our current crisis that had its roots planted 12 years ago.

How can you POSSIBLY say that this was a highly informative video? It was a bunch of cut and pastes, that you could not even read?

What exactly did you find informative?

btw fannie mae was created in 1936, the CRA in the 70's, what took so long for them to go belly up? WHAT CHANGED to allow them to go belly up? The answer is deregulations....and personal, corporate greed by all the financial institutions.... Freddie/fannie is barely the half of it...

Not that i think the arrangement of fannie mae getting cheap money is a policy i would want to continue, but there is nothing in that very UNINFORMATIVE VIDEO that explains this crisis that we are in.

 

[Ravi]

Look, Mom, the Republicans are blaming black people for their own inadequacies again.

The two most ridiculous phrases the Republican party came up with are compassionate conservative and personal responsibility.

The day I see a Republican take personal responsibility for anything will be an interesting day indeed.

 

[Kat]

How can you POSSIBLY say that this was a highly informative video? It was a bunch of cut and pastes, that you could not even read?

What exactly did you find informative?

btw fannie mae was created in 1936, the CRA in the 70's, what took so long for them to go belly up? WHAT CHANGED to allow them to go belly up? The answer is deregulations....and personal, corporate greed by all the financial institutions.... Freddie/fannie is barely the half of it...

Not that i think the arrangement of fannie mae getting cheap money is a policy i would want to continue, but there is nothing in that very UNINFORMATIVE VIDEO that explains this crisis that we are in.

It was easy to say. Just typed and there it was...imagine that.
Google everything pointed out (and proven for that matter) in the video, to see if it is true or not.


Re the bolded? If you have to ask, then it is obvious you really did not watch the video, or you would know the answer.

 

[Chris]

It was easy to say. Just typed and there it was...imagine that.
Google everything pointed out (and proven for that matter) in the video, to see if it is true or not.


Re the bolded? If you have to ask, then it is obvious you really did not watch the video, or you would know the answer.

Wrong.

The fact that companies can lend more money than they have because of derivatives, and that they can avoid risk by selling mortgages on the day after closing was the problem.

And this problem was created by Republican deregulation.

 

[Care4all]

It was easy to say. Just typed and there it was...imagine that.
Google everything pointed out (and proven for that matter) in the video, to see if it is true or not.


Re the bolded? If you have to ask, then it is obvious you really did not watch the video, or you would know the answer.

I watched the video and saw nothing that explained anything, it was flashes of headlines....

if that is enough information for you then fine, but i think you are being rather shallow.....

WHAT CHANGED-was deregulation that ALLOWED this to happen now, verses the previous decades....

there is no LAW or act that forced any of the banks in to issuing mortgages to people with bad credit, or to create this irresponsible subprime loans that they created to scam the vulnerable with...NINJA loans, interest only loans etc...these were done by the banks, all on their own...for the immediate dollar in hand, for greed....or for them to sell off their loans to one another packaged in a creative way to prevent anyone from seeing their true risk...or the gambling they did, betting on whther the whole industry will fall short or gain....

This is what has collapsed our economy....and this all took place because of deregulation or lack of regulation, of the industry and lack of oversight by the governing agencies by allowing the industry to "self govern" itself....BIG MISTAKE....

yes, fannie and freddie were tied up with this, i understand such, but they are not even half the problem....nor is the act that encourages homeownership, it has been there for decades....fannie mae has been around since 1936....never went belly up before, but it probably did not have crooks running it, just as all the other financial institutions had crooks running them...just greedy, irresponsible crooks who gambled with other people's money, made their fortunes in doing it, and now want a bail out from their very own mistakes and greed.

 

[DiveCon]

I watched the video and saw nothing that explained anything, it was flashes of headlines....

if that is enough information for you then fine, but i think you are being rather shallow.....

WHAT CHANGED-was deregulation that ALLOWED this to happen now, verses the previous decades....

there is no LAW or act that forced any of the banks in to issuing mortgages to people with bad credit, or to create this irresponsible subprime loans that they created to scam the vulnerable with...NINJA loans, interest only loans etc...these were done by the banks, all on their own...for the immediate dollar in hand, for greed....or for them to sell off their loans to one another packaged in a creative way to prevent anyone from seeing their true risk...or the gambling they did, betting on whther the whole industry will fall short or gain....

This is what has collapsed our economy....and this all took place because of deregulation or lack of regulation, of the industry and lack of oversight by the governing agencies by allowing the industry to "self govern" itself....BIG MISTAKE....

yes, fannie and freddie were tied up with this, i understand such, but they are not even half the problem....nor is the act that encourages homeownership, it has been there for decades....fannie mae has been around since 1936....never went belly up before, but it probably did not have crooks running it, just as all the other financial institutions had crooks running them...just greedy, irresponsible crooks who gambled with other people's money, made their fortunes in doing it, and now want a bail out from their very own mistakes and greed.

WRONG, it wasnt deregulation that caused it, that is a lie the dems and their willing accomplice, the media are pushing.
it was goverment interference telling those lenders to issue loans to those that really didnt qualify for them,
AKA high risk borrowers.

 

[DiveCon]

i heard only 17% of the subprime loans were issued to black people, less than 10% to hispanics and the 75% left were to whites etc....

uh, since when does "high risk borrower" equal minorities?

 

[Care4all]

uh, since when does "high risk borrower" equal minorities?

They don't....but the banks thought they did, that's for certain...

no bank was required to devise these risky loans or to loan to the risky, they were under an act that required them to NOT REDLINE people in the poorer communities that the banks service who did not have bad credit...which they were doing....

 

[Care4all]

uh, since when does "high risk borrower" equal minorities?

anyway, i think i was wrong on those figures i quoted, i believe those figures might have been for ALL LOANS, conventional and subprime, but i still need to double check it...

 

[Care4all]

And as i have stated before, the deregulation or the lack of regulation did not cause any of this...it ALLOWED IT to happen by greedy, irresponsible, crooks...including those at fanny mae and freddie, but not limited to them at all....other banking institutions also are crooks and irresponsible to their stockholders business men.

 

[dilloduck]

anyway, i think i was wrong on those figures i quoted, i believe those figures might have been for ALL LOANS, conventional and subprime, but i still need to double check it...

Why were subprimes issued in the first place ?

 

[Care4all]

Why were subprimes issued in the first place ?

for no other reason than a way to make a QUICK BUCK, with disregard to the long term stockholder or their fidutiary responsibility to them...

I don't buy in to your contorted view that they were forced to do such by our government!

 

[dilloduck]

for no other reason than a way to make a QUICK BUCK, with disregard to the long term stockholder or their fidutiary responsibility to them...

I don't buy in to your contorted view that they were forced to do such by our government!

Don't put words in my mouth---I have only asked questions and have placed the blame on no man or no party. Are you claiming the Fed created cheap money to make a profit ? The fed can't make a profit--by law.

 

[DiveCon]

for no other reason than a way to make a QUICK BUCK, with disregard to the long term stockholder or their fidutiary responsibility to them...

I don't buy in to your contorted view that they were forced to do such by our government!

did you not watch the whole video ?
if you dont believe the video, do the google searches on what it pointed out
you will find that the lenders were encouraged by the government to loan to those in the high risk
thats why they were getting subprime loans to do so
but when those loans didnt get paid back, they still had to repay the bigger lenders AKA fannie and freddie

 

[dilloduck]

did you not watch the whole video ?
if you dont believe the video, do the google searches on what it pointed out
you will find that the lenders were encouraged by the government to loan to those in the high risk
thats why they were getting subprime loans to do so
but when those loans didnt get paid back, they still had to repay the bigger lenders AKA fannie and freddie

Government meaning Congress or Government meaning the Fed ?

 

[Care4all]

did you not watch the whole video ?
if you dont believe the video, do the google searches on what it pointed out
you will find that the lenders were encouraged by the government to loan to those in the high risk
thats why they were getting subprime loans to do so
but when those loans didnt get paid back, they still had to repay the bigger lenders AKA fannie and freddie

please show the LAW that forced ALL the financial institutions to use NINJA LOANS-no interest no job or asset loans, INTEREST ONLY LOANS, low intital interest ARMS, ARMS that gave penalty if you refinanced in to a Conventional mortgage.....

the BANKS created these very unstable loans....to prey on the uninformed....and promised the same people that they could get a conventional loans when their interest rate hit the adjustable period....these people did not default on their loans for the first few years at their fixrd rate...the banks collected their interest only payments for years before they defaulted....when they went from a 5% interest rate to a 12% interest rate, their mortgage payments more than doubled....if they had been able to get the 6% conventional mortgage in refinancing as they were all promissed, they would have continued to own homes and make their payments....

yes some of the adjustable mortgages may still have failed, but not enough to set off a crisis....

banks took risks that they never should have taken.... in many ares of this mess, now we have to bail them out, which i do not agree with, at all!

 

[dilloduck]

please show the LAW that forced ALL the financial institutions to use NINJA LOANS-no interest no job or asset loans, INTEREST ONLY LOANS, low intital interest ARMS, ARMS that gave penalty if you refinanced in to a Conventional mortgage.....

the BANKS created these very unstable loans....to prey on the uninformed....and promised the same people that they could get a conventional loans when their interest rate hit the adjustable period....these people did not default on their loans for the first few years at their fixrd rate...the banks collected their interest only payments for years before they defaulted....when they went from a 5% interest rate to a 12% interest rate, their mortgage payments more than doubled....if they had been able to get the 6% conventional mortgage in refinancing as they were all promissed, they would have continued to own homes and make their payments....

yes some of the adjustable mortgages may still have failed, but not enough to set off a crisis....

banks took risks that they never should have taken.... in many ares of this mess, now we have to bail them out, which i do not agree with, at all!

Where did the banks get the money to create these loans and why should they worry about anyone defaulting if the taxpayer is set up to aassume the risk ?

 

[editec]

WRONG, it wasnt deregulation that caused it, that is a lie the dems and their willing accomplice, the media are pushing.
it was goverment interference telling those lenders to issue loans to those that really didnt qualify for them,
AKA high risk borrowers.

Completely nonsense.

 

[Care4all]

Where did the banks get the money to create these loans and why should they worry about anyone defaulting if the taxpayer is set up to aassume the risk ?

if the tax payer was set up to ASSUME ALL of the risk, then why did the system crash and they need the $700 billion bail out everyone....why not just let the federal insurance cover all of it? why did the credit market freeze, come to a halt?