Democrats are to blame for financial meltdown

[AllieBaba]

Thanks. But it's still the wrong link... it's to the homepage.

I fixed it.

 

[KittenKoder]

Blogs are not credible sources.

 

[sealybobo]

I fixed it.

Can you show me anything more recent than Phil Gramm's move that caused this collapse? 1999.

McCain guru linked to subprime crisis - Lisa Lerer - Politico.com

 

[KittenKoder]

It's true, the Democrats wanted poor people to own homes. That doesn't mean we said give them mortgages they couldn't afford. And do Republicans want to discuss why people lost their jobs, or why things went up in price? People aren't only foreclosing because they lost their jobs. And not everyone has a mortgage that goes up and down. Even 30 year fixed mortgages are foreclosing.

And do Republicans want to discuss what led to houses dropping in value?

I just love how now, "everyone is to blame". I guess that's as close as we will ever get to an I'm sorry from the GOP.

This morning Air America was playing a tape of Bush saying in 2001 that not only did he want poor Americans to own, but he wanted them to own EXCELLENT homes.

Fact is, you can go back and read every speech Bush ever made about the economy, and McCain for that matter, and they were dead fucking wrong about everything.

Now they want 4 more years? No way!!!

McCain wants the bankers to get that $700 billion dollars, no matter what he says today. Those are his bosses after all.

Oh, and McCain wants to put everything off until it's fixed ... sounds like he's working to avoid the election altogether ...

 

[jillian]

Blogs are not credible sources.

She can't really tell the difference.

 

[KittenKoder]

She can't really tell the difference.

I know, but reminder her enough might actually make it sink in sometime.

 

[AllieBaba]

It's true, the Democrats wanted poor people to own homes. That doesn't mean we said give them mortgages they couldn't afford. And do Republicans want to discuss why people lost their jobs, or why things went up in price? People aren't only foreclosing because they lost their jobs. And not everyone has a mortgage that goes up and down. Even 30 year fixed mortgages are foreclosing.

And do Republicans want to discuss what led to houses dropping in value?

I just love how now, "everyone is to blame". I guess that's as close as we will ever get to an I'm sorry from the GOP.

This morning Air America was playing a tape of Bush saying in 2001 that not only did he want poor Americans to own, but he wanted them to own EXCELLENT homes.

Fact is, you can go back and read every speech Bush ever made about the economy, and McCain for that matter, and they were dead fucking wrong about everything.

Now they want 4 more years? No way!!!

McCain wants the bankers to get that $700 billion dollars, no matter what he says today. Those are his bosses after all.

Dumbshit. If they're poor, they can't afford homes. If they're unstable, they are unlikely to be able to pay off their homes.

It was a democratic ploy, and it ruined the housing market...first by causing housing prices to soar through the roof, then to crash when all those people walked away from those loans. And the banks can't recover because they were making so little from the loans because the interest rates were unusually low.

IT'S NOT ROCKET SCIENCE. Why do you think the democrats are freaking out? Why do you think there haven't been calls for investigations? BECAUSE SO MANY OF THEM WERE IN ON IT AND GOT SWEETHEART DEALS. Obama's ECONOMIC ADVISOR is one of the biggest culprits in this.

Do a little research. Pull yourself away from those junior high blogs you spend all your time and actually do google searches, using non-inflammatory words in your search, and see what you come up with.

 

[AllieBaba]

Blogs are not credible sources.

That depends on whether they're citing credible sources, and this one is. It also provides links to multiple sources.

 

[AllieBaba]

Our Leadership - Freddie Mac

Read up.

 

[sealybobo]

Dumbshit. If they're poor, they can't afford homes. If they're unstable, they are unlikely to be able to pay off their homes.

It was a democratic ploy, and it ruined the housing market...first by causing housing prices to soar through the roof, then to crash when all those people walked away from those loans. And the banks can't recover because they were making so little from the loans because the interest rates were unusually low.

IT'S NOT ROCKET SCIENCE. Why do you think the democrats are freaking out? Why do you think there haven't been calls for investigations? BECAUSE SO MANY OF THEM WERE IN ON IT AND GOT SWEETHEART DEALS. Obama's ECONOMIC ADVISOR is one of the biggest culprits in this.

Do a little research. Pull yourself away from those junior high blogs you spend all your time and actually do google searches, using non-inflammatory words in your search, and see what you come up with.

Sorry babe, but I heard it from Bush's mouth. He wanted the POOREST people to own homes. He said HOME OWNERSHIP should be for all citizens. It restores pride in a person when they own something.

You should have heard it. It was a nice speech. Too bad he was fucking with us. He'll go to hell for sure with you and Satan.

 

[KittenKoder]

Sorry babe, but I heard it from Bush's mouth. He wanted the POOREST people to own homes. He said HOME OWNERSHIP should be for all citizens. It restores pride in a person when they own something.

You should have heard it. It was a nice speech. Too bad he was fucking with us. He'll go to hell for sure with you and Satan.

Even though she made one point that makes sense, Allie likes to ignore big pictures so she can complain about them, like ignoring the fact that our economy is not dependent on just one thing, like housing loans. Nor will she ever except the fact that one tiny mistake in, comparison to the astronomical errors by others, is not a reason to hate one group. Nor will she ever actually look up or acknowledge anything that opposes the dream world in her mind even though most sources show that it was actually the GOP this time that cause the biggest mess.

 

[jreeves]

No you said



Hence, you're a fucking idiot.

But by all means DO keep thinking this is a football game and one team can win and American won't lose if they do.

WAKE UP, FOOL!

Democrats are to blame, as is Freddie and Fannie CEO's, as is the President, as is etc....

But I do believe that Democrats that stonewalled this piece of legislation bear a great deal of the responsibility. These democrats were in the pockets of the financial lobbying coffers.

 

[editec]

During Bill Clinton's presidency, the democrats, including the president, pressured Freddie Mac and Fannie Mae to lower interest and provide home loans SPECIFICALLY to people who did not qualify...low income and minorities....SPECIFICALLY IMMIGRANTS. [/quote}

Show me the legislation which authorized it, then


As far as I know, Fannie Mae and Freddie Mac are private companies which were deregulated to the point that they could invent their own offerings.

Morning Bell: Market Rescue Dos and Don’ts The Foundry

All that site does is make a claim, without supporting it.

Show me the legislation which "pressured" Fannnie and Freddie to do this please.

 

[editec]

Allie,

Do you not understand that Fannie and Freddie have been PRIVATELY OWNED CORPORATIONS since 1968?

You apparently seem to think they were controlled by the government.

 

[jreeves]

Allie,

Do you not understand that Fannie and Freddie have been PRIVATELY OWNED CORPORATIONS since 1968?

You apparently seem to think they were controlled by the government.

Partially true....
Freddie Mac: A Mercantilist Enterprise - Paul Cleveland - Mises Institute
The Origins of Government Sponsored Enterprises

To understand the situation, one must study the history of the Federal Home Loan Banks and the Federal National Mortgage Association or Fannie Mae (Freddie Mac's larger sibling). These institutions were products of the New Deal. The mission of the Federal Home Loan Banks, which were created in 1932, was to provide financial support to urban thrift and savings banks. In 1938, the government created Fannie Mae with the express purpose of funding "mortgage loans insured by . . . the Federal Housing Administration."[1] All of this occurred during a time of upheaval in financial markets and were supposedly the remedy needed. Like all such government projects aimed at solving various crises, the institutions outlived their initial purpose and tended to change their focuses to continue operations. Accordingly, in 1968, Fannie Mae was chartered as a GSE and stock was sold to investors. At that time numerous large private mortgage companies purchased stock in the new firm. Likewise, Freddie Mac was chartered as a GSE in 1970.[2] However, Freddie Mac did not become a public company until 1989.[3]
Advocates for these GSEs argue that they provide liquidity in financial markets that would not exist otherwise. In the case of mortgage lending, proponents claim that Fannie Mae and Freddie Mac make it easier for low-income families to own homes. While these institutions have been privatized to a degree, they still remain tied to the federal government in some important respects. In fact, Fannie Mae and Freddie Mac have access to a guaranteed line of credit of $2.25 billion with the U.S. treasury.[4] This guarantee, coupled by the perception that federal money would be used beyond the extent of the credit limit, allows both companies to maintain lower borrowing costs than would otherwise be the case. In many cases, the companies are able to sell bonds yielding only a few dozen basis points above U.S. treasury benchmarks. If the government's guarantee disappeared, the borrowing spreads for both companies would widen. Beyond the government's line of credit, these companies are also exempt from state and local income taxation and are exempt from SEC filings. Moreover, their securities are listed as government securities and can be held by banks and thrifts as low-risk bonds.[5] These benefits provide a significant advantage since such privileges are not offered to other financial institutions.

For the most part, Fannie Mae and Freddie Mac have affected private mortgage markets by securitizing mortgages through the selling of bonds based. Freddie Mac veered from this strategy in the early 1990s when the company's management sought to generate higher profits. Though its business of securitizing mortgages was growing steadily, managers determined that the company could generate greater profitability by holding mortgages in a portfolio rather than by merely securitizing them through issuing bonds.[6]

However, as with any investment, a higher return typically entails accepting greater risk and this fact applies as much to Freddie Mac as it does to any other enterprise. In its original form of operation, securitizing mortgage contracts by selling bonds in the debt market passed on any interest rate risk to the bondholders. But, this situation changed dramatically when Freddie Mac began to hold mortgages in its own portfolio. Since most of the mortgages pay a fixed rate of interest, any change in interest rates can significantly affect the value of the portfolio. For this reason, Freddie Mac's management decided to hedge their exposure to fluctuations in the market rate of interest by using derivatives. One of the main instruments that the company uses is the over-the-counter derivative product called an interest rate swap.[7] The swap market is used by global banks, brokers, and insurance companies everyday, and its usefulness is immeasurable. It allows financial companies to reduce risk. It also provides a means of financial speculation.[8]

Freddie Mac manages a portfolio valued in the hundreds of billions of dollars. Furthermore, the portfolio contains mortgages at different interest rates with different durations. The task of successfully hedging such a portfolio is monumental, and Freddie Mac is forced to engage in numerous interest rate swaps in an effort to attempt to protect itself from interest rate fluctuations.

 

[Chris]

Warren Buffett, the billionaire investor and long-time chairman of Berkshire Hathaway Inc. (BRK.A), is a man who speaks his mind. I'm not sure whether he's always been that way, or whether it is his exceptional wealth or his age -- or both -- that emboldens him to cut through Wall Street B.S. like a hot knife and expose the bloody truth about the foibles of modern finance.

Whatever the case, his comments on derivatives, in particular, have been always been especially enlightening -- and entertaining -- because they expose this supposed risk-sharing panacea for the house of cards it has become. In Derivatives Cause 'Mass Destruction', the Wall Street Journal reports on the 'Oracle of Omaha's' latest thoughts on the subject.

Earlier Saturday, Mr. Buffet repeated his warning on the dangers of derivatives, saying that excessive borrowing by traders, investors and corporations will eventually lead to significant dislocation in the financial markets.

In fielding a question about derivatives, which he once referred to as "financial weapons of mass destruction," Mr. Buffett told shareholders that he expects derivatives and borrowing, or leverage, would inevitably end in huge losses for many financial participants.

"The introduction of derivatives has totally made any regulation of margin requirements a joke," said Mr. Buffett, referring to the U.S. government's rules limiting the amount of borrowed money an investor can apply to each trade. "I believe we may not know where exactly the danger begins and at what point it becomes a super danger. We don't know when it will end precisely, but...at some point some very unpleasant things will happen in markets."

Buffett On Derivatives: 'A Fool's Game' - Seeking Alpha

 

[Chris]

McCain's Economic Adviser is ex-Texas Sen. Phil Gramm. On Dec. 15, 2000, hours before Congress was to leave for Christmas recess, Gramm had a 262-page amendment slipped into the appropriations bill. It forbade federal agencies to regulate the financial derivatives that greased the skids for passing along risky mortgage-backed securities to investors. And that, my friends, is why everything's falling apart. That is why the taxpayers are now on the hook for the follies of Fannie Mae, Freddie Mac, Bear Stearns and now the insurance giant AIG to the tune of $700 billion.

 

[jreeves]

Warren Buffett, the billionaire investor and long-time chairman of Berkshire Hathaway Inc. (BRK.A), is a man who speaks his mind. I'm not sure whether he's always been that way, or whether it is his exceptional wealth or his age -- or both -- that emboldens him to cut through Wall Street B.S. like a hot knife and expose the bloody truth about the foibles of modern finance.

Whatever the case, his comments on derivatives, in particular, have been always been especially enlightening -- and entertaining -- because they expose this supposed risk-sharing panacea for the house of cards it has become. In Derivatives Cause 'Mass Destruction', the Wall Street Journal reports on the 'Oracle of Omaha's' latest thoughts on the subject.

Earlier Saturday, Mr. Buffet repeated his warning on the dangers of derivatives, saying that excessive borrowing by traders, investors and corporations will eventually lead to significant dislocation in the financial markets.

In fielding a question about derivatives, which he once referred to as "financial weapons of mass destruction," Mr. Buffett told shareholders that he expects derivatives and borrowing, or leverage, would inevitably end in huge losses for many financial participants.

"The introduction of derivatives has totally made any regulation of margin requirements a joke," said Mr. Buffett, referring to the U.S. government's rules limiting the amount of borrowed money an investor can apply to each trade. "I believe we may not know where exactly the danger begins and at what point it becomes a super danger. We don't know when it will end precisely, but...at some point some very unpleasant things will happen in markets."

Buffett On Derivatives: 'A Fool's Game' - Seeking Alpha

and??

 

[glockmail]

and??

Don't expect a reply from this cut-n-paster:

nolimits3333 on September 21st, 2008, 8:34 pm
McCain's Economic Adviser is ex-Texas Sen. Phil Gramm. On Dec. 15, 2000, hours before Congress was to leave for Christmas recess, Gramm had a 262-page amendment slipped into the appropriations bill. It forbade federal agencies to regulate the financial derivatives that greased the skids for passing along risky mortgage-backed securities to investors. And that, my friends, is why everything's falling apart. That is why the taxpayers are now on the hook for the follies of Fannie Mae, Freddie Mac, Bear Stearns and now the insurance giant AIG to the tune of $700 billion.

Biden paints Bush, McCain as anti-labor - Article Comments - View topic : Denver Post Neighbors

 

[jreeves]

Don't expect a reply from this cut-n-paster:
Biden paints Bush, McCain as anti-labor - Article Comments - View topic : Denver Post Neighbors

He keeps missing the part about Gramm being an ex-advisor. While he ignores all of the white collar criminals that raped investors and taxpayers serving as economic advisors to Obama....