Disaster Capitalism

[The T]

Who created the subprime mortgage crisis?

Those who took out morrtgages that they could not repay. not those who made it possible for them to do it.
See I believe in true personal responsibility.

If God gave us freedom to make choices is it Gods fault is we made poor ones?
Freedom comes with the responsibility to use it wisely.

Those who say the govt caused it are supporting the nanny state govt concept.

Yes those that made it possible with poor oversight. The politicians.

It all began with Jimmah Catah...

COMMUNITY REINVESTMENT ACT

Bill Clinton's Involvement


Sure the people that couldn't afford it bear responsibility. I blame the Government and horrendous management and failed to put a stop to it under political pressure of being called racist...

 

[Truthmatters]

CRA had nothing to do with this mess and only right wing brain washed fools buy that tripe.

The amount mandated in the CRA program was NEVER enough to cause this mess.

Why did so many of the non CRA lenders write massive amounts of sub primes?

Because they were making money off them.

 

[Liberty]

News Headlines

A drumbeat of disappointing data about consumer behavior, factory sales and weak hiring in recent weeks has prompted economists to ratchet down their 2011 economic forecasts to as little as half what they expected at the beginning of the year.


Two months ago, Goldman Sachs projected that the economy would grow at a 4 percent annual rate in the quarter ending in June. The company now expects the government to report no more than 2 percent growth when data for the second quarter is released in a few weeks.

Macroeconomic Advisers, a research firm, projected 3.5 percent growth back in April and is now down to just 2.1 percent for this quarter.

Both these firms, well respected in their analysis, have cut their forecasts for the second half of the year as well. Then this week, the Federal Reserve downgraded its projections for the full year, to under 3 percent growth. It started the year with guidance as high as 3.9 percent.

Two years into the official recovery, the economy is still behaving like a plane taxiing indefinitely on the runway. Few economists are predicting an out-and-out return to recession, but the risk has increased, with the health of the American economy depending in part on what is really “transitory.”

That's the quality of government for you.

 

[Truthmatters]

Economists say the unexpected shocks from Japan and the Middle East in the first half of the year go only partway toward explaining the deceleration. Many worries remain: housing prices have continued to fall, hiring is weak, wages are flat, growth in emerging economies like China and India is slowing and the debt crisis in Europe could have ripple effects.

 

[Truthmatters]

So you claim the dems are responsible for all that?

 

[The T]

News Headlines

A drumbeat of disappointing data about consumer behavior, factory sales and weak hiring in recent weeks has prompted economists to ratchet down their 2011 economic forecasts to as little as half what they expected at the beginning of the year.


Two months ago, Goldman Sachs projected that the economy would grow at a 4 percent annual rate in the quarter ending in June. The company now expects the government to report no more than 2 percent growth when data for the second quarter is released in a few weeks.

Macroeconomic Advisers, a research firm, projected 3.5 percent growth back in April and is now down to just 2.1 percent for this quarter.

Both these firms, well respected in their analysis, have cut their forecasts for the second half of the year as well. Then this week, the Federal Reserve downgraded its projections for the full year, to under 3 percent growth. It started the year with guidance as high as 3.9 percent.

Two years into the official recovery, the economy is still behaving like a plane taxiing indefinitely on the runway. Few economists are predicting an out-and-out return to recession, but the risk has increased, with the health of the American economy depending in part on what is really “transitory.”

That's the quality of government for you.

And they're out of control and NO friend to the people.

 

[mudwhistle]

Yes they were but they were told buy a house now because the prices will just keep going up and at some point you will never be able to own a house.

The problem right now is prices are falling.

Add to that the fact that banks aren't willing to give us decent terms to borrow because they consider 90% of us, in an unstable economy, are a risk.

 

[Truthmatters]

Yes they created the problem then got bailed out and are now stiffing us with our own money.

Thank a republican

 

[bripat9643]

Yes they created the problem then got bailed out and are now stiffing us with our own money.

Thank a republican

Democrats created the problem. No one is surprised they would lie and attempt to deflect the blame from where it belongs. for Democrat, telling the truth would be as unthinkable as a Congressman turning down a bribe.

 

[Truthmatters]

Pray tell us how

 

[CrusaderFrank]

How many of you know what it is?

Whenever Progressives get control of the US economy

 

[bripat9643]

CRA had nothing to do with this mess and only right wing brain washed fools buy that tripe.

The amount mandated in the CRA program was NEVER enough to cause this mess.

Why did so many of the non CRA lenders write massive amounts of sub primes?

Because they were making money off them.

There was no "amount" mandated by the CRA. What it did is give leftwing agitators like ACORN the right to sue banks who they claimed were not giving out enough loans to deadbeats. When the rules are changed to make it possible for deadbeats to get a loan, they are changed for everyone.

There isn't a shred of truth in anything you post. It's all leftwing deflection and talking points - every bit of it is straight from a Soros funded propaganda mill.

 

[Urkie]

There was no "amount" mandated by the CRA. What it did is give leftwing agitators like ACORN the right to sue banks who they claimed were not giving out enough loans to deadbeats. When the rules are changed to make it possible for deadbeats to get a loan, they are changed for everyone.

There isn't a shred of truth in anything you post. It's all leftwing deflection and talking points - every bit of it is straight from a Soros funded propaganda mill.

So you believe that the banks bare no responsibility for their role in the whole thing? They knew exactly what they were doing. They're the ones that pushed to get rid of the regulations that protected people from taking out a loan that they couldn't afford to pay.

 

[peach174]

It was 3 Dems in the committee that refused to regulate Fanny and Freddy.
They totally ignored President Bush who brought it up 5 or 6 times during his administration, to get regulation passed for both agencies.
Ol Barney Frank - they are doing just fine they don't need regulations.

 

[The T]

It was 3 Dems in the committee that refused to regulate Fanny and Freddy.
They totally ignored President Bush who brought it up 5 or 6 times during his administration, to get regulation passed for both agencies.
Ol Barney Frank - they are doing just fine they don't need regulations.

They think they escape culpability by pointing the finger elsewhere, or just flatly denying it.

 

[Bfgrn]

CRA had nothing to do with this mess and only right wing brain washed fools buy that tripe.

The amount mandated in the CRA program was NEVER enough to cause this mess.

Why did so many of the non CRA lenders write massive amounts of sub primes?

Because they were making money off them.

There was no "amount" mandated by the CRA. What it did is give leftwing agitators like ACORN the right to sue banks who they claimed were not giving out enough loans to deadbeats. When the rules are changed to make it possible for deadbeats to get a loan, they are changed for everyone.

There isn't a shred of truth in anything you post. It's all leftwing deflection and talking points - every bit of it is straight from a Soros funded propaganda mill.

Why are all you right wingers so fucking ignorant? EVERYTHING you believe is nothing but bullshit social propaganda spoon fed to you by the Fox News, right wing talking heads and every other mouthpiece for the elite. It is amazing you make it across the street without getting creamed...you don't even know your ass from a hole in the ground!

Is the Wall Street Journal 'credible' enough for you Monica?

Here is what we DO know:

1) The financial crisis was not caused by low and middle income families buying a home.

2) It was not caused by dead beat poor people.

3) Fannie and Freddie were not to cause.

4) The Community Investment Act was not the culprit either.

The crisis was caused by private lending, to mostly upper middle class and the wealthy. ONLY 6% of of all the higher-priced loans were extended by CRA-covered lenders to lower-income borrowers or neighborhoods in their CRA assessment areas. The majority of those foreclosed on were wealthy and upper middle class, plus a large segment of buyers who were wealthy home flippers looking for a fast buck. They strategically walked away from their mortgages, leaving people who bought homes to live in with lower values on their house and neighborhood.

AND, what really sucks for the right wing propaganda of lies, all the way back to the late '90's there was one very outspoken and vocal critic of predatory lending practices, they even held protests at companies like Wells Fargo and Lehman Brothers...ACORN


WSJ - Fed’s Kroszner: Don’t Blame CRA

WSJ - Fed’s Kroszner: Don’t Blame CRA - The Sequel

Reuters - UPDATE 2-Lending to poor didn't spur crisis

Don't Blame the Community Reinvestment Act

Business Insider - Here's Why Fannie And Freddie Are Not At Fault For The Housing Bubble

Center for Responsible Lending - CRA is not to Blame for the Mortgage Meltdown

Don't blame Fannie and Freddie

Private sector loans, not Fannie or Freddie, triggered crisis

ForeclosureS.com - ACORN - Progress in the Fight Against Predatory Lending

Acorn Led Financial Sector With Warnings on Lending

Biggest Defaulters on Mortgages Are the Rich

The Millionaire Foreclosure Club

Foreclosure double standard: Why the rich get away with defaulting

More Rich People Default On Mortgages

The rich bail faster on mortgages

Biggest Defaulters on Mortgages Are the Rich

Rich Borrowers More Likely to Default on Mortgage

Foreclosures & Walking Away: 60 Minutes Eyes an ‘Epidemic’

Speculation By Investors Largely Cause Of Foreclosure Crisis

How the Foreclosure Crisis Started: Investors, Speculators, Mortgage Fraud & Lax Lending Standards


"Eighty percent of Republicans are just Democrats that don't know what's going on"
Robert F. Kennedy Jr.

 

[CrusaderFrank]

"These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis," -- Barney Frank

They were the swirling black hole at the epicenter of the disaster

 

[Dot Com]

I will give you a brief discription of disaster capitalism.

A disaser takes place.

While people are so distracted by dealing with their very survival the money people swoop in and buy or manuver to buy up assets at rock bottom prices.

They can either wait for a disaster to jsut happen or they can be more proactive and create or prod a disaster into exsistance.


You have been had and are kissing the people who had you.

I bet it's mentioned in this book (I had it on backorder):

Griftopia: Bubble Machines, Vampire Squids, and the Long Con That Is Breaking America

I did read another one on the same subject however:

The Big Short: Inside the Doomsday Machine
By Michael Lewis

 

[Bfgrn]

"These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis," -- Barney Frank

They were the swirling black hole at the epicenter of the disaster

No, they weren't Frank.

Fannie Mae and Freddie Mac were victims, not culprits

There’s a dangerous — and misleading — argument making the rounds about the causes of our current credit crisis. It’s emanating from Washington where politicians are engaging in the usual blame game but this time the stakes are so high that we can’t afford to fall victim to political doublespeak. In this fact-free zone, government sponsored mortgage giants Fannie Mae and Freddie Mac caused the real estate bubble and subprime meltdown. It’s completely false. Fannie Mae and Freddie Mac were victims of the credit crisis, not culprits.

Start with the most basic fact of all: virtually none of the $1.5 trillion of cratering subprime mortgages were backed by Fannie or Freddie. That’s right — most subprime mortgages did not meet Fannie or Freddie’s strict lending standards. All those no money down, no interest for a year, low teaser rate loans? All the loans made without checking a borrower’s income or employment history? All made in the private sector, without any support from Fannie and Freddie.

Look at the numbers. While the credit bubble was peaking from 2003 to 2006, the amount of loans originated by Fannie and Freddie dropped from $2.7 trillion to $1 trillion. Meanwhile, in the private sector, the amount of subprime loans originated jumped to $600 billion from $335 billion and Alt-A loans hit $400 billion from $85 billion in 2003. Fannie and Freddie, which wouldn’t accept crazy floating rate loans, which required income verification and minimum down payments, were left out of the insanity.

There’s a must-read study by staff members of the Federal Reserve Bank of New York analyzing the roots of the subprime crisis that came out in March. I don’t think it got much attention then as the conclusions seemed uncontroversial at the time. But now that Washington politicians are trying to rewrite history, it should be mandatory reading for every American interested in knowing how we got here.

The study identifies five causes of the subprime meltdown:

-Convoluted loan products that consumers didn’t understand.

-Credit ratings that didn’t do a good job highlighting the risks contained in subprime-backed securities.

-Lack of incentives for institutional investors to do their own research (they just relied on the credit ratings).

-Predatory lending and borrowing (which I think means fraud perpetrated by borrowers).

-Significant errors in the models used by credit rating agencies to assess subprime-backed securities.

You’ll note in the Fed’s five causes that there’s some culpability for lenders, borrowers, investors and credit raters. There’s no blame for Freddie Mac or Fannie Mae which had little or nothing to do with the entire situation.

 

[CrusaderFrank]

Of course, we could fully transition to Socialism which is always a disaster where prices never recover.