Dad2three
Gold Member
The 1970s saw mild recessions compared to the conservatives' housing bust. And they were largely from supply shocks that caused mild stagflation. But Jim Carter and Paul Volcker addressed those issues, and Reagan reaped the benefits.
I would agree that Volcker handled the issue quite well, much better than the response from Greenspan and Bernanke have handled the current recession, but I certainly wouldn't categorize the stagflation as mild.
The 1970s saw mild recessions compared to the conservatives' housing bust
how can it be a conservative housing bust when there was massive govt intervention before the bust?? Ever heard of Fed/ Fanny/ Freddie just for starters??
ZERO to do with te WORLD WIDE CREDIT BUBBLE AND BUST, one Dubya ignored (FBI warnings starting in 2004) and was the head cheerleader for!
Examining the big lie: How the facts of the economic crisis stack up
Here are key things we know based on data. Together, they present a series of tough hurdles for the big lie proponents.
The boom and bust was global. Proponents of the Big Lie ignore the worldwide nature of the housing boom and bust.
Nonbank mortgage underwriting exploded from 2001 to 2007, along with the private label securitization market, which eclipsed Fannie and Freddie during the boom.
Check the mortgage origination data: The vast majority of subprime mortgages the loans at the heart of the global crisis were underwritten by unregulated private firms. These were lenders who sold the bulk of their mortgages to Wall Street, not to Fannie or Freddie. Indeed, these firms had no deposits, so they were not under the jurisdiction of the Federal Deposit Insurance Corp or the Office of Thrift Supervision. The relative market share of Fannie Mae and Freddie Mac dropped from a high of 57 percent of all new mortgage originations in 2003, down to 37 percent as the bubble was developing in 2005-06.
Private lenders not subject to congressional regulations collapsed lending standards. Taking up that extra share were nonbanks selling mortgages elsewhere, not to the GSEs. Conforming mortgages had rules that were less profitable than the newfangled loans. Private securitizers competitors of Fannie and Freddie grew from 10 percent of the market in 2002 to nearly 40 percent in 2006.
Only one of the top 25 subprime lenders in 2006 was directly subject to the housing laws overseen by either Fannie Mae, Freddie Mac or the Community Reinvestment Act Source: McClatchy
Examining the big lie: How the facts of the economic crisis stack up | The Big Picture