First Steps the Next Conservative President Must Take

[L.K.Eder]

1. Assure the Capital Markets and the world that she (or he) understand why American is the Number one economy and best country on Earth and will use government to help it instead of destroy it.

2. If we fall short of a veto-proof majority, use her (or his) power as Executive to totally remake Federal Agencies, transforming them into Agencies that will work WITH American business instead of AGAINST American business. Don't get hung up on closing HUD, DoEd etc. FIRE EVERYONE and replace them with people who will carry out a Pro-American agenda. Libs will complain, but nobody will listen

3. We have a real estate mess that continues to fester. Close Fannie and Freddie, sell their entire SFH portfolio at auction and allow individual to invest their 401k in real estate asset.

4. Robust domestic energy program, drill baby drill!!

5. repeal ObamaCare in favor of the Whole Food recommendaations

i thought the priority should be on a flag-burning-banning amendment.

 

[The Rabbi]

F/F lowered the standards

For the thousandth time, NO THEY DIDN'T. They kept HIGH loan qualification standards until very late in the game. 86+% of toxic mortgages were the product of PRIVATE lenders. Stopy lying.

See an article using data from the Federal Reserve Board:

Private sector loans, not Fannie or Freddie, triggered crisis | McClatchy

Did you actually read the article?
The mess started with subprime, which Fannie was not part of. However, their standards had fallen considerably over the previous 5 years and they were big players in the "Alt-A" market.
This chart proves you are mistaken.

 

[CrusaderFrank]

That would be correct Mike. In order to drill, you might have need of a reason. CF says we need to drill because of supply and demand.

There is no shortage of supply.

There is no increased demand.

So you don't need to drill.

Doing your famous board impression of yourself again, huh? I am not surprised, because you can't answer the questions. Don't feel bad, Palin couldn't answer them either.

You make less and less sense with every post, are you trying to replace Biden?

 

[OODA_Loop]

Tax amnesty on real estate investments.

 

[Charles_Main]

1. Assure the Capital Markets and the world that she (or he) understand why American is the Number one economy and best country on Earth and will use government to help it instead of destroy it.

2. If we fall short of a veto-proof majority, use her (or his) power as Executive to totally remake Federal Agencies, transforming them into Agencies that will work WITH American business instead of AGAINST American business. Don't get hung up on closing HUD, DoEd etc. FIRE EVERYONE and replace them with people who will carry out a Pro-American agenda. Libs will complain, but nobody will listen

3. We have a real estate mess that continues to fester. Close Fannie and Freddie, sell their entire SFH portfolio at auction and allow individual to invest their 401k in real estate asset.

4. Robust domestic energy program, drill baby drill!!

5. repeal ObamaCare in favor of the Whole Food recommendaations

To first step for any Conservative President to me should be that they are actually fiscally Conservative.

 

[CrusaderFrank]

F/F lowered the standards

For the thousandth time, NO THEY DIDN'T. They kept HIGH loan qualification standards until very late in the game. 86+% of toxic mortgages were the product of PRIVATE lenders. Stopy lying.

See an article using data from the Federal Reserve Board:

Private sector loans, not Fannie or Freddie, triggered crisis | McClatchy

Fannie lowered the standard for the paper they would buy. Fannie started NINA (no income no asset) Fannie set the goal of loaning to people who had no hope of repaying

 

[geauxtohell]

When the next "Conservative" President is elected, at the first non-conservative move he makes. The conservatives will declare that he is not really a conservative, and the "no true Sotsman" canard will perpetuate itself and conservatives will continue to bitch about the "liberal" takeover of this country.

 

[L.K.Eder]

When the next "Conservative" President is elected, at the first non-conservative move he makes. The conservatives will declare that he is not really a conservative, and the "no true Sotsman" canard will perpetuate itself and conservatives will continue to bitch about the "liberal" takeover of this country.

yeah, because this rino who will spend like a drunken librul will have been selected by the LSMSMSMS.

a true conservative like fred thompson did not fail in the primaries, but was smeared by the liberal elites.

 

[Toro]

The real estate market was blow to smithereens by F/F, the twin black holes at the epicenter of the real estate collapse.

Yes it was. It opened the door for others to capitalize on its mistakes.....

But it is such a major factor in the real estate industry, closing it down will set us back dramatically.

One of the issues with larger government.....weening off of it is impossible.

No. get it right!

F/F set the lowbrow standards and the banks delivered what they demanded.

We cannot ever give FDIC insurance to banks that want to gamble. If you want to be taxpayer insured you will live a boring life.

Freddie and Fannie followed the lowbrow standards set in the private markets as they were losing share.

 

[Salt Jones]

Wait until 2016 when they may have a chance at winning.

 

[Toro]

No. get it right!

F/F set the lowbrow standards and the banks delivered what they demanded.

We cannot ever give FDIC insurance to banks that want to gamble. If you want to be taxpayer insured you will live a boring life.

Frank...I got it right...righter than most on this board...

F/F lowered the standards
Such opened the doors for those that can not afford a home to buy a home
Banks were urged to deliver out of threats of descrimination accusations
Loan agfnets capityalized and urged people to lie about their income
People lied about their income
Loan agents assured them that if they take the loan, the can refiannce when the teaser rate expires
People believed it without really trying to understand the other possibilities, such as not beng able to refiannce.


I can go on...but it is old news.

Botoom line...none of it would have happened if the lenders were not urged to push loans to those that can not afford it.

They didnt need any urging. Writing mortgages, selling them, bundling them into bonds and selling those was so profitable everyone wanted in on the action. With a dwindling pool of qualified buyers lenders went after unqualified buyers, arguing that rising real estate values would provide the safety needed.

I agree with Frank that a lot of this came from government insurance for bank deposits. We need to do away with that and make banks and their customers more responsible.

Most of the structured products were owned by financial institutions that on average had relatively fewer deposits in the capital structure. So it wasn't deposit insurance.

 

[CrusaderFrank]

Yes it was. It opened the door for others to capitalize on its mistakes.....

But it is such a major factor in the real estate industry, closing it down will set us back dramatically.

One of the issues with larger government.....weening off of it is impossible.

No. get it right!

F/F set the lowbrow standards and the banks delivered what they demanded.

We cannot ever give FDIC insurance to banks that want to gamble. If you want to be taxpayer insured you will live a boring life.

Freddie and Fannie followed the lowbrow standards set in the private markets as they were losing share.

The opposite of the truth

 

[Toro]

No. get it right!

F/F set the lowbrow standards and the banks delivered what they demanded.

We cannot ever give FDIC insurance to banks that want to gamble. If you want to be taxpayer insured you will live a boring life.

Freddie and Fannie followed the lowbrow standards set in the private markets as they were losing share.

The opposite of the truth

... is what you've posted.

Fannie Mae started life in 1938 as a government agency, the Federal National Mortgage Association, and was privatized in 1968. Congress created Freddie — the Federal Home Loan Mortgage Corp. — in 1970 to give it some competition. For years the two companies operated on the fringes of the mortgage market, which was dominated by savings & loan companies. But after the S&L collapse of the 1980s, Fannie and Freddie swept in to take over. The widespread assumption that government would step in if they faltered allowed them to borrow money at only slightly higher rates than the U.S. Treasury, which meant they could outbid all competitors in the secondary mortgage market. Before long 60% of all mortgages made in the U.S. were passing through their hands, and their share would have been even higher if they weren't banned from buying loans above a certain size ($417,000 in 2007) and generally required to stay away from exotic loans and borrowers with poor credit. For a time in the mid-1990s, before the wave of bank megamergers that brought us the likes of Citigroup and J.P. Morgan Chase, Fannie Mae was the biggest financial institution, by assets, in the country.

Fannie and Freddie did get lots of flak, mostly from people on the political right, for taking risks for which taxpayers might eventually have to foot the bill (and, from other quarters, for its top executives' outsized pay packages). Both companies also got tangled in accounting scandals in 2003 and 2004. But more shocking was what followed from 2004 through 2006: The two mortgage giants got muscled aside by Wall Street firms willing to underwrite bigger, riskier mortgages than Fannie and Freddie were allowed to touch. Their joint market share fell to only about 25% in 2006.

http://www.time.com/time/business/article/0,8599,1822014,00.html

Screw the ideology. It will make you see the world clearer.

 

[CrusaderFrank]

Freddie and Fannie followed the lowbrow standards set in the private markets as they were losing share.

The opposite of the truth

... is what you've posted.

Fannie Mae started life in 1938 as a government agency, the Federal National Mortgage Association, and was privatized in 1968. Congress created Freddie — the Federal Home Loan Mortgage Corp. — in 1970 to give it some competition. For years the two companies operated on the fringes of the mortgage market, which was dominated by savings & loan companies. But after the S&L collapse of the 1980s, Fannie and Freddie swept in to take over. The widespread assumption that government would step in if they faltered allowed them to borrow money at only slightly higher rates than the U.S. Treasury, which meant they could outbid all competitors in the secondary mortgage market. Before long 60% of all mortgages made in the U.S. were passing through their hands, and their share would have been even higher if they weren't banned from buying loans above a certain size ($417,000 in 2007) and generally required to stay away from exotic loans and borrowers with poor credit. For a time in the mid-1990s, before the wave of bank megamergers that brought us the likes of Citigroup and J.P. Morgan Chase, Fannie Mae was the biggest financial institution, by assets, in the country.

Fannie and Freddie did get lots of flak, mostly from people on the political right, for taking risks for which taxpayers might eventually have to foot the bill (and, from other quarters, for its top executives' outsized pay packages). Both companies also got tangled in accounting scandals in 2003 and 2004. But more shocking was what followed from 2004 through 2006: The two mortgage giants got muscled aside by Wall Street firms willing to underwrite bigger, riskier mortgages than Fannie and Freddie were allowed to touch. Their joint market share fell to only about 25% in 2006.

Behind the Fannie and Freddie Fears - TIME

Screw the ideology. It will make you see the world clearer.

Fannie was the 900Lb gorilla, the revolving black hole at the center of the meltdown.

You think it was the 2 years that F/F wasn't the leader that caused it? You're ignoring all the groundwork the Jim Johnson put in during the 90's?

F/F set the standard for AAA rated paper and they used their currency to buy Congress to keep the profits flowing until the pulled down the entire market.

Also thank you pal Dodd for making sure AIG would get bailed out.

 

[rdean]

With all the detail Republicans produce on their plans, they might as well be saying:

1. Make things good

2. Eat good food

3. Live nice house

4. Win war

5. Do fun things

6. Buy something nice

7. Have good job

8. Play fun

9. Go someplace nice visit

10. Pretty flower smell good

 

[Dot Com]

Whens the last time there was a conservative President? Don't say Reagan because he blew a hole in the debt and raised taxes

 

[CrusaderFrank]

Whens the last time there was a conservative President? Don't say Reagan because he blew a hole in the debt and raised taxes

Reagan.

 

[The T]

Whens the last time there was a conservative President? Don't say Reagan because he blew a hole in the debt and raised taxes

Reagan.

Seconded.

 

[Toro]

Fannie was the 900Lb gorilla, the revolving black hole at the center of the meltdown.

You think it was the 2 years that F/F wasn't the leader that caused it? You're ignoring all the groundwork the Jim Johnson put in during the 90's?

F/F set the standard for AAA rated paper and they used their currency to buy Congress to keep the profits flowing until the pulled down the entire market.

Also thank you pal Dodd for making sure AIG would get bailed out.

In the 90s, the GSEs had a 60% market share. By 2000, it was 40%. In 2006, it was 25%. They lost share.

Of course Freddie and Fannie played a role. How could they not? They were a huge chunk of the market. But the right-wing ideologues absolutely refuse to acknowledge that the market failed. To the ideologues, its religion. Markets NEVER fail. Positive feedback loops don't exist in the ideological fantasy world because people are automatrons, slaves to rational expectations and oblivious to emotions. The shadow banking system, capitalizing $2,000,000,000,000 in loans and leveraging up as much as 99:1, most outside the purview of the GSEs, would never happen if it weren't for some 6th degree of separation from the actions of the government. Because markets never fail.

As for AIG, I'm sure that if Lehman had been bailed out, conservatives would have been bitching about that. Good thing we don't have a petrie dish to find out what would have happened if the fantasy world of free market rational expectations that allowed AIG to stuff itself full of premiums from shit equity portions of CDOs and other structured products was allowed to play out.

 

[The T]

But I thought you wanted to destroy government.

TRIM IT profusely to Constitutional levels.