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As usual, you need to folow the money
House flippers triggered the US housing market crash, not poor subprime borrowers
Mounting evidence suggests that the notion that the 2007 crash happened because people with shoddy credit borrowed to buy houses they couldnāt afford is just plain wrong. The latest comes in a new NBER working paper arguing that it was wealthy or middle-class house-flipping speculators who blew up the bubble to cataclysmic proportions, and then wrecked local housing markets when they defaulted en masse.
Analyzing a huge data set of anonymous credit scores from Equifax, a credit reporting bureau, the economists found that the biggest growth of mortgage debt during the housing boom came from those with credit scores in the middle and top of the credit score distributionāand that these borrowers accounted for a disproportionate share of defaults.
As for those with low credit scoresāthe āsubprimeā borrowers who supposedly caused the crisisātheir borrowing stayed virtually constant throughout the boom. And while itās true that these types of borrowers usually default at relatively higher rates, they didnāt after the 2007 housing collapse.
They defaulted when the music stopped and buyers disappeared. Handing out credit to people who borrowed too much fed that. Budddy had a friend who got o er 350 grand while only making 16.50 an hr.As usual, you need to folow the money
House flippers triggered the US housing market crash, not poor subprime borrowers
Mounting evidence suggests that the notion that the 2007 crash happened because people with shoddy credit borrowed to buy houses they couldnāt afford is just plain wrong. The latest comes in a new NBER working paper arguing that it was wealthy or middle-class house-flipping speculators who blew up the bubble to cataclysmic proportions, and then wrecked local housing markets when they defaulted en masse.
Analyzing a huge data set of anonymous credit scores from Equifax, a credit reporting bureau, the economists found that the biggest growth of mortgage debt during the housing boom came from those with credit scores in the middle and top of the credit score distributionāand that these borrowers accounted for a disproportionate share of defaults.
As for those with low credit scoresāthe āsubprimeā borrowers who supposedly caused the crisisātheir borrowing stayed virtually constant throughout the boom. And while itās true that these types of borrowers usually default at relatively higher rates, they didnāt after the 2007 housing collapse.
As usual, you need to folow the money
House flippers triggered the US housing market crash, not poor subprime borrowers
Mounting evidence suggests that the notion that the 2007 crash happened because people with shoddy credit borrowed to buy houses they couldnāt afford is just plain wrong. The latest comes in a new NBER working paper arguing that it was wealthy or middle-class house-flipping speculators who blew up the bubble to cataclysmic proportions, and then wrecked local housing markets when they defaulted en masse.
Analyzing a huge data set of anonymous credit scores from Equifax, a credit reporting bureau, the economists found that the biggest growth of mortgage debt during the housing boom came from those with credit scores in the middle and top of the credit score distributionāand that these borrowers accounted for a disproportionate share of defaults.
As for those with low credit scoresāthe āsubprimeā borrowers who supposedly caused the crisisātheir borrowing stayed virtually constant throughout the boom. And while itās true that these types of borrowers usually default at relatively higher rates, they didnāt after the 2007 housing collapse.
My identity got stolen last April by person or persons unknown who rang up a huge debt using my name. I spent $300 out of pocket to get my credit score back to normal and put a 7 year credit freeze on my name.
and of course he doesn't put up anything to PROVE his point as typical of a liberal sociopath #10 Just because you say it doesn't make it true....[ it was a lucrative business, up to the 2007 debacle, that Barney Frank, Maxine Waters, and Chris Dodd could of avoided.
Democrats were the minority in Congress at the time dumbass.
What part of 2007 didn't you understand, dumbass, opens his mouth inserts foot.Nancy Patricia D'Alesandro Pelosi (/pÉĖloŹsi/ ; born March 26, 1940) is the Minority Leader of the United States House of Representatives and served as the 60th Speaker of the United States House of Representatives from 2007 to 2011.
Nancy Pelosi - Wikipedia
en.wikipedia.org/wiki/Nancy_Pelosi
Sounds like the liberal playbook, where everyone will be equal. Equally poor and equally miserable. That is fairness. (except liberal elites who have millions and billions like Al Gore, Warren Buffet, Bill Gates, Bill and the bitch Hillary, and Barrack Hussein Obama).As usual, you need to folow the money
House flippers triggered the US housing market crash, not poor subprime borrowers
Mounting evidence suggests that the notion that the 2007 crash happened because people with shoddy credit borrowed to buy houses they couldnāt afford is just plain wrong. The latest comes in a new NBER working paper arguing that it was wealthy or middle-class house-flipping speculators who blew up the bubble to cataclysmic proportions, and then wrecked local housing markets when they defaulted en masse.
Analyzing a huge data set of anonymous credit scores from Equifax, a credit reporting bureau, the economists found that the biggest growth of mortgage debt during the housing boom came from those with credit scores in the middle and top of the credit score distributionāand that these borrowers accounted for a disproportionate share of defaults.
As for those with low credit scoresāthe āsubprimeā borrowers who supposedly caused the crisisātheir borrowing stayed virtually constant throughout the boom. And while itās true that these types of borrowers usually default at relatively higher rates, they didnāt after the 2007 housing collapse.
Trying to fix the blame to one cause of a cascade failure like the MBS disaster of 2007-2008 ignores the fact that nothing that fails that big has one contributor. Most failures, like in airplane crashes are a series of failures and contributors.
There is plenty of blame to go around, and banks lending to sub-prime borrowers was a large contributing factor. Even if they didn't provide the numbers, they provided part of the panic when people with MBS's realized where the investments were coming from.
Bond rating agencies, banks, pols, and many more contributed, yes.
I'm not leaving out the sub-prime borrowers either. I'm sorry but most people will realize too good of a deal when they see it. However they, like most of the others involved didn't do anything illegal, they just are guilty of willful ignorance.
Blame the lenders; govt. policy doesn't obligate anybody to be crooks, and don't obligate anybody to deliberately make bad loans or any other questionable act. the govt. didn't force anybody to be stupid and crooked. These private players own it all, including deliberately bundling bad loans with good ones until nobody could determine whether their portfolios were junk or gold.
The government could have stepped in and tried to regulate CBO's, but they were making too much money as well, the feds from all the income taxes, and the states and local governments from both the sales taxes and the property taxes.
Everyone was making too much money to care, and no one got hurt until it all burst around us.
As usual, you need to folow the money
House flippers triggered the US housing market crash, not poor subprime borrowers
Mounting evidence suggests that the notion that the 2007 crash happened because people with shoddy credit borrowed to buy houses they couldnāt afford is just plain wrong. The latest comes in a new NBER working paper arguing that it was wealthy or middle-class house-flipping speculators who blew up the bubble to cataclysmic proportions, and then wrecked local housing markets when they defaulted en masse.
Analyzing a huge data set of anonymous credit scores from Equifax, a credit reporting bureau, the economists found that the biggest growth of mortgage debt during the housing boom came from those with credit scores in the middle and top of the credit score distributionāand that these borrowers accounted for a disproportionate share of defaults.
As for those with low credit scoresāthe āsubprimeā borrowers who supposedly caused the crisisātheir borrowing stayed virtually constant throughout the boom. And while itās true that these types of borrowers usually default at relatively higher rates, they didnāt after the 2007 housing collapse.
My identity got stolen last April by person or persons unknown who rang up a huge debt using my name. I spent $300 out of pocket to get my credit score back to normal and put a 7 year credit freeze on my name.
You got off cheaply
Sounds like the liberal playbook, where everyone will be equal. Equally poor and equally miserable. That is fairness. (except liberal elites who have millions and billions like Al Gore, Warren Buffet, Bill Gates, Bill and the bitch Hillary, and Barrack Hussein Obama).Trying to fix the blame to one cause of a cascade failure like the MBS disaster of 2007-2008 ignores the fact that nothing that fails that big has one contributor. Most failures, like in airplane crashes are a series of failures and contributors.
There is plenty of blame to go around, and banks lending to sub-prime borrowers was a large contributing factor. Even if they didn't provide the numbers, they provided part of the panic when people with MBS's realized where the investments were coming from.
Bond rating agencies, banks, pols, and many more contributed, yes.
I'm not leaving out the sub-prime borrowers either. I'm sorry but most people will realize too good of a deal when they see it. However they, like most of the others involved didn't do anything illegal, they just are guilty of willful ignorance.
Blame the lenders; govt. policy doesn't obligate anybody to be crooks, and don't obligate anybody to deliberately make bad loans or any other questionable act. the govt. didn't force anybody to be stupid and crooked. These private players own it all, including deliberately bundling bad loans with good ones until nobody could determine whether their portfolios were junk or gold.
The government could have stepped in and tried to regulate CBO's, but they were making too much money as well, the feds from all the income taxes, and the states and local governments from both the sales taxes and the property taxes.
Everyone was making too much money to care, and no one got hurt until it all burst around us.
As usual, you need to folow the money
House flippers triggered the US housing market crash, not poor subprime borrowers
Mounting evidence suggests that the notion that the 2007 crash happened because people with shoddy credit borrowed to buy houses they couldnāt afford is just plain wrong. The latest comes in a new NBER working paper arguing that it was wealthy or middle-class house-flipping speculators who blew up the bubble to cataclysmic proportions, and then wrecked local housing markets when they defaulted en masse.
Analyzing a huge data set of anonymous credit scores from Equifax, a credit reporting bureau, the economists found that the biggest growth of mortgage debt during the housing boom came from those with credit scores in the middle and top of the credit score distributionāand that these borrowers accounted for a disproportionate share of defaults.
As for those with low credit scoresāthe āsubprimeā borrowers who supposedly caused the crisisātheir borrowing stayed virtually constant throughout the boom. And while itās true that these types of borrowers usually default at relatively higher rates, they didnāt after the 2007 housing collapse.
My identity got stolen last April by person or persons unknown who rang up a huge debt using my name. I spent $300 out of pocket to get my credit score back to normal and put a 7 year credit freeze on my name.
You got off cheaply
I live on a fixed income and SSA retirement is my only income so $300 is big money to me but I had to do it to protect my good name.
And gullibilitySounds like the liberal playbook, where everyone will be equal. Equally poor and equally miserable. That is fairness. (except liberal elites who have millions and billions like Al Gore, Warren Buffet, Bill Gates, Bill and the bitch Hillary, and Barrack Hussein Obama).Bond rating agencies, banks, pols, and many more contributed, yes.
I'm not leaving out the sub-prime borrowers either. I'm sorry but most people will realize too good of a deal when they see it. However they, like most of the others involved didn't do anything illegal, they just are guilty of willful ignorance.
Blame the lenders; govt. policy doesn't obligate anybody to be crooks, and don't obligate anybody to deliberately make bad loans or any other questionable act. the govt. didn't force anybody to be stupid and crooked. These private players own it all, including deliberately bundling bad loans with good ones until nobody could determine whether their portfolios were junk or gold.
The government could have stepped in and tried to regulate CBO's, but they were making too much money as well, the feds from all the income taxes, and the states and local governments from both the sales taxes and the property taxes.
Everyone was making too much money to care, and no one got hurt until it all burst around us.
There is plenty of blame to go around for the MBS/CDS debacle of 2008. It was a perfect storm of greed and complacence.
And gullibilitySounds like the liberal playbook, where everyone will be equal. Equally poor and equally miserable. That is fairness. (except liberal elites who have millions and billions like Al Gore, Warren Buffet, Bill Gates, Bill and the bitch Hillary, and Barrack Hussein Obama).I'm not leaving out the sub-prime borrowers either. I'm sorry but most people will realize too good of a deal when they see it. However they, like most of the others involved didn't do anything illegal, they just are guilty of willful ignorance.
Blame the lenders; govt. policy doesn't obligate anybody to be crooks, and don't obligate anybody to deliberately make bad loans or any other questionable act. the govt. didn't force anybody to be stupid and crooked. These private players own it all, including deliberately bundling bad loans with good ones until nobody could determine whether their portfolios were junk or gold.
The government could have stepped in and tried to regulate CBO's, but they were making too much money as well, the feds from all the income taxes, and the states and local governments from both the sales taxes and the property taxes.
Everyone was making too much money to care, and no one got hurt until it all burst around us.
There is plenty of blame to go around for the MBS/CDS debacle of 2008. It was a perfect storm of greed and complacence.
I remember getting several calls a week urging me to refinance, sell my house for a huge profit and invest, invest with people flipping houses....I was promised huge profits quickly
My inclination was......Looks too good to be true
As usual, you need to folow the money
House flippers triggered the US housing market crash, not poor subprime borrowers
Mounting evidence suggests that the notion that the 2007 crash happened because people with shoddy credit borrowed to buy houses they couldnāt afford is just plain wrong. The latest comes in a new NBER working paper arguing that it was wealthy or middle-class house-flipping speculators who blew up the bubble to cataclysmic proportions, and then wrecked local housing markets when they defaulted en masse.
Analyzing a huge data set of anonymous credit scores from Equifax, a credit reporting bureau, the economists found that the biggest growth of mortgage debt during the housing boom came from those with credit scores in the middle and top of the credit score distributionāand that these borrowers accounted for a disproportionate share of defaults.
As for those with low credit scoresāthe āsubprimeā borrowers who supposedly caused the crisisātheir borrowing stayed virtually constant throughout the boom. And while itās true that these types of borrowers usually default at relatively higher rates, they didnāt after the 2007 housing collapse.
when Fannie Mae and Freddie Mac, took on the bogus subprime loans, package them with the blessing of the FED to be secure, of course banks and people are going to use them. It is the way of Liberals to give to people things that they aren't supposed to have. When people cant afford to own a house, you don't bend over backwards to put those people in a house. Liberal compassion ends up screwing over the country as we see over and over.As usual, you need to folow the money
House flippers triggered the US housing market crash, not poor subprime borrowers
Mounting evidence suggests that the notion that the 2007 crash happened because people with shoddy credit borrowed to buy houses they couldnāt afford is just plain wrong. The latest comes in a new NBER working paper arguing that it was wealthy or middle-class house-flipping speculators who blew up the bubble to cataclysmic proportions, and then wrecked local housing markets when they defaulted en masse.
Analyzing a huge data set of anonymous credit scores from Equifax, a credit reporting bureau, the economists found that the biggest growth of mortgage debt during the housing boom came from those with credit scores in the middle and top of the credit score distributionāand that these borrowers accounted for a disproportionate share of defaults.
As for those with low credit scoresāthe āsubprimeā borrowers who supposedly caused the crisisātheir borrowing stayed virtually constant throughout the boom. And while itās true that these types of borrowers usually default at relatively higher rates, they didnāt after the 2007 housing collapse.
Trying to fix the blame to one cause of a cascade failure like the MBS disaster of 2007-2008 ignores the fact that nothing that fails that big has one contributor. Most failures, like in airplane crashes are a series of failures and contributors.
There is plenty of blame to go around, and banks lending to sub-prime borrowers was a large contributing factor. Even if they didn't provide the numbers, they provided part of the panic when people with MBS's realized where the investments were coming from.
Bond rating agencies, banks, pols, and many more contributed, yes.
I'm not leaving out the sub-prime borrowers either. I'm sorry but most people will realize too good of a deal when they see it. However they, like most of the others involved didn't do anything illegal, they just are guilty of willful ignorance.
Blame the lenders; govt. policy doesn't obligate anybody to be crooks, and dodn't obligate anybody to deliberately make bad loans or any other questionable act. the govt. didn't force anybody to be stupid and crooked.
The role of Fannie Mae and Freddie Mac during the housing bubble - Market RealistAt the beginning of 2000, Fannie Mae unveiled the American Dream Commitment, which was a $2 trillion commitment to lend to underserved areas and to expand credit to non-traditional profiles. Since Fannie couldnāt securitize these loans, it had to place them on its balance sheet. It partnered with major lenders like Countrywide, Doral, and Bank of America and had an agreement: you originate subprime and Alt-A paper and we will commit to buy it. Basically, Fannie Mae was doing an end-around its charter. Instead of using its balance sheet as a tool to stabilize the real estate market, it was using it as a profit center.
As usual, you need to folow the money
House flippers triggered the US housing market crash, not poor subprime borrowers
Mounting evidence suggests that the notion that the 2007 crash happened because people with shoddy credit borrowed to buy houses they couldnāt afford is just plain wrong. The latest comes in a new NBER working paper arguing that it was wealthy or middle-class house-flipping speculators who blew up the bubble to cataclysmic proportions, and then wrecked local housing markets when they defaulted en masse.
Analyzing a huge data set of anonymous credit scores from Equifax, a credit reporting bureau, the economists found that the biggest growth of mortgage debt during the housing boom came from those with credit scores in the middle and top of the credit score distributionāand that these borrowers accounted for a disproportionate share of defaults.
As for those with low credit scoresāthe āsubprimeā borrowers who supposedly caused the crisisātheir borrowing stayed virtually constant throughout the boom. And while itās true that these types of borrowers usually default at relatively higher rates, they didnāt after the 2007 housing collapse.
How much subprime paper was out there?
All I can say is that when I did go to look for a new house and was offered that ARM, I saw the writing on the wall that trouble was brewing, held off on selling my 1955 colonial until 2012, but had plenty of CASH on hand for 2008, when Chipotle went from $155 a share to $55 a share, bought up a ton of shares, and when it went to $400 sold all of it off and diversified. Some people just trusted the government to do the right thing, I watched the government and knew they would blow it for everyone. Thanks Barney, Maxine and Chris, you done me good.As usual, you need to folow the money
House flippers triggered the US housing market crash, not poor subprime borrowers
Mounting evidence suggests that the notion that the 2007 crash happened because people with shoddy credit borrowed to buy houses they couldnāt afford is just plain wrong. The latest comes in a new NBER working paper arguing that it was wealthy or middle-class house-flipping speculators who blew up the bubble to cataclysmic proportions, and then wrecked local housing markets when they defaulted en masse.
Analyzing a huge data set of anonymous credit scores from Equifax, a credit reporting bureau, the economists found that the biggest growth of mortgage debt during the housing boom came from those with credit scores in the middle and top of the credit score distributionāand that these borrowers accounted for a disproportionate share of defaults.
As for those with low credit scoresāthe āsubprimeā borrowers who supposedly caused the crisisātheir borrowing stayed virtually constant throughout the boom. And while itās true that these types of borrowers usually default at relatively higher rates, they didnāt after the 2007 housing collapse.
How much subprime paper was out there?
Not nearly enough to account for such a huge crash; the problem was, nobody could actually audit and find where the bad paper was in all the 'packages'. That was the issue that caused the panic and all the players at the top suddenly dried up the market's liquidity an then started making margin calls on the paper outstanding, due to the 'mark to market' rules requiring equities be valued at current market prices. When house prices started falling, the margin calls bankrupted a lot of players.
Thornburg was one of the first to fall, and they only had premium mortgages on their books, high end real estate and no 'sub-prime' stuff at all. They got caught in the liquidity squeeze when Goldman and most of the others suddenly dried up the overnight paper markets liquidity , and then got hammered with hundreds of millions in margin calls that their cash flow couldn't handle. This is the same story all across the board for many firms.
and of course he doesn't put up anything to PROVE his point as typical of a liberal sociopath #10 Just because you say it doesn't make it true....[ it was a lucrative business, up to the 2007 debacle, that Barney Frank, Maxine Waters, and Chris Dodd could of avoided.
Democrats were the minority in Congress at the time dumbass.
What part of 2007 didn't you understand, dumbass, opens his mouth inserts foot.Nancy Patricia D'Alesandro Pelosi (/pÉĖloŹsi/ ; born March 26, 1940) is the Minority Leader of the United States House of Representatives and served as the 60th Speaker of the United States House of Representatives from 2007 to 2011.
Nancy Pelosi - Wikipedia
en.wikipedia.org/wiki/Nancy_Pelosi
and of course he doesn't put up anything to PROVE his point as typical of a liberal sociopath #10 Just because you say it doesn't make it true....[ it was a lucrative business, up to the 2007 debacle, that Barney Frank, Maxine Waters, and Chris Dodd could of avoided.
Democrats were the minority in Congress at the time dumbass.
What part of 2007 didn't you understand, dumbass, opens his mouth inserts foot.Nancy Patricia D'Alesandro Pelosi (/pÉĖloŹsi/ ; born March 26, 1940) is the Minority Leader of the United States House of Representatives and served as the 60th Speaker of the United States House of Representatives from 2007 to 2011.
Nancy Pelosi - Wikipedia
en.wikipedia.org/wiki/Nancy_Pelosi
The real estate bubble peaked and burst before 2007, dumbass.
and of course he doesn't put up anything to PROVE his point as typical of a liberal sociopath #10 Just because you say it doesn't make it true....[ it was a lucrative business, up to the 2007 debacle, that Barney Frank, Maxine Waters, and Chris Dodd could of avoided.
Democrats were the minority in Congress at the time dumbass.
What part of 2007 didn't you understand, dumbass, opens his mouth inserts foot.Nancy Patricia D'Alesandro Pelosi (/pÉĖloŹsi/ ; born March 26, 1940) is the Minority Leader of the United States House of Representatives and served as the 60th Speaker of the United States House of Representatives from 2007 to 2011.
Nancy Pelosi - Wikipedia
en.wikipedia.org/wiki/Nancy_Pelosi
The real estate bubble peaked and burst before 2007, dumbass.
Yeah but the stocks lagged that bubble as people started to panic and there was a sell off. Notice that I waited till 2012 to sell my house, took a good profit and found a 4700 SqFt ,5 bed 5 bath for 475K which now is worth over 600K? It is all about reading the warning signs and taking the RISK of investment with a good chance of GREAT returns. This is what knowledge can bring, but since that requires work, people like you just bitch and moan, while sitting in your parents basement, smoking dope, eating government cheese, watching Netflix on your parents account while trying to get your floosy to come over so you can impress her. I love it when a loser calls me a dumbass.
CMG - Stock quote for Chipotle Mexican Grill Inc - MSN Money
and of course he doesn't put up anything to PROVE his point as typical of a liberal sociopath #10 Just because you say it doesn't make it true....[ it was a lucrative business, up to the 2007 debacle, that Barney Frank, Maxine Waters, and Chris Dodd could of avoided.
Democrats were the minority in Congress at the time dumbass.
What part of 2007 didn't you understand, dumbass, opens his mouth inserts foot.Nancy Patricia D'Alesandro Pelosi (/pÉĖloŹsi/ ; born March 26, 1940) is the Minority Leader of the United States House of Representatives and served as the 60th Speaker of the United States House of Representatives from 2007 to 2011.
Nancy Pelosi - Wikipedia
en.wikipedia.org/wiki/Nancy_Pelosi
The real estate bubble peaked and burst before 2007, dumbass.
Yeah but the stocks lagged that bubble as people started to panic and there was a sell off. Notice that I waited till 2012 to sell my house, took a good profit and found a 4700 SqFt ,5 bed 5 bath for 475K which now is worth over 600K? It is all about reading the warning signs and taking the RISK of investment with a good chance of GREAT returns. This is what knowledge can bring, but since that requires work, people like you just bitch and moan, while sitting in your parents basement, smoking dope, eating government cheese, watching Netflix on your parents account while trying to get your floosy to come over so you can impress her. I love it when a loser calls me a dumbass.
CMG - Stock quote for Chipotle Mexican Grill Inc - MSN Money
If the real estate disaster could have been prevented by the federal government, Bush and the Republican majority in Congress would have had to have done it.
Not Pelosi in 2007.
and of course he doesn't put up anything to PROVE his point as typical of a liberal sociopath #10 Just because you say it doesn't make it true....Democrats were the minority in Congress at the time dumbass.
What part of 2007 didn't you understand, dumbass, opens his mouth inserts foot.Nancy Patricia D'Alesandro Pelosi (/pÉĖloŹsi/ ; born March 26, 1940) is the Minority Leader of the United States House of Representatives and served as the 60th Speaker of the United States House of Representatives from 2007 to 2011.
Nancy Pelosi - Wikipedia
en.wikipedia.org/wiki/Nancy_Pelosi
The real estate bubble peaked and burst before 2007, dumbass.
Yeah but the stocks lagged that bubble as people started to panic and there was a sell off. Notice that I waited till 2012 to sell my house, took a good profit and found a 4700 SqFt ,5 bed 5 bath for 475K which now is worth over 600K? It is all about reading the warning signs and taking the RISK of investment with a good chance of GREAT returns. This is what knowledge can bring, but since that requires work, people like you just bitch and moan, while sitting in your parents basement, smoking dope, eating government cheese, watching Netflix on your parents account while trying to get your floosy to come over so you can impress her. I love it when a loser calls me a dumbass.
CMG - Stock quote for Chipotle Mexican Grill Inc - MSN Money
If the real estate disaster could have been prevented by the federal government, Bush and the Republican majority in Congress would have had to have done it.
Not Pelosi in 2007.
You really are that fucking stupid. Two videos I posted with the Fannie Mae/Freddie Mac hearings of Bush admin warning of the signs of a collapse, but your fucktard liberal butt buddies, Maxine Waters, Chris Dodd, and Barney Frank(heads of the banking regulatory commission) shot down those hearing as being racial. Instead of ignoring the videos posted go fucking watch them, you turd.
View attachment 147782
As usual, you need to folow the money
House flippers triggered the US housing market crash, not poor subprime borrowers
Mounting evidence suggests that the notion that the 2007 crash happened because people with shoddy credit borrowed to buy houses they couldnāt afford is just plain wrong. The latest comes in a new NBER working paper arguing that it was wealthy or middle-class house-flipping speculators who blew up the bubble to cataclysmic proportions, and then wrecked local housing markets when they defaulted en masse.
Analyzing a huge data set of anonymous credit scores from Equifax, a credit reporting bureau, the economists found that the biggest growth of mortgage debt during the housing boom came from those with credit scores in the middle and top of the credit score distributionāand that these borrowers accounted for a disproportionate share of defaults.
As for those with low credit scoresāthe āsubprimeā borrowers who supposedly caused the crisisātheir borrowing stayed virtually constant throughout the boom. And while itās true that these types of borrowers usually default at relatively higher rates, they didnāt after the 2007 housing collapse.
How much subprime paper was out there?
Not nearly enough to account for such a huge crash; the problem was, nobody could actually audit and find where the bad paper was in all the 'packages'. That was the issue that caused the panic and all the players at the top suddenly dried up the market's liquidity an then started making margin calls on the paper outstanding, due to the 'mark to market' rules requiring equities be valued at current market prices. When house prices started falling, the margin calls bankrupted a lot of players.
Thornburg was one of the first to fall, and they only had premium mortgages on their books, high end real estate and no 'sub-prime' stuff at all. They got caught in the liquidity squeeze when Goldman and most of the others suddenly dried up the overnight paper markets liquidity , and then got hammered with hundreds of millions in margin calls that their cash flow couldn't handle. This is the same story all across the board for many firms.
