Housing Bubble... Redux

Discussion in 'Politics' started by Lumpy 1, Jun 2, 2012.

  1. Lumpy 1
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    Lumpy 1 Diamond Member Supporting Member

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    Just my opinion..:thanks:

    Carter's Community Redevelopment Act caused Fannie and Freddie to start underwriting bad mortgages. Clinton and Bush both pushed it, then Bush tried to rein in Freddie and Fannie in but alas the leadership of Chris Dodd and Barney Frank in the Senate and House were being paid off to do otherwise.

    Pelosi and Reid controlled both Houses of Congress but failed in their oversight responsibilities, they were more concerned, it seems, with undermining Bush with repeated investigations and winning the 2006 election at any cost.....(Okay sure showing some bias here)..:lol:

    Wall Street/Bankers knew it was a bad situation but packaged bad mortgages as high risk investments and played it for as long as the profits rolled in.

    Buyers of these high risk investments should have been far more diligent but weren't.

    and the American people got screwed over...:(
     
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    Last edited: Jun 2, 2012
  2. tinydancer
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    tinydancer Diamond Member

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    I've watched the various "bubbles" for eons. Quite strange. Individuals with no equity allowed to buy homes priced outrageously.
     
  3. JoeB131
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    JoeB131 Diamond Member

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    So this is the revisionist history you are going with?

    Even teh Banking Industry has not claimed the CRA was resposible for the Housing Bubble. It wasn't poor folks buying a bungalo, it was middle class folks buying McMansions hoping to flip them in a few years.

    From that ultimate left wing rag, Business Week.

    Community Reinvestment Act had nothing to do with subprime crisis - BusinessWeek

     
    Last edited: Jun 2, 2012
  4. Lumpy 1
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    Lumpy 1 Diamond Member Supporting Member

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    What's interesting to me is that most American knew a housing bubble burst was inevitable but Congress pointed fingers and plead surprise. It just doesn't add up..

    and who ended up in jail....or kicked out of Congress...:mad:
     
  5. JoeB131
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    JoeB131 Diamond Member

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    Most Americans knew a burst was inevitable, but they kept buying and trying to flip houses. And the bankers knew it was inevitable, but they didn't try to put any curbs on the loans or trying to find suckers they could hook on a mortgage they couldn't pay off.

    So it was a hypocrisy all of us engaged in, really. People bought high because they wanted to have a house right now. They didn't wait until prices dropped a bit.
     
  6. Lumpy 1
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    Lumpy 1 Diamond Member Supporting Member

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    Eh, just giving my opinion, getting the ball rolling.

    I'm always open to respectfully presented points of view.

    I'll read over your post and see if you measure up...:lol:
     
  7. tinydancer
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    tinydancer Diamond Member

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    Dropped a bit, a tad, a smidge?

    Most who invest in real estate on the low end are losers personified. They believe that no matter what they do, the price must go up.:cuckoo:

    Most fools are now stuck with shot gun shacks priced in 6 figures that they will never be able to dump. Everyone went for the ride.

    I blame Joe Q Public for being freaking morons as much as I blame the powers that be.
     
  8. Toro
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    Toro Diamond Member

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  9. Lumpy 1
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    Lumpy 1 Diamond Member Supporting Member

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  10. TakeAStepBack
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    TakeAStepBack Gold Member

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    None of the malinvestment would have been possible without the credit expansion pushed by Greenspan and congress. After that, the GSEs , CRA and the dream act all played their part in making sure that additional credit went into housing.
     
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