Housing Starts Soar

[EdwardBaiamonte]

Dear, I didn't say it was bad I merely asked how you knew it was good rather than a sign of impending disaster like it was the last time. Try reading for comprehension. Thanks

The paranoid conservative spouts off again. Time to sleep with a bigger gun.

argumentun adhominem from typical liberal without IQ for substance

 

[SteadyMercury]

Housing starts are a good thing, job growth is the #1 reason this occurs...

Yep, people building houses ripples all over the economy. Jobs, materials, financing, tax coffers, etc. only a seriously partisan clown like Special Ed would immediately jump on this as bad news.

 

[EdwardBaiamonte]

Housing starts are a good thing, job growth is the #1 reason this occurs...

Yep, people building houses ripples all over the economy. Jobs, materials, financing, tax coffers, etc. only a seriously partisan clown like Special Ed would immediately jump on this as bad news.

dear you just described the ripple bubble in housing that burst in 2008!!! Slow?? If you don't know economics you have no business here, obviously. And guess what, you don't know world one about economics!!

 

[SteadyMercury]

If you don't know economics you have no business here, obviously. And guess what, you don't know world one about economics!!

Says the guy who has admitted he doesn't understand economics and just blindly posts along partisan lines no matter how retarded it makes him look.

 

[TakeAStepBack]

Soft science, Toro. You should know this. Making human actions assumptions has always lead to stupid conclusions.

 

[Toro]

Housing starts are a good thing, job growth is the #1 reason this occurs...

Yep, people building houses ripples all over the economy. Jobs, materials, financing, tax coffers, etc. only a seriously partisan clown like Special Ed would immediately jump on this as bad news.

dear you just described the ripple bubble in housing that burst in 2008!!! Slow?? If you don't know economics you have no business here, obviously. And guess what, you don't know world one about economics!!

You don't know anything about economics as you've displayed in this thread.

 

[Toro]

Soft science, Toro. You should know this. Making human actions assumptions has always lead to stupid conclusions.

What?

 

[OnePercenter]

argumentun adhominem from typical liberal without IQ for substance

Just an observation. If you weren't so paranoid you'd see that.

 

[EdwardBaiamonte]

argumentun adhominem from typical liberal without IQ for substance

Just an observation. If you weren't so paranoid you'd see that.

?????

 

[Dad2three]

dear, it soared in 2005 too. Do you recall?

Dubya's Faux ponzi scheme based on an ENORMOUS subprime market?

The "turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007," the President's Working Group on Financial Markets OCT 2008

 

[Dad2three]

What could possibly go wrong?

With GOOD REGULATORY OVERSIGHT as opposed to the GOP caused 1920's, Reagan's S&L crisis and Dubya's subprime crisis? Not much


FACTS on Dubya s great recession Page 16 US Message Board - Political Discussion Forum

 

[Dad2three]

The housing market has been very good in Texas for 2.5 years now, we are going in the right direction...

If we stay away from stupid financing we will be fine...

Probably wont have a GOP Prez for awhile, the guys who ignore the regulatory warnings

 

[Dad2three]

and you seem unable to say why it was bad news in 2006 and good news now?? Isn't thinking fun?

The "turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007," the President's Working Group on Financial Markets OCT 2008

 

[boedicca]

What could possibly go wrong?

With GOOD REGULATORY OVERSIGHT as opposed to the GOP caused 1920's, Reagan's S&L crisis and Dubya's subprime crisis? Not much


FACTS on Dubya s great recession Page 16 US Message Board - Political Discussion Forum

Uh....I think the Dems already tried that with the CRA, Fannie Mae, Freddie Mac.....

 

[Dad2three]

What could possibly go wrong?

With GOOD REGULATORY OVERSIGHT as opposed to the GOP caused 1920's, Reagan's S&L crisis and Dubya's subprime crisis? Not much


FACTS on Dubya s great recession Page 16 US Message Board - Political Discussion Forum

Uh....I think the Dems already tried that with the CRA, Fannie Mae, Freddie Mac.....

Really? ZERO to do with Dubya's REGULATOR failure???



Q When did the Bush Mortgage Bubble start?

A The general timeframe is it started late 2004.

From Bush’s President’s Working Group on Financial Markets October 2008

“The Presidents Working Group’s March policy statement acknowledged that turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007.”



Q Did the Community Reinvestment Act under Carter/Clinton caused it?


A "Since 1995 there has been essentially no change in the basic CRA rules or enforcement process that can be reasonably linked to the subprime lending activity. This fact weakens the link between the CRA and the current crisis since the crisis is rooted in poor performance of mortgage loans made between 2004 and 2007. "

http://www.federalreserve.gov/newsevents/speech/20081203_analysis.pdf


No, the GSEs Did Not Cause the Financial Meltdown (but thats just according to the data)


Hey Mayor Bloomberg No the GSEs Did Not Cause the Financial Meltdown but thats just according to the data The Big Picture


Wall Street, Not Fannie and Freddie, Led Mortgage Meltdown

Government data show Fannie and Freddie didn’t take the same risks that Wall Street’s mortgage-backed securities machine did. Mortgages financed by Wall Street from 2001 to 2008 were 4½ times more likely to be seriously delinquent than mortgages backed by Fannie and Freddie.

“The idea that they were leading this charge is just absurd,” said Guy Cecala, publisher of Inside Mortgage Finance, an authoritative trade publication. “Fannie and Freddie have always had the tightest underwriting on earth…They were opposite of subprime.”

Wall Street Not Fannie and Freddie Led Mortgage Meltdown - The Daily Beast

MORE on Dubya's subprime crisis here

FACTS on Dubya s great recession US Message Board - Political Discussion Forum

 

[Dad2three]

What could possibly go wrong?

With GOOD REGULATORY OVERSIGHT as opposed to the GOP caused 1920's, Reagan's S&L crisis and Dubya's subprime crisis? Not much


FACTS on Dubya s great recession Page 16 US Message Board - Political Discussion Forum

Uh....I think the Dems already tried that with the CRA, Fannie Mae, Freddie Mac.....

Right-wingers Want To Erase How George Bush's "Homeowner Society" Helped Cause The Economic Collapse


2004 Republican Convention:

Another priority for a new term is to build an ownership society, because ownership brings security and dignity and independence.
...

Thanks to our policies, home ownership in America is at an all- time high.

(APPLAUSE)

Tonight we set a new goal: 7 million more affordable homes in the next 10 years, so more American families will be able to open the door and say, "Welcome to my home."


June 17, 2004


Builders to fight Bush's low-income plan


NEW YORK (CNN/Money) - Home builders, realtors and others are preparing to fight a Bush administration plan that would require Fannie Mae and Freddie Mac to increase financing of homes for low-income people, a home builder group said Thursday.


Bushs documented policies and statements in timeframe leading up to the start of the Bush Mortgage Bubble include (but not limited to)

Wanting 5.5 million more minority homeowners
Tells congress there is nothing wrong with GSEs
Pledging to use federal policy to increase home ownership
Routinely taking credit for the housing market
Forcing GSEs to buy more low income home loans by raising their Housing Goals
Lowering Invesntment banks capital requirements, Net Capital rule
Reversing the Clinton rule that restricted GSEs purchases of subprime loans
Lowering down payment requirements to 0%
Forcing GSEs to spend an additional $440 billion in the secondary markets
Giving away 40,000 free down payments

PREEMPTING ALL STATE LAWS AGAINST PREDATORY LENDING


FACTS on Dubya s great recession US Message Board - Political Discussion Forum

But the biggest policy was regulators not enforcing lending standards.

 

[SteadyMercury]

Eddie is right! The fact that housing starts are up is really, really bad news.

There, there, Eddie.

Just bookmark the thread.

When no 2005 style housing bubble comes of this uptick in housing starts we can always bring it back up to show Special Ed and how much wisdom he displayed in his comparisons to it. He can forever be "housing bubble 2014" guy.

 

[GWV5903]

Right-wingers Want To Erase How George Bush's "Homeowner Society" Helped Cause The Economic Collapse


2004 Republican Convention:

Another priority for a new term is to build an ownership society, because ownership brings security and dignity and independence.
...

Thanks to our policies, home ownership in America is at an all- time high.

(APPLAUSE)

Tonight we set a new goal: 7 million more affordable homes in the next 10 years, so more American families will be able to open the door and say, "Welcome to my home."


June 17, 2004


Builders to fight Bush's low-income plan


NEW YORK (CNN/Money) - Home builders, realtors and others are preparing to fight a Bush administration plan that would require Fannie Mae and Freddie Mac to increase financing of homes for low-income people, a home builder group said Thursday.


Bushs documented policies and statements in timeframe leading up to the start of the Bush Mortgage Bubble include (but not limited to)

Wanting 5.5 million more minority homeowners
Tells congress there is nothing wrong with GSEs
Pledging to use federal policy to increase home ownership
Routinely taking credit for the housing market
Forcing GSEs to buy more low income home loans by raising their Housing Goals
Lowering Invesntment banks capital requirements, Net Capital rule
Reversing the Clinton rule that restricted GSEs purchases of subprime loans
Lowering down payment requirements to 0%
Forcing GSEs to spend an additional $440 billion in the secondary markets
Giving away 40,000 free down payments

PREEMPTING ALL STATE LAWS AGAINST PREDATORY LENDING


FACTS on Dubya s great recession US Message Board - Political Discussion Forum

But the biggest policy was regulators not enforcing lending standards.

The standards where altered because of CRA...

 

[Dad2three]

The standards where altered because of CRA...

SERIOUSLY? lol


From Bush’s President’s Working Group on Financial Markets October 2008

“The Presidents Working Group’s March policy statement acknowledged that turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007.”



Q Did the Community Reinvestment Act under Carter/Clinton caused it?


A "Since 1995 there has been essentially no change in the basic CRA rules or enforcement process that can be reasonably linked to the subprime lending activity. This fact weakens the link between the CRA and the current crisis since the crisis is rooted in poor performance of mortgage loans made between 2004 and 2007. "

http://www.federalreserve.gov/newsevents/speech/20081203_analysis.pdf



November 27, 2007

A Snapshot of the Subprime Market



Dollar amount of subprime loans outstanding:

2007 $1.3 trillion

Dollar amount of subprime loans outstanding in 2003: $332 billion

Percentage increase from 2003: 292%


Number of subprime mortgages made in 2005-2006 projected to end in foreclosure:

1 in 5



Proportion of subprime mortgages made from 2004 to 2006 that come with "exploding" adjustable interest rates: 89-93%


Proportion approved without fully documented income: 43-50%


Proportion with no escrow for taxes and insurance: 75%



Proportion of completed foreclosures attributable to adjustable rate loans out of all loans made in 2006 and bundled in subprime mortgage backed securities: 93%


Subprime share of all mortgage originations in 2006: 28%

Subprime share of all mortgage origination in 2003: 8%

CRA THAT HADN'T CHANGED, EXCEPT WEAKENED ENFORCEMENT UNDER DUBYA CAUSED THE SUBPRIME CRISIS? LOL

FACTS on Dubya s great recession US Message Board - Political Discussion Forum

 

[Dad2three]

Right-wingers Want To Erase How George Bush's "Homeowner Society" Helped Cause The Economic Collapse


2004 Republican Convention:

Another priority for a new term is to build an ownership society, because ownership brings security and dignity and independence.
...

Thanks to our policies, home ownership in America is at an all- time high.

(APPLAUSE)

Tonight we set a new goal: 7 million more affordable homes in the next 10 years, so more American families will be able to open the door and say, "Welcome to my home."


June 17, 2004


Builders to fight Bush's low-income plan


NEW YORK (CNN/Money) - Home builders, realtors and others are preparing to fight a Bush administration plan that would require Fannie Mae and Freddie Mac to increase financing of homes for low-income people, a home builder group said Thursday.


Bushs documented policies and statements in timeframe leading up to the start of the Bush Mortgage Bubble include (but not limited to)

Wanting 5.5 million more minority homeowners
Tells congress there is nothing wrong with GSEs
Pledging to use federal policy to increase home ownership
Routinely taking credit for the housing market
Forcing GSEs to buy more low income home loans by raising their Housing Goals
Lowering Invesntment banks capital requirements, Net Capital rule
Reversing the Clinton rule that restricted GSEs purchases of subprime loans
Lowering down payment requirements to 0%
Forcing GSEs to spend an additional $440 billion in the secondary markets
Giving away 40,000 free down payments

PREEMPTING ALL STATE LAWS AGAINST PREDATORY LENDING


FACTS on Dubya s great recession US Message Board - Political Discussion Forum

But the biggest policy was regulators not enforcing lending standards.

The standards where altered because of CRA...

SURE

Most subprime lenders weren't subject to federal lending law

Community Reinvestment Act, blamed for home market crash, didn't apply to the banks that did the most lending.





BANKSTER:
Bob Davis, executive vice president of the American Bankers Association, which lobbies Congress to streamline community reinvestment rules, said "it just isn't credible" to blame the law CRA for the crisis.

"Institutions that are subject to CRA - that is, banks and savings asociations - were largely not involved in subprime lending," Davis said. "The bulk of the loans came through a channel that was not subject to CRA."


Most subprime lenders weren t subject to federal lending law - The Orange County Register

http://www.ritholtz.com/blog/2011/1...ow-the-facts-of-the-economic-crisis-stack-up/
http://www.ritholtz.com/blog/2011/1...ow-the-facts-of-the-economic-crisis-stack-up/
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.

A McKinsey Global Institute report noted “from 2000 through 2007, a remarkable run-up in global home prices occurred.” It is highly unlikely that a simultaneous boom and bust everywhere else in the world was caused by one set of factors (ultra-low rates, securitized AAA-rated subprime, derivatives) but had a different set of causes in the United States. Indeed, this might be the biggest obstacle to pushing the false narrative. How did U.S. regulations against redlining in inner cities also cause a boom in Spain, Ireland and Australia? How can we explain the boom occurring in countries that do not have a tax deduction for mortgage interest or government-sponsored enterprises? And why, after nearly a century of mortgage interest deduction in the United States, did it suddenly cause a crisis?

These questions show why proximity and statistical validity are so important. Let’s get more specific.The Community Reinvestment Act of 1977 is a favorite boogeyman for some, despite the numbers that so easily disprove it as a cause.It is a statistical invalid argument, as the data show.

For example, if the CRA was to blame, the housing boom would have been in CRA regions; it would have made places such as Harlem and South Philly and Compton and inner Washington the primary locales of the run up and collapse. Further, the default rates in these areas should have been worse than other regions.

>

CRA were less likely to default than Subprime Mortgages — Source: University of North Carolina at Chapel Hill
>
What occurred was the exact opposite: The suburbs boomed and busted and went into foreclosure in much greater numbers than inner cities. The tiny suburbs and exurbs of South Florida and California and Las Vegas and Arizona were the big boomtowns, not the low-income regions. The redlined areas the CRA address missed much of the boom; places that busted had nothing to do with the CRA.

Examining the big lie How the facts of the economic crisis stack up The Big Picture


Right-wingers Want To Erase How George Bush's "Homeowner Society" Helped Cause The Economic Collapse


FACTS on Dubya s great recession Page 16 US Message Board - Political Discussion Forum