Interesting Chart on US Debt history

[Shanty]

sorry but all our great economists and newspapers on left and right agree Fed caused recession:

"First consider the once controversial view that the crisis was largely caused by the Fed's holding interest rates too low for too long after the 2001 recession. This view is now so widely held that the editorial pages of both the NYTimes and the Wall Street Journal agree on its validity!"...John B. Taylor

The same John Taylor who staked his reputation on hyperinflation coming by five years ago? LOL!
Unfashionable Ideas: John Taylor's predictions

" The Federal reserve having done so much to create the problems in which the economy is now mired, having mistakenly thought that even after the housing bubble burst the problems were contained, and having underestimated the severity of the crisis, now wants to make a contribution to preventing the economy from sinking into a Japanese Style malaise....... - "Joseph Stiglitz"( uber left economist)

Still, Stiglitz never pointed to the Federal Reserve as the primary cause of the GOP's housing bubble. That blame would lie with deregulation, and the politicization of regulation and regulators, and the period from 2002-2007 when the Bush/GOP majorities were not bothering to address the economy.

You may not have heard of the Federal Reserve system but it exists to inflate and deflate the currency supply through the housing market.

Just the housing markets, huh?
FRB: What is the purpose of the Federal Reserve System?
Looks like you're uninformed.

They inflated too much for too long. This caused what they call a housing bubble. While the bubble was inflating all the big banks and many insurance companies bought bubble mortgages thinking they were sound rather than merely purchased or made possible by newly printed funny money. When the bubble deflated they all lost money on the mortgages. It would be analogous to the government making cars and giving them to GM so everyone could have a car. If GM got them by the ton and for very little money of course they would find a way to move them . This is essentially what the Banks did with the free money. In addition to the Federal Reserve System you had Fanny and Freddie which bought and guaranteed many of the mortgages so no one had to worry about them failing. Then you had CRA, FHA, Federal Home Loan Bank Board( 3% down payment loans) and several others that were designed to get everybody in their own home.

Wow. This is a lot of misinformation.
First, the 2001 recession was not addressed by the Bush/GOP majorities, and so, in order to keep the economy going through low interest rates, the Fed did lower them. But, had congress and Bush had the guts to do what was necessary, they'd have addressed the lack of regulation in banking and Wall Street, that allowed asset prices to be overinflated, and kept complicated financial instruments like mortgage backed securities from being bundled as investments.
The money was never "funny". It's currency, which holds value in the economy.
GSAs were not a reason for the subprime mortgage markets coming into existence, or for their failure. GSA agencies were not allowed to make subprime loans.

Economist's View: It Wasn't Fannie, Freddie, or the CRA
Click the links in there, so you can become educated in what really happened.

 

[EdwardBaiamonte]

sorry but all our great economists and newspapers on left and right agree Fed caused recession:

"First consider the once controversial view that the crisis was largely caused by the Fed's holding interest rates too low for too long after the 2001 recession. This view is now so widely held that the editorial pages of both the NYTimes and the Wall Street Journal agree on its validity!"...John B. Taylor

The same John Taylor who staked his reputation on hyperinflation coming by five years ago? LOL!
Unfashionable Ideas: John Taylor's predictions

" The Federal reserve having done so much to create the problems in which the economy is now mired, having mistakenly thought that even after the housing bubble burst the problems were contained, and having underestimated the severity of the crisis, now wants to make a contribution to preventing the economy from sinking into a Japanese Style malaise....... - "Joseph Stiglitz"( uber left economist)

Still, Stiglitz never pointed to the Federal Reserve as the primary cause of the GOP's housing bubble. That blame would lie with deregulation, and the politicization of regulation and regulators, and the period from 2002-2007 when the Bush/GOP majorities were not bothering to address the economy.

You may not have heard of the Federal Reserve system but it exists to inflate and deflate the currency supply through the housing market.

Just the housing markets, huh?
FRB: What is the purpose of the Federal Reserve System?
Looks like you're uninformed.

They inflated too much for too long. This caused what they call a housing bubble. While the bubble was inflating all the big banks and many insurance companies bought bubble mortgages thinking they were sound rather than merely purchased or made possible by newly printed funny money. When the bubble deflated they all lost money on the mortgages. It would be analogous to the government making cars and giving them to GM so everyone could have a car. If GM got them by the ton and for very little money of course they would find a way to move them . This is essentially what the Banks did with the free money. In addition to the Federal Reserve System you had Fanny and Freddie which bought and guaranteed many of the mortgages so no one had to worry about them failing. Then you had CRA, FHA, Federal Home Loan Bank Board( 3% down payment loans) and several others that were designed to get everybody in their own home.

Wow. This is a lot of misinformation.
First, the 2001 recession was not addressed by the Bush/GOP majorities, and so, in order to keep the economy going through low interest rates, the Fed did lower them. But, had congress and Bush had the guts to do what was necessary, they'd have addressed the lack of regulation in banking and Wall Street, that allowed asset prices to be overinflated, and kept complicated financial instruments like mortgage backed securities from being bundled as investments.
The money was never "funny". It's currency, which holds value in the economy.
GSAs were not a reason for the subprime mortgage markets coming into existence, or for their failure. GSA agencies were not allowed to make subprime loans.

Economist's View: It Wasn't Fannie, Freddie, or the CRA
Click the links in there, so you can become educated in what really happened.

dear, we could all trade millions of links. You have to learn to read think and present your own ideas. Do you understand?

 

[Shanty]

sorry but all our great economists and newspapers on left and right agree Fed caused recession:

"First consider the once controversial view that the crisis was largely caused by the Fed's holding interest rates too low for too long after the 2001 recession. This view is now so widely held that the editorial pages of both the NYTimes and the Wall Street Journal agree on its validity!"...John B. Taylor

The same John Taylor who staked his reputation on hyperinflation coming by five years ago? LOL!
Unfashionable Ideas: John Taylor's predictions


Still, Stiglitz never pointed to the Federal Reserve as the primary cause of the GOP's housing bubble. That blame would lie with deregulation, and the politicization of regulation and regulators, and the period from 2002-2007 when the Bush/GOP majorities were not bothering to address the economy.

Just the housing markets, huh?
FRB: What is the purpose of the Federal Reserve System?
Looks like you're uninformed.

They inflated too much for too long. This caused what they call a housing bubble. While the bubble was inflating all the big banks and many insurance companies bought bubble mortgages thinking they were sound rather than merely purchased or made possible by newly printed funny money. When the bubble deflated they all lost money on the mortgages. It would be analogous to the government making cars and giving them to GM so everyone could have a car. If GM got them by the ton and for very little money of course they would find a way to move them . This is essentially what the Banks did with the free money. In addition to the Federal Reserve System you had Fanny and Freddie which bought and guaranteed many of the mortgages so no one had to worry about them failing. Then you had CRA, FHA, Federal Home Loan Bank Board( 3% down payment loans) and several others that were designed to get everybody in their own home.

Wow. This is a lot of misinformation.
First, the 2001 recession was not addressed by the Bush/GOP majorities, and so, in order to keep the economy going through low interest rates, the Fed did lower them. But, had congress and Bush had the guts to do what was necessary, they'd have addressed the lack of regulation in banking and Wall Street, that allowed asset prices to be overinflated, and kept complicated financial instruments like mortgage backed securities from being bundled as investments.
The money was never "funny". It's currency, which holds value in the economy.
GSAs were not a reason for the subprime mortgage markets coming into existence, or for their failure. GSA agencies were not allowed to make subprime loans.

Economist's View: It Wasn't Fannie, Freddie, or the CRA
Click the links in there, so you can become educated in what really happened.

dear, we could all trade millions of links. You have to learn to read think and present your own ideas. Do you understand?

Well, princess... The problem here is that you don't understand what caused the housing bubble, and rely on politicized reasons that have nothing to do with reality. I'm not only bringing forth Stiglitz' arguments (which you left out and went with a sound bite) and showing Taylor to not be a credible source, apthen I'm topping it off with links to economists who do know what caused the housing bubble, and explain how GSEs could not be the reason for the housing bubble.

Now, for you to be informed, you'd have to read the links to read into the discussion. But you're ceding to me that you cannot and will not read them, and discuss the reasons you are wrong.

 

[EdwardBaiamonte]

how GSEs could not be the reason for the housing bubble.

massive liberal organizations designed to subvert the free market and get people into homes the free market said they could not afford were not largely responsible? How is that possible?


The Fed whose policy was low low interest rates to stimulate the housing market was not largely responsible? How is that possible?

 

[Shanty]

massive liberal organizations designed to subvert the free market and get people into homes the free market said they could not afford were not largely responsible? How is that possible?

Try reading and learning. The mortgage market melted down in subprime. GSEs were not making loans in subprime. This was already explained to you.

The Fed whose policy was low low interest rates to stimulate the housing market was not largely responsible? How is that possible?

Subprime saw the mortgage meltdown. I didn't say the low interest rates were not a contributing factor. But, as I already explained previously, had the Bush/GOP majorities dealt with the 2001 recession through tried and true methods of recession recovery policies, the Fed would not have been forced to keep lowering interest rates.

 

[EdwardBaiamonte]

tried and true methods of recession recovery policies,

of course thats 100% idiotic and liberal. If true there would be no recessions. Why not tell us what these secret methods are?

 

[EdwardBaiamonte]

Subprime saw the mortgage meltdown.

what does that mean??

 

[Dad2three]

how GSEs could not be the reason for the housing bubble.

massive liberal organizations designed to subvert the free market and get people into homes the free market said they could not afford were not largely responsible? How is that possible?


The Fed whose policy was low low interest rates to stimulate the housing market was not largely responsible? How is that possible?

Around for 70 years all of a sudden under Dubya caused a subprime crisis Bubba? lol

 

[EdwardBaiamonte]

how GSEs could not be the reason for the housing bubble.

massive liberal organizations designed to subvert the free market and get people into homes the free market said they could not afford were not largely responsible? How is that possible?


The Fed whose policy was low low interest rates to stimulate the housing market was not largely responsible? How is that possible?

Around for 70 years all of a sudden under Dubya caused a subprime crisis Bubba? lol

who cares since no one thinks Bush is a conservative

 

[Rshermr]

massive liberal organizations designed to subvert the free market and get people into homes the free market said they could not afford were not largely responsible? How is that possible?


The Fed whose policy was low low interest rates to stimulate the housing market was not largely responsible? How is that possible?

Around for 70 years all of a sudden under Dubya caused a subprime crisis Bubba? lol

who cares since no one thinks Bush is a conservative

So you are trying to be a comedian. Cons are almost always failures as comedians. You, ed, are a failure at many things, and we can now add being a comedian to the list.
No one thinks Bush Jr is a conservative??? I suspect libertarians believe he is not. And since you are a libertarian, you are, without question, stupid enough to believe that. But, you see, there are VERY FEW LIBERTARIANS as a percent of the population. You clowns are out on a very small boat. So no, not many people in the world believe Bush Jr. was not a con. Only the very, very stupid.

 

[EdwardBaiamonte]

No one thinks Bush Jr is a conservative???

not even the liberal 3 dadguy who just said Bush was for Fanny so not conservative. It pays to think before you post

 

[Rshermr]

how GSEs could not be the reason for the housing bubble.

massive liberal organizations designed to subvert the free market and get people into homes the free market said they could not afford were not largely responsible? How is that possible?


The Fed whose policy was low low interest rates to stimulate the housing market was not largely responsible? How is that possible?

Around for 70 years all of a sudden under Dubya caused a subprime crisis Bubba? lol

Poor old ed is an interesting case. He knows nothing at all of economics, but posts more than any other. Because ed, though not retired, has lots and lots of time to post. There are a few like him. No jobs, obviously, just free time to play the post for money game. Now, they must be desperate because these clowns don't make enough to buy their own pablum. But the really cool thing for them is that they do not have to think for themselves. They just take the responses from their handlers and cut and paste. Nothing to it.
You have to feel sorry for ed and his peers. Pathetic trolls all.

 

[EdwardBaiamonte]

how GSEs could not be the reason for the housing bubble.

massive liberal organizations designed to subvert the free market and get people into homes the free market said they could not afford were not largely responsible? How is that possible?


The Fed whose policy was low low interest rates to stimulate the housing market was not largely responsible? How is that possible?

Around for 70 years all of a sudden under Dubya caused a subprime crisis Bubba? lol

Dear, Fed fan fred were around but not in the same form for 70 years!! Is that really over your head? Read Reckless Engangerment and get to study the huge huge growth of these liberals organizations and you see % of home ownership rising to all time highs

 

[Dad2three]

massive liberal organizations designed to subvert the free market and get people into homes the free market said they could not afford were not largely responsible? How is that possible?


The Fed whose policy was low low interest rates to stimulate the housing market was not largely responsible? How is that possible?

Around for 70 years all of a sudden under Dubya caused a subprime crisis Bubba? lol

Dear, Fed fan fred were around but not in the same form for 70 years!! Is that really over your head? Read Reckless Engangerment and get to study the huge huge growth of these liberals organizations and you see % of home ownership rising to all time highs

"Read Reckless Engangerment"

Reckless Endangerment Repackages Falsehoods From The American Enterprise Institute



Reckless Endangerment, by Gretchen Morgenson and Joshua Rosner, regurgitates AEI talking points and narratives that were discredited by the Financial Crisis Inquiry Commission.


The book, which cannot withstand cursory fact checking, repackages the same falsehoods and distortions first promoted by Wallison for The American Enterprise Institute. So far, the authors have escaped critical rebuke by concealing the origins of much of their source material. Perhaps their most transparent deception was Morgenson's claim that, “We have identified as many of our sources as we could when we could."

It seems shocking Morgenson would stain her reputation by writing a book with so many glaring falsehoods.



The only "hard evidence" presented by Morgenson and Rosner in support of this thesis--the book relies heavily on innuendo and unsupported assertions--is found in a single sentence:

“By 2008, some $1.6 trillion of toxic mortgages, or almost half that were written, were purchased or guaranteed by Fannie and Freddie.”

http://www.dailykos.com/story/2011/...ehoods-From-The-American-Enterprise-Institute



Reckless Endangerment of the Truth

Economist's View: Reckless Endangerment of the Truth





It is clear to anyone who has studied the financial crisis of 2008 that the private sector’s drive for short-term profit was behind it.


The nonbank underwriters made more than 12 million subprime mortgages with a value of nearly $2 trillion. The lenders who made these were exempt from federal regulations.


Lest We Forget: Why We Had A Financial Crisis - Forbes


http://www.usmessageboard.com/economy/362889-facts-on-dubya-s-great-recession.html

 

[Dad2three]

how GSEs could not be the reason for the housing bubble.

massive liberal organizations designed to subvert the free market and get people into homes the free market said they could not afford were not largely responsible? How is that possible?


The Fed whose policy was low low interest rates to stimulate the housing market was not largely responsible? How is that possible?

Fed whose policy was low low interest rates to stimulate the housing market was not largely responsible?



Did the Fed Cause the housing Bubble?

According to research by Ambrogio Cesa-Bianchi and Alessandro Rebucci, the housing bubble was caused by "regulatory rather than monetary-policy failures":

Economist's View: Did the Fed Cause the housing Bubble?




Was it easy money or easy regulation that caused the housing bubble?


… after the Fed started to tighten its monetary-policy stance and the prime segment of the mortgage market promptly turned around, the subprime segment of the mortgage market continued to boom, with increased perceived risk of loans portfolios and declining lending standards. Despite this evidence, the first regulatory action to rein in those financial excesses was undertaken only in late 2006, after almost two years of steady increases in the federal funds rate. …

When regulators finally decided to act, it was too late:

Was it easy money or easy regulation that caused the housing bubble? | AEIdeas



http://www.usmessageboard.com/economy/362889-facts-on-dubya-s-great-recession.html

 

[Dad2three]

massive liberal organizations designed to subvert the free market and get people into homes the free market said they could not afford were not largely responsible? How is that possible?


The Fed whose policy was low low interest rates to stimulate the housing market was not largely responsible? How is that possible?

Around for 70 years all of a sudden under Dubya caused a subprime crisis Bubba? lol

Dear, Fed fan fred were around but not in the same form for 70 years!! Is that really over your head? Read Reckless Engangerment and get to study the huge huge growth of these liberals organizations and you see % of home ownership rising to all time highs

Dubya ALLOWED and CHEER LEAD for household debt to double in his first 7 years


US mortgage market was $1 trillion in 2000 but nearly $4 trillion a year 2004-2007


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


DUBYA FOUGHT ALL 50 STATE AG'S IN 2003, INVOKING A CIVIL WAR ERA RULE SAYING FEDS RULE ON "PREDATORY" LENDERS!

Dubya was warned by the FBI of an "epidemic" of mortgage fraud in 2004. He gave them less resources. Later in 2004 Dubya allowed the leverage rules to go from 12-1 to 33-1 which flooded the market with cheap money!


George Bush, proud parent of the mortgage crisis


2004 nomination acceptance speech, Bush said:

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.

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."


http://www.usmessageboard.com/economy/362889-facts-on-dubya-s-great-recession.html

 

[EdwardBaiamonte]

Around for 70 years all of a sudden under Dubya caused a subprime crisis Bubba? lol

Dear, Fed fan fred were around but not in the same form for 70 years!! Is that really over your head? Read Reckless Engangerment and get to study the huge huge growth of these liberals organizations and you see % of home ownership rising to all time highs

Dubya ALLOWED and CHEER LEAD for household debt to double in his first 7 years


US mortgage market was $1 trillion in 2000 but nearly $4 trillion a year 2004-2007




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


DUBYA FOUGHT ALL 50 STATE AG'S IN 2003, INVOKING A CIVIL WAR ERA RULE SAYING FEDS RULE ON "PREDATORY" LENDERS!

Dubya was warned by the FBI of an "epidemic" of mortgage fraud in 2004. He gave them less resources. Later in 2004 Dubya allowed the leverage rules to go from 12-1 to 33-1 which flooded the market with cheap money!


George Bush, proud parent of the mortgage crisis


2004 nomination acceptance speech, Bush said:

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.

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."


http://www.usmessageboard.com/economy/362889-facts-on-dubya-s-great-recession.html

lots of disorganized cut and paste rubbish as always from you. Can you say what your point is given that Bush was not conservative

 

[Dad2three]

Dear, Fed fan fred were around but not in the same form for 70 years!! Is that really over your head? Read Reckless Engangerment and get to study the huge huge growth of these liberals organizations and you see % of home ownership rising to all time highs

Dubya ALLOWED and CHEER LEAD for household debt to double in his first 7 years


US mortgage market was $1 trillion in 2000 but nearly $4 trillion a year 2004-2007




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


DUBYA FOUGHT ALL 50 STATE AG'S IN 2003, INVOKING A CIVIL WAR ERA RULE SAYING FEDS RULE ON "PREDATORY" LENDERS!

Dubya was warned by the FBI of an "epidemic" of mortgage fraud in 2004. He gave them less resources. Later in 2004 Dubya allowed the leverage rules to go from 12-1 to 33-1 which flooded the market with cheap money!


George Bush, proud parent of the mortgage crisis


2004 nomination acceptance speech, Bush said:

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.

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."


http://www.usmessageboard.com/economy/362889-facts-on-dubya-s-great-recession.html

lots of disorganized cut and paste rubbish as always from you. Can you say what your point is given that Bush was not conservative

Got it, blew reckless endangerment BULLSHIT from AEI talking points away. F/F? LOL

Weird how EVERY GOPer supported Dubya's dream down payment ($800 million 2003-2007) initiative, to 'help' people of little means to get in their homes? AND supported Dubya's allowing Gov't to guarantee much more 'zero down' loans too...


NONE of them were conservative either Bubba?

 

[EdwardBaiamonte]

Weird how EVERY GOPer supported Dubya's dream down payment ($800 million 2003-2007) initiative, to 'help' people of little means to get in their homes? AND supported Dubya's allowing Gov't to guarantee much more 'zero down' loans too...

so Bush was liberal and you're putting him down for it? Why not take some time off and think about whether you're liberal or conservative!! See why we say dumbto3? Sad. Sorry

 

[Dad2three]

Weird how EVERY GOPer supported Dubya's dream down payment ($800 million 2003-2007) initiative, to 'help' people of little means to get in their homes? AND supported Dubya's allowing Gov't to guarantee much more 'zero down' loans too...

so Bush was liberal and you're putting him down for it? Why not take some time off and think about whether you're liberal or conservative!! See why we say dumbto3? Sad. Sorry

Weird how EVERY GOPer supported Dubya's dream down payment ($800 million 2003-2007) initiative, to 'help' people of little means to get in their homes? AND supported Dubya's allowing Gov't to guarantee much more 'zero down' loans too...


NONE of them were conservative either Bubba?