It is Obama's fault!

Discussion in 'Politics' started by yota5, May 6, 2011.

  1. yota5
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    yota5 VIP Member

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    It is fact that Obama, inherited an economy in a tail spin. It is fact that the burst of the housing bubble caused our economic slide.

    Liberals conveniently forget that the sorry state of our economy can be traced all the way back to the Clinton administration when he signed in the Community Reinvestment Act of 1977. The CRA 1977 opened the door for banks to get involved with risky investment practices for the first time in US history.

    Then democrats in congress did two things. First through their efforts with Fannie Mae, Freddie Mac, and A.C.O.R.N' democrats pressured banks into issuing mortgages to folks that couldn't afford them, and no chance of ever paying them back . The catalyst behind this Charlie Foxtrot was provided by Barack Obama, Barney Frank, Chris Dodd, and Maxine Waters: all democrats. Then the democrats took control of the congress, and spent us into oblivion.

    Liberals may have forgotten these events but the American people didn't. That is why the 2010 election was such a resounding republican success. Barack Obama, inherited a financial catastrophe that was engineered by, and voted for by Barack Obama, and the liberal congress. The American people continue to pay for the mistake of putting these yahoos into office. I can't wait for 2012. How about you? :up:

    Government-mandated loans

    Starting with the Community Reinvestment Act (CRA) of 1977 Congress forced banks to give loans they would not otherwise give.[14] According to the Cato institute, this raised demand and gathered momentum after Reagan left office when the White House pressured HUD,[15] the Attorney General,[16] The Federal Reserve and all institutions with regulatory authority over banks to pressure them to make loans to low income African-Americans using racial statistics to determine whether the banks were compliant. Jonathan R. Macey, a professor at Cornell University Law School, stated "No bank, no matter what it does, is safe from charges of discrimination. And this is true despite the fact that the industry spends over half of its profits to comply with regulations."[16]

    Causes of the United States housing bubble - Wikipedia, the free encyclopedia

    United States housing bubble - Wikipedia, the free encyclopedia
     
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  2. AmericanFirst
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    AmericanFirst Gold Member

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    Don't ever tell the dimwits the truth, it drives them nuts and they come up with all sorts of silly lies trying to defend themselves. It is actually kind of funny.
     
  3. keee keee
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    keee keee Senior Member

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    Record unemployment, record gas prices, inflation, lies, misinformation, incompetence, corruption, total chaos. Is this what hope and change meant?
    Obama lies, Our soldiers continue to die, Osama doesn't die!!!!
     
  4. LilOlLady
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    LilOlLady Gold Member

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    Talk about stupid. Were you sleeping the 8 years Bush was borrowing and spending like a drunken sailor? What we are seeing now it cause and effect. Obama has fixed the problem and we are finally recovering from near disaster. Bush and his cronies almost singe handed destoryed this country. One more day and we would have been beyond the point of no return. Blind hatred is dangerous.

    Hating people is like burning down your own house to get rid of a rat. Henry Emerson Fosdick
     
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  5. 8537
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    8537 Senior Member

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    First of all, Clinton did not sign the CRA in 1977.

    Second, if the CRA was the problem then why were 80% of failing subprimes offered by banks that weren't covered by the CRA?

    Third, no bank was ever forced to give a single loan to a single person that didn't meet objective lending standards created by the GSE's for conforming loans.
     
  6. LilOlLady
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    LilOlLady Gold Member

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    Are you aware that you have just described the Bush administration? :eek:


    F*ck what you heard; recognize what you see.
     
  7. yota5
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    yota5 VIP Member

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    You are right. Jimmy Carter signed the original version of CRA in 1977. Maybe the following article will help clear up the confusion. :up:

    "CRA regulations give community groups the right to comment on or protest about banks' non-compliance with CRA.[7] Such comments could help or hinder banks' planned expansions. Groups at first only slowly took advantage of these rights.[45] Regulatory changes during President Bill Clinton's administration allowed these community groups better access to CRA information and enabled them to increase their activities.[4][40][94]

    In an article for the New York Post, economist Stan Liebowitz wrote that community activists intervention at yearly bank reviews resulted in their obtaining large amounts of money from banks, since poor reviews could lead to frustrated merger plans and even legal challenges by the Justice Department.[95] Michelle Minton noted that Chase Manhattan and J.P. Morgan donated hundreds of thousands of dollars to ACORN at about the same time they were to apply for permission to merge and needed to comply with CRA regulations.[80]

    According to the New York Times, some of these housing advocacy groups provided early warnings about the potential impact of lowered credit standards and the resulting unsupportable increase in real estate values they were causing in low to moderate income communities. Ballooning mortgages on rental properties threatened to require large rent increases from low and moderate income tenants that could ill afford them.[96]

    Housing advocacy groups were also leaders in the fight against subprime lending in low- and moderate-income communities, "In fact, community advocates had been telling the Federal Reserve about the dangers of subprime lending since the 1990s", according to Inner City Press. "For example, Bronx-based Fair Finance Watch commented to the Federal Reserve about the practices of now-defunct non-bank subprime lender New Century, when U.S. Bancorp bought warrants for 24% of New Century's stock. The Fed, rather than take any action on New Century, merely waited until U.S. Bancorp sold off some of the warrants, and then said the issue was moot." However, subprime loans were so profitable, that they were aggressively marketed in low-and moderate-income communities, even over the objections and warnings of housing advocacy groups like ACORN.[97]"

    Community Reinvestment Act - Wikipedia, the free encyclopedia
     
  8. BlindBoo
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    In 1977 Clinton was the AG in Arkansas and the CRA did no such thing.

    CRA is not to Blame for the Mortgage Meltdown

    It's time to stop the scapegoating: According to a study by the Federal Reserve, 94% of high-cost loans originated during the housing boom had nothing to do with Community Reinvestment Act goals. Lending to poor didn't spur crisis -Fed's Kroszner

    The Comptroller of the Currency. John C. Dugan, agrees: "CRA [the Community Reinvestment Act] is not the culprit behind the subprime mortgage lending abuses, or the broader credit quality issues in the marketplace. Indeed, the lenders most prominently associated with subprime mortgage lending abuses and high rates of foreclosure are lenders not subject to CRA. A recent study of 2006 Home Mortgage Disclosure Act data showed that banks subject to CRA and their affiliates originated or purchased only six percent of the reported high cost loans made to lower-income borrowers within their CRA assessment areas."**

    * Remarks by John C. Dugan, Comptroller of the Currency, before the Enterprise Annual Network Conference (November 19, 2008), available at 2008 News Releases.
     
  9. yota5
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    yota5 VIP Member

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    This reply is to help you put things in to perspective lilollady. I hope that you lay off of the Kool Aid. It's bad for your health. :up:

    "How do Bush and Obama compare on closer inspection? Just about like they do on an initial glance. According to the White House's Office of Management and Budget, during his eight fiscal years, Bush ran up a total of $3.283 trillion in deficit spending (p. 22). In his first two fiscal years, Obama will run up a total of $2.826 trillion in deficit spending ($1.294 trillion in 2010, an estimated $1.267 trillion in 2011 (p. 23), and the $265 billion in "stimulus" money that was spent in 2009). Thus, Bush ran up an average of $410 billion in deficit spending per year, while Obama is running up an average of $1.413 trillion in deficit spending per year — or $1.003 trillion a year more than Bush."

    The Weekly Standard: Obama Vs. Bush On Debt : NPR
     
  10. yota5
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    Boo, you failed to read my post didn't you? :up:
     

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