Karl Rove BLASTS democrats over financial/economic mess!

[Chris]

The Dims are gonna try to convince us it was Conservative Republicans that wanted to give mortgages to people that didn't qualify for them...you know, that racism that was prevalent in banking that demanded people have a job, and 20% down, and could prove they could make the mortgage payments....
Then they gonna open a freezer franchise at the North Pole

The deregulation took the risk out of loaning money to people with poor credit. That was McCain's man Phil Gramm's doing. You are wrong.

 

[WillowTree]

The Dims are gonna try to convince us it was Conservative Republicans that wanted to give mortgages to people that didn't qualify for them...you know, that racism that was prevalent in banking that demanded people have a job, and 20% down, and could prove they could make the mortgage payments....
Then they gonna open a freezer franchise at the North Pole

Can you say Chris Dodd and Barney Frank? Thank you, Thank you very much.

and while we are on the subject could someone explain no job, no income no asset loans to me?

 

[Chris]

Can you say Chris Dodd and Barney Frank? Thank you, Thank you very much.

and while we are on the subject could someone explain no job, no income no asset loans to me?

The deregulation took the risk out of loaning money to people with poor credit. That was McCain's man Phil Gramm's doing.

 

[WillowTree]

The deregulation took the risk out of loaning money to people with poor credit. That was McCain's man Phil Gramm's doing.

isn't poor credit an understatement? How about no credit. Where is the link to this being McCain/Gramm's doing?

 

[Clay Buster]

Where is the link to this being McCain/Gramm's doing?

Phil Gramm's fingerprints are all over market mess
By FROMA HARROP
Sept. 17, 2008, 11:22PM

"The fundamentals of our economy are strong," John McCain said as Wall Street went into white-knuckle panic over diving investor confidence. Does he believe that? It doesn't really matter, because the Republican has outsourced his economic policy to the ideologues whose opposition to regulations brought the financial markets to their knees.

McCain's former economic adviser is ex-Texas Sen. Phil Gramm. On Dec. 15, 2000, hours before Congress was to leave for Christmas recess, Gramm had a 262-page amendment slipped into the appropriations bill. It forbade federal agencies to regulate the financial derivatives that greased the skids for passing along risky mortgage-backed securities to investors.

And that, my friends, is why everything's falling apart. That is why the taxpayers are now on the hook for the follies of Fannie Mae, Freddie Mac, Bear Stearns and now the insurance giant AIG to the tune of $85 billion.

On Monday, McCain issued a tough-talk statement that he was "glad" that the feds "have said no to using taxpayer money to bail out Lehman Brothers, a position I have spoken about throughout this campaign." On Tuesday, the government did the daddy of all bailouts. It took over AIG, fearing its bankruptcy could set off a cataclysmic chain of events.

And do you know where the problems lay at AIG? They weren't in its main insurance business. They were in its derivatives-trading unit.

Last February, Fortune Magazine called Gramm "McCain's Econ Brain." Gramm lost the official title of economic adviser for making an impolitic remark about this being "a nation of whiners." But Gramm's belief in letting speculators do as they please was never an issue. And even after he left the campaign, Gramm had been mentioned as a possible Treasury secretary in a McCain administration.

Another Gramm contribution was the "Enron loophole," which prevented federal oversight of Enron's electronic energy trading. Such favors proved very expensive to consumers but profitable to the Gramms. Enron CEO Ken Lay chaired Gramm's 1992 re-election campaign, and wife Wendy Gramm spent years on the Enron board, earning as much as $1.8 million, according to Public Citizen, a consumer advocate.

So McCain's reassurances to the little people that he won't let what's happening to them happen again is rather unconvincing. McCain now talks about the need for more regulations, but he's been highly stingy with the for-instances. He wants a commission to look into it.

(Too bad he didn't name Mitt Romney as his running mate. A former venture capitalist, Romney knows something about Wall Street.)

The Bush economy was built on baloney. It was built on keeping interest rates low so that people could borrow lots of money to spend on real estate and at the mall. The resulting housing bubble left middle-class people feeling prosperous, even as their earnings stagnated or fell.

The Democrats weren't exactly tigers on containing the housing bubble, but they did try to put the brakes on some of the lending outrages that are the root of the current crisis. For example, Barack Obama sponsored a bill that would have prevented lenders from pressing abusive loan terms onto unsophisticated, subprime borrowers. That went nowhere.

"I certainly don't fault Sen. McCain for these problems," Obama said early in the crisis, "but I do fault the economic philosophy he subscribes to."

Obama need not be so mild-mannered. McCain's economic philosophy is McCain's fault. He doesn't know much about economics — and has admitted as much — so his philosophy became a simple-minded faith in the opinion of others. And look whom he listens to.

Americans will be paying for this philosophy well into the 21st century.

Gramm's fingerprints on market mess - Chron.com - Houston Chronicle

And here's another:

ABC News: The Politics of 'O-P-M'

And another:

Financial Turmoil/Former McCain Adviser - America’s Election HQ

There really is not question as to Gramm's role in this affair and there is no question about McCain's relationship to Gramm.

With that said, make no mistake, I blame the Dems for this just as much as the Repubs.

They are both guilty in several different ways. Obama took the second highest amount of money from these lobbyists, so he is just as guilty as McCain.

 

[Navy1960]

The Clinton Administration's regulatory revisions [1] with an effective starting date of January 31, 1995 were credited with substantially increasing the number and aggregate amount of loans to small businesses and to low- and moderate-income borrowers for home loans. Part of the increase in home loans was due to increased efficiency and the genesis of lenders, like Countrywide, that do not mitigate loan risk with savings deposits as do traditional banks using the new subprime authorization. This is known as the secondary market for mortgage loans. The revisions allowed the securitization of CRA loans containing subprime mortgages. ***

The Community Reinvestment Act (or CRA, Pub.L. 95-128, title VIII, 91 Stat. 1147, 12 U.S.C. § 2901 et seq.) is a United States federal law that requires banks and thrifts to offer credit throughout their entire market area and prohibits them from targeting only wealthier neighborhoods with their services, a practice known as "redlining." The purpose of the CRA is to provide credit, including home ownership opportunities to underserved populations and commercial loans to small businesses.

Among some economists this is widely credited with the beginning of the subprime mortgage crisis ..

Representative Barney Frank(D-MA) claimed of the thrifts "These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis, the more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing**

 

[TruthOrg]

The Clinton Administration's regulatory revisions [1] with an effective starting date of January 31, 1995 were credited with substantially increasing the number and aggregate amount of loans to small businesses and to low- and moderate-income borrowers for home loans. Part of the increase in home loans was due to increased efficiency and the genesis of lenders, like Countrywide, that do not mitigate loan risk with savings deposits as do traditional banks using the new subprime authorization. This is known as the secondary market for mortgage loans. The revisions allowed the securitization of CRA loans containing subprime mortgages. ***

The Community Reinvestment Act (or CRA, Pub.L. 95-128, title VIII, 91 Stat. 1147, 12 U.S.C. § 2901 et seq.) is a United States federal law that requires banks and thrifts to offer credit throughout their entire market area and prohibits them from targeting only wealthier neighborhoods with their services, a practice known as "redlining." The purpose of the CRA is to provide credit, including home ownership opportunities to underserved populations and commercial loans to small businesses.

Among some economists this is widely credited with the beginning of the subprime mortgage crisis ..

Representative Barney Frank(D-MA) claimed of the thrifts "These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis, the more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing**

Beware, mentioning Clinton in a negative life could censor articles like the one you presented. Remember, Path to 9-11 examined the events leading to the WTC destruction faulting both the Clinton and Bush administration. Clinton lawyers got that off the air.

 

[Navy1960]

Beware, mentioning Clinton in a negative life could censor articles like the one you presented. Remember, Path to 9-11 examined the events leading to the WTC destruction faulting both the Clinton and Bush administration. Clinton lawyers got that off the air.

You know, I will make note of that after the 1 millionth posting. Do you think I should call his Harlem office and get pre-approval first, so as not to offend his delicate sense of historical perspective?

 

[Care4all]

Nice try, Care, but you know it doesn't hold water. This is all part and parcel of the same dirty money grubbing that the Dems have always been engaged in. It could have been prevented, altogether, and they stopped it because they put their own interests first...and they wanted the money to keep rolling in. Screw the tax payers.

Actually Allie, I heard this on the news...i mean on c-span this morning, they had someone from the Motley Fool on there and he is the one that said fannie mae/freddie mack's problems are the LEAST of our problems with what is going on out there....we haven't even hit the tip of the iceberg....

 

[Richard-H]

The Clinton Administration's regulatory revisions [1] with an effective starting date of January 31, 1995 were credited with substantially increasing the number and aggregate amount of loans to small businesses and to low- and moderate-income borrowers for home loans. Part of the increase in home loans was due to increased efficiency and the genesis of lenders, like Countrywide, that do not mitigate loan risk with savings deposits as do traditional banks using the new subprime authorization. This is known as the secondary market for mortgage loans. The revisions allowed the securitization of CRA loans containing subprime mortgages. ***

The Community Reinvestment Act (or CRA, Pub.L. 95-128, title VIII, 91 Stat. 1147, 12 U.S.C. § 2901 et seq.) is a United States federal law that requires banks and thrifts to offer credit throughout their entire market area and prohibits them from targeting only wealthier neighborhoods with their services, a practice known as "redlining." The purpose of the CRA is to provide credit, including home ownership opportunities to underserved populations and commercial loans to small businesses.

Among some economists this is widely credited with the beginning of the subprime mortgage crisis ..

Representative Barney Frank(D-MA) claimed of the thrifts "These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis, the more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing**

You're not the only one that can cut & paste from Wikipedia:

Critics claim that government policy encouraged the development of the subprime debacle through legislation like the CRA, which in effect forces banks to lend to the same otherwise uncreditworthy consumers they are now being criticized for accepting.[6] [7] Defenders of CRA disagree, pointing out that half of all subprime loans were made by institutions that are not subject to CRA and another substantial share of subprime loans were made by subsidiaries of banks that do not fully come under CRA. They estimate that the substantial number of riskier loans banks were forced to accept by CRA were not enough to be a problem.[8]