Liberals what de regulation did bush do to cause the housing crises?

[JRK]

The event that created the sub prime mortgage world, but more importantly the mortgage becoming a diravitive was signed into law 11/12/1999. an event that I agreed with, greed took the event and has caused the pain, not Clinton
But to blame W for this is sick

Clinton repeal of Glass-Steagall faulty as seen today
Written on March 17th, 2008 in Government Positions


This is just one of our articles referencing the financial crisis, crash of the housing market, subprime, and more:


Even as the Fed helped to stabilize the situation over the weekend, the stock market is down again on Monday morning. What is alarming from our standpoint is that CIT, Lehman, and National City Corporation all are down – by 25 to 31 percent as we write this. Liquidity questions surround Lehman after what we learned from Bear Sterns. Even JPMorgan needed help and considerations from the Fed to buy Bear Sterns for a reported $2 a share.

This issue now goes far beyond the mortgage blues of some lenders. There is no way that crazy wild-eyed mortgage brokers with lax standards could cause worldwide problems like this. President Bill Clinton repealed the Glass-Steagall Act which had prevented the coupling of investment banking and lending. To be exact, on November 12, 1999, President Bill Clinton signed into law the Gramm-Leach-Bliley Act, which repealed the Glass-Steagall Act of 1933. One of the effects of the repeal is it allowed commercial and investment banks to consolidate. Economists have criticized the action.

Of course economists criticized the way in which the Bush administration manufactured money by allowing anybody and everybody the opportunity to buy or refinance homes. Economist Robert Kuttner has criticized the repeal of the Glass-Steagall Act as contributing to the 2007 subprime mortgage financial crisis.

 

[Sallow]

Bush wasn't a legislative "de-regulator", he was one that gutted the agencies that oversaw regulation. Additionally he appointed people to head these agencies that either had no idea what they were doing, or looked the other way while some very serious calamities were in the works.

 

[waltky]

Caveat: Consider the source...

Freddie Mac Predicts Housing Rebound
April 15, 2011 — Apparently, not all is lost for the housing market. Freddie Mac just released a report penned by chief economist Frank Nothaft that paints a hopeful picture of the housing market just in time for the spring selling season.

"The housing market may also be poised to shake off the frigid sales pace of January and February, when new home sales slipped to the lowest pace since the Census Bureau began the series in 1963. Driven by low mortgage rates and home prices well below peaks, homebuyer affordability is at the highest level in at least forty years, according to the National Association of Realtors. Indeed, sales contract signings for existing homes were up in February, positioning the market for a bounce up in settlements during the second quarter, the traditional time for the seasonal upswing in sales."

Nothaft’s optimistic about real estate, despite the fact that so few other economists are willing to peg the “rebound” stake into the ground when it comes to housing. It's mostly because Nothaft likes what he sees in the U.S. job market. He cites a “stronger than expected” March unemployment number (it was 8.8% and the economy added 216,000 jobs, according to the Department of Labor). And housing prices have dropped so low in the last three years that taken together, Nothaft believes these factors could create the perfect recipe for a spring rebound, especially as (hopefully) eager house-hunters start hitting those Sunday open houses across the country in coming weeks.

MORE

See also:

Suicide Rate Tied to Economy, CDC Says
April 18, 2011 — The suicide rate is strongly linked to the health of the economy, according to new research from the Centers for Disease Control and Prevention.

According to the CDC, the increase in suicides during an economic downturn is caused by heightened levels of stress in a large part of the population. "Economic problems can impact how people feel about themselves and their futures, as well as their relationships with family and friends," Feijun Luo, an economist in CDC's Division of Violence Prevention and the study's lead author said in a press release. The study, which looked at suicide rates between 1928 and 2007, found the link was prevalent among those in their prime working years, or between 25 and 64 years old. According to the research, the overall suicide rate rose during the end of the New Deal [1937-1938], the Oil Crisis (1973-75) and the Double-Dip Recession of 1980-82.

The Great Depression is credited with the largest increase in overall suicide rate, when the percentage of deaths by suicides surged from 18% in 1928 to an all-time high of 22.1% in 1932, the last full year of that era. The figures represent a record increase of 22.8% in any four-year period in history. Conversely, rates fell in boom periods, most notably during World War II (1939-1945), and from 1991 to 2001, a time when the economy enjoyed fast growth and low unemployment. According to the CDC, the suicide rate in 2000 fell to its lowest point during the measured years at 10.7%. Researchers said the study emphasizes the need for suicide prevention services.

"Knowing suicides increased during economic recessions and fell during expansions underscores the need for additional suicide prevention measures when the economy weakens," James Mercy, acting director of CDC's Injury Center's Division of Violence Prevention, said. "It is an important finding for policy makers and those working to prevent suicide." The CDC suggests providing social support and counseling services to those who lose their jobs or homes, while promoting individual, family and community connectedness. Additionally, it supports increasing the accessibility of crisis centers and other community services to those in need.

Source

 

[Cuyo]

None. The lions' share of the responsible firms were never regulated to begin with.

Bush, Greenspan, et al were warned. Said firms needed to be regulated, and the fed was remiss in making it so.

 

[waltky]

Granny wantin' to know if dis means its gonna be a while a-fore she gets her second stimulus check?...

IRS snafu leaves taxpayers, refunds in limbo for months
It's perhaps the very definition of Red Tape. Four years ago, Congress decided that the IRS should get into the banking business, authorizing it to give out no-interest loans to first-time homebuyers. That put the agency in the position of both collecting loan payments and issuing tax refunds to the roughly 1 million taxpayers who took advantage of the program.

This year, the odd arrangement overwhelmed IRS systems, and an unspecified number of taxpayers have been forced to wait four months or more for their tax refunds. In fact, many are still waiting. "This is frustrating for taxpayers, and it's frustrating for us," said IRS spokesman Terry Lemons. "We deeply apologize." Making matters worse, taxpayers caught up in the vortex say they've been promised delivery dates for their refunds repeatedly, only to be disappointed or to discover their returns have been placed back into "error" status.

One of those taxpayers who's been tantalized by repeated promises of a refund check is Tia Littlejohn, who lives in Maryland just outside Washington, D.C. She and her husband are planning to use their expected $6,800 refund to pay for in vitro fertilization. She's had to postpone the procedure twice because promised tax refund dates have come and gone without payment. "At this point, I may have to just cancel it," she said. "It's really affecting our household. It's very stressful." Her litany of hope and disappointment is typical.

"Our return was processed February 19 with a refund date of March 4. Well, March 4 came and went. Since then we have been waiting, every other week we have a different error code and the date of a possible direct deposit," she said. "On April 27 they told me they told me my return was done and 'out of error.' Last week they told me I should receive it May 20. Then (Wednesday) I looked and it's gone back into error again." Lemons said the IRS has devoted a lot of extra labor toward solving the problem and began manually processing the returns after the problem was discovered in February. The number of victims has been whittled to "a few thousand taxpayers," he said.

That's cold comfort to people who have been waiting months for thousands of dollars. A Facebook group devoted to taxpayers caught up in the mess now has more than 3,000 members; they write daily about their mind-numbing frustrations. Many are now being told their returns won't arrive until mid-June. "I had a date, and a second date ... and now I'm back at 1201 (error). My advocate said that it's just sitting there. WTF IRS?" Jannae Leonard Powell wrote Thursday. The Facebook page has become a support group for some, a place where taxpayers share tips on the best time to call , the best number to call and how to reach the most helpful phone agents. Littlejohn said many in the group have received frequent rude treatment, so they just hang up repeatedly until a "nice" agent answers.

MORE

 

[Publius1787]

Bush wasn't a legislative "de-regulator", he was one that gutted the agencies that oversaw regulation. Additionally he appointed people to head these agencies that either had no idea what they were doing, or looked the other way while some very serious calamities were in the works.

The only video I need to post.

[ame=http://www.youtube.com/watch?v=_MGT_cSi7Rs]YouTube - ‪Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis‬‏[/ame]

 

[Charles_Main]

The event that created the sub prime mortgage world, but more importantly the mortgage becoming a diravitive was signed into law 11/12/1999. an event that I agreed with, greed took the event and has caused the pain, not Clinton
But to blame W for this is sick

Clinton repeal of Glass-Steagall faulty as seen today
Written on March 17th, 2008 in Government Positions


This is just one of our articles referencing the financial crisis, crash of the housing market, subprime, and more:


Even as the Fed helped to stabilize the situation over the weekend, the stock market is down again on Monday morning. What is alarming from our standpoint is that CIT, Lehman, and National City Corporation all are down – by 25 to 31 percent as we write this. Liquidity questions surround Lehman after what we learned from Bear Sterns. Even JPMorgan needed help and considerations from the Fed to buy Bear Sterns for a reported $2 a share.

This issue now goes far beyond the mortgage blues of some lenders. There is no way that crazy wild-eyed mortgage brokers with lax standards could cause worldwide problems like this. President Bill Clinton repealed the Glass-Steagall Act which had prevented the coupling of investment banking and lending. To be exact, on November 12, 1999, President Bill Clinton signed into law the Gramm-Leach-Bliley Act, which repealed the Glass-Steagall Act of 1933. One of the effects of the repeal is it allowed commercial and investment banks to consolidate. Economists have criticized the action.

Of course economists criticized the way in which the Bush administration manufactured money by allowing anybody and everybody the opportunity to buy or refinance homes. Economist Robert Kuttner has criticized the repeal of the Glass-Steagall Act as contributing to the 2007 subprime mortgage financial crisis.

It is laughable to attempt to place all the blame for a collapse that was 30 years in the making. On any one man. Stupid.

 

[NYcarbineer]

The housing bubble was caused by easy credit which was caused by Wall Street snapping up every mortgage it could get its hands on to package and sell. The public was convinced that property values could only go up, just like the public was convinced in 99, 00 that stock prices could only go up.

 

[Epsilon Delta]

There were many causes for the collapse and also many causes for the unability to deal with the collapse. Clinton was responsible for the repeal of Glass-Steagle, which was instrumental in keeping things in line since the end of the Depression, his buddy Greenspan was partly responsible for waves of easy credit ("Greenspan put") and total refusal to see or burst the bubble. Bush was responsible for squandering the surplus on tax cuts and the military, making the US incapable of stimulating the economy once the crisis arrived. Meanwhile, the idea of "self-regulation" for financial businesses was embraced across partisan lines, as well as the propensity to appointing regulators who were high-ranking officials of the very institutions they were meant to regulate. The entire economics profession was brutally silent in the face of the 8-trillion dollar bubble, as were the journalists. THe American people's massive appetite for unbridled consumption and abstention from saving catalyzed everything, while people from investment-hungry places like China and Saudi Arabia kept feeding them debt.

So no, there is no one person: It is the entire system that is fucked.

 

[Toro]

There were a few things.

First, the SEC waved rules which barred the big five Wall Street firms from exceeding stated debt levels. The Big Five argued they could better regulate themselves than the government. Lehman went under, Bear collapsed, Merrill no longer exists as an independent company, Morgan was probably bankrupt and Goldman was rumored to be days away from collapsing. So much for the market regulating itself.

The Federal Reserve refused to enforce regulations on subprime loans, even though they'd been warned what was happening.

Also, one of the federal regulators - I can't remember which one, the Fed, OFHEO? - barred states AGs from bringing charges for predatory lending against nationally chartered banks, allowing banks to sell all sorts of inappropriate shit to unqualified consumers.

But this wasn't just a Bush/Republican thing. Clinton and the Democrats sowed the seeds by deregulating derivatives and barring any federal oversight. Like the Wall Street firms, Enron paid a whole lot of money to exempt themselves from much regulatory oversight. And like Wall Street, Enron imploded.

 

[Mr.Nick]

The community reinvestment act is to blame for the housing bubble...

 

[Toro]

The community reinvestment act is to blame for the housing bubble...

Or not.

 

[Londoner]

JRK.

I agree on Clinton. He didn't just deregulate financial markets, but he sold the American worker down river with NAFTA, and made larger cuts to welfare than any president in history. This is why I supported Ross Perot.

FDR created Glass-Stegall because he believed that government regulation was necessary to stabilize financial markets. He believed that markets, left to their own device, would swing wildly from boom to bust, and wreak havoc on the country. He thought that intelligently executed oversight would curb the rough edges of capitalism, which periodically chokes itself on risk, as people herd themselves hysterically into asset bubbles, seduced by the possibility of easy money. [Old time religious conservatives understood the power of money to blind people (which is why many of them accepted FDR's regulations), but Reagan, working on behalf of business, sold America on Homo Economicus, i.e., the belief that rational self interest can defeat the green demon within. Hubris!]

But the fact remains: when Reagan came to power, he convinced Americans that government should not play any role in markets. He believed that financial innovators should be able to regulate their own risk, and that self-interested financial firms didn't need a government bureaucrat to tell them how to protect share holders. Reagan thought self-interest could take the place not only of Glass-Stegall, but all regulations. Greenspan, a primary collaborator with Ayn Rand, felt the exact same way. This is why he called sub-primes a miraculous invention, and proceeded to convince America that these new financial instruments would safely expand home ownership without risk. Greenspan's faith in unregulated markets was made possible by Reagan, who moved the ideological pendulum away from the regulatory state envisioned by FDR. Like FDR, Reagan pulled both parties into his orbit. Just as Eisenhower and Nixon supported the New Deal, democratic presidents after Reagan would support deregulation.

Clinton represents the death of FDR and the liberal regulatory model. He represents the final victory of the Reagan Revolution.

Regarding Bush, you are urged to watch this entire video. He put kerosene on the fire at a time when the economy was not in a position to absorb the shock. The game is over. We swallowed poison in 1980 - Clinton and Bush merely represent the final stages of our financial death.
[ame=http://www.youtube.com/watch?v=kNqQx7sjoS8&feature=related]YouTube - ‪Home Ownership and President Bush‬‏[/ame]

 

[Mr.Nick]

The community reinvestment act is to blame for the housing bubble...

Or not.

Really??

So you buy a 100k house, put 5k down and then use the house as collateral for a credit card in which you rack up 60k in debt but pay minimum payments but then you finally default on the house and the card and you believe that has no impact on our economy???

Who the fuck you think ate all that money??

How the fuck can you borrow 100k and pay back 10% of it, declare bankruptcy then settle out at 25k and claim victory? yeah there is still 65k in unpaid debt there.... You think that shit just goes bye-bye? think again. It gets passed on, and passed on again and again until it reaches the top.

Who the fuck wants your house that was paid for by the bank?? not to mention its not like the bullshit you bought on plastic can be repossessed..

Thats the fucking problem...

The problem is there are responsible people and irresponsible people.

BTW, I'm not stupid so I don't have a credit card. I live by my means...

 

[Toro]

The community reinvestment act is to blame for the housing bubble...

Or not.

Really??

So you buy a 100k house, put 5k down and then use the house as collateral for a credit card in which you rack up 60k in debt but pay minimum payments but then you finally default on the house and the card and you believe that has no impact on our economy???

Who the fuck you think ate all that money??

How the fuck can you borrow 100k and pay back 10% of it, declare bankruptcy then settle out at 25k and claim victory? yeah there is still 65k in unpaid debt there.... You think that shit just goes bye-bye? think again. It gets passed on, and passed on again and again until it reaches the top.

Who the fuck wants your house that was paid for by the bank?? not to mention its not like the bullshit you bought on plastic can be repossessed..

Thats the fucking problem...

The problem is there are responsible people and irresponsible people.

BTW, I'm not stupid so I don't have a credit card. I live by my means...

http://www.usmessageboard.com/economy/70006-cra-not-to-blame-for-housing-debacle.html

 

[NYcarbineer]

The community reinvestment act is to blame for the housing bubble...

No. Only in storybooks the children in Conservatopia read is that tale passed off as gospel.

 

[bripat9643]

Bush wasn't a legislative "de-regulator", he was one that gutted the agencies that oversaw regulation. Additionally he appointed people to head these agencies that either had no idea what they were doing, or looked the other way while some very serious calamities were in the works.

In other words, you have no proof, but you know Bush is guilty.

How beautifully liberal!

 

[Mr.Nick]

Or not.

Really??

So you buy a 100k house, put 5k down and then use the house as collateral for a credit card in which you rack up 60k in debt but pay minimum payments but then you finally default on the house and the card and you believe that has no impact on our economy???

Who the fuck you think ate all that money??

How the fuck can you borrow 100k and pay back 10% of it, declare bankruptcy then settle out at 25k and claim victory? yeah there is still 65k in unpaid debt there.... You think that shit just goes bye-bye? think again. It gets passed on, and passed on again and again until it reaches the top.

Who the fuck wants your house that was paid for by the bank?? not to mention its not like the bullshit you bought on plastic can be repossessed..

Thats the fucking problem...

The problem is there are responsible people and irresponsible people.

BTW, I'm not stupid so I don't have a credit card. I live by my means...

http://www.usmessageboard.com/economy/70006-cra-not-to-blame-for-housing-debacle.html

Only someone who is sure it was the CRA would write an op-ed article claiming it wasn't.

You see, you liberals are easy....

If I was full of shit you would pay no attention to me, yet I'm correct so you come running to defend the bullshit that destroyed us.

I bet you didn't even know what the fuck the CRA was up until a few hours ago when I started posting it...

If you would like specifics it was Clintons changes that destroyed us - the the act itself.

Every informed individual knows it....

Hell I had to work the debt back to find it.

Best question one can ask is "how did the banks inherit all this debt."

Who forced them to loan?

 

[Mr.Nick]

The community reinvestment act is to blame for the housing bubble...

No. Only in storybooks the children in Conservatopia read is that tale passed off as gospel.

Well thats nice.

When you're ready to come out of denial land and grow the fuck up, feel free to comment.

 

[Mr.Nick]

Its almost like liberalism is a mental disorder...Oh wait, I think it is according to Michael Savage.

Good book btw..