New study confirms democrats crashed the economy DUH...

[g5000]

So accordingly it's been a big Ponzi scheme from the beginning. Who can we thank, Barney Frank and company, or the Progressive Socialist Democratic Party?

Actually, you can blame the financial sector for inventing all those derivatives. In particular, JP Morgan for inventing the CDO. You can even blame Black-Scholes to a certain extent.

However, at the time they invented the CDO for corporate loans, they were very responsible with them.

But they took off in the hands of hordes of bozos in the financial sector and were greatly abused.

And that's not to mention the widescale fraud which occurred after the financiers realized they had fucked up.

You can blame the government for constantly bailing out failed financial firms until things reached the point of Too Big Too Fail. LTCM is an example.

And now, with this latest bailout, the next crash is going to be all about Too Big Too Save. And then we are all well and truly fucked.


.

 

[occupied]

More from the NBER report to which I linked:



So they clearly do not feel the CRA is so dangerous that it should be eliminated.





This is exactly what I was talking about above. If it was just about bad loans, the crisis would not have been anywhere near as severe. Derivatives allowed for the risk to be transferred well down the pipeline to the rubes like your 401k manager, and your public employee pension fund manager, and your city treasurer, and your insurance company investment manager, and your college endowment fund manager.

These were not just constructed out of CRA tracts, but all loans. Derivatives simply made it very easy to transfer the risk away from the originator of the loans.

This was driven by $70 trillion of investor demand. The financial sector marketing geniuses convinced investors to buy into derivatives and the demand was out of sight. To meet that demand, more and more and more underlying assets were needed. And when all the prime assets were used up, they had hardly put a dent into the demand. So that required more creative ways to get people to borrow money.

So of course CRA loans are going to be out of proportion. There are more poor people than rich people. It's a pyramid.

When you have gotten the top of the pyramid to borrow as much as it can, you move down the pyramid and make more loans to more people. It takes more poor people to borrow the same amount of money as a top two percenter.

And you get to take credit with the government for doing it!


.

Good analysis, if it had just been the actual foreclosures the crash would not have been much of a crash but leveraging all those bad mortgages up to 50:1 and getting them highly rated magnified the impact far out of proportion.

So accordingly it's been a big Ponzi scheme from the beginning. Who can we thank, Barney Frank and company, or the Progressive Socialist Democratic Party?

Only for their failure to prevail against the banking lobby and republicans who refused and still refuse to put a regulatory finger on these exotic investment instruments.

 

[SniperFire]

This is exactly what happened.

I f'n hate Clinton for that.

 

[jwoodie]

And yet, like Tony Soprano, he remains immensely popular.

 

[rdean]

New study confirms democrats crashed the economy DUH...​

By: ROBERT MOON
12/21/2012


A new study from the widely respected National Bureau of Economic Research released this week has confirmed beyond question that the left's race-baiting attacks on the housing market (the Community Reinvestment Act

-President Bush went to Congress repeatedly for years warning them that Fannie Mae and Freddie Mac were going to destroy the economy (17 times in 2008 alone). Democrats continuously ignored him, shut down his proposals along party lines and continued raiding the institutions for campaign contributions on their way down.

-No one was making bad loans to unqualified people until Democrats came along and threatened to drag banks into court and have them fined and branded as racists if they didn't go along with the left's Affirmative Action lending policies...all while federally insuring their losses. Even the New York Times warned in the late 1990s that Democrats continuing to force banks into lowering their standards would lead to this exact catastrophe.​

(Excerpt)

Read more:
New study confirms economy was destroyed by Democrat policies - National Conservative | Examiner.com

White wingnuts are NOT "highly respected". In fact, the ONLY respect they get is from other white wingnuts.

 

[EriktheRed]

New study confirms democrats crashed the economy DUH...​

By: ROBERT MOON
12/21/2012


A new study from the widely respected National Bureau of Economic Research released this week has confirmed beyond question that the left's race-baiting attacks on the housing market (the Community Reinvestment Act

-President Bush went to Congress repeatedly for years warning them that Fannie Mae and Freddie Mac were going to destroy the economy (17 times in 2008 alone).​

Gee.....makes ya' wonder why he was in such a hurry to saddle minorities with a mortgage!!!

[ame=http://www.youtube.com/watch?v=rKKvMJeBBSA]Q&A: Leslie & Andrew Cockburn - YouTube[/ame]

See: 5:00 thru 12:00​

Yeah, I do recall him touting an "ownership society"....​

 

[SniperFire]

New study confirms democrats crashed the economy DUH...​

By: ROBERT MOON
12/21/2012


A new study from the widely respected National Bureau of Economic Research released this week has confirmed beyond question that the left's race-baiting attacks on the housing market (the Community Reinvestment Act

-President Bush went to Congress repeatedly for years warning them that Fannie Mae and Freddie Mac were going to destroy the economy (17 times in 2008 alone).​

Gee.....makes ya' wonder why he was in such a hurry to saddle minorities with a mortgage!!!

[ame=http://www.youtube.com/watch?v=rKKvMJeBBSA]Q&A: Leslie & Andrew Cockburn - YouTube[/ame]

See: 5:00 thru 12:00​

Yeah, I do recall him touting an "ownership society"....​

Once Clinton blew the lid off of it, it was indeed hogs to the trough.​

 

[hazlnut]

Isn't the Examiner the same paper that misread the report on Chrysler jobs in China?

YES.

Give them a report that sun rises in the East and they'd read it as dark liberal west coast.

 

[Lakhota]

Home loans didn't bring on the recession; gimmicky financial instruments bloated to 100 times their value are what caused all this pain.

The Absurd Zombie Lie About the Economy Right-Wingers Desperately Cling To -- And Why It's Totally Wrong | Alternet

 

[Doc91678]

​

Democrats Destroy Economy—Blame Republicans

Corruption exposed within the Democrats’ personal slush funds​

by: sher zieve
10 08, 2008

The actual facts of why the US—and now the world—economy are in severe jeopardy have little to nothing to do with the current US administration or Republicans. However, with the Democrats’ and their media continuing to call and report the Republicans responsible, the public might never know the difference. Despite all proof to the contrary, the media—AKA the usual suspects—refuse to report on the actual programs that led to the current debacle.This is called “faked and manufactured news.”

Note: This contrived “news” is also what will most likely end up being our only source in an Obama administration. Get ready folks. The days of opposition to any and all leftist policies and regimes in the USA are coming to an end.

But, until then, let’s take another realistic look at why we are in the current financial mess. Beginning with the Democrats and President Clinton’s push to force banks and mortgage companies to lend to low-income home buyers—coupled with the Democrats running Fannie Mae and Freddie Mac—the process that has placed us in the position of heading toward the current financial debacle was put into place. Then, with Clinton’s signing of the American Home Ownership and Economic Opportunity Act of 2000, the dye was cast. Institutions that did not want to lend monies to those who could not afford to buy homes were advised that they would be investigated by the government. Thus, the ARM (adjustable rate mortgage) came into being in full force. Huge balloon payments were the norm for the ARM and when they came due—equally huge foreclosure numbers for those who couldn’t pay them were the result.

As foreclosures increased, a domino effect began that took down mortgage companies and publicly exposed the corruptions inherent within the Democrats’ personal slush funds—Fannie Mae and Freddie Mac. Then, the commercial banks—the ones who had initially been forced to carry the bad-paper mortgages “or else” began to fail. After that, other banks and lending institutions started to experience problems and then—as the world’s banks are now connected—European and Asian financial institutions have begun to crash. What was put in place by US Democrats as at its best “good intentions” for poor folk and at its worst another way to scam the system has now caused world-wide panic in financial institutions. Note: Elected Congressional Republicans—including Sen. John McCain—have tried for years to pass legislation that would provide oversight on both Fannie and Freddie. Democrats blocked each and every attempt.

But, who are the scammers who for years benefited from this con?Bear in mind, if we refuse to recognize the culprits, we refuse to correct the problem. Democrat Franklin Raines ran Fannie Mae into the ground and, after making over $100M for his efforts.Due to his cooking the books, former Fannie Mae CEO and Barack Obama advisor Raines was ordered to pay $24.7M in fines. Considering the crime, this was a slap on the wrist. Another Obama advisor and the one who chose Biden as Obama’s VP running mate, is James A. Johnson—another Democrat former CEO of Fannie Mae. Johnson was also involved in the “book cooking” scandal and walked away from the company with tens of millions of dollars.Former Clinton Deputy Attorney General Jamie Gorelick (the infamous woman who would not allow the CIA and FBI to share information on terrorists) was Vice Chair of Fannie Mae from 1997-2003.During that time Gorelick is officially reported to have “earned: $26M but, is said to have actually acquired over $100M for her efforts.

Rep. Barney Frank (D-MA) was one of the loudest opponents of enacting oversight for Fannie Mae and Freddie Mac. Knowing full well that both organizations were in dire straits, in 2002 Frank said: “I do not regard Fannie Mae and Freddie Mac as problems. I do not think we are facing any kind of a crisis.”Because of these statements, thousands more invested in Fannie Mae—and thousands more lost their proverbial shirts. Frank claims no responsibility and, instead, arrogantly continues to blame Republicans.Senator Christopher Dodd (D- Conn.) is reported to have received the most monies in funding from Fannie Mae.Sen. Barack Obama (D-IL) is said to have received the second greatest amount of funding from Fannie Mae.There are many more examples—too many to be included in one column.

{snip}

Read more at:
Democrats Destroy Economy

Coming in from the past to bite Lakhota where it hurts most. Where are the facts in anything Lakhota writes? No where to be seen.

 

[Billo_Really]

New study confirms democrats crashed the economy DUH...​

By: ROBERT MOON
12/21/2012


A new study from the widely respected National Bureau of Economic Research released this week has confirmed beyond question that the left's race-baiting attacks on the housing market (the Community Reinvestment Act

-President Bush went to Congress repeatedly for years warning them that Fannie Mae and Freddie Mac were going to destroy the economy (17 times in 2008 alone). Democrats continuously ignored him, shut down his proposals along party lines and continued raiding the institutions for campaign contributions on their way down.

-No one was making bad loans to unqualified people until Democrats came along and threatened to drag banks into court and have them fined and branded as racists if they didn't go along with the left's Affirmative Action lending policies...all while federally insuring their losses. Even the New York Times warned in the late 1990s that Democrats continuing to force banks into lowering their standards would lead to this exact catastrophe.​

(Excerpt)

Read more:
New study confirms economy was destroyed by Democrat policies - National Conservative | Examiner.com

How come there is no link to the "study" at the Examinar website?

And why is there no name of the particular study at that webpage?

 

[Doc91678]

New study confirms democrats crashed the economy DUH...​

By: ROBERT MOON
12/21/2012


A new study from the widely respected National Bureau of Economic Research released this week has confirmed beyond question that the left's race-baiting attacks on the housing market (the Community Reinvestment Act

-President Bush went to Congress repeatedly for years warning them that Fannie Mae and Freddie Mac were going to destroy the economy (17 times in 2008 alone). Democrats continuously ignored him, shut down his proposals along party lines and continued raiding the institutions for campaign contributions on their way down.

-No one was making bad loans to unqualified people until Democrats came along and threatened to drag banks into court and have them fined and branded as racists if they didn't go along with the left's Affirmative Action lending policies...all while federally insuring their losses. Even the New York Times warned in the late 1990s that Democrats continuing to force banks into lowering their standards would lead to this exact catastrophe.​

(Excerpt)

Read more:
New study confirms economy was destroyed by Democrat policies - National Conservative | Examiner.com

How come there is no link to the "study" at the Examinar website?

And why is there no name of the particular study at that webpage?

I suggest you read the following that was plainly printed in fact highlighted.
Goldman Sachs | Economic Outlook 2013 - Jan Hatzius on the 2013 Global Economic Forecast

A billion-dollar daily shot in the arm for the American economy | ExxonMobil's Perspectives Blog

 

[CaféAuLait]

"These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis," -- Democrats 2008

The democrats eased lending in 1999:

In July, the Department of Housing and Urban Development proposed that by the year 2001, 50 percent of Fannie Mae's and Freddie Mac's portfolio be made up of loans to low and moderate-income borrowers. Last year, 44 percent of the loans Fannie Mae purchased were from these groups.

Fannie Mae Eases Credit To Aid Mortgage Lending - NYTimes.com

Bush tried to set up regulation and the democrats opposed it, in 2003:

The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.

Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.

New Agency Proposed to Oversee Freddie Mac and Fannie Mae - NYTimes.com

And Frank's reply:

''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''

New Agency Proposed to Oversee Freddie Mac and Fannie Mae - NYTimes.com

snopes.com: Fannie Mae Eases Credit to Aid Mortgage Lending

 

[francoHFW]

BS- Bush cronyism regulation, F+F's share went from 75% to 25%- Junk BS rated A+...thanks for the depression.

 

[lukelk]

Holy shit, the op is fucking retarded

 

[bluecoller-eddy]

Wehrwolfen --LIES
A new study from the widely respected National Bureau of Economic Research released this
week has confirmed beyond question that the left's race-baiting attacks on the housing market
----destroyed the economy.

Bush Pushes Minority Homeownership
Bush Pushes Minority Homeownership - Los Angeles Times

---------------------------

President Bush Signs American Dream Downpayment Act of 2003
President Bush Signs American Dream Downpayment Act of 2003

"One of the biggest hurdles to homeownership is getting money for a down payment.
This administration has recognized that, and so today I'm honored to be here to
sign a law that will help many low-income buyers to overcome that hurdle, and to
achieve an important part of the American Dream.

Many people are able to afford a monthly mortgage payment, but are unable to make
the down payment. So this legislation will authorize $200 million per year in
down payment assistance to at least 40,000 low-income families."
George Bush.

Ex-President war-criminal hired every goddam department secretary for 8 years.
You know, the lying cocksucker you republicans are trying to forget.
No democrat hired a single one.

4 and 1/2 trillion was after 2001, when the lying cocksucker was the decider.


For Republicans, Lying is a way of life.

-------Bluecoller--the grumpy old kraut -----

 

[yidnar]

no real study huh?


Just fucking right wing lies

is this a lie bitch ???

[ame=http://www.youtube.com/watch?v=GXfAPyHpPZk]Democrats Covering up the Fannie Mae, Freddie Mac - YouTube[/ame]

 

[Billo_Really]

I suggest you read the following that was plainly printed in fact highlighted.
Goldman Sachs | Economic Outlook 2013 - Jan Hatzius on the 2013 Global Economic Forecast

A billion-dollar daily shot in the arm for the American economy | ExxonMobil's Perspectives Blog

Asking Goldman Sachs "who crashed the economy?", is like asking Charles Manson "who killed Sharon Tate?"

If you asked anyone, who did what they did, that same question, of coarse they'd say,
"It was Mr. Greene, with the candlestick, in the dining room!"

Bottom line: The majority of defaulted loans were from private lenders and no one in government ever told the banks to discount normal banking procedures, in determining someone's credit worthiness.

 

[Billo_Really]

no real study huh?


Just fucking right wing lies

is this a lie bitch ???

[ame=http://www.youtube.com/watch?v=GXfAPyHpPZk]Democrats Covering up the Fannie Mae, Freddie Mac - YouTube[/ame]

I have to admit, it's quite a hoot seeing you post a video showing republican's on camera "begging" for more government, after hearing you people constantly bitching about "less" government ever since you got booted out of office without your complimentary gold watch.

"...You want less government, you want more government,
you want less government, you want more government..."​

Make up your fuckin' mind!

 

[P@triot]

http://blog.heritage.org/2012/12/10/defining-socialism