New study confirms democrats crashed the economy DUH...

[P@triot]

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 -----

Looks like the 59 year old hippie asshole who refuses to leave the 60's where they belong and grow up, is crying again. How would you even know what truth is when, A.) you spend so much time high you can't even spell your own name, and B.) you ingest left-wing propaganda like you do narcotics.

 

[P@triot]

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.

For Republicans, Lying is a way of life.

Get a job hippie. You've mooched off of hard working, honest Republican's long enough

 

[Truthmatters]

how many of these loans were required to be written by the CRA rules?


Now tell me why so many more than required were written?

then tell me why these loans were rolled into mortgage securities and NOT mentioned by the people who then sold them for profit?


guys the facts just dont bare out f and f or CRA beoing the ones who caused this

 

[P@triot]

how many of these loans were required to be written by the CRA rules?


Now tell me why so many more than required were written?

then tell me why these loans were rolled into mortgage securities and NOT mentioned by the people who then sold them for profit?


guys the facts just dont bare out f and f or CRA beoing the ones who caused this

First, they WERE mentioned in the loans. Just ask Dr. Michael Burry who made $715 million reading the prospectuses and then creating the now famous "credit-default swaps".

Second, as usual, liberal dumbocrat government - unconstitutionally over stepping it's authority - creates the problem, then cries the loudest about it. Even if they hadn't "mentioned" the loans (and they did - you are WRONG as proven in the link below), it was govenment's fault for creating a system guaranteed to fail with the "1999 Community Re-Investment Act". Why should Wall Street be forced to lose money? All they did was take a failed system, and worked it as best they could to their advantage (just like any normal human would).

Third, and finally, why don't you put the blame where it REALLY belongs? First, government. And second, the assholes who took out loans they couldn't afford? These greedy mother-fucker's begged for money they couldn't pay back, and you blame everybody but the asshole who signed his/her name on the dotted line.

I eagerly await your response (but I'm not holding my breath - as we know the left runs when facts expose their lies and/or misinformation).

The Man Who Outsmarted Wall Street

 

[P@triot]

[ame=http://youtu.be/xNMbAbKA-7g]Michael Burry on 60 Minutes - YouTube[/ame]

 

[edthecynic]

I smell BS. The article in question does not link to the alleged study and a look at the NBER website reveals no recent study that addresses the housing crash or anything remotely related. Otherwise the article is nothing more than a rehash of Wall Street alibis and conspiracy theories.

I like this graph from the article. It's extremely incriminating:

Yes, it incriminates the 1995 and 1997 GOP CONGRESS!!!!

 

[SniperFire]

"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

Wasn't the the time the asshole Democraps in Congress played the race card (lynching reference) to stop the inquiry?

 

[healthmyths]

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

What difference does that make ... it is A FACT you dummy!!!

Bush administration WARNED Congress under Democrat control 17 times and the idiots Dodd/Frank Laughed at them!!!

"Over the past six years, the President and his Administration have not only warned of the systemic consequences of failure to reform GSEs but also put forward thoughtful plans to reduce the risk that either Fannie Mae or Freddie Mac would encounter such difficulties. President Bush publicly called for GSE reform at least 17 times in 2008 alone before Congress acted. Unfortunately, these warnings went unheeded, as the President's repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems. Many prominent Democrats, including House Finance Chairman Barney Frank, opposed any legislation correcting the risks posed by GSEs.

* House Financial Services Committee Chairman Barney Frank (D-MA) criticized
the President's warning saying:
"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."..
(Stephen Labaton, "New Agency Proposed To Oversee Freddie Mac And Fannie
Mae," New York Times, 9/11/03)

* Senate Committee on Banking, Housing and Urban Affairs Chairman Christopher Dodd also ignored the President's warnings and called on him to "immediately reconsider his ill-advised" position. (Eric Dash, "Fannie Mae's Offer To Help Ease Credit Squeeze Is Rejected, As Critics Complain Of Opportunism," New York Times, 8/11/07)

Now A recent study released 12/12/12..
" We find that adherence to the act led to riskier lending by banks: in the six quarters surrounding the CRA exams lending is elevated on average by about 5 percent every quarter and loans in these quarters default by about 15 percent more often.
These patterns are accentuated in CRA-eligible census tracts and are concentrated among large banks."
New study concludes that the Community Reinvestment Act ‘clearly’ did lead to risky lending | AEIdeas

 

[edthecynic]

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?

You thank the GOP, of course!

Barney Frank was a POWERLESS MINORITY congressman. He couldn't even filibuster the GOP bill which PASSED in the GOP controlled House over his objections. The GOP killed their own House bill in the Senate by refusing to bring it up for a vote!!!! The GOP own the housing crash, and you know it.

 

[Lakhota]

Historians know who crashed the economy.

 

[P@triot]

Historians know who crashed the economy.

You got that right - the dumbocrats!

 

[Procrustes Stretched]

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

"The strongest link between CRA lending and defaults took place in the runup to the crisis — 2004 to 2006 — when banks rapidly sold CRA mortgages for securitization by Fannie Mae and Freddie Mac and Wall Street."

Read More At IBD: New Study Blames Community Reinvestment Act For Mortgage Defaults - Investors.com

---


The One Hundred Ninth United States Congress was the legislative branch of the United States, composed of the United States Senate and the United States House of Representatives, from January 3, 2005 to January 3, 2007, during the fifth and sixth years of George W. Bush's presidency. House members were elected in the 2004 elections on November 4, 2004. Senators were elected in three classes in the 2000 elections on November 7, 2000, 2002 elections on November 5, 2002, or 2004 elections on November 4, 2004. The apportionment of seats in the House of Representatives was based on the Twenty-second Census of the United States in 2000. Both chambers had a Republican majority, the same party as President Bush.
109th United States Congress - Wikipedia, the free encyclopedia

---

In 2009 Frank responded to what he called "wholly inaccurate efforts by Republicans to blame Democrats, and [me] in particular" for the subprime mortgage crisis, which is linked to the financial crisis of 2007–2009.[52] He outlined his efforts to reform these institutions and add regulations, but met resistance from Republicans, with the main exception being a bill with Republican Mike Oxley that died because of opposition from President Bush.[52] The 2005 bill included Frank objectives, which were to impose tighter regulation of Fannie and Freddie and new funds for rental housing. Frank and Mike Oxley achieved broad bipartisan support for the bill in the Financial Services Committee, and it passed the House. But the Senate never voted on the measure, in part because President Bush was likely to veto it. "

If it had passed, that would have been one of the ways we could have reined in the bowling ball going downhill called housing," Oxley told Frank. In an op-ed piece in the Wall Street Journal, Lawrence B. Lindsey, a former economic adviser to President George W. Bush, wrote that Frank "is the only politician I know who has argued that we needed tighter rules that intentionally produce fewer homeowners and more renters."[7] Once control shifted to the Democrats, Frank was able to help guide both the Federal Housing Reform Act (H.R. 1427) and the Mortgage Reform and Anti-Predatory Lending Act (H.R. 3915) to passage in 2007.[52] Frank also said that the Republican-led Gramm–Leach–Bliley Act of 1999, which repealed part of the Glass–Steagall Act of 1933 and removed the wall between commercial and investment banks, contributed to the financial meltdown.[52]

Frank further stated that "during twelve years of Republican rule no reform was adopted regarding Fannie Mae and Freddie Mac. In 2007, a few months after I became the Chairman, the House passed a strong reform bill; we sought to get the [Bush] administration's approval to include it in the economic stimulus legislation in January 2008; and finally got it passed and onto President Bush's desk in July 2008. Moreover, "we were able to adopt it in nineteen months, and we could have done it much quicker if the [Bush] administration had cooperated."[53]

Barney Frank - Wikipedia, the free encyclopedia

 

[Procrustes Stretched]

Historians know who crashed the economy.

You got that right - the dumbocrats!

gop Congress and President

"The strongest link between CRA lending and defaults took place in the runup to the crisis — 2004 to 2006 — when banks rapidly sold CRA mortgages for securitization by Fannie Mae and Freddie Mac and Wall Street."

 

[Procrustes Stretched]

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

What difference does that make ... it is A FACT you dummy!!!

Bush administration WARNED Congress under Democrat control 17 times and the idiots Dodd/Frank Laughed at them!!!

The strongest link between CRA lending and defaults took place in the runup to the crisis — 2004 to 2006 — when banks rapidly sold CRA mortgages for securitization by Fannie Mae and Freddie Mac and Wall Street.

Read More At IBD: New Study Blames Community Reinvestment Act For Mortgage Defaults - Investors.com

In 2009 Frank responded to what he called "wholly inaccurate efforts by Republicans to blame Democrats, and [me] in particular" for the subprime mortgage crisis, which is linked to the financial crisis of 2007–2009.[52] He outlined his efforts to reform these institutions and add regulations, but met resistance from Republicans, with the main exception being a bill with Republican Mike Oxley that died because of opposition from President Bush.[52]

The 2005 bill included Frank objectives, which were to impose tighter regulation of Fannie and Freddie and new funds for rental housing. Frank and Mike Oxley achieved broad bipartisan support for the bill in the Financial Services Committee, and it passed the House. But the Senate never voted on the measure, in part because President Bush was likely to veto it.

"If it had passed, that would have been one of the ways we could have reined in the bowling ball going downhill called housing," Oxley told Frank. In an op-ed piece in the Wall Street Journal, Lawrence B. Lindsey, a former economic adviser to President George W. Bush, wrote that Frank "is the only politician I know who has argued that we needed tighter rules that intentionally produce fewer homeowners and more renters."[7]

Once control shifted to the Democrats, Frank was able to help guide both the Federal Housing Reform Act (H.R. 1427) and the Mortgage Reform and Anti-Predatory Lending Act (H.R. 3915) to passage in 2007.[52] Frank also said that the Republican-led Gramm–Leach–Bliley Act of 1999, which repealed part of the Glass–Steagall Act of 1933 and removed the wall between commercial and investment banks, contributed to the financial meltdown.[52]

Frank further stated that "during twelve years of Republican rule no reform was adopted regarding Fannie Mae and Freddie Mac. In 2007, a few months after I became the Chairman, the House passed a strong reform bill; we sought to get the [Bush] administration's approval to include it in the economic stimulus legislation in January 2008; and finally got it passed and onto President Bush's desk in July 2008. Moreover, "we were able to adopt it in nineteen months, and we could have done it much quicker if the [Bush] administration had cooperated.

Barney Frank - Wikipedia, the free encyclopedia

 

[AmericanFirst]

I smell BS. The article in question does not link to the alleged study and a look at the NBER website reveals no recent study that addresses the housing crash or anything remotely related. Otherwise the article is nothing more than a rehash of Wall Street alibis and conspiracy theories.

The idiot left always claims conspiracy theories when they refuse to see the truth.

 

[Procrustes Stretched]

I smell BS. The article in question does not link to the alleged study and a look at the NBER website reveals no recent study that addresses the housing crash or anything remotely related. Otherwise the article is nothing more than a rehash of Wall Street alibis and conspiracy theories.

The idiot left always claims conspiracy theories when they refuse to see the truth.

refute one fact listed above in the posts by Dante on this page./

 

[bripat9643]

Historians know who crashed the economy.

Yeah, right. That's because historians have such a great understanding of economics.

 

[Procrustes Stretched]

Historians know who crashed the economy.

Yeah, right. That's because historians have such a great understanding of economics.

and economic advisers to Bush Reagan and Clinton and Bush had a great understanding of economics tooooooo.......................................


2007/2008 Reagan Legacy

 

[bripat9643]

Historians know who crashed the economy.

Yeah, right. That's because historians have such a great understanding of economics.

and economic advisers to Bush Reagan and Clinton and Bush had a great understanding of economics tooooooo.......................................


2007/2008 Reagan Legacy

Better than the ones advising Obama, obviously.

BTW, Dante, H.L. Mencken despised leftist ass-wipes like you, so why do you use him as your avatar?

 

[healthmyths]

Historians know who crashed the economy.

AGAIN read the most RECENT study..
New study concludes that the Community Reinvestment Act ‘clearly’ did lead to risky lending
James Pethokoukis | December 12, 2012, 9:50 am
Our empirical strategy compares lending behavior of banks undergoing CRA exams within a given census tract in a given month to the behavior of banks operating in the same census tract-month that do not face these exams. We find that adherence to the act led to riskier lending by banks: in the six quarters surrounding the CRA exams lending is elevated on average by about 5 percent every quarter and loans in these quarters default by about 15 percent more often. These patterns are accentuated in CRA-eligible census tracts and are concentrated among large banks. The effects are strongest during the time period when the market for private securitization was booming. …
New study concludes that the Community Reinvestment Act ‘clearly’ did lead to risky lending | AEIdeas

In case the above GOES OVER your head...
When the lenders did "risky" subprime lending DUE to the CRA... DEFAULTS occurred 15% more often!
Defaults meant lower credit ratings for the lenders! Lower credit ratings to the lenders meant they had to take greater and greater subprime lending risks to
gain more and more revenue to meet the higher costs of borrowing since their credit ratings got worse!

Do you understand the totally vicious cycle that occurred then? CRA forced making more subprime loans that paid higher interests so lenders could borrow to make higher risk loans and the whole process snowballed till it crashed!

All because CRA forced lenders to make more subprime loans and the above study shows!