New Study Finds Democrats Fully to Blame for Subprime Mortgage Crisis that Caused 200

[Dot Com]

Both sides need to grow the fuck up and start joining the dots instead of constantly lying about the other side being responsible.

Americans themselves, our politicians, our banks... all responsible. Your fault. Own it. Stop bitching and force your side to work WITH the other side to fix it.

Or... carry on lying to yourselves, allowing your media to lie to you and for you, and accept your politicians are a clusterfucked corrupt bunch of assclowns who should be in prison.

Sounds like a typical Liberal... When faced with having to admit that their party was responsible, blames the other side as well.

California Girl a Libral? Thats rich She does, however, recognize facts, on occasion, EVEN when they don't paint the Right in a favorable light. THAT gives her a certain degree of credibility. You're too new here to be categorizing people.

 

[g5000]

Both sides need to grow the fuck up and start joining the dots instead of constantly lying about the other side being responsible.

Americans themselves, our politicians, our banks... all responsible. Your fault. Own it. Stop bitching and force your side to work WITH the other side to fix it.

Or... carry on lying to yourselves, allowing your media to lie to you and for you, and accept your politicians are a clusterfucked corrupt bunch of assclowns who should be in prison.

Sounds like a typical Liberal... When faced with having to admit that their party was responsible, blames the other side as well.

Both sides ARE responsible.

While the Democrats were resisting Bush's attempt to get the GSEs to reduce their portfolios, Bush was reducing the size of the SEC. While Bush radically increased the size of government, he only shrank two agencies. The SEC and the EPA. There are assholes who try to reach all the way back to Carter to blame this crash on, but would never entertain the idea of Bush having any culpability for the Gulf oil spill.

Bush's reduced SEC waived the capital reserve requirements for the five biggest broker-dealers in New York. A mistake which was far more devastating to our economy than the collapse of the GSEs.

And it was the GOP which pushed for the elimination of regulations governing financial derivatives, and they succeeded with the FSMA and the CFMA, usurping states rights in the process. They actually thought exempting banks from GAMBLING and BUCKET SHOP regulations was a good thing to do! Why does a BANK need to be exempt from GAMING and BUCKET SHOP laws? Hmmm...

Let's let banks be casinos and not have any capital reserves to back up their bets. Brilliant!

But hey, let's blame it all on the CRA instead. Only someone profoundly ignorant of reality would say this.

The GSEs were less than 50 percent of the secondary market during the height of the boom. And Lehman, Bear Stearns, Goldman Sachs, AIG, JP Morgan, Morgan Stanley, and Merrill Lynch were not subject to the CRA. Not one.

They developed their own subprime mortgage supply chains. No one had to push any bank to make subprime loans during this period. It was the banks doing all the pulling, while the politicians got to take credit for more loans being made to negroes. But you are a blithering idiot if you didn't notice that loans to EVERYONE were up. Subprime loans were made to every income class, not just lower income.

Around the world. This was global. And this was not just mortgages. It was every asset class under the sun, including sovereign debt. You know...loans to Greece. Entire nations were subprime borrowers.

 

[yidnar]

the banks were forced to lower lending standards !! and when things started looking bad they bundled up a bunch of shitty mortgages and sold them all over the world !! i know this sounds to simple but it is the best way to break it down !! the CRA was the catalyst that caused all the shady deals that went on .

 

[Mr. Shaman]

We've already been here, done that and debunked the hack site's (Investors.com) claims.

The CRA did not cause the crash. This was a global phenomenon.

....Initiated/dreamed-up by a handful o' young, drunken, Gordon Gekko wannabes....around a pool in Boca Raton!!!

See: Episode One​

 

[g5000]

Think about this. Bush tries to force Congress to force the GSEs to reduce their presence in the secondary market just as Wall Street is making a move to be a bigger player in the secondary market.


Hmmmmmm...

 

[g5000]

the banks were forced to lower lending standards !! and when things started looking bad they bundled up a bunch of shitty mortgages and sold them all over the world !! i know this sounds to simple but it is the best way to break it down !! the CRA was the catalyst that caused all the shady deals that went on .

What a piss drinking ignorant dumbshit you are.

 

[Decus]

It seems that the National Bureau of Economic Research is a well respected institution. Here is the research paper "Did the Community Reinvestment Act (CRA) Lead to Risky Lending?", from their own website:

Did the Community Reinvestment Act (CRA) Lead to Risky Lending?

Are these people idiots?

 

[Mr. Shaman]

ROFLMAO..

While there are some Republicans who deserve to share in the blame, it has been obvious for years that the Democratic Party and their supporters who pushed for CRA and laws that forced banks to make loans that they otherwise would not have and then, when called upon, in 2000 and 2002 to take steps to correct the situation refused to and called President G. W. Bush and the Republicans "Racists" carry a much greater amount of the responsibility for the American Housing Market Crash.

It was foretold and warned about and the Democrats refused to do anything to prevent it.

Yeah.....that's WRONG, as well......


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

See: 5:00 thru 12:00​

 

[yidnar]

the banks were forced to lower lending standards !! and when things started looking bad they bundled up a bunch of shitty mortgages and sold them all over the world !! i know this sounds to simple but it is the best way to break it down !! the CRA was the catalyst that caused all the shady deals that went on .

What a piss drinking ignorant dumbshit you are.

is it or isn't it true ?? prove me wrong you cum guzzling,shit sucking,gender confused,left wing commie, sack of shit !!

 

[g5000]

The CRA was around for a long time. If it was the cause of the crash, the crash would have occurred within a few years of its existence.

It didn't.

What changed the landscape was the creation of the CDO and the CDS and a boatload of other derivatives, and the passage of the CFMA and the FSMA.

Wall Street convinced itself that it had eliminated risk through the use of derivatives. And they convinced the regulators and the ratings agencies of the same. So the regulators reduced or removed a lot of regulations to enable the banks to operate like casinos.

Literally like casinos.

With no cash to back up their bets. Wall Street was convinced that no CDO would catastrophically fail.

The flaw in their thinking was that CDOs became extremely popular with investors. Your 401k manager, your insurance company, your college endowment fund, your city treasurer, your public employee pension fund manager all loved them. As did every investor on the planet. So the demand was in the trillions.

The problem is that there are not trillions of dollars worth of blue chip borrowers. So to meet the demand for derivatives products, the sellers of these products had to lower their lending standards in order to get the assets they needed to stuff into these products.

And that is how and why lending standards were lowered. The CRA standards hadn't changed. The banks' standards had changed. The government didn't force them. They went to the government to loosen up ITS standards: http://www.gao.gov/decisions/majrule/d04896r.pdf

And since the GSEs were in direct competition with Wall Street, is it really surprising their friend in the White House tried to reduce the GSE presence in the market?

So before long, the CDOs were chock full of subprime loans. Much more than the sellers of these products realized. All they did was get on the phone to a broker and tell them they need more assets to stuff into their CDOs, and the brokers went out and found anyone with a pulse who would borrow money so the broker could get his fees and shove these toxic loans down the pipeline. What did he care? They were going to blow up in someone else's face, not his.

 

[g5000]

the banks were forced to lower lending standards !! and when things started looking bad they bundled up a bunch of shitty mortgages and sold them all over the world !! i know this sounds to simple but it is the best way to break it down !! the CRA was the catalyst that caused all the shady deals that went on .

What a piss drinking ignorant dumbshit you are.

is it or isn't it true ?? prove me wrong you cum guzzling,shit sucking,gender confused,left wing commie, sack of shit !!

I've proven it many times over on this board, but some CRA parrothead like you always comes along, repeating a string of words he heard somewhere that was created within days after Lehman's collapse by people who had an agenda, with no factual basis.

Show me one banker who blames the CRA for the crash. Show me one banker who blamed the CRA for his bank failing.

Idiot.

 

[g5000]

It seems that the National Bureau of Economic Research is a well respected institution. Here is the research paper "Did the Community Reinvestment Act (CRA) Lead to Risky Lending?", from their own website:

Did the Community Reinvestment Act (CRA) Lead to Risky Lending?

Are these people idiots?

I already linked to that report and quoted from it.

The only idiots are those who have not read it and swallow the piss poured by Investors.com about what it says and means.

 

[Mr. Shaman]

Both sides need to grow the fuck up and start joining the dots instead of constantly lying about the other side being responsible.

Americans themselves, our politicians, our banks... all responsible. Your fault. Own it. Stop bitching and force your side to work WITH the other side to fix it.

Or... carry on lying to yourselves, allowing your media to lie to you and for you, and accept your politicians are a clusterfucked corrupt bunch of assclowns who should be in prison.

Sounds like a typical Liberal... When faced with having to admit that their party was responsible, blames the other side as well.

Stand-down, Skippy.

You make-up too-much bullshit.....


[ame=http://www.youtube.com/watch?v=w2nZbo8SKbg]Byron Dorgan?s Crystal Ball - YouTube[/ame]
*
​

 

[Dot Com]

I remember seeing something bogus from this "investors.com" site in the past as well.

 

[g5000]

BISTRO, the first CDO.

That's where it all started.

Section 117 of the Commodities Futures Modernization Act:

This Act shall supersede and preempt the application of any State or local law that prohibits or regulates gaming or the operation of bucket shops

No "states rights" fanatics made a peep about this.

Why does a bank need to be exempted from gaming and bucket shop laws?

So they can sell CDS to all comers. So they can not only operate like a casino, but a bucket shop, for chrissakes!


Unanimous decision by SEC to waive capital reserve requirements for the top five broker-dealers on Wall Street: http://www.gao.gov/decisions/majrule/d04896r.pdf

So not only can they operate like an illegal gambling den, they don't have to have any cash to back up their bets.

Gee, I don't see how this can end any way but well!

http://readthebill.org/cases/commodity/

The saga of the Commodity Futures Modernization Act begins in 1998. At the time, the economy was booming, stocks soared, and new instruments of trading were found to make more money while evading the oversight of regulatory bodies. Two of those growing instruments were financial derivatives and credit-default swaps. As these new financial instruments emerged a debate began over whether or not to regulate them.

Later that year, the President’s Working Group on Financial Markets released a report calling for “no regulations” of derivatives and swaps and began crafting a program to make that possible. Meanwhile in Congress, lawmakers were still up-in-arms over Born’s attempts to regulate the financial derivatives market and began working to pass their own set of deregulatory language.

Leading the charge in Congress were Sens. Phil Gramm (R-TX) and Richard Lugar (R-IN) and Rep. Thomas Ewing (R-IL). In May of 2000, Rep. Ewing introduced his Commodity Futures Modernization Act.

During a lame-duck December session, while the media was focused on the recounts and court cases, Gramm and Ewing sought to strike a compromise on the Commodity Futures Modernization Act. The day after the Supreme Court ruled in favor of Gov. Bush, December 14, Ewing introduced a new version of the Commodity Futures Modernization Act. On December 15, with little warning or fanfare—aside from the overshadowed discussions on the floors of Congress—the new, compromise version was included as a rider to the Consolidated Appropriations Act for FY 2001, an 11,000 page omnibus appropriations conference report.

And we were off to the races.

 

[Mr. Shaman]

the banks were forced to lower lending standards !!

Forced??????

No.....they were ALLOWED to lower standards!!!!!​

 

[g5000]

I remember seeing something bogus from this "investors.com" site in the past as well.

Frequently.

 

[yidnar]

What a piss drinking ignorant dumbshit you are.

is it or isn't it true ?? prove me wrong you cum guzzling,shit sucking,gender confused,left wing commie, sack of shit !!

I've proven it many times over on this board, but some CRA parrothead like you always comes along, repeating a string of words he heard somewhere that was created within days after Lehman's collapse by people who had an agenda, with no factual basis.

Show me one banker who blames the CRA for the crash. Show me one banker who blamed the CRA for his bank failing.

Idiot.

investors all over the world were unknowingly buying bundled junk mortgages !!

 

[Lakhota]

Wall Street triggered the subprime mortgage crisis...

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

Wall Street turned a few million home-loans into what Warren Buffet called "economic weapons of mass destruction," cratered the global economy and then, when the bubble burst, turned around and insisted on a massive bailout courtesy of the American tax-payer.

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

 

[g5000]

http://opinionator.blogs.nytimes.com/2011/02/16/how-goldman-killed-a-i-g-and-other-stories/

In 2006, some of Joseph Cassano's subordinates at AIG FP were finally able to convince him that lending standards had been radically reduced by the broker-dealers since they first started insuring Wall Street's derivatives.

When these subordinates queried those who were writing CDS against the CDOs what percentage of the CDOs they believed were subprime, they were told 10 percent. The reality was it had reached 90 percent by that point.

Once he was convinced of this, Cassano immediately notified Wall Street that AIG FP would no longer be doing CDS against their CDOs. At this point, Cassano thought he had dodged the bullet in time for AIG.

He was wrong.

Wall Street was informed their CDOs were completely toxic. They can pretend they did not know before then, but they cannot pretend they did not know it going forward from that point.

Did they shut down the casino?

Hell no. They added more coal to the furnace and kept that party train rolling! The began selling CDS to each other. They started drinking their own Kool-Aid.

This is when a lot of willfully fraudulent activity began in earnest. This is when your 401k manager, and your insurance company, and your city treasurer, and your college endowment fund, and your public employee pension fund manager were ripped off and sold deliberately fraudulent securities by Wall Street.

This is when Pick-A-Payment loans hit a record high, with 80 percent of all borrowers in these loans making the minimum payment, which is a negative amortization payment.

And these weren't lower income people. These were people just like you and me.

Wall Street has been stealing from you six ways to Sunday, with police protection. And when they are caught, they pay a small fine that's less than what they netted from their crimes. And they get to keep your stuff!