Politically speaking, the truth about the credit bubble

[Truthmatters]

Dear idiot there were laws written by polticians that were involved in Mortgage backed securities which caused this whole mess.

That means your OP is nothing but fucking lies

 

[Truthmatters]

Its another Liberal lie that keeps being repeated

Two simple events took place
interest rates went up
real estate values plummeted

NO politician had anything to do with either
the fed and a surplus of real estate opportunities

Jesus your an idiot

 

[California Girl]

Its another Liberal lie that keeps being repeated

Two simple events took place
interest rates went up
real estate values plummeted

NO politician had anything to do with either
the fed and a surplus of real estate opportunities

Jesus your an idiot

Damn, I love irony.

 

[Truthmatters]

cant bring any facts to bear huh you spoiled little rich girl with a funky jet

 

[Truthmatters]

What else does being born rich get you ?

I wish it gave you a love for your country

 

[Truthmatters]

Now tell us everything YOU know about mortgage backed securities

 

[JRK]

Its another Liberal lie that keeps being repeated

Two simple events took place
interest rates went up
real estate values plummeted

NO politician had anything to do with either
the fed and a surplus of real estate opportunities

Jesus your an idiot

LET ME MAKE THIS CLEAR
JESUS IS NOT AN IDIOT

Now
share with us that legislation that made people to make bad loans to people who could not pay those bad loans off?
Would that be Sarbanes Oxley?
i am dead serious
You libs keep trying to convince the world that the GOP came up with some legislation that stated
Make bad loans
Make them to people who lied on there credit app

It was a credit bubble that was created by an artificial value in real estate
what legislation caused that?


Would that be no child left behind?
How about the 2007 budget?

 

[Truthmatters]

I gave them to you already.
BTW no economist with a decent reputation would agree with your idiot claims.

First answer the questions I asked you

 

[Truthmatters]

who wrote gramm leach bliely?

 

[Truthmatters]

what is a mortgage backed security?

 

[Truthmatters]

2008-2009 Financial Crisis Causes and Effects


The American economy is built on credit. Credit is a great tool when used wisely. For instance, credit can be used to start or expand a business, which can create jobs. It can also be used to purchase large ticket items such as houses or cars. Again, more jobs are created and people’s needs are satisfied. But in the last decade, credit went unchecked in our country, and it got out of control.

Mortgage brokers, acting only as middle men, determined who got loans, then passed on the responsibility for those loans on to others in the form of mortgage backed assets (after taking a fee for themselves originating the loan). Exotic and risky mortgages became commonplace and the brokers who approved these loans absolved themselves of responsibility by packaging these bad mortgages with other mortgages and reselling them as “investments.”

Thousands of people took out loans larger than they could afford in the hopes that they could either flip the house for profit or refinance later at a lower rate and with more equity in their home – which they would then leverage to purchase another “investment” house.

A lot of people got rich quickly and people wanted more. Before long, all you needed to buy a house was a pulse and your word that you could afford the mortgage. Brokers had no reason not to sell you a home. They made a cut on the sale, then packaged the mortgage with a group of other mortgages and erased all personal responsibility of the loan. But many of these mortgage backed assets were ticking time bombs. And they just went off.

 

[JRK]

what is a morgage backed security?

TM do you know what
You want the official version?
The process of securitization is complicated, and is highly dependent on the jurisdiction within which the process is conducted. The basics are:
Mortgage loans (mortgage notes) are purchased from banks and other lenders, and possibly assigned to a special purpose vehicle (SPV)
The assignee assembles these loans into collections, or "pools"
The assignee securitizes the pools by issuing mortgage-backed securities
While a residential mortgage-backed security (RMBS) is secured by single-family or two to four family real estate, a commercial mortgage-backed security (CMBS) is secured by commercial and multifamily properties, such as apartment buildings, retail or office properties, hotels, schools, industrial properties and other commercial sites. A CMBS is usually structured as a different type of security than an RMBS.
These securitization trusts include government-sponsored enterprises and private entities which may offer credit enhancement features to mitigate the risk of prepayment and default associated with these mortgages. Since residential mortgages in the United States have the option to pay more than the required monthly payment (curtailment) or to pay off the loan in its entirety (prepayment), the monthly cash flow of an MBS is not known in advance, and therefore presents risk to MBS investors.
In the United States, the most common securitization trusts are Fannie Mae and Freddie Mac, U.S. government-sponsored enterprises. Ginnie Mae, a U.S. government-sponsored enterprise backed by the full faith and credit of the U.S. government, guarantees its investors receive timely payments, but buys limited numbers of mortgage notes. Some private institutions also securitize mortgages, known as "private-label" mortgage securities.[1][2] Issuances of private-label mortgage-backed securities increased dramatically from 2001 to 2007, and then ended abruptly in 2008 when real estate markets began to falter.[3]
[edit]History

what does this prove?
Mortgage-backed security - Wikipedia, the free encyclopedia

remember the 5 whys?

Use ti and tell what all of this has proved when these events start with 1 person asking another to borrow capital?

 

[Avorysuds]

TM is upset because Democrats caused the housing bubble and pushed the US and world into a depression.

 

[GoneBezerk]

The DoJ has gone after banks for not loaning "enough money" to "minorities." The DoJ is going right back after banks checking to see how many minorities are on their books with the threat of fines if the % is not the right %.

It is a shakedown by liberals in the Govt that are "paying back white America" for slavery hundreds of years ago. If you are a bank, you'd better have enough homeloans to black people or Eric Holder will be fining your bank.

There are plenty of laws and regulations where they can trump up discrimination charges on a bank, that the bank will just suck it up and give black people with minimal paying jobs a home loan which will blow up in 1-5 years.

Of course, the community shakedown artists like Obamination, Sharpton, Jackson, etc and their goons in the Govt just sneak out the backdoor when the shit hits the fan.

You're letting the people off the hook who resisted any change to pushing mortgage on those who had virtually no creditworthiness; viz the CRA and F&F

It was the most prediictable financial crisis ever to come out of a credit bubble.

without real estate pricing plummeting
that, that event that had nothing to do with Bankers and Consumers making bad decisions
Had nothing to do with it

I cannot find any legislation that states if a person is making 30k a year you are mandated to give that person a 200,000.00 mortgage either

It was a credit bubble that has as much to do with good people going up-side down on there financial investments

I guess I see those stupid choices from the banker to the consumer is the people I see on the hook as the problem as it was created
Still
If real estate values remained good, none of this occurs

 

[JRK]

TM is upset because Democrats caused the housing bubble and pushed the US and world into a depression.

Well, if the Govt caused the problem as she is obsessed with, okay

Look I guess my issue with all of this is we miss the basic problem
GREED
From cradle to death

 

[Truthmatters]

You just keep refusing to admitt you are posting idiotic lies on here about who and what caused this mess.

Your side just keep digging your hole no matter how stupid you look in the face of facts

 

[Truthmatters]

TM is upset because Democrats caused the housing bubble and pushed the US and world into a depression.

Well, if the Govt caused the problem as she is obsessed with, okay

Look I guess my issue with all of this is we miss the basic problem
GREED
From cradle to death

YES government made it possible.

A republican government which allowed the banks to do what ever they wanted out of poltical hackery.

 

[Truthmatters]

The DoJ has gone after banks for not loaning "enough money" to "minorities." The DoJ is going right back after banks checking to see how many minorities are on their books with the threat of fines if the % is not the right %.

It is a shakedown by liberals in the Govt that are "paying back white America" for slavery hundreds of years ago. If you are a bank, you'd better have enough homeloans to black people or Eric Holder will be fining your bank.

There are plenty of laws and regulations where they can trump up discrimination charges on a bank, that the bank will just suck it up and give black people with minimal paying jobs a home loan which will blow up in 1-5 years.

Of course, the community shakedown artists like Obamination, Sharpton, Jackson, etc and their goons in the Govt just sneak out the backdoor when the shit hits the fan.

You're letting the people off the hook who resisted any change to pushing mortgage on those who had virtually no creditworthiness; viz the CRA and F&F

It was the most prediictable financial crisis ever to come out of a credit bubble.

without real estate pricing plummeting
that, that event that had nothing to do with Bankers and Consumers making bad decisions
Had nothing to do with it

I cannot find any legislation that states if a person is making 30k a year you are mandated to give that person a 200,000.00 mortgage either

It was a credit bubble that has as much to do with good people going up-side down on there financial investments

I guess I see those stupid choices from the banker to the consumer is the people I see on the hook as the problem as it was created
Still
If real estate values remained good, none of this occurs

GEEE that is it!


You have found the next republican platform meme.

The POOR banks were treated badly.


That will no doubt win lots of votes.

 

[Truthmatters]

You people have got to be the most morally bankrupt group of Americans ever to run a party

 

[JRK]

The DoJ has gone after banks for not loaning "enough money" to "minorities." The DoJ is going right back after banks checking to see how many minorities are on their books with the threat of fines if the % is not the right %.

It is a shakedown by liberals in the Govt that are "paying back white America" for slavery hundreds of years ago. If you are a bank, you'd better have enough homeloans to black people or Eric Holder will be fining your bank.

There are plenty of laws and regulations where they can trump up discrimination charges on a bank, that the bank will just suck it up and give black people with minimal paying jobs a home loan which will blow up in 1-5 years.

Of course, the community shakedown artists like Obamination, Sharpton, Jackson, etc and their goons in the Govt just sneak out the backdoor when the shit hits the fan.

You're letting the people off the hook who resisted any change to pushing mortgage on those who had virtually no creditworthiness; viz the CRA and F&F

It was the most prediictable financial crisis ever to come out of a credit bubble.

without real estate pricing plummeting
that, that event that had nothing to do with Bankers and Consumers making bad decisions
Had nothing to do with it

I cannot find any legislation that states if a person is making 30k a year you are mandated to give that person a 200,000.00 mortgage either

It was a credit bubble that has as much to do with good people going up-side down on there financial investments

I guess I see those stupid choices from the banker to the consumer is the people I see on the hook as the problem as it was created
Still
If real estate values remained good, none of this occurs

I cannot find fault with your thread
Again my issue is with so much of this being laid at the feet of our legislators and being blamed on GWB when in reality people not making there payments, contractors building entire developments with-out there being sold

I guess to cut to the chase, if the free market treated these opportunities with respect and attacked them with a plan instead of un controlled, credit
It was a credit bubble

any-way your thread is an opinion that has as much validity as mine