stimulating housing demand will cure the economy

[Truthmatters]

Stimulating Housing Demand



When the housing market collapsed four years ago, many economists and federal regulators blamed excessive leverage on Main Street and Wall Street for the crisis. Now, years later, the unwinding of that massive debt -- known as deleveraging --is slowing the economic recovery, says Mike Konczal, a fellow at the Roosevelt Institute, a left-leaning think tank.

"Mortgage debt is the real core problem" for the economy, Konczal told The Daily Ticker.

It's estimated that 23 percent to 31 percent of homeowners owe more debt than their homes are worth, said Konczal. Not surprisingly, many are trying to pay off that debt, leaving less money to spend on anything else, and that drop in demand is causing high unemployment. He calls it a "balance sheet recession."

Stimulating mortgage demand via the ill-conceived Community Reinvestment Act by and giving Fannie Mae and Freddie Mac the power to create a secondary mortgage market by the Clinton administration is what cause the mortgage bubble!

I say the cure is taking on the unions and over-burdensome business regulation and reviving the manufacturing and R&D sectors!

why did the banks write so many more than the law required?

 

[Rat in the Hat]

Stimulating Housing Demand



When the housing market collapsed four years ago, many economists and federal regulators blamed excessive leverage on Main Street and Wall Street for the crisis. Now, years later, the unwinding of that massive debt -- known as deleveraging --is slowing the economic recovery, says Mike Konczal, a fellow at the Roosevelt Institute, a left-leaning think tank.

"Mortgage debt is the real core problem" for the economy, Konczal told The Daily Ticker.

It's estimated that 23 percent to 31 percent of homeowners owe more debt than their homes are worth, said Konczal. Not surprisingly, many are trying to pay off that debt, leaving less money to spend on anything else, and that drop in demand is causing high unemployment. He calls it a "balance sheet recession."

Stimulating mortgage demand via the ill-conceived Community Reinvestment Act by and giving Fannie Mae and Freddie Mac the power to create a secondary mortgage market by the Clinton administration is what cause the mortgage bubble!

I say the cure is taking on the unions and over-burdensome business regulation and reviving the manufacturing and R&D sectors!

why did the banks write so many more than the law required?

Exactly how many did the law require?

Be specific.

 

[TakeAStepBack]

Stimulating Housing Demand



When the housing market collapsed four years ago, many economists and federal regulators blamed excessive leverage on Main Street and Wall Street for the crisis. Now, years later, the unwinding of that massive debt -- known as deleveraging --is slowing the economic recovery, says Mike Konczal, a fellow at the Roosevelt Institute, a left-leaning think tank.

"Mortgage debt is the real core problem" for the economy, Konczal told The Daily Ticker.

It's estimated that 23 percent to 31 percent of homeowners owe more debt than their homes are worth, said Konczal. Not surprisingly, many are trying to pay off that debt, leaving less money to spend on anything else, and that drop in demand is causing high unemployment. He calls it a "balance sheet recession."

Stimulating mortgage demand via the ill-conceived Community Reinvestment Act by and giving Fannie Mae and Freddie Mac the power to create a secondary mortgage market by the Clinton administration is what cause the mortgage bubble!

I say the cure is taking on the unions and over-burdensome business regulation and reviving the manufacturing and R&D sectors!

why did the banks write so many more than the law required?

Because the credit expansion was available through the federal reserve adn the govt. was giving incentives/demands based on the home ownership programs.

Seriously, if you are this clueless 4 years later about what happened, I dont think there is a chance in hell you will get it now. Maybe just stick to things like Uno and checkers.

 

[iamwhatiseem]

See here is the deal people...you have to think about this.
Truthdon'tmatter is what you call an "unconscious idiot"...an idiot to such an extreme that they are not aware of it.
And the problem with an unconscious idiot is conventional wisdom is not within their ability to understand, and as stated above - they are not aware of it. They think they are smart.
Dealing with a conscious idiot, someone aware they are dumb, is much easier. They know most people are smarter than them so they learn to trust the judgement of others around them.
But not TM...she will never trust the judgement of others because in her eyes - she is smart - and YOU are the idiot.
Fascinating stuff really.

 

[Si modo]

Not one of you can explain it away.

Its cold hard facts

Whose or what's cold hard facts?

 

[Truthmatters]

Community Reinvestment Act - Wikipedia, the free encyclopedia

 

[TakeAStepBack]

See here is the deal people...you have to think about this.
Truthdon'tmatter is what you call an "unconscious idiot"...an idiot to such an extreme that they are not aware of it.
And the problem with an unconscious idiot is conventional wisdom is not within their ability to understand, and as stated above - they are not aware of it. They think they are smart.
Dealing with a conscious idiot, someone aware they are dumb, is much easier. They know most people are smarter than them so they learn to trust the judgement of others around them.
But not TM...she will never trust the judgement of others because in her eyes - she is smart - and YOU are the idiot.
Fascinating stuff really.

You might be onto it. I will say her unconscious idiocy makes her a not so useful idiot for the democrat party. It isn't often that the useful idiots on the left come to her aid when she goes on one of her tantrums. Like this thread for instance.

 

[iamwhatiseem]

See here is the deal people...you have to think about this.
Truthdon'tmatter is what you call an "unconscious idiot"...an idiot to such an extreme that they are not aware of it.
And the problem with an unconscious idiot is conventional wisdom is not within their ability to understand, and as stated above - they are not aware of it. They think they are smart.
Dealing with a conscious idiot, someone aware they are dumb, is much easier. They know most people are smarter than them so they learn to trust the judgement of others around them.
But not TM...she will never trust the judgement of others because in her eyes - she is smart - and YOU are the idiot.
Fascinating stuff really.

You might be onto it. I will say her unconscious idiocy makes her a not so useful idiot for the democrat party. It isn't often that the useful idiots on the left come to her aid when she goes on one of her tantrums. Like this thread for instance.

Exactly...besides other morons like Chris...you rarely see other liberals back her up, in fact they avoid her like the plague for the most part.

 

[Truthmatters]

Subprime mortgage crisis - Wikipedia, the free encyclopedia


The percentage of new lower-quality subprime mortgages rose from the historical 8% or lower range to approximately 20% from 2004 to 2006, with much higher ratios in some parts of the U.S.[1][2] A high percentage of these subprime mortgages, over 90% in 2006 for example, were adjustable-rate mortgages.[3] These two changes were part of a broader trend of lowered lending standards and higher-risk mortgage products.[3][4] Further, U.S. households had become increasingly indebted, with the ratio of debt to disposable personal income rising from 77% in 1990 to 127% at the end of 2007, much of this increase mortgage-related

 

[Truthmatters]

Now tell us all how you prove that CRA demanded that level of interest only loans be increased?

 

[TakeAStepBack]

Why tell you? You have your own set of facts.

 

[EdwardBaiamonte]

why did the banks write so many more than the law required?

as Chuck Prince said, "You had to dance until the music stopped". The Fed easy money stimulative policy was in effect forcing everyone to write as much as possible. If you didn't your competitors won.


Also, it easy to be a brain dead Marxist and blame the banks when you could blame homeowners or brokers or human nature or the liberal government most of which was organized to get people into homes the free market said they could not afford.

 

[TakeAStepBack]

Your own personal facts, or the facts based in reality?

 

[Truthmatters]

The SEC release is fact.

the subprime numbers are facts.

the CRA requirements are facts.

they are NOT my facts but they ARE THE FACTS.

now is you doodle getting sore from all that wacking yet?

 

[TakeAStepBack]

[ame=http://www.youtube.com/watch?v=k_GxXRbSFDg]The Facts Of Life Intro - YouTube[/ame]

 

[Truthmatters]

why did the banks write so many more than the law required?

as Chuck Prince said, "You had to dance until the music stopped". The Fed easy money stimulative policy was in effect forcing everyone to write as much as possible. If you didn't your competitors won.


Also, it easy to be brain dead Marxist and blame the banks when you could blame homeowners or brokersor human nature or the liberal government most of which was organized to get people into homes the free market said they could not afford.

dear fucking idiot.

what was that SEC release about?

 

[Truthmatters]

The Facts Of Life Intro - YouTube

your doodle is one tuff doodle.

it can take alot of wacking

 

[EdwardBaiamonte]

Your right wing bull shit does not stand up in face of the cold hard facts.

Please give us your most substantive example of this or admit as a liberal you lack the IQ to do so??

 

[TakeAStepBack]

[ame=http://www.youtube.com/watch?v=WmgIXH4Bp9g&feature=relmfu]Facts Of Life Theme-Season 4 - YouTube[/ame]

TM, you'll notice the theme song is the same, the only changes made are the characters movements.
Isn't that interesting?

 

[EdwardBaiamonte]

why did the banks write so many more than the law required?

as Chuck Prince said, "You had to dance until the music stopped". The Fed easy money stimulative policy was in effect forcing everyone to write as much as possible. If you didn't your competitors won.


Also, it easy to be brain dead Marxist and blame the banks when you could blame homeowners or brokersor human nature or the liberal government most of which was organized to get people into homes the free market said they could not afford.

dear fucking idiot.

what was that SEC release about?

I have no idea, why not tell us, and then tell us why its important?