The Big Lie of the Crisis, Called Out By the Press

[The Rabbi]

Are you saying that the WSJ and NYT analyses are incorrect, or are you accusing the original poster of interpreting them incorrectly?

It doesn’t matter.

The fact that the economic crisis was primarily caused by the private sector conflicts with rightist dogma, and it’s attacked accordingly.

Like most crises it was actually caused by gov't action, with business responding to conditions created. Or do you think the Fed did not keep rates artificially low during those years?

 

[Synthaholic]

The Big Lie of the Crisis, Called Out By the Press



At CNBC’s GOP debate last night, Mitt Romney showed that he, like Michael Bloomberg, buys into the Big Lie of the financial crisis, one that’s unfortunately become conventional wisdom on the right: That the private sector only made hundreds of billions of dollars worth of toxic loans (and then made more than a hundred billion dollars worth of fake toxic loans because it couldn’t get enough toxic product) because the government made it..

Wrong dip shit, that is not our Argument. Only an idiot thinks that. Of course the Banks are Responsible as well, but the Federal Government absolutely Enabled, and Encouraged the Practice. The Government Absolutely did Pressure Lenders to find a way to get people into homes they could not really afford. Finally the Government absolutely did Work to Keep Interest Rates Artificially low to Keep this Unsustainable house of cards going.

As they say it takes two to tangle. It makes no sense to Forgive the Government for it's Major role in the Crisis and try and blame it only on Greedy banks.

Then it should be easy to show some links that prove your theory. Got any?

 

[Synthaholic]

Are you saying that the WSJ and NYT analyses are incorrect, or are you accusing the original poster of interpreting them incorrectly?

It doesn’t matter.

The fact that the economic crisis was primarily caused by the private sector conflicts with rightist dogma, and it’s attacked accordingly.

Like most crises it was actually caused by gov't action, with business responding to conditions created. Or do you think the Fed did not keep rates artificially low during those years?

So you're blaming Greenspan? OK. He deserves a lot of blame, but not for what you want to blame him for.

 

[The Rabbi]

It doesn’t matter.

The fact that the economic crisis was primarily caused by the private sector conflicts with rightist dogma, and it’s attacked accordingly.

Like most crises it was actually caused by gov't action, with business responding to conditions created. Or do you think the Fed did not keep rates artificially low during those years?

So you're blaming Greenspan? OK. He deserves a lot of blame, but not for what you want to blame him for.

No, idiot. Not Greenspan, although he also bears some blame.
Geez, are you this ill informed in real life? It must suck to be you.

 

[Charles_Main]

The Big Lie of the Crisis, Called Out By the Press



At CNBC’s GOP debate last night, Mitt Romney showed that he, like Michael Bloomberg, buys into the Big Lie of the financial crisis, one that’s unfortunately become conventional wisdom on the right: That the private sector only made hundreds of billions of dollars worth of toxic loans (and then made more than a hundred billion dollars worth of fake toxic loans because it couldn’t get enough toxic product) because the government made it..

Wrong dip shit, that is not our Argument. Only an idiot thinks that. Of course the Banks are Responsible as well, but the Federal Government absolutely Enabled, and Encouraged the Practice. The Government Absolutely did Pressure Lenders to find a way to get people into homes they could not really afford. Finally the Government absolutely did Work to Keep Interest Rates Artificially low to Keep this Unsustainable house of cards going.

As they say it takes two to tangle. It makes no sense to Forgive the Government for it's Major role in the Crisis and try and blame it only on Greedy banks.

Then it should be easy to show some links that prove your theory. Got any?

Ever heard of the CRA? Fanny and Freddie? Senate over site? Barney Frank? Greenspan?

Links? Fuck you lol.

 

[Synthaholic]

Like most crises it was actually caused by gov't action, with business responding to conditions created. Or do you think the Fed did not keep rates artificially low during those years?

So you're blaming Greenspan? OK. He deserves a lot of blame, but not for what you want to blame him for.

No, idiot. Not Greenspan, although he also bears some blame.
Geez, are you this ill informed in real life? It must suck to be you.

You're the one who mentioned the Fed. Greenspan was the head of the Fed!

 

[Synthaholic]

Wrong dip shit, that is not our Argument. Only an idiot thinks that. Of course the Banks are Responsible as well, but the Federal Government absolutely Enabled, and Encouraged the Practice. The Government Absolutely did Pressure Lenders to find a way to get people into homes they could not really afford. Finally the Government absolutely did Work to Keep Interest Rates Artificially low to Keep this Unsustainable house of cards going.

As they say it takes two to tangle. It makes no sense to Forgive the Government for it's Major role in the Crisis and try and blame it only on Greedy banks.

Then it should be easy to show some links that prove your theory. Got any?

Ever heard of the CRA? Fanny and Freddie? Senate over site? Barney Frank? Greenspan?

Links? Fuck you lol.

So, in other words, you are just spouting what you heard on Rush.

 

[francoHFW]

Yes, the gov't helped the banks do it- The BOOOOSH gov't. The CRA and Frank had been around for YEARS...80%+ of the bubble had nothing to do with F+F. Brainwashed Pub dupe dittohead zombies! They just go on and on with the BS talking points...Gingrich 2012! LOL

 

[The Rabbi]

So you're blaming Greenspan? OK. He deserves a lot of blame, but not for what you want to blame him for.

No, idiot. Not Greenspan, although he also bears some blame.
Geez, are you this ill informed in real life? It must suck to be you.

You're the one who mentioned the Fed. Greenspan was the head of the Fed!

So was Arthur Burns.
Idiot.

 

[editec]

He actually didnt say the CRA caused the crisis. You have to read what he did say. What he did say is that gov't regulations caused the blow up. That is true: ultra low interest rates created bizarre incentives to buy real estate and invest in it via mortgages and MBSs. This drove rates low and criteria to junk. When the craze was over there was a reaction, which is why we are here.

In part true.

The part he missed is the part where the FED enabled it, and where the federal government did nothing to mitigate its pernicious (read derivatives) effects. And they failed to do their duty because why?

Because the BANSTERS wanted not to be regulated.

The result?

Millions of BOND HOLDERS are now in possession of debt instruments created by BANS (not the government) which have dubious value

What has Obama done to make any of this any better?

Almost nothing

Fannie is still making loans. Rates are even lower.

Fannie is still buying back loans, you mean?

The rates aren't espcially low (compared to what it costs them to have the money to loan out) and the banks aren't making many loans, anyway

Obama is engineering plan after plan to get people to buy homes and stay in homes they can't afford. This is why the economy still sucks an unprecedented 3 years down the road.

Again, partially true.

Obama doesn't have the authority to force the banks to take a haircut on those mortgages of homes that were overpriced.

Not yet, at least.

But if things continue to go down, the banks will probably have no choice.

The retreat from this balance sheet depression is either going to be an orderly retreat by the banks, or a rout as one bank after the other goes down because they are holding so much bullshit debt that the PEOPLE cannot pay. (the aforementioned describes the END GAME of capitalism, BTW. Debts are forgiven and the whole game starts over. That is WHY our bankriptsy laws used to de designed such that debts were forgiven)

What the debt holders of Greek bonds are facing?


American banksters might find themselves facing as well.

And this time, one hopes, the FED won't be there to bail their asses out.

If we want ot play the CAPITALS game, then we ALL ought to playing it by the rules.

Not JUST the little people, but the MASTERS as well.

To date, that is NOT how things have been unfolding.

To date the MASTERS have been pr9otected but the people left to hang in the winds of economic change.

 

[Synthaholic]

No, idiot. Not Greenspan, although he also bears some blame.
Geez, are you this ill informed in real life? It must suck to be you.

You're the one who mentioned the Fed. Greenspan was the head of the Fed!

So was Arthur Burns.
Idiot.

During the economic clusterfuck of the Dubya administration?

Moron.

 

[ladyliberal]

You are incorrect. Please research the "Community Reinvestment Act"
Then follow the money from Fannie & Freddie to their benefactor/protectors.

the simple fact is that the government setup the financial crisis, and then tried to blame the banks.

Socialism doesn't work, never has, never will.

Are you saying that the WSJ and NYT analyses are incorrect, or are you accusing the original poster of interpreting them incorrectly?

How the subprime-loan crisis unfolded is, to a certain extent, a matter of historic fact. "Socialism doesn't work" cannot by itself possibly tell you what happened in that crisis.

I've begun to look into the CRA. Based on the citations in Wikipedia, most economists seem to think that the CRA played little or no role: Community Reinvestment Act - Wikipedia, the free encyclopedia

The root cause of the financial crisis was giving good money to bad risks. The CRA enabled that to happen. Read thru the bullshit and keep thinking, what if they only lent money to folks who could pay it back? Then you'd see what part the CRA had in causing the crisis.
Subprime mortgage crisis - Wikipedia, the free encyclopedia

The root cause of the crash of 1929 was "giving good money to bad risks", that doesn't implicate socialism or the CRA. Indeed, whenever the value of assets people have invested in drops quickly it indicates that good money has been paid to what was, in retrospect, a bad risk. I'ms still waiting for an answer to my question, and an explanation of how the CRA contributed substantially (I do believe government action in the aggregate contributed substantially, so no need to drift into, eg, the role of the Fed).

 

[The Rabbi]

You're the one who mentioned the Fed. Greenspan was the head of the Fed!

So was Arthur Burns.
Idiot.

During the economic clusterfuck of the Dubya administration?

Moron.

Geez are you fucking clueless, or what?

On February 1, 2006, President Bush appointed Bernanke to a fourteen-year term as a member of the Federal Reserve Board of Governors, and to a four-year term as Chairman

 

[francoHFW]

The cause of the Pub Great Depression of 2008 was the same as the Pub Great Depression of 1929, and the S+L recession under Reagan: Cronyism, Deregulation, and corruption lead to huge bubbles and busts. Pub MO forever...learn something fcs dupes...

If you blame the gay guy and F+F the rest of the world knows immediately you're a brainwashed Moonie...

 

[8537]

He actually didnt say the CRA caused the crisis. You have to read what he did say. What he did say is that gov't regulations caused the blow up. That is true: ultra low interest rates created bizarre incentives to buy real estate and invest in it via mortgages and MBSs. This drove rates low and criteria to junk. When the craze was over there was a reaction, which is why we are here.

"ultra-low interest rates" are not a government regulation.

 

[occupied]

This whole argument of blame the government and only the government was cooked up by the banking lobby and spread on the blog-o-sphere and it worked like a charm. It's OK though, the pendulum is swinging and the deregulated capitalism true believers are about to find themselves on the wrong side of history.

 

[Synthaholic]

So was Arthur Burns.
Idiot.

During the economic clusterfuck of the Dubya administration?

Moron.

Geez are you fucking clueless, or what?

On February 1, 2006, President Bush appointed Bernanke to a fourteen-year term as a member of the Federal Reserve Board of Governors, and to a four-year term as Chairman

What does that have to do with Greenspan and Burns? Greenspan ran the Fed during the two Bush tax cuts for the rich, and for the Medicare D.

 

[The Rabbi]

He actually didnt say the CRA caused the crisis. You have to read what he did say. What he did say is that gov't regulations caused the blow up. That is true: ultra low interest rates created bizarre incentives to buy real estate and invest in it via mortgages and MBSs. This drove rates low and criteria to junk. When the craze was over there was a reaction, which is why we are here.

"ultra-low interest rates" are not a government regulation.

The government, i.e. the Fed, does not set short term interest rates? Really?

 

[The Rabbi]

During the economic clusterfuck of the Dubya administration?

Moron.

Geez are you fucking clueless, or what?

On February 1, 2006, President Bush appointed Bernanke to a fourteen-year term as a member of the Federal Reserve Board of Governors, and to a four-year term as Chairman

What does that have to do with Greenspan and Burns? Greenspan ran the Fed during the two Bush tax cuts for the rich, and for the Medicare D.

And that has what to do with the economic crisis? Oh yeah. Nothing.
Tool and a half.

 

[8537]

He actually didnt say the CRA caused the crisis. You have to read what he did say. What he did say is that gov't regulations caused the blow up. That is true: ultra low interest rates created bizarre incentives to buy real estate and invest in it via mortgages and MBSs. This drove rates low and criteria to junk. When the craze was over there was a reaction, which is why we are here.

"ultra-low interest rates" are not a government regulation.

The government, i.e. the Fed, does not set short term interest rates? Really?

No, actually. They don't. They DO participate in the open market in an attempt to influence short-term interest rates. Sometimes it works, sometimes it doesn't.

But whatever you call that activity, it's most certainly not regulation.