The Home Loan Crisis -- Just more Democratism Corruption!

[Leweman]

and it's actually true.

How the Democrats Created the Financial Crisis: Kevin Hassett - Bloomberg

"What happened next was extraordinary. For the first time in history, a serious Fannie and Freddie reform bill was passed by the Senate Banking Committee. The bill gave a regulator power to crack down, and would have required the companies to eliminate their investments in risky assets.

If that bill had become law, then the world today would be different. In 2005, 2006 and 2007, a blizzard of terrible mortgage paper fluttered out of the Fannie and Freddie clouds, burying many of our oldest and most venerable institutions. Without their checkbooks keeping the market liquid and buying up excess supply, the market would likely have not existed.

But the bill didn't become law, for a simple reason: Democrats opposed it on a party-line vote in the committee, signaling that this would be a partisan issue. Republicans, tied in knots by the tight Democratic opposition, couldn't even get the Senate to vote on the matter.

That such a reckless political stand could have been taken by the Democrats was obscene even then. Wallison wrote at the time: ``It is a classic case of socializing the risk while privatizing the profit. The Democrats and the few Republicans who oppose portfolio limitations could not possibly do so if their constituents understood what they were doing.''

 

[Big Black Dog]

I don't have a mortgage. My farm is completely paid for and I hold the deed to the property. Why doesn't the government send me a check instead of giving the money to people who shouldn't have been allowed to buy a home in the first place?

 

[Decepticon]

The U.S. Financial Crisis Inquiry Commission reported its findings in January 2011. It concluded that "the crisis was avoidable and was caused by: Widespread failures in financial regulation, including the Federal Reserve’s failure to stem the tide of toxic mortgages; Dramatic breakdowns in corporate governance including too many financial firms acting recklessly and taking on too much risk; An explosive mix of excessive borrowing and risk by households and Wall Street that put the financial system on a collision course with crisis; Key policy makers ill prepared for the crisis, lacking a full understanding of the financial system they oversaw; and systemic breaches in accountability and ethics at all levels."[25][26]
Late-2000s financial crisis - Wikipedia, the free encyclopedia


Nor did Fannie Mae contribute as much to the subprime bubble after Johnson left as is widely thought. The market for home loans shifted away from the traditional, conservative, fixed-rate mortgages backed by Fannie Mae to riskier, subprime, adjustable-rate mortgages sold by private firms such as Countrywide and New Century. In order to meet affordable lending requirements, Fannie Mae did buy some of the subprime mortgages that private lenders made to low-income people with poor credit scores. But even Fannie Mae and Freddie Mac’s purchases combined were always a minority of the subprime mortgage market, and their subprime stake declined substantially as a proportion of the market after 2004.

Moreover, much of what Fannie Mae bought was the safest portion of the mortgage-backed securities. Even when the crisis was underway, Fannie Mae’s losses on subprime loans were minimal, only about 5 percent of its total losses. They were not taking the kinds of risk the private lenders were; for example, they never bought any part of the now infamous collateralized debt obligations.
Did Fannie and Freddie Cause Mortgage Crisis - Fannie Mae Freddie Mac and Government Bailout Bill


What I find HILARIOUS is how conservatives complain about people who take out loans they can't pay back, when that's PRECISELY what Bain Capital does when it decides to "vulture" a business.
They take out loans they have NO INTENTION of ever paying back, give themselves a NICE BONUS out of those loans, then let the company default, sticking it's suppliers, stockholders and everyone else with the bill.

At least most of these home buyers probably weren't in it to scam loans at the get-go, nor did they make a nice tidy profit from their deal, BOTH of which Bain Capital did.

The Irony is so thick and delicious, you can almost chew it.

 

[occupied]

Two bills to regulate F+F died in committee in a republican controlled house while a third made it to law in the democratically controlled house. This jackass is lying his ass off.

 

[Wiseacre]

I don't have a mortgage. My farm is completely paid for and I hold the deed to the property. Why doesn't the government send me a check instead of giving the money to people who shouldn't have been allowed to buy a home in the first place?

Maybe you're not too big to fail. Or your farm isn't unionized. Or you're not a big cash donor to the Obama campaign. Or you don't have a hybrid tractor. Could be more than one of these plus something else. Tough luck buddy.

 

[Decepticon]

I don't have a mortgage. My farm is completely paid for and I hold the deed to the property. Why doesn't the government send me a check instead of giving the money to people who shouldn't have been allowed to buy a home in the first place?

Talk to Michelle Bachmann...I hear she takes in quite a bit in government subsidies for "farming"

 

[Leweman]

truth hurts

 

[Mr. Shaman]

and it's actually true.

How the Democrats Created the Financial Crisis: Kevin Hassett - Bloomberg

"What happened next was extraordinary. For the first time in history, a serious Fannie and Freddie reform bill was passed by the Senate Banking Committee. The bill gave a regulator power to crack down, and would have required the companies to eliminate their investments in risky assets.

It's pretty fuckin' amazing how little has sunken into you Teabaggers' thick-skulls.....this far downstream.

Why you take so much pride in being so fuckin' ignorant is truly-amazing.

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

Watch: 5:00 thru 12:00

....'Cause, you DON'T KNOW SHIT, TO-DATE!!!!​

 

[occupied]

truth hurts

Two bills to regulate F+F died in committee in a republican controlled house while a third made it to law in the democratically controlled house. This jackass is lying his ass off.

Whoever wrote this thing told a bald faced lie and you swallowed it whole. The White House opposed F+F regulation until it was too late to do a bit of good, not that early regulation would have kept the housing bubble from collapsing.

 

[BlindBoo]

truth hurts

Yeah that may be true but what you posted doesn't.....

 

[Leweman]

truth hurts

Yeah that may be true but what you posted doesn't.....

you prove my point ... denial doesn't change truth.

 

[occupied]

truth hurts

Yeah that may be true but what you posted doesn't.....

you prove my point ... denial doesn't change truth.

Read this, the timeline just does not match up in that article.

http://democrats.financialservices....11/timeline_for_fannie_freddie_regulation.pdf

 

[Leweman]

Yeah that may be true but what you posted doesn't.....

you prove my point ... denial doesn't change truth.

Read this, the timeline just does not match up in that article.

http://democrats.financialservices....11/timeline_for_fannie_freddie_regulation.pdf

matches perfectly from what the article describes

 

[francoHFW]

I don't have a mortgage. My farm is completely paid for and I hold the deed to the property. Why doesn't the government send me a check instead of giving the money to people who shouldn't have been allowed to buy a home in the first place?

Maybe you're not too big to fail. Or your farm isn't unionized. Or you're not a big cash donor to the Obama campaign. Or you don't have a hybrid tractor. Could be more than one of these plus something else. Tough luck buddy.

Maybe you don't need it and haven't been screwed by Pubs and their cronies. And be grateful to your Daddy, dittohead..

 

[Annie]

and it's actually true.

How the Democrats Created the Financial Crisis: Kevin Hassett - Bloomberg

"What happened next was extraordinary. For the first time in history, a serious Fannie and Freddie reform bill was passed by the Senate Banking Committee. The bill gave a regulator power to crack down, and would have required the companies to eliminate their investments in risky assets.

If that bill had become law, then the world today would be different. In 2005, 2006 and 2007, a blizzard of terrible mortgage paper fluttered out of the Fannie and Freddie clouds, burying many of our oldest and most venerable institutions. Without their checkbooks keeping the market liquid and buying up excess supply, the market would likely have not existed.

But the bill didn't become law, for a simple reason: Democrats opposed it on a party-line vote in the committee, signaling that this would be a partisan issue. Republicans, tied in knots by the tight Democratic opposition, couldn't even get the Senate to vote on the matter.

That such a reckless political stand could have been taken by the Democrats was obscene even then. Wallison wrote at the time: ``It is a classic case of socializing the risk while privatizing the profit. The Democrats and the few Republicans who oppose portfolio limitations could not possibly do so if their constituents understood what they were doing.''

Good source, thanks! May I also suggest for those really interested, [ame]http://www.amazon.com/Reckless-Endangerment-Outsized-Corruption-Armageddon/dp/0805091203[/ame]

Read early in the day though, your blood pressure will go through the roof!

 

[rdean]

Hilarious. An article written in 2008 is "proof"? Where is the part about "derivatives"? About "bundled securities"? About Wall Street and the Mortgage Market? About Lehman Brothers.

Oh, that's right. Those things don't it into the newly rewritten "Republican History".

 

[rdean]

and it's actually true.

How the Democrats Created the Financial Crisis: Kevin Hassett - Bloomberg

"What happened next was extraordinary. For the first time in history, a serious Fannie and Freddie reform bill was passed by the Senate Banking Committee. The bill gave a regulator power to crack down, and would have required the companies to eliminate their investments in risky assets.

If that bill had become law, then the world today would be different. In 2005, 2006 and 2007, a blizzard of terrible mortgage paper fluttered out of the Fannie and Freddie clouds, burying many of our oldest and most venerable institutions. Without their checkbooks keeping the market liquid and buying up excess supply, the market would likely have not existed.

But the bill didn't become law, for a simple reason: Democrats opposed it on a party-line vote in the committee, signaling that this would be a partisan issue. Republicans, tied in knots by the tight Democratic opposition, couldn't even get the Senate to vote on the matter.

That such a reckless political stand could have been taken by the Democrats was obscene even then. Wallison wrote at the time: ``It is a classic case of socializing the risk while privatizing the profit. The Democrats and the few Republicans who oppose portfolio limitations could not possibly do so if their constituents understood what they were doing.''

Good source, thanks! May I also suggest for those really interested, [ame=http://www.amazon.com/Reckless-Endangerment-Outsized-Corruption-Armageddon/dp/0805091203]Amazon.com: Reckless Endangerment: How Outsized Ambition, Greed, and Corruption Led to Economic Armageddon (9780805091205): Gretchen Morgenson, Joshua Rosner: Books[/ame]

Read early in the day though, your blood pressure will go through the roof!

Good Source? It's ridiculous.