The Real Causes Of The Great Recession

[Dad2three]

I like the part where folks put 5% or less down on a home and believe they own it ....
If it werent for those dang predators forging their witless signatures.....

Yeah, IF only we had someone, Oh I don't know, that had UNDERWRITING STANDARDS to give loans to people??? You know as ANYONE with a brain would agree??? BUT the loans that were done to meet goals, they performed 300%-400% better than the loans by the 'free markets' under Dubya's subprime crisis. Weird right? PERHAPS that's why only about 20% of loans 2004-2007 had some form of Gov't backing as opposed to nearly 60% the ten years leading up to it? lol

 

[Dad2three]

I like the part where folks put 5% or less down on a home and believe they own it ....
If it werent for those dang predators forging their witless signatures.....

No it's the one's that make interest only loan payments, the rubes usually don't have the 5% to give up ..........................

I's going to be a home owner, the banker say's all I got to do is sign the paper work.

They DID say that, of course they ran out of 'investors' to sell THAT paper too, NOW Fannie/Freddie are back in the game and you NEED to get good quality underwriting AGAIN

 

[Dad2three]

Non profit Govt "banks" regulated by civil servants is the key to economic growth !

A long-time cheerleader for deregulation, Greenspan admitted to a congressional committee yesterday that he had been "partially wrong" in his hands-off approach towards the banking industry and that the credit crunch had left him in a state of shocked disbelief. "I have found a flaw," said Greenspan, referring to his economic philosophy. "I don't know how significant or permanent it is. But I have been very distressed by that fact."

"I made a mistake in presuming that the self-interests of organisations, specifically banks and others, were such that they were best capable of protecting their own shareholders and their equity in the firms," said Greenspan.
Greenspan - I was wrong about the economy. Sort of Business The Guardian

 

[Iceweasel]

The "turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007," the President's Working Group on Financial Markets OCT 2008

Bush warned them they didn't listen. Jerking off on a message board won't change it.

 

[Dad2three]

The "turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007," the President's Working Group on Financial Markets OCT 2008

Bush warned them they didn't listen. Jerking off on a message board won't change it.

Bush warned? Oh you mean the GOP Congress? IF only he had some power with them right? lol



The "turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007," the President's Working Group on Financial Markets OCT 2008

June 17, 2004


Builders to fight Bush's low-income plan


NEW YORK (CNN/Money) - Home builders, realtors and others are preparing to fight a Bush administration plan that would require Fannie Mae and Freddie Mac to increase financing of homes for low-income people, a home builder group said Thursday.


Home builders fight Bush's low-income housing - Jun. 17, 2004

Bush drive for home ownership fueled housing bubble


He insisted that Fannie Mae and Freddie Mac meet ambitious new goals for low-income lending. (from 50% to 56% in 2004)

Reversing the Clinton rule that restricted GSEs purchases of subprime loans (2004)

Concerned that down payments were a barrier, Bush persuaded Congress to spend as much as $200 million a year to help first-time buyers with down payments and closing costs. (2004)

And he pushed to allow first-time buyers to qualify for government insured mortgages with no money down (2004)


Lowering Investment banks capital requirements, Net Capital rule (2004)

PREEMPTING ALL STATE LAWS AGAINST PREDATORY LENDING (2003)

October 26, 2005

STATEMENT OF ADMINISTRATION POLICY

The Administration strongly believes that the housing GSEs should be focused on their core housing mission, particularly with respect to low-income Americans and first-time homebuyers. Instead, provisions of H.R. 1461 that expand mortgage purchasing authority would lessen the housing GSEs' commitment to low-income homebuyers.

George W. Bush: Statement of Administration Policy: H.R. 1461 - Federal Housing Finance Reform Act of 2005

Yes, he said he was against it because it "would lessen the housing GSEs' commitment to low-income homebuyers"


"The FBI correctly identified the epidemic of mortgage control fraud at such an early point that the financial crisis could have been averted had the Bush administration acted with even minimal competence." William K. Black Sr. regulator during S&L debacle

Dubya was warned by the FBI of an "epidemic" of mortgage fraud in 2004. He gave them less resources.


FBI saw threat of loan crisis - Los Angeles Times



Shockingly, the FBI clearly makes the case for the need to combat mortgage fraud in 2005, the height of the housing crisis:

Financial Crimes Report to the Public 2005

FBI ? Financial Crimes Report 2005


The Bush Rubber Stamp Congress ignored the obvious and extremely detailed and well reported crime spree by the FBI.

THE BUSH ADMINISTRATION and GOP CONGRESS stripped the White Collar Crime divisions of money and manpower.




FACTS on Dubya s great recession US Message Board - Political Discussion Forum

 

[Iceweasel]

Bush warned?

Yep. Try reading it again.

 

[Faun]

The "turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007," the President's Working Group on Financial Markets OCT 2008

Bush warned them they didn't listen. Jerking off on a message board won't change it.

.... Remind me again .... how many bills did the Republican-led Congress land on Bush's desk?

 

[Dad2three]

Bush warned?

Yep. Try reading it again.

Bush talked about reform. He talked and he talked. And then he stopped reform. (read that as many times as necessary. Bush stopped reform). And then he stopped it again.


Bush forced Freddie and Fannie to purchase more low income home loans, $440 billion in MBSs and then reversed the Clinton rule that actually reigned in Freddie and Fannie


Strong opposition by the Bush administration forced a top Republican congressman to delay a vote on a bill that would create a new regulator for mortgage giants Fannie Mae and Freddie Mac.


Oxley pulls Fannie, Freddie bill under heat from Bush - MarketWatch


Despite what appeared to be a broad consensus on GSE regulatory reform, efforts quickly stalled. A legislative markup scheduled for October 8, 2003, in the House of Representatives was halted because the Bush administration withdrew its support for the bill,

Oxley pulls bill under fire from Bush - MarketWatch


The critics have forgotten that the House passed a GSE reform bill in 2005 that could well have prevented the current crisis, says Mr Oxley (R), now vice-chairman of Nasdaq.”

“What did we get from the White House? We got a one-finger salute.”

 

[Dad2three]

Bush warned?

Yep. Try reading it again.

TIMELINE FOR FANNIE/FREDDIE REGULATION

1995-2006
No legislation to further regulate GSEs is passed by a Republican-controlledCongress


October 7, 2004
The House Financial Services Committee Chairman Michael Oxley (R-OH) cancels a markup on legislation to reform GSEs at the request of President Bush.

According to CBS Marketwatch: “Strong opposition by the Bush Administration forced a top Republican congressman to delay a vote on a bill that would create a new regulator for mortgage giants Fannie Mae and Freddie Mac.

May 25, 2005
The House Financial Services Committee, under control of House Republicans and Chairman Oxley, passed a GSE Reform bill, H.R. 1461, by a vote of 65-5. Every Democrat on the Committee voted for the bill. Five Republicans, arguing that the bill did not go far enough, voted against H.R. 1461: Reps. Ed Royce, Ron Paul, Tom Feeney, Jeb Hensarling, and Scott Garret


July 28, 2005
The Senate Banking, Housing and Urban Affairs Committee, then chaired by Sen. Richard Shelby (R-AL), passed S. 190, the Bush Administration’s bill, out of Committee. The bill was passed by a party-line vote of 11-10. The bill did not reach the Senate floor for a vote


October 26, 2005
On the day the House was scheduled to vote on H.R. 1461, the Bush
Administration issued a Statement of Administration Policy opposing the House Republican GSE bill


October 26, 2005
H.R. 1461 passes House by a vote of 331-90, with 122 Democrats voting in favor.

Note: Frank voted against the bill when it reached the floor, but not because ofany opposition to reforming the GSEs, but because the Republican leadership decided to cut out funding for faith-based charities that provide low-income rental housing from the Affordable Housing Trust Fund.


September 2006
Oxley and Frank send a bipartisan letter to Senator Shelby urging GSE reform.

Many Democrats and Republicans signed this letter urging the Senate to act

January 2007
Democrats take control of the House and Senate; Barney Frank is named Chairman of the House Financial Services Committee.


March 28, 2007
The House Financial Services Committee passes H.R. 1427, the GSE reform bill, by a vote of 49-15. The legislation had the support of the Bush Administration and represented a tougher bill than the 2005 effort. Incredibly, 19 Republicans opposed the bill.



May 22, 2007
The House of Representatives passes H.R. 1427, by a vote of 313-104. All
opposition came from Republicans

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

 

[LogikAndReazon]

Congress misses that financial genius bawney fwank.....
More regulation and regulators to regulate the new regulations !!!
Civil servants to the rescue !

 

[Dad2three]

Congress misses that financial genius bawney fwank.....
More regulation and regulators to regulate the new regulations !!!
Civil servants to the rescue !

The guy in the minority party 1995-Jan 2007? What super powers did he have?


Right-wingers Want To Erase How George Bush's "Homeowner Society" Helped Cause The Economic Collapse


2004 Republican Convention:

Another priority for a new term is to build an ownership society, because ownership brings security and dignity and independence.
...

Thanks to our policies, home ownership in America is at an all- time high.

(APPLAUSE)

Tonight we set a new goal: 7 million more affordable homes in the next 10 years, so more American families will be able to open the door and say, "Welcome to my home."

 

[Dad2three]

Congress misses that financial genius bawney fwank.....
More regulation and regulators to regulate the new regulations !!!
Civil servants to the rescue !

A long-time cheerleader for deregulation, Greenspan admitted to a congressional committee yesterday that he had been "partially wrong" in his hands-off approach towards the banking industry and that the credit crunch had left him in a state of shocked disbelief. "I have found a flaw," said Greenspan, referring to his economic philosophy. "I don't know how significant or permanent it is. But I have been very distressed by that fact."


"I made a mistake in presuming that the self-interests of organisations, specifically banks and others, were such that they were best capable of protecting their own shareholders and their equity in the firms," said Greenspan.

Greenspan - I was wrong about the economy. Sort of Business The Guardian

 

[Dad2three]

The following is a general answer followed by a section naming the key players:

• Regulators who relaxed risk management regulations required by the banks and for not regulating derivative investments (please, see more specific details below)
• The Federal Reserve Chairmen who dismissed the build-up of the housing bubble from 2002 to 2007 until it was too late. They did not take actions to regulate mortgage companies or control the housing bubble
• World Central Bankers who blindly copied the US Federal Reserve Bank policies
• World Financial Regulators who blindly copied US financial market models and regulations
• World Investment Banks who sold subprime (high risk) mortgage backed securities to their customers without fully understanding them and who hired credit rating agencies to rate them as high quality investment when in fact they included high risk loans. The same banks who sold the subprime investments later bet against their own clients without disclosing the conflict of interest to their clients
• Credit Rating Agencies who overrated junk securities as investment-grade quality and misled investors about the risk and the value of these investments
• Academic and Financial Economists who ignored the warnings and misjudged macroeconomic and financial market indicators
• Award-winning Economists who designed flawed risk pricing models
• Investment Analysts who used flawed risk pricing models and asset portfolio theories
• Wall Street Banking Executives who ignored internal risk management policies out of greed to increase revenues and their bonuses in the short term at the expense of long term stability of their companies
• Wall Street Boards of Directors who did not protect their shareholders against excessive executive compensation and ignored prudent risk management strategies
• Wall Street Advisors who did not do their homework before advising their clients on bad investments
• Investment Fund Managers who lost billions of dollars investing without adequate due diligence
• Mortgage Brokers who sold loans to unqualified borrowers in order to collect more commissions

Who is to Blame for the Financial Crisis and Ensuing Economic Crisis

 

[Jarhead]

I like the part where folks put 5% or less down on a home and believe they own it ....
If it werent for those dang predators forging their witless signatures.....

At closing, with the witness of a notary public, the borrower must sign the 1003 four different times, twice on the first page, and every page thereafter....it was just a "talking point" to point the blame to someone else when the "victims" (the borrowers) claimed they did not know the mortgage broker changed their income and asset information.

 

[zeke]

Hey jar, that stuff you wrote in your sig line. That is impressive.

You are more standup than I gave you credit for.
Pleasant surprise.

Now back to our regularly scheduled insults program.
But I gotta go get a root canal. So I might be a bit cranky when I get back.

 

[Jarhead]

Hey jar, that stuff you wrote in your sig line. That is impressive.

You are more standup than I gave you credit for.
Pleasant surprise.

Now back to our regularly scheduled insults program.
But I gotta go get a root canal. So I might be a bit cranky when I get back.

I made a really bad mistake with you and there is little I can do to make up for it.....so I did the best I can.
And then I used my secret power to cause you pain in the tooth....I see it worked.

 

[Dad2three]

I like the part where folks put 5% or less down on a home and believe they own it ....
If it werent for those dang predators forging their witless signatures.....

At closing, with the witness of a notary public, the borrower must sign the 1003 four different times, twice on the first page, and every page thereafter....it was just a "talking point" to point the blame to someone else when the "victims" (the borrowers) claimed they did not know the mortgage broker changed their income and asset information.

“FBI Report: “80% of mortgage fraud induced by LENDERS”


FBI mdash Financial Crimes Report 2007


The entire business was premised on a massive lie -- that fraudulent, toxic nonprime mortgage loans were virtually risk-free. The lie was so blatant that the banks even pooled loans that were known in the trade as "liar's loans" and obtained AAA ratings despite FBI warnings that mortgage fraud was "epidemic."

The Two Documents Everyone Should Read to Better Understand the Crisis William K. Black

Predatory Lenders' Partner in Crime

Predatory lending was widely understood to present a looming national crisis.

What did the Bush administration do in response? Did it reverse course and decide to take action to halt this burgeoning scourge?

Not only did the Bush administration do nothing to protect consumers, it embarked on an aggressive and unprecedented campaign to prevent states from protecting their residents from the very problems to which the federal government was turning a blind eye

In 2003, during the height of the predatory lending crisis, the OCC invoked a clause from the 1863 National Bank Act to issue formal opinions preempting all state predatory lending laws, thereby rendering them inoperative


Eliot Spitzer - Predatory Lenders' Partner in Crime

 

[NoNukes]

Bush was president at the time. His fault.

Obama was president during the Gulf Oil spill.

His fault.

Yes, too much golf.

 

[Faun]

Congress misses that financial genius bawney fwank.....
More regulation and regulators to regulate the new regulations !!!
Civil servants to the rescue !

The guy in the minority party 1995-Jan 2007? What super powers did he have?


Right-wingers Want To Erase How George Bush's "Homeowner Society" Helped Cause The Economic Collapse


2004 Republican Convention:

Another priority for a new term is to build an ownership society, because ownership brings security and dignity and independence.
...

Thanks to our policies, home ownership in America is at an all- time high.

(APPLAUSE)

Tonight we set a new goal: 7 million more affordable homes in the next 10 years, so more American families will be able to open the door and say, "Welcome to my home."

It's hysterical how the right took credit for the housing boom ..... until it led to the collapse of the economy. Then suddenly it was the fault of a gay congressman from the minority party with super powers.

 

[Jarhead]

Congress misses that financial genius bawney fwank.....
More regulation and regulators to regulate the new regulations !!!
Civil servants to the rescue !

The guy in the minority party 1995-Jan 2007? What super powers did he have?


Right-wingers Want To Erase How George Bush's "Homeowner Society" Helped Cause The Economic Collapse


2004 Republican Convention:

Another priority for a new term is to build an ownership society, because ownership brings security and dignity and independence.
...

Thanks to our policies, home ownership in America is at an all- time high.

(APPLAUSE)

Tonight we set a new goal: 7 million more affordable homes in the next 10 years, so more American families will be able to open the door and say, "Welcome to my home."

It's hysterical how the right took credit for the housing boom ..... until it led to the collapse of the economy. Then suddenly it was the fault of a gay congressman from the minority party with super powers.

The right took credit for the housing boom? I don't seem to recall that. I recall the Democratic party touting how the CRA had opened the door to more home and diverse home ownership...which it did. I also seem to recall that it was the unusual amount of refinancning for cash out and refinancing for less monthly cost for ARM loans contributing to the bubble that the President at the time suggested congress to look into as he was well aware that something just wasn't right with how many loans were being labeled as "A"...and I recall Barney Frank, the head of the committee lashing out at the gentleman who read the findings to his committee when the findings showed that there was a serious issue...and I recall Barney Frank informing congress and the President that all is well with FM and that all concerns should be put to rest.
I also find it interesting that you put a label on a man based on his sexual preference......and I equally notice not a single person on this board found it to be offensive....even though they do not hesitate for a second to call out someone on the right when they do it.
I also noticed that you did not respond to my request for a source of your stat that only 6% of mortgage defaults were a result of the CRA.....