Video: What Just happened?

[The Paperboy]

McCain's Economic Adviser is ex-Texas Sen. Phil Gramm. On Dec. 15, 2000, hours before Congress was to leave for Christmas recess, Gramm had a 262-page amendment slipped into the appropriations bill. It forbade federal agencies to regulate the financial derivatives that greased the skids for passing along risky mortgage-backed securities to investors. And that, my friends, is why everything's falling apart. That is why the taxpayers are now on the hook for the follies of Fannie Mae, Freddie Mac, Bear Stearns and now the insurance giant AIG to the tune of $700 billion.

This is true and certainly didn't help things.

But keep in mind Fannie Mae, led by Franklin Raines, cooked the books and in essence duped Wall Street into thinking the securities were far more valuable then they were.

I would wager that Franklin Raines will do prison time at some point for fraud as he collected HUGE bonuses based on cooked books.

The domino that seemed to be the first to fall was Fannie Mae.

I think you will find that there was plenty of stupidity to go around but that criminal acts were committed by Raines, Johnson, etc.

And it also seems Obama (along with lots of other but not McCain) were in the pocket of Fannie.

 

[Isolde]

Its not like that, I'm not trying to be an Ahole but explaining what I believe was the problem is like writing a masters thesis. I Just dont have the energy. I agree with you somewhat but it just goes deeper than the Fed, or the borrowers, or the banks, or Wallstreet, or the Dems, or the Republicans. If you research you will find that everyone let us down.

I agree that everyone is pretty much at fault EXCEPT the people who actually bought houses they could afford using a mortgage product they could pay back.

It's not that difficult to explain. What we had were borrowers who were borrowing money without regard to their own ability to pay it back and a financial lending system that enabled it.

 

[dilloduck]

Its not like that, I'm not trying to be an Ahole but explaining what I believe was the problem is like writing a masters thesis. I Just dont have the energy. I agree with you somewhat but it just goes deeper than the Fed, or the borrowers, or the banks, or Wallstreet, or the Dems, or the Republicans. If you research you will find that everyone let us down.

I'm not asking for an in depth analysis but the Fed is SUPPOSED to be regulating our economy isn't it ? If not, what in the hell do we pay them for ?

 

[Chris]

The Fed was not the problem.

The problem was that mortgage companies could sell their mortgages on the day after closing, so there was no risk to them to loan money to bad credit risks.

 

[Isolde]

The Fed was not the problem.

The problem was that mortgage companies could sell their mortgages on the day after closing, so there was no risk to them to loan money to bad credit risks.

Thus he has spoken. The authority on woman is now the resident authority on all things financial.

 

[jschuck12001]

I'm not asking for an in depth analysis but the Fed is SUPPOSED to be regulating our economy isn't it ? If not, what in the hell do we pay them for ?

Well the Fed regulates the rate at which banks borrower from the fed and they set the prime rate. I dont see why anyone would put the fed in charge of regulating lending laws.

 

[jschuck12001]

I agree that everyone is pretty much at fault EXCEPT the people who actually bought houses they could afford using a mortgage product they could pay back.

It's not that difficult to explain. What we had were borrowers who were borrowing money without regard to their own ability to pay it back and a financial lending system that enabled it.

Thats the skinny but most posts on this board are in relation to blaming one side or the other and thats what I was talking about when I said its more in depth than that. See I dont believe Fannie/Freddies problems were their lending practices and I can prove it because I have been in the trenches. The fact that they were buying 3rd party securities is a whole different issue that seems to get bundled with lending practices. If Fannie stuck to just following their business model of lending then things wouldn't have been this bad. All those people you talk about that received their mortgages they couldnt pay for didnt get them from Fannie or Freddie(for the most part), they received them from brokers thru 3rd party funding banks such as New Century, Freemont, Ameriquest/Argent etc. When I read the posts around here people are very confused on What Fannie and Freddie lending practices actually were. They never did stated, NINA, or SISA's so I have to chuckle when I see people talking out of their ass.

 

[jschuck12001]

I'm not asking for an in depth analysis but the Fed is SUPPOSED to be regulating our economy isn't it ? If not, what in the hell do we pay them for ?

Dillo, you cant explain what happened without going into an in depth response. This is why we have so much mixed info because we always hear half or a readers digest version of what happened.

 

[del]

Thus he has spoken. The authority on woman is now the resident authority on all things financial.

HEY! he's a "realtor", dammit!
got his own kiosk at the mall and everything.

plus he still has time to stalk teen aged girls.
he's the Michelangelo of Virginia Beach. except he's "straight".

 

[The Paperboy]

Thats the skinny but most posts on this board are in relation to blaming one side or the other and thats what I was talking about when I said its more in depth than that. See I dont believe Fannie/Freddies problems were their lending practices and I can prove it because I have been in the trenches. The fact that they were buying 3rd party securities is a whole different issue that seems to get bundled with lending practices. If Fannie stuck to just following their business model of lending then things wouldn't have been this bad. All those people you talk about that received their mortgages they couldnt pay for didnt get them from Fannie or Freddie(for the most part), they received them from brokers thru 3rd party funding banks such as New Century, Freemont, Ameriquest/Argent etc. When I read the posts around here people are very confused on What Fannie and Freddie lending practices actually were. They never did stated, NINA, or SISA's so I have to chuckle when I see people talking out of their ass.

What does the word "guarantee" mean to you as in, "Fannie Mae, was a United States publicly traded government sponsored enterprise (GSE). It was a stockholder-owned corporation authorized to make loans and loan guarantees."

 

[jschuck12001]

What does the word "guarantee" mean to you as in, "Fannie Mae, was a United States publicly traded government sponsored enterprise (GSE). It was a stockholder-owned corporation authorized to make loans and loan guarantees."

Its means that if you had a loan application, plugged all the data into Du and received an "Accept" or "Approve Eligible", then you have a loan. I'm sorry, I dont follow your point.

 

[The Paperboy]

Its means that if you had a loan application, plugged all the data into Du and received an "Accept" or "Approve Eligible", then you have a loan. I'm sorry, I dont follow your point.

"Guarantee" as it applies to Fannie Mae.

OK, here's but one of hundreds if not thousands of examples. Go to this link here, read and pay special attention to the last two paragraphs.

Also take note that the program described in the above link began in 1992. That should tell you something. If it doesn't look up "Community Reinvestment Act".

 

[Silence]

Democrats have controlled the Senate 4 of the past 7 years. Daschle was Majority Leader in 2001 - 2003. Reid was (is) Majority Leader in 2007 & 2008. Democrats have had full control of Congress for the past two years.

Fact: The Democratically controlled Congress presided over the greatest economic disaster since the Great Depression.

Question: What economic bill did the the Democratically Congress pass that Bush vetoed?

Answer: None

No wonder the Democratically controlled Congress has even lower approval ratings than Bush.

I think you've been hitting Stoner's stash

FACT, the Republicans had the majority until the 2006 mid term elections. Dems only have a technical control of the Senate because of the two Independents that cacus with them on issues.

and if you think people are so stupid as to believe the bullshit you just said you don't pay attention to the polls. The Republican party is in the shitter because ya'll have run this country into the ground and everyone knows it.

 

[WillowTree]

No, everyone dosen't know it. Just the DUmmies who drink the koolaid.



[ame=http://www.youtube.com/watch?v=JTr_kvYxzdM&feature=related]YouTube - OMG.. CAT WATCHING TV! ORIGINAL GARFIELD![/ame]

 

[The Paperboy]

I think you've been hitting Stoner's stash

FACT, the Republicans had the majority until the 2006 mid term elections. Dems only have a technical control of the Senate because of the two Independents that cacus with them on issues.

and if you think people are so stupid as to believe the bullshit you just said you don't pay attention to the polls. The Republican party is in the shitter because ya'll have run this country into the ground and everyone knows it.

I'm sure former Senate Majority Leader Tom Dachle (2001 - 2003) would agree he was only the technical Majority Leader.

And the last two years ya'll?

 

[The Paperboy]

Is it me or do Liberal Democrats swear alot?

 

[WillowTree]

Is it me or do Liberal Democrats swear alot?

They are under DUress!

 

[jschuck12001]

"Guarantee" as it applies to Fannie Mae.

OK, here's but one of hundreds if not thousands of examples. Go to this link here, read and pay special attention to the last two paragraphs.

Also take note that the program described in the above link began in 1992. That should tell you something. If it doesn't look up "Community Reinvestment Act".

That program is not why we are in this trouble. Thats a drop in the bucket compared to the loans that were funded by 3rd party subprime mortgage wholesale banks and of course the A paper loans that are now defaulting because of job loss. I agree that senior management was crooked and the fact they were cooking the books is criminal and had a huge effect on their crisis but that doesnt really have much to do with the lending practices of Fannie/Freddie.

 

[The Paperboy]

That program is not why we are in this trouble. Thats a drop in the bucket compared to the loans that were funded by 3rd party subprime mortgage wholesale banks and of course the A paper loans that are now defaulting because of job loss. I agree that senior management was crooked and the fact they were cooking the books is criminal and had a huge effect on their crisis but that doesnt really have much to do with the lending practices of Fannie/Freddie.

Fannie Mae mess laid out in full on the front page of today's NY Times here