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It was Bush's Dec 2003 American Dream Downpayment Initiative (ADDI) that changed the rules to allow no downpayment loans for more than the house was worth to people with bad credit who could not keep up with the payments and who were at least 20% below the standard of living for the neighborhood they were buying into.
It was Bush's Dec 2003 American Dream Downpayment Initiative (ADDI) that changed the rules to allow no downpayment loans for more than the house was worth to people with bad credit who could not keep up with the payments and who were at least 20% below the standard of living for the neighborhood they were buying into.
And that was because Wall Street banker crooks were BEGGING his administration to somehow lower qualifications so that they would have more loans to bundle. The CRA did NOT cause it. Neither did Frannie and Freddie. They were among the LAST to lower loan qualifications and 85+% of sub-prime loans issued were from private lenders not insured by F&F. God, this has been debunked SO MANY TIMES. Why do you righties hold onto this lie???
Moron. You are so partisan that you just won't accept the facts. Here:
For the Last Time, Fannie and Freddie Didn't Cause the Housing Crisis - David Min - The Atlantic
The Bush administration passed the legislature that lessened loan requirements in 2003- to Wall Street's urgings: American Dream Down Payment Act .
Wall Street
No banks were "FORCED" to lend to minorities due to the CRA. They did so because they were making BANK! Greed is 100% behind this crisis.
Fannie, Freddie, and the CRA are Not Responsible for the Financial Crisis - CBS News
What do you consider to be the MAIN driving force behind the 2008 economic meltdown?
The financial crisis of 2007–2008, also known as the Global financial Crisis and 2008 financial crisis, is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s.[1][2] It resulted in the threat of total collapse of large financial institutions, the bailout of banks by national governments, and downturns in stock markets around the world. In many areas, the housing market also suffered, resulting in evictions, foreclosures and prolonged unemployment. The crisis played a significant role in the failure of key businesses, declines in consumer wealth estimated in trillions of US dollars, and a downturn in economic activity leading to the 2008–2012 global recession and contributing to the European sovereign-debt crisis.[3][4] The active phase of the crisis, which manifested as a liquidity crisis, can be dated from August 7, 2007 when BNP Paribas terminated withdrawals from three hedge funds citing "a complete evaporation of liquidity".[5]
Moron. You are so partisan that you just won't accept the facts. Here:
For the Last Time, Fannie and Freddie Didn't Cause the Housing Crisis - David Min - The Atlantic
The Bush administration passed the legislature that lessened loan requirements in 2003- to Wall Street's urgings: American Dream Down Payment Act .
Wall Street
No banks were "FORCED" to lend to minorities due to the CRA. They did so because they were making BANK! Greed is 100% behind this crisis.
Fannie, Freddie, and the CRA are Not Responsible for the Financial Crisis - CBS News
are you saying the Federal Reserve policy was not to stimulate the economy through malinvestment in the housing market when
the great economists on both side disagree with you? Please answer the question or admit as a liberal you lack the IQ to do so!!
our great newspapers and economists on left and right agree it was liberal government that caused the current depression.
"First consider the once controversial view that the crisis was largely caused by the Fed's holding interest rates too low for too long after the 2001 recession. This view is now so widely held that the editorial pages of both the NYTimes and the Wall Street Journal agree on its validity!"...John B. Taylor
" The Federal reserve having done so much to create the problems in which the economy is now mired, having mistakenly thought that even after the housing bubble burst the problems were contained, and having underestimated the severity of the crisis, now wants to make a contribution to preventing the economy from sinking into a Japanese Style malaise....... - "Joseph Stiglitz"( uber left economist)
You may not have heard of the Federal Reserve system but it exists to inflate and deflate the currency supply through the housing market. They inflated too much for too long. This caused what they call a housing bubble. While the bubble was inflating all the big banks and many insurance companies bought bubble mortgages thinking they were sound rather than merely purchased or made possible by newly printed funny money. When the bubble deflated they all lost money on the mortgages. It would be analogous to the government making cars and giving them to GM so everyone could have a car. If GM got them by the ton and for very little money of course they would find a way to move them . This is essentially what the Banks did with the free money. In addition to the Federal Reserve System you had Fanny and Freddie which bought and guaranteed many of the mortgages so no one had to worry about them failing. Then you had CRA, FHA, Federal Home Loan Bank Board( 3% down payment loans) and several others that were designed to get everybody in their own home.
When the states tried to move against predatory lending by national banks they were blocked by the bank's federal regulator, the office of the comptroller of the currency, That empowered money lenders say Lynn Turner.
Just as significantly you had very badly conceived accounting rules that hid the problems from everyone until it was too late. Accounting rules are supposed to do the opposite, not move billions in potential liabilities off the balance sheet onto tiny footnote on the bottom of a page as happened at Citibank, or onto on sentence at the end of a 10-Q report as happened at AIG, or as generally happened with SIVs (structured investment vehicles). Then you had gov't rules from the last crisis, the Enron Crisis, the created mark-to- market accounting rules for this crisis that many believe greatly exacerbated this crisis.
Then you had the problem with the government backed ratings agencies that simply failed to rate the mortgage backed and related securities, properly. Sorry, it had little to do with Bush, but had everything to do with inane attempts by the liberal to regulate the free market!
Warren Buffett: "There are significant limits to what regulation can accomplish. As a dramatic illustration, take two of the biggest accounting disasters in the past ten years: Freddie Mac and Fannie Mae. We're talking billions and billions of dollars of misstatements at both places".
Now, these are two incredibly important institutions. I mean, they accounted for over 40% of the mortgage flow a few years back. Right now I think they're up to 70%. They're quasi-governmental in nature. So the government set up an organization called OFHEO. I'm not sure what all the letters stand for. [Note to Warren: They stand for Office of Federal Housing Enterprise Oversight.] But if you go to OFHEO's website, you'll find that its purpose was to just watch over these two companies. OFHEO had 200 employees. Their job was simply to look at two companies and say, "Are these guys behaving like they're supposed to?" And of course what happened were two of the greatest accounting misstatements in history while these 200 people had their jobs. It's incredible. I mean, two for two!
Whatever regulatory changes are made, they will pale in comparison to the change already evident in todays markets, he said. Those markets for an indefinite future will be far more restrained than would any currently contemplated new regulatory regime.-Alan Greenspan
Courtesy A. Smith:FDR created Fannie.
LBJ Privatized Fannie - creating an "enron" like environment:
Greg Mankiw's Blog: Thanks, LBJ
Carter's Community Reinvestment Act - accelerated by Clinton - pushed risky loans:
Community Reinvestment Act - Wikipedia, the free encyclopedia
Clinton pushed Fannie into Subprime - the most critical mistake:
Andrew Cuomo and Fannie and Freddie - Page 1 - News - New York - Village Voice
Even the NY Times figured this out: Fannie Mae Eases Credit To Aid Mortgage Lending - NYTimes.com
Bush and McCain attempted to reform Fannie on 17 occasions
Bush Called For Reform of Fannie Mae & Freddie Mac 17 Times in 2008 Alone Only To Have Dems Ignored His Warnings :: Political News and commentaries :: Hyscience
The risky subprime loans fueled another layer of risk - derivatives
https://www.istockanalyst.com/article/viewarticle/articleid/2947518
The LA Times reported on Clinton's "subprime" success
Then you had the problem with the government backed ratings agencies that simply failed to rate the mortgage backed and related securities, properly. Sorry, it had little to do with Bush, but had everything to do with inane attempts by the liberal to regulate the free market!
Lying through omission = propaganda
Moron. You are so partisan that you just won't accept the facts. Here:
For the Last Time, Fannie and Freddie Didn't Cause the Housing Crisis - David Min - The Atlantic
The Bush administration passed the legislature that lessened loan requirements in 2003- to Wall Street's urgings: American Dream Down Payment Act .
Wall Street
No banks were "FORCED" to lend to minorities due to the CRA. They did so because they were making BANK! Greed is 100% behind this crisis.
Fannie, Freddie, and the CRA are Not Responsible for the Financial Crisis - CBS News
are you saying the Federal Reserve policy was not to stimulate the economy through malinvestment in the housing market when
the great economists on both side disagree with you? Please answer the question or admit as a liberal you lack the IQ to do so!!
our great newspapers and economists on left and right agree it was liberal government that caused the current depression.
"First consider the once controversial view that the crisis was largely caused by the Fed's holding interest rates too low for too long after the 2001 recession. This view is now so widely held that the editorial pages of both the NYTimes and the Wall Street Journal agree on its validity!"...John B. Taylor
" The Federal reserve having done so much to create the problems in which the economy is now mired, having mistakenly thought that even after the housing bubble burst the problems were contained, and having underestimated the severity of the crisis, now wants to make a contribution to preventing the economy from sinking into a Japanese Style malaise....... - "Joseph Stiglitz"( uber left economist)
You may not have heard of the Federal Reserve system but it exists to inflate and deflate the currency supply through the housing market. They inflated too much for too long. This caused what they call a housing bubble. While the bubble was inflating all the big banks and many insurance companies bought bubble mortgages thinking they were sound rather than merely purchased or made possible by newly printed funny money. When the bubble deflated they all lost money on the mortgages. It would be analogous to the government making cars and giving them to GM so everyone could have a car. If GM got them by the ton and for very little money of course they would find a way to move them . This is essentially what the Banks did with the free money. In addition to the Federal Reserve System you had Fanny and Freddie which bought and guaranteed many of the mortgages so no one had to worry about them failing. Then you had CRA, FHA, Federal Home Loan Bank Board( 3% down payment loans) and several others that were designed to get everybody in their own home.
When the states tried to move against predatory lending by national banks they were blocked by the bank's federal regulator, the office of the comptroller of the currency, That empowered money lenders say Lynn Turner.
Just as significantly you had very badly conceived accounting rules that hid the problems from everyone until it was too late. Accounting rules are supposed to do the opposite, not move billions in potential liabilities off the balance sheet onto tiny footnote on the bottom of a page as happened at Citibank, or onto on sentence at the end of a 10-Q report as happened at AIG, or as generally happened with SIVs (structured investment vehicles). Then you had gov't rules from the last crisis, the Enron Crisis, the created mark-to- market accounting rules for this crisis that many believe greatly exacerbated this crisis.
Then you had the problem with the government backed ratings agencies that simply failed to rate the mortgage backed and related securities, properly. Sorry, it had little to do with Bush, but had everything to do with inane attempts by the liberal to regulate the free market!
Warren Buffett: "There are significant limits to what regulation can accomplish. As a dramatic illustration, take two of the biggest accounting disasters in the past ten years: Freddie Mac and Fannie Mae. We're talking billions and billions of dollars of misstatements at both places".
Now, these are two incredibly important institutions. I mean, they accounted for over 40% of the mortgage flow a few years back. Right now I think they're up to 70%. They're quasi-governmental in nature. So the government set up an organization called OFHEO. I'm not sure what all the letters stand for. [Note to Warren: They stand for Office of Federal Housing Enterprise Oversight.] But if you go to OFHEO's website, you'll find that its purpose was to just watch over these two companies. OFHEO had 200 employees. Their job was simply to look at two companies and say, "Are these guys behaving like they're supposed to?" And of course what happened were two of the greatest accounting misstatements in history while these 200 people had their jobs. It's incredible. I mean, two for two!
“Whatever regulatory changes are made, they will pale in comparison to the change already evident in today’s markets,” he said. “Those markets for an indefinite future will be far more restrained than would any currently contemplated new regulatory regime.”-Alan Greenspan
Courtesy A. Smith:FDR created Fannie.
LBJ Privatized Fannie - creating an "enron" like environment:
Greg Mankiw's Blog: Thanks, LBJ
Carter's Community Reinvestment Act - accelerated by Clinton - pushed risky loans:
Community Reinvestment Act - Wikipedia, the free encyclopedia
Clinton pushed Fannie into Subprime - the most critical mistake:
Andrew Cuomo and Fannie and Freddie - Page 1 - News - New York - Village Voice
Even the NY Times figured this out: Fannie Mae Eases Credit To Aid Mortgage Lending - NYTimes.com
Bush and McCain attempted to reform Fannie on 17 occasions
Bush Called For Reform of Fannie Mae & Freddie Mac 17 Times in 2008 Alone Only To Have Dems Ignored His Warnings :: Political News and commentaries :: Hyscience
The risky subprime loans fueled another layer of risk - derivatives
https://www.istockanalyst.com/article/viewarticle/articleid/2947518
The LA Times reported on Clinton's "subprime" success
Lying through omission = propaganda
The economy collapsed because American workers could no longer sustain their spending or service their debts.
Spin that any way you'd like, but that's the gist of it.
Lying through omission = propaganda
whats the omission???????????
are you saying the Federal Reserve policy was not to stimulate the economy through malinvestment in the housing market when
the great economists on both side disagree with you? Please answer the question or admit as a liberal you lack the IQ to do so!!
our great newspapers and economists on left and right agree it was liberal government that caused the current depression.
"First consider the once controversial view that the crisis was largely caused by the Fed's holding interest rates too low for too long after the 2001 recession. This view is now so widely held that the editorial pages of both the NYTimes and the Wall Street Journal agree on its validity!"...John B. Taylor
" The Federal reserve having done so much to create the problems in which the economy is now mired, having mistakenly thought that even after the housing bubble burst the problems were contained, and having underestimated the severity of the crisis, now wants to make a contribution to preventing the economy from sinking into a Japanese Style malaise....... - "Joseph Stiglitz"( uber left economist)
You may not have heard of the Federal Reserve system but it exists to inflate and deflate the currency supply through the housing market. They inflated too much for too long. This caused what they call a housing bubble. While the bubble was inflating all the big banks and many insurance companies bought bubble mortgages thinking they were sound rather than merely purchased or made possible by newly printed funny money. When the bubble deflated they all lost money on the mortgages. It would be analogous to the government making cars and giving them to GM so everyone could have a car. If GM got them by the ton and for very little money of course they would find a way to move them . This is essentially what the Banks did with the free money. In addition to the Federal Reserve System you had Fanny and Freddie which bought and guaranteed many of the mortgages so no one had to worry about them failing. Then you had CRA, FHA, Federal Home Loan Bank Board( 3% down payment loans) and several others that were designed to get everybody in their own home.
When the states tried to move against predatory lending by national banks they were blocked by the bank's federal regulator, the office of the comptroller of the currency, That empowered money lenders say Lynn Turner.
Just as significantly you had very badly conceived accounting rules that hid the problems from everyone until it was too late. Accounting rules are supposed to do the opposite, not move billions in potential liabilities off the balance sheet onto tiny footnote on the bottom of a page as happened at Citibank, or onto on sentence at the end of a 10-Q report as happened at AIG, or as generally happened with SIVs (structured investment vehicles). Then you had gov't rules from the last crisis, the Enron Crisis, the created mark-to- market accounting rules for this crisis that many believe greatly exacerbated this crisis.
Then you had the problem with the government backed ratings agencies that simply failed to rate the mortgage backed and related securities, properly. Sorry, it had little to do with Bush, but had everything to do with inane attempts by the liberal to regulate the free market!
Warren Buffett: "There are significant limits to what regulation can accomplish. As a dramatic illustration, take two of the biggest accounting disasters in the past ten years: Freddie Mac and Fannie Mae. We're talking billions and billions of dollars of misstatements at both places".
Now, these are two incredibly important institutions. I mean, they accounted for over 40% of the mortgage flow a few years back. Right now I think they're up to 70%. They're quasi-governmental in nature. So the government set up an organization called OFHEO. I'm not sure what all the letters stand for. [Note to Warren: They stand for Office of Federal Housing Enterprise Oversight.] But if you go to OFHEO's website, you'll find that its purpose was to just watch over these two companies. OFHEO had 200 employees. Their job was simply to look at two companies and say, "Are these guys behaving like they're supposed to?" And of course what happened were two of the greatest accounting misstatements in history while these 200 people had their jobs. It's incredible. I mean, two for two!
Whatever regulatory changes are made, they will pale in comparison to the change already evident in todays markets, he said. Those markets for an indefinite future will be far more restrained than would any currently contemplated new regulatory regime.-Alan Greenspan
Courtesy A. Smith:FDR created Fannie.
LBJ Privatized Fannie - creating an "enron" like environment:
Greg Mankiw's Blog: Thanks, LBJ
Carter's Community Reinvestment Act - accelerated by Clinton - pushed risky loans:
Community Reinvestment Act - Wikipedia, the free encyclopedia
Clinton pushed Fannie into Subprime - the most critical mistake:
Andrew Cuomo and Fannie and Freddie - Page 1 - News - New York - Village Voice
Even the NY Times figured this out: Fannie Mae Eases Credit To Aid Mortgage Lending - NYTimes.com
Bush and McCain attempted to reform Fannie on 17 occasions
Bush Called For Reform of Fannie Mae & Freddie Mac 17 Times in 2008 Alone Only To Have Dems Ignored His Warnings :: Political News and commentaries :: Hyscience
The risky subprime loans fueled another layer of risk - derivatives
https://www.istockanalyst.com/article/viewarticle/articleid/2947518
The LA Times reported on Clinton's "subprime" success
Lying through omission = propaganda
Are you implying CRA was a very small player in the Housing Crisis because CRA didn't apply to traditional mortgage loaners (banks; etc) that made up a huge majority of the loans?
Did you mean when Bush and McCain pushed reforming Fannie Mae 17 times in 2008 which is after the homes started losing their value? (It started in 2006) I could have sworn that having almost everyone in their own home was in the 2004 GOP Platform!
Well look at the chart below, look at the peak of home ownership, yep it was the Dems alright!
In real terms EB, you are right on some things, particularly pointing the finger at the Fed in a different post of yours. but for anyone to solely point the finger at the Dems or the GOP only is denying real life.
Are you implying CRA was a very small player in the Housing Crisis because CRA didn't apply to traditional mortgage loaners (banks; etc) that made up a huge majority of the loans?
Did you mean when Bush and McCain pushed reforming Fannie Mae 17 times in 2008 which is after the homes started losing their value? (It started in 2006) I could have sworn that having almost everyone in their own home was in the 2004 GOP Platform!
but for anyone to solely point the finger at the Dems or the GOP only is denying real life.
but for anyone to solely point the finger at the Dems or the GOP only is denying real life.
too perfectly stupid!! If you have half a brain you point the finger and liberalism or free market subversion wheteher it exist in the GOP or Democrat party!!
I know thats way way over your head!!!
but for anyone to solely point the finger at the Dems or the GOP only is denying real life.
too perfectly stupid!! If you have half a brain you point the finger and liberalism or free market subversion wheteher it exist in the GOP or Democrat party!!
I know thats way way over your head!!!
It may be over the head of most English speaking people.
Richard M. Nixon came to office in 1969, so it was left to a Republican administration, and Mr. Romney, to preside over the first mortgage-backed security sale in 1970, which they enthusiastically embraced. “This event,” Mr. Romney said, “marks a revolutionary step forward in our efforts to increase the funds available for mortgage financing.” But in an eerie prefiguring of the 2000s, the subprime lending program soon fell apart as predatory lenders and unscrupulous house flippers defrauded first-time buyers. The government found itself insuring mortgages on houses that could never be resold. After first denying the problems, Mr. Romney was ultimately forced to freeze the program in 1971. Yet even as the lending program ended, the mortgage-backed security sector blossomed, at least for higher-quality, middle-class homes. Securitization worked as an instrument to connect local demand and global capital.
Bypassing traditional bank deposits allowed money to come from almost anywhere: small-town banks, union pensions and European investors could all buy American mortgages. Lending on houses, at least for middle-class housing, became easier than ever before.
And that was the problem. While Mr. Romney may have stopped the fraud, he didn’t address the flip side of the urban crisis: the millions invested in mortgages was money not invested in business.
Small-business loans, however, still relied on those dwindling deposits and could not be securitized. Big corporations and small homeowners could rely on the surging global capital markets, while small business found itself crowded out.
