While Blame is Going Around...

Discussion in 'Politics' started by Care4all, Mar 9, 2009.

  1. Care4all
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    Care4all Warrior Princess Supporting Member

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    Do Conservatives believe President Bush's Home ownership challenge/initiative to put more minorities in to homes fueled any of this mess?

    Personally, I believe it was a good initiative and one that most all of our presidents have had, to put more minorities in to home ownership.

    None of this made the banks do what they did...buy up loans from fly by night brokers that loaned to anybody, without even trying to meet any type of qualifications....and then hid the risks of these loans by putting them in to MBSecurities, which they sold off at good prices, because the paid by the same banks ratings agency rated them with a AAA rating, a safe secure rating....?

    But if Conservatives believe Fannie's charter to put more lower to middle income people in to homes was the cause of this mess, then why wouldn't Bush's home ownership initiative be?

     
  2. txlonghorn
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    txlonghorn Senior Member

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    Well, I think there is a difference between assistance with a down payment and closing costs versus pressure to approve bogus loans. What we are doing now is providing BILLIONS, not millions, to cover a very poor plan set in motion long before Bush got in office.

    My question is, when will "Bush's Watch" end and the "Obama Nation" begin to be scrutinized and held accountable? I wouldn't be surprised if we are still trying to lynch ol' George in 2012. The new era of change is upon us and we had better hold him to his promises and not let him whine his way through four years of failure, because the job was to hard...yeah...it's a mess. But by God, if you can't hit the nail on the head and drive it home, then don't pick up the hammer!
     
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  3. Zoomie1980
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    Zoomie1980 Senior Member

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    Had NOTHING to do with it. The percentage of the dollar amount bad mortgages that are loans to low income borrowers is something like 3%. Most of these bad loans went to affluent house-flippers in the Sun Belt in the form of "Jumbo" loans (over $500,000 for 2nd, 3rd, 4th..up to 20 or more homes), most loaned at 125% of appraised value on the bet that within a couple of years the home would exceed the mortgage balance.

    THAT is what caused all this. An asset bubble that had nothing to with low income borrowers.
     
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  4. Care4all
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    Care4all Warrior Princess Supporting Member

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    i dunno, do you think 6 weeks is long enough?:eusa_whistle:

    9 months in to the Bush presidency and it still wasn't his responsibility for the 9/11 terror attack, if memory serves me....?
     
  5. toomuchtime_
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    toomuchtime_ Gold Member

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    None of this is relevant to the financial crisis. The market for derivatives dried up in 2006 after the Fed raised interest rates and as mortgage rates increased, the demand for houses fell and prices with it. Falling real estate prices made investors wary about the derivatives and as the market dried up the mark to market price of the derivatives fell to about 20% of their long term value. Because banks had been allowed to use them for their legal reserves, as much as 80% of these reserves vanished.

    That the number of "bad" mortgages is not that significant is clear from the fact that the long term value of the derivatives is still largely intact. However, the banks had to withdraw cash that had been available to loan to cover their shrinking reserves and that produced a credit squeeze and about a year later that shortage of credit put us into this current recession. As people lose their jobs in the recession, more defaults and foreclosures will follow, and if this goes on long enough, the derivatives will eventually lose more of their long term value.
     
  6. jeffrockit
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    jeffrockit Senior Member

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  7. Care4all
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    Care4all Warrior Princess Supporting Member

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    so you don't agree with president bush 1 or president Bush 2 or Reagan or clinton or all of the presidents that have supported such programs to put more minorities in to an ownership society by getting them to own their homes?

    Let me ask you, if this program was the problem and it has been around since carter...what changed so drastically to turn it in to this mortgage meltdown crisis? What was different now vs 10 years ago or 20 years ago or 30 years ago....?
     
    Last edited: Mar 9, 2009
  8. Care4all
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    I never thought it was to blame, i was just asking conservatives since they are blaming Clinton's home ownership initiative for this mess and CRA.:cuckoo:
     
  9. txlonghorn
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    txlonghorn Senior Member

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    Wait...you want to BLAME Bush for a terrorist attack? Seriously? How can you blame Bush for that? How is that ANYBODY'S fault? Can't say it would have happened if we had been stronger and more assertive in previous years, but I don't see how you can finger anybody for that one.

    Bush was no saint...don't misunderstand my position on that. I just think it's pretty funny that ANY poor decisions that this president makes are going to get swept under the "BUSH'S FAULT" rug. We need a president who can take the heat or get the hell outa the kitchen, 'cause he's walkin' into a blazin hot hell hole of a mess that requires some serious calm cool and collected action. Right now, all I see is a bunch of running around in circles and pointing fingers at everybody else. And in the process, some really bad calls are being made on how to put this fire out. Like, putting the arsonist in charge of the waterhose! Some of these appointments are down right laughable. Whatever happened to "NO LOBBYISTS IN MY CABINET"? What about "OLD POLITICS WILL NOT STAND IN MY ADMINISTRATION".

    So we get the same old liberal faces...and BINGO!!! A bonus!!! Several with tax issues! How great is that!!! He even managed to find somebody to head up the Tax Commission who had a few "mistakes" of his own in his taxes. Thank GOD he "agreed" to pay them! I agree to pay mine EVERY year. Not just the years that I'm appointed to a cabinet position.
     
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  10. jeffrockit
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    jeffrockit Senior Member

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    No, I agree they should have the opportunities with the caveat that the same rules apply to all...If you are approved (have the income to make monthly house payments plus insurance and taxes), you should qualify for the loan. Not everyone is or should be a homeowner. By making the numbers work on paper because someone falls into a minority or low income class helps no one and it actually, in the long run hurts many more than the original buyer. I am currently in my 4th house and understood at each closing that, if I did not make my payments on time as per the contract, I would lose the house. That is really not a hard contract to understand.
     

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