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I'm telling you, it was those damned negroes of Iceland who are to blame for all this.
This was a global derivatives bubble. In fact, if you look at Ireland's property bubble as a percent of GDP, they dwarf the United States property bubble.
So it was the negroes of Ireland, too!
England had a property bubble. The granddaddy of property bubbles was in Spain. And then of course there was Iceland and its speculation in the derivatives market.
Those who blame the CRA for a global derivatives bubble are about as stupid as they come, and they probably think the Euro crisis is completely unrelated.
The brokers and dealers were chasing fees. It is as simple as that. Every time they built a CDO, a shitload of middle men got fees during the life of that CDO. And since there was $70 trillion of investment money floating around the globe, that meant they needed to come up with $70 trillion of products to sell.
Well, guess what? If you rolled all the prime risk borrowers together, and got all of them to borrow to the max, you would not make much of a dent in that $70 trillion.
And so the underwriting laws of the Universe were thrown out the window and lending standards were considerably lowered.
Let me ask you CRA shitheads a question. When you drove around your all white town in 2008 and 2009 and 2010 and 2011 and saw all those white people losing their houses, did you say to yourself, "HOLY FUCK! I had NO IDEA all these people were BLACK!!!"
The fucking evidence of just how incredibly dumb your CRA theory is is right in front of your fat faces.
The banks were not being FORCED to loan money to every black person they could find. Fuck man. They were CHASING black people like so many crack dealers trying to get the blacks to take out a loan.
They were chasing EVERYONE. The bigger your paycheck, the bigger the loans they could make to you. The bigger the loans they could make, the bigger the fees they got.
Common sense. Try it out. It will do you wonders.
Who was buying the CDOs which were being made out of loans to Greece, loans to black people, loans to white people, loans to Spaniards, loans to Irishmen, loans to Italians, loans to Englishmen, loans to students, loans to municipalities, loans to states, loans to car buyers, loans to credit card holders?
Your insurance company, that's who. Your 401k manager, that's who. Your city treasurer, that's who. Your state employee pension fund manger, that's who. Your college's endowment fund manager, that's who. Saudi princes, that's who. Rich people, that's who.
And they sold them to themselves, too. They drank their own Kool-Aid.
This was not a sub-prime bubble. This was a credit bubble. Every loan of any kind on the planet was rolled into these things. Corporate bonds were the beginning, but as soon as they saw how great CDOs worked, everyone got in on the action, chasing fees. Chasing people to take out loans, to refinance, to borrow against their equity.
The CRA. Jesus H. Christ. You just can't get any dumber than that.
The firms that collapsed the world economy were not even subject to the CRA. Not Lehman. Not Goldman Sachs. Not Bear Stearns. Not JP Morgan. Not Morgan Stanley. Not UBS. Not Barclays. Not Allied Irish Bank. Not Bank of Ireland. Not Iceland. Not the Royal Bank of Scotland. And so forth and so on.
It's still going on. It was derivatives which allowed the subprime borrower Greece to hide its debts. It was derivatives which allowed all the sovereigns to borrow more than they could pay back.
.
Home loans didn't bring on the recession; gimmicky financial instruments bloated to 100 times their value are what caused all this pain.
With landmark lawsuit, Barack Obama pushed banks to give subprime loans to Chicagos African-Americans
President Barack Obama was a pioneering contributor to the national subprime real estate bubble, and roughly half of the 186 African-American clients in his landmark 1995 mortgage discrimination lawsuit against Citibank have since gone bankrupt or received foreclosure notices.
As few as 19 of those 186 clients still own homes with clean credit ratings, following a decade in which Obama and other progressives pushed banks to provide mortgages to poor African Americans.
With landmark lawsuit, Barack Obama pushed banks to give subprime loans to Chicagos African-Americans | The Daily Caller
"Fairness".
Home loans didn't bring on the recession; gimmicky financial instruments bloated to 100 times their value are what caused all this pain.
The Absurd Zombie Lie About the Economy Right-Wingers Desperately Cling To -- And Why It's Totally Wrong | Alternet
The economic collapse, attributed to Bush, is actually obama's faut.