Could be the biggest news story so far this decade.

[Ernie S.]

What a pack of lies.

Only an idiot would belive that this was caused by what you claim.


Ask an unbiased economics proff and you have your answer.


The sub primes that were written had very little to do with the amount the gov required to be handed out.


Why would they write so many more than the gov required?


Becuase they repackaged them off and sold them as triple A investiments and made a shit load of money.

Maybe you should read Thomas Sowell and Walter Williams, 2 very notable and respected economics Professors.
Hint: You'll have to look somewhere other than HuffPo for their essays, but if truth does matter to you, I'm sure you can find their writings on the subject.

 

[CrusaderFrank]

What a pack of lies.

Only an idiot would belive that this was caused by what you claim.


Ask an unbiased economics proff and you have your answer.


The sub primes that were written had very little to do with the amount the gov required to be handed out.


Why would they write so many more than the gov required?


Becuase they repackaged them off and sold them as triple A investiments and made a shit load of money.

"These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis," -- Representative Barney Frank (D)

Freddie $45B and Fannie $15B = $60B we'll never see back in 100 life times

 

[Toro]

Don't need to.......I'm part of the book. I've lived it.

In what capacity of banking did you live that gives you that vantage to make such specious claims?

I ask since you CLAIM to have inside information. What are your bono fides?

mortgage side of banking is that banks were forced by the government to make loans to people who didn't qualify and couldn't pay them back.

The above is simply not remotely true.

No government regulation made banks give liars loans, NINJA loans, 110% loans, or exploing in your face adjustible rate morgage loans, either. Those were the invention of the bnksters themselves.

If you doubt that, please do feel free to cite the bnaking givenment regulation which you "lived for 30 years" that forced bansters to make those loans

Tain't there, sport.

I don't say this lightly, I seldom bother, but in your case, it so obviously fits.

You, sir, are a liar.

Would you like my SSN, birth date and street address too? Whether you believe me or not doesn't bother me a bit. This is an interwebz bulletin board. You get what you pay for. That being said, I assure you that my wife and I have both worked in the industry since 1979. There is another side to this story that isn't being told by the media.

I believe you. And I have no doubt that what you have said is true. But I am sorry, I've worked in the financial industry for nearly 20 years, and I strongly disagree with the assertion that the CRA was the primary cause of this disaster. I came out of university as a diehard fire-breathing Ayn Rand / libertarian / Austrian School adherent. But after spending most of my career in financial markets making capital allocation decisions primarily in stocks but also into commodities, currencies, bonds and derivatives, and seeing two spectacular bubbles in a decade that dogmatic free market ideologues said should never theoretically happen, the idea that this one small program caused the global financial crisis precipitating the worst economy since the Depression boggles my mind. Yes, I get the Chaos Theory explanation akin to the butterfly in Brazil flapping it's wings causing a hurricane in Florida, but there have been so many changes in banking laws and regulations which loosened credit over the past 40 years, to boil it down to this one change is just a tad too convenient for those pushing a political narrative.

 

[Care4all]

My wife and I have both worked in the banking industry for over 30 years now. What few people realize is that banking is one of the most heavily regulated industries in the country. The other thing that people don't realize about the mortgage side of banking is that banks were forced by the government to make loans to people who didn't qualify and couldn't pay them back. If you want to get to the root cause of the mortgage crisis, it is the government and not the banks. When it comes to lending money, the vast majority of banks are very conservative. They want to make loans to people and businesses that will actually pay the loans back as they make money off the interest payments. When forced to loan some high school dropout who is flipping burgers the money to buy a two bedroom house, they know they will most likely never get paid and the property will wind up in foreclosure.

you and the wifey obviously work in a small bank verses a Bank of America...

banks are not FORCED to loan to anyone not qualified.

less than 10% of the loans foreclosed were NOT to the poor in CRA areas with CRA loans....that means over 90% of the foreclosures have absolutely nothing to do with loaning money for Community Reinvestment Act purposes....

the banks and others, did this to themselves, at the citizen's expense

 

[Dante]

Let's hope they actually do something with what they find.
It is still, I think, the biggest money fraud story in the history of mankind as well as the most corrupt institutions in the history of America.

Let's hope:

NY probe seeks mortgage records, official says - Forbes.com

I'm curious as to how it'll play out globally.

New York state, NY Attorney General, you ignorant septic tank. Here is a little helpful tip for you... 'Local political story.... Got that? Good.

ALBANY, N.Y. -- New York Attorney General Eric Schneiderman is seeking records from three major Wall Street banks as part of a broad investigation into the mortgage crisis that fueled the recession, an official familiar with the issue said Tuesday.

 

[Care4all]

Let's hope they actually do something with what they find.
It is still, I think, the biggest money fraud story in the history of mankind as well as the most corrupt institutions in the history of America.

Let's hope:

NY probe seeks mortgage records, official says - Forbes.com

I'm curious as to how it'll play out globally.

New York state, NY Attorney General, you ignorant septic tank. Here is a little helpful tip for you... 'Local political story.... Got that? Good.

ALBANY, N.Y. -- New York Attorney General Eric Schneiderman is seeking records from three major Wall Street banks as part of a broad investigation into the mortgage crisis that fueled the recession, an official familiar with the issue said Tuesday.

oh for goodness sakes Dante!

caligirl is right on this one.....she was talking about regulation changes....only if there is global reforms, will reforms help us with these banks....if they are regulated here in the usa and not elsewhere, they will just move to another country....

i have seen articles discussing changes worldwide, so this won't happen again.

 

[Dante]

I'm curious as to how it'll play out globally.

New York state, NY Attorney General, you ignorant septic tank. Here is a little helpful tip for you... 'Local political story.... Got that? Good.

ALBANY, N.Y. -- New York Attorney General Eric Schneiderman is seeking records from three major Wall Street banks as part of a broad investigation into the mortgage crisis that fueled the recession, an official familiar with the issue said Tuesday.

oh for goodness sakes Dante!

caligirl is right on this one.....she was talking about regulation changes....only if there is global reforms, will reforms help us with these banks....if they are regulated here in the usa and not elsewhere, they will just move to another country....

i have seen articles discussing changes worldwide, so this won't happen again.

Other countries have their own regulations. Regulations which keep things in check.

Look at Iceland before conservative economic philosophy got people there drunk...

 

[Dont Taz Me Bro]

I don't doubt that you sincerely believe that hogwash you just posted, but you have been rather clearly and cleverly misinformed.

Read a book.

Don't need to.......I'm part of the book. I've lived it.

In what capacity of banking did you live that gives you that vantage to make such specious claims?

I ask since you CLAIM to have inside information. What are your bono fides?

mortgage side of banking is that banks were forced by the government to make loans to people who didn't qualify and couldn't pay them back.

The above is simply not remotely true.

No government regulation made banks give liars loans, NINJA loans, 110% loans, or exploing in your face adjustible rate morgage loans, either. Those were the invention of the bnksters themselves.

If you doubt that, please do feel free to cite the bnaking givenment regulation which you "lived for 30 years" that forced bansters to make those loans

Tain't there, sport.

I don't say this lightly, I seldom bother, but in your case, it so obviously fits.

You, sir, are a liar.

What makes you more credible than him? You haven't offered anything other than your own words either.

 

[Dante]

Don't need to.......I'm part of the book. I've lived it.

In what capacity of banking did you live that gives you that vantage to make such specious claims?

I ask since you CLAIM to have inside information. What are your bono fides?

mortgage side of banking is that banks were forced by the government to make loans to people who didn't qualify and couldn't pay them back.

The above is simply not remotely true.

No government regulation made banks give liars loans, NINJA loans, 110% loans, or exploing in your face adjustible rate morgage loans, either. Those were the invention of the bnksters themselves.

If you doubt that, please do feel free to cite the bnaking givenment regulation which you "lived for 30 years" that forced bansters to make those loans

Tain't there, sport.

I don't say this lightly, I seldom bother, but in your case, it so obviously fits.

You, sir, are a liar.

What makes you more credible than him? You haven't offered anything other than your own words either.

WTF? another maude-wannabe?


say it ain't so spaz-lisper, say it ain't so...

 

[rdean]

My wife and I have both worked in the banking industry for over 30 years now. What few people realize is that banking is one of the most heavily regulated industries in the country. The other thing that people don't realize about the mortgage side of banking is that banks were forced by the government to make loans to people who didn't qualify and couldn't pay them back. If you want to get to the root cause of the mortgage crisis, it is the government and not the banks. When it comes to lending money, the vast majority of banks are very conservative. They want to make loans to people and businesses that will actually pay the loans back as they make money off the interest payments. When forced to loan some high school dropout who is flipping burgers the money to buy a two bedroom house, they know they will most likely never get paid and the property will wind up in foreclosure.

And all this started back in the Clinton administration...i'm so surprised!

The crisis happened in 2008, but it was "Clinton"? Hilarious. 8 years of Republican deregulation that moved 70% of the mortgage market to Wall Street had nothing to do with it. Ever heard the term, "derivatives"? What are they?

 

[Dante]

My wife and I have both worked in the banking industry for over 30 years now. What few people realize is that banking is one of the most heavily regulated industries in the country. The other thing that people don't realize about the mortgage side of banking is that banks were forced by the government to make loans to people who didn't qualify and couldn't pay them back. If you want to get to the root cause of the mortgage crisis, it is the government and not the banks. When it comes to lending money, the vast majority of banks are very conservative. They want to make loans to people and businesses that will actually pay the loans back as they make money off the interest payments. When forced to loan some high school dropout who is flipping burgers the money to buy a two bedroom house, they know they will most likely never get paid and the property will wind up in foreclosure.

And all this started back in the Clinton administration...i'm so surprised!

The crisis happened in 2008, but it was "Clinton"? Hilarious.

Actually, it all started under Ronald Reagan.


true story

 

[Flopper]

Not saying you personally, but that is a cop-out.
Indeed the Federal Government strong-armed banks into giving loans to people who likely would not pay them back. Thank Clinton and Frank for this.
However - wall street in concert with banks took this notion to the nth degree.
They sold these mortgages, or should I say...HID...these mortgages in overly complicated bond vehicles and made enormous profits putting the entire system at great risk.
It is like... say you are a car dealer...and I told you that you need to give s few loans to people who can't really afford it. And you complied. Buuuut...realizing you can make a lot of money originating these loans and then selling them - you open 15 more car lots across the country and made $millions. This...is not what I originally encouraged you to do.

But when you follow the trail to the trailhead, who set the whole thing in motion?

Pheh...it's like if the nazi soldiers took no blame for mass murdering people with an extraordinary efficiency saying "Hitler made me do it".
Indeed the Democrats in the 80's set this all in motion, but it was the banks and the entire financial system that took that ball and created an entire industry that grew to such and extent that the ENTIRE nations economy stood on it's crumbling foundation.

The government has been encouraging home ownership for 70 years. This is not something that started with Clinton or Reagan. The tax breaks for home owners, establishment of Fannie Mae, Freddie Mac, the Federal Home Loan Bank, and the Community Reinvestment Act which has been enhanced by every president since it's passage in 1977, have encouraged home ownership particular, low income earners. Did this over-inflate the market and create homeowners that could not survive a serious downturn. Absolutely.

However, Wall Street's part in this should not be overlooked. Wall Street's creation of sub-prime mortgages and shenanigans with mortgage backed bonds turned a would be slump in the real estate market into a worldwide financial disaster. It took an over bought real estate market and Wall Street to cause the greatest recession since the Great Depression.

And to make matter worse, the government and the Fed were in no position to fight a major recession. With a deficit nearing 800 billion, low interest rates, and record low tax rates the government was limited in what it could do. Government responded with the only available tool, spending. Thus we end up with a sluggish economy and a huge deficit.

A perfect storm.

 

[Annie]

My wife and I have both worked in the banking industry for over 30 years now. What few people realize is that banking is one of the most heavily regulated industries in the country. The other thing that people don't realize about the mortgage side of banking is that banks were forced by the government to make loans to people who didn't qualify and couldn't pay them back. If you want to get to the root cause of the mortgage crisis, it is the government and not the banks. When it comes to lending money, the vast majority of banks are very conservative. They want to make loans to people and businesses that will actually pay the loans back as they make money off the interest payments. When forced to loan some high school dropout who is flipping burgers the money to buy a two bedroom house, they know they will most likely never get paid and the property will wind up in foreclosure.

I've raised both those facts time and again. The Democrats have a hard time dealing with the fact that they were the ones who forced banks to provide sub-primes.

National regulations did not and will not help the banking industry. We either bring in global agreements and legislation or we accept that shit will happen. Not rocket science.

and they are still trying to force banks to continue:

Holder's Anti-Bank Witch Hunt - Investors.com

Holder's Anti-Bank Witch Hunt

Posted 05/12/2011 07:02 PM ET

Housing: The last time Washington launched a crusade to close the racial mortgage gap, it created a credit bubble that crashed the economy. If you think those days are over, think again.

The Justice Department is conducting an anti-discrimination witch hunt against banks for simultaneously lending too much and not lending enough to minorities. It would be comical if the consequences weren't so serious...

 

[California Girl]

I'm curious as to how it'll play out globally.

New York state, NY Attorney General, you ignorant septic tank. Here is a little helpful tip for you... 'Local political story.... Got that? Good.

ALBANY, N.Y. -- New York Attorney General Eric Schneiderman is seeking records from three major Wall Street banks as part of a broad investigation into the mortgage crisis that fueled the recession, an official familiar with the issue said Tuesday.

oh for goodness sakes Dante!

caligirl is right on this one.....she was talking about regulation changes....only if there is global reforms, will reforms help us with these banks....if they are regulated here in the usa and not elsewhere, they will just move to another country....

i have seen articles discussing changes worldwide, so this won't happen again.

Cut him some slack, Care. He's not very smart. He's probably one of those Americans who thinks the world doesn't affect us, and we don't affect the world.

Stupid people see only what is written in the article. The intelligent take that information and look at the bigger picture.

 

[California Girl]

But when you follow the trail to the trailhead, who set the whole thing in motion?

Pheh...it's like if the nazi soldiers took no blame for mass murdering people with an extraordinary efficiency saying "Hitler made me do it".
Indeed the Democrats in the 80's set this all in motion, but it was the banks and the entire financial system that took that ball and created an entire industry that grew to such and extent that the ENTIRE nations economy stood on it's crumbling foundation.

The government has been encouraging home ownership for 70 years. This is not something that started with Clinton or Reagan. The tax breaks for home owners, establishment of Fannie Mae, Freddie Mac, the Federal Home Loan Bank, and the Community Reinvestment Act which has been enhanced by every president since it's passage in 1977, have encouraged home ownership particular, low income earners. Did this over-inflate the market and create homeowners that could not survive a serious downturn. Absolutely.

However, Wall Street's part in this should not be overlooked. Wall Street's creation of sub-prime mortgages and shenanigans with mortgage backed bonds turned a would be slump in the real estate market into a worldwide financial disaster. It took an over bought real estate market and Wall Street to cause the greatest recession since the Great Depression.

And to make matter worse, the government and the Fed were in no position to fight a major recession. With a deficit nearing 800 billion, low interest rates, and record low tax rates the government was limited in what it could do. Government responded with the only available tool, spending. Thus we end up with a sluggish economy and a huge deficit.

A perfect storm.

Indeed. A perfect storm. One predicted for decades by many economists - not those advising governments, but real economists.... those who spend their lives studying economic history and events around the world and applying those circumstances to today's systems and events.

 

[Trajan]

And all this started back in the Clinton administration...i'm so surprised!

The crisis happened in 2008, but it was "Clinton"? Hilarious.

Actually, it all started under Ronald Reagan.


true story

actually the CRA was created in ...drumroll please.....go look ity up.. it wasn't reagan.

 

[California Girl]

And all this started back in the Clinton administration...i'm so surprised!

The crisis happened in 2008, but it was "Clinton"? Hilarious.

Actually, it all started under Ronald Reagan.


true story

Maybe, maybe not. The truth is that who was President is of absolutely no importance. It was, and remains, flaws in the entire system. You want to play partisan politics with it, that's cool. But those of us with an actual brain know that it didn't matter who the President was, it was decade after decade of bad government, crap oversight, piss poor regulation, stupidity, and pure fucking greed that brought us to the brink of ruin. I would rather solve the problem than assign blame. Because there is a HUGE list of people to blame for this mess.

 

[Steve Hanson]

didn't we go thru this with GS bundling and welling what they knew was crap via e mails etc.? Its legal, I am sorry but there it is, unless I am missing something from this article......

the real culprits, imho are S&P, Moodys and Dun & Bradstreet, they awarded the ratings...

Right on Trajan, because that is how people invest, on the ratings.

 

[Steve Hanson]

The crisis happened in 2008, but it was "Clinton"? Hilarious.

Actually, it all started under Ronald Reagan.


true story

Maybe, maybe not. The truth is that who was President is of absolutely no importance. It was, and remains, flaws in the entire system. You want to play partisan politics with it, that's cool. But those of us with an actual brain know that it didn't matter who the President was, it was decade after decade of bad government, crap oversight, piss poor regulation, stupidity, and pure fucking greed that brought us to the brink of ruin. I would rather solve the problem than assign blame. Because there is a HUGE list of people to blame for this mess.

The President is not the lawmaker, Congress is. You are right, the president is inconsequential for the most part in these decisions. Sure they have the right to veto but they rely on Congress to make the regulations for the most part.

 

[ogibillm]

My wife and I have both worked in the banking industry for over 30 years now. What few people realize is that banking is one of the most heavily regulated industries in the country. The other thing that people don't realize about the mortgage side of banking is that banks were forced by the government to make loans to people who didn't qualify and couldn't pay them back. If you want to get to the root cause of the mortgage crisis, it is the government and not the banks. When it comes to lending money, the vast majority of banks are very conservative. They want to make loans to people and businesses that will actually pay the loans back as they make money off the interest payments. When forced to loan some high school dropout who is flipping burgers the money to buy a two bedroom house, they know they will most likely never get paid and the property will wind up in foreclosure.

I don't doubt that you sincerely believe that hogwash you just posted, but you have been rather clearly and cleverly misinformed.

Read a book.

Don't need to.......I'm part of the book. I've lived it.

being a bank teller doesn't make you an expert on banking practices and regulations.