Democrats Caused The Global Financial Meltdown

[Dont Taz Me Bro]

Not only did President Bush warn repeatedly so did John McCain and the democratic congress and senate ignored those warnings.

Bush was running around touting the record home ownership by minorities during his administration.

 

[blu]

anyone blaming the crisis on a single party is a bafoon

 

[KissMy]

Not only did President Bush warn repeatedly so did John McCain and the democratic congress and senate ignored those warnings.

Bush was running around touting the record home ownership by minorities during his administration.

Like it would not have been political suicide to say to Americans record home ownership by minorities was bad. Behind the scene Bush was trying to get the US government & tax payer off the hook for backing reckless subprime loans. He ask for more regulation. He wanted to give minorities down payment money to help make their home affordable to them but did not want the government backing the reckless lending practice piling debt onto people who could not pay it back. Because what minorities needed was Obama & their ACORN community groups teaching them responsible financial credit practices & not force tax payers to back loans.

"A September 1999 study by Freddie Mac, confirming earlier Federal Reserve and FDIC studies, contradicts race discrimination arguments for CRA. The study found that African-Americans with annual incomes of $65,000-$75,000 have on average worse credit records than whites making under $25,000. This showed that the difficulty in qualifying was not because of race but bad credit records. Accordingly, the Federal Reserve Bank of Dallas entitled a paper "Red Lining or Red Herring?" This was before President Bill Clinton signed those disasterous CRA deregulation bills into law. Clinton was a ******* retard!

Contrary to popular myth President George W. Bush did not deregulate the the housing market. I dare you to produce a law that he signed that deregulated housing or lending. Bush wanted more regulation but could not get congress to pass a bill he could sign to make it law. Why did Bill Clinton not veto deregulation? He had the power that Bush was never afforded by signing or vetoing a bill from congress.

 

[Vast LWC]

--November 1999-- President Bill Clinton signed into law S.900 Financial Services Modernization Act of 1999 This bill had CRA loan mandates & allowed banks to sell the mandated bad loans to GSEs Fannie, Freddie, pension funds, foreigners & anyone else. This made it legal for banks to create bad risky loans with the government backing it allowing it to get a AAA rating.This gave banks a license to steal!!!

--December 2000-- President Bill Clinton signed into law H.R. 4577: Consolidated Appropriations Act, 2001. Consolidated in this bill was Commodity Futures Modernization Act of 2000. This law made most over-the-counter derivatives (“OTC derivatives&#8221 transactions between “sophisticated parties” un-regulated as “futures” under the Commodity Exchange Act (CEA) or as “securities” under the federal securities laws. Instead, banks and securities firms would continue to have their dealings in OTC derivatives supervised by their federal regulators under general “safety and soundness” standards. “Functional regulation”. This was to create an international derivatives market for comodities securities. Clinton & Gore were trying to built the framework for Carbon Cap & Trade Energy Trading Market Scheme with this law. This gave birth to the Enron Loophole. Gore and the Enron Loophole.

Let me get this straight...

This legislation, which is responsible for re-legalizing derivatives, was crafted, written, and voted into law by a Republican Senate and a Republican House of Representatives. Derivatives had in fact been illegal since the great depression, prior to this.

By 1999 and into 2000, thanks to that same Republican congress, Bill Clinton, as we know, was the lamest of lame ducks.

But instead of blaming the Republican Congress for this piece of shit law, instead of blaming it's primary author, Phil Gramm...

You're trying to blame Bill Clinton because he didn't veto it?

And how the hell does Al Gore fit in? Was there a tie in the Senate that he had to decide concerning this bill?

Seriously, blaming the president for legislation crafted by a Republican congress which could have easily overridden his veto?

Just another example of crazy right-wing fanatics attempting to re-write history...

 

[uscitizen]

Keep up the blame Dems propaganda, the vidiot lemmings eat it up.

 

[NYcarbineer]

Whoever is making this CRA crap case, how about you show us what percentage of total mortgage defaults, foreclosures, etc., were by minority borrowers in low-income areas, and how much money that represents as a percentage of the sum total of the financial impact of the real estate meltdown.

Then we'll go from there to assess whether that number is sufficient to warrant proceeding to determining how many of those loans, and their dollar value, can be attributed to government forcing those loans to be made. Then if we've reached that number, we'll determine what percent that represents of the sum total, and then we'll discuss to what degree you can reasonably and rationally declare that CRA caused the real estate meltdown and related financial crisis.

Anyone?

I guess those numbers aren't forthcoming any time soon.

 

[NYcarbineer]

I like how they want to say Clinton didn't balance the budget until the Republicans took over in 1994, but bank deregulation in 1999 with the same Republicans in power, suddenly reverts to Clinton's fault.

 

[KissMy]

This chart shows just as clearly as that Democrat ass kissing brown nose on your stupid face that housing prices soared in 1997 when Clinton enforced the CRA. Also the GSE's Fannie & Freddie were & still the biggest part of the meltdown.

--Fall 1999-- Treasury Secretary Lawrence Summers issued a warning: "Debates about systemic risk should also now include government-sponsored enterprises, which are large and growing rapidly."

--September 1999-- New York Times "With pressure from the Clinton administration, Fannie Mae eased credit requirements on loans it would purchase from lenders, making it easier for banks to lend to borrowers unqualified for conventional loans. Fannie Mae's Raines explained that "there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market."

With this action, Fannie Mae put itself at substantial risk in the event of an economic downturn. "From the perspective of many people, including me, this is another thrift industry growing up around us," warned Peter Wallison, a fellow in financial policy studies at the American Enterprise Institute (AEI). "If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry." The danger was known.

In 2008, Fannie and Freddie have purchased about 80% of all new home mortgages in the United States. Their combined investment portfolios held mortgage assets (loans and MBSs) valued at $1.5 trillion (as of June 30, 2008) - These GSE will never pay back tax payer for losses like all the banks have.

 

[mudwhistle]

Yup

 

[mudwhistle]

Keep up the blame Dems propaganda, the vidiot lemmings eat it up.

There's got to be a reason they've been extending unemployment benefits for three straight years.


Maybe they knew what was coming because they were responsible.

 

[kyzr]

Let me get this straight...This legislation, which is responsible for re-legalizing derivatives, was crafted, written, and voted into law by a Republican Senate and a Republican House of Representatives. Derivatives had in fact been illegal since the great depression, prior to this.

By 1999 and into 2000, thanks to that same Republican congress, Bill Clinton, as we know, was the lamest of lame ducks.

But instead of blaming the Republican Congress for this piece of shit law, instead of blaming it's primary author, Phil Gramm...

You're trying to blame Bill Clinton because he didn't veto it?

And how the hell does Al Gore fit in? Was there a tie in the Senate that he had to decide concerning this bill?

Seriously, blaming the president for legislation crafted by a Republican congress which could have easily overridden his veto?

Just another example of crazy right-wing fanatics attempting to re-write history...

A better question is: why didn't the dems undo this crap when they had an unstoppable majority? because they are whores just like the GOP

Why didn't the dems stop tax breaks for moving jobs overseas? same answer

The dems do a lot of whining and finger-pointing instead of actually fixing problems. You can't name anything that the dems did during 2009 that created jobs and made the financial system sounder. They are all addicted to K-street money.

 

[NYcarbineer]

That's all fascinating, as is much of the birther/truther stuff if you're fascinated by the nuts and bolts of conspiracy theories,

except for a couple fundamental flaws that knock the whole thing down. One, the sub-prime/derivative mania was not centered in relatively poor minority neighborhoods, and two, the CRA does not force any bank to make loans to unqualified buyers, in fact, if any of you 'housers' (every good conspiracy nowadays deserves an -ers word) ever read the CRA you would know that.

This is just more of the eternal quest of the eternally insecure right to concoct something around every major event that blames it on liberals, Democrats, and, if possible, as a bonus,

blame it on minorities! The conservative blame-game trifecta!

 

[KissMy]

No one was forced to make a single loan to an unqualified borrower under CRA. Even the banks that have gone under haven't made that claim. The best defense the banks could have would be to show that they went under because the government forced them to make bad loans,

and no banks make that defense.

There's one more example of inanity of this myth, in another nutshell.

Oh how stupid you are! Every day you dumbocraps regurgitate fact less talking points & lies trying to defend criminals only to get you ass kicked. Yet you somehow desire to get out of bed come on here & do it all over again. Maybe you are just to stupid to understand that the facts prove you wrong every single time.

THE KEY IS ENFORCEMENT, FEAR OF HAVING THE US ATTORNEY GENERAL SUE YOU INTO OBLIVION! --1995--"Attorney General Janet Reno, who had already won a number of bank lending discrimination settlements, sternly announces, "We will tackle lending discrimination wherever it appears." With the new policy in full force, "No loan is exempt; no bank is immune. For those who thumb their nose at us, I promise vigorous enforcement."

FEAR OF THE CONGRESSIONAL BLACK CAUCUS SCREWING UP YOUR BANKING BUSINESS.

FEAR OF HAVING THE US DEPARTMENT OF HOUSING & URBAN DEVELOPMENT SUE YOU INTO OBLIVION! [ame="http://www.youtube.com/watch?v=ivmL-lXNy64&feature=player_embedded"]HUD LAWSUIT[/ame]

NY Times - "But the storm has fallen with a special ferocity on black and Latino homeowners, the analysis shows. Defaults occur three times as often in mostly minority census tracts as in mostly white ones. Eighty-five percent of the worst-hit neighborhoods — where the default rate is at least double the regional average — have a majority of black and Latino homeowners."

--September 1999-- "A study by Freddie Mac, confirming earlier Federal Reserve and FDIC studies, contradicts race discrimination arguments for CRA. The study found that African-Americans with annual incomes of $65,000-$75,000 have on average worse credit records than whites making under $25,000. This showed that the difficulty in qualifying was not because of race but bad credit records. Accordingly, the Federal Reserve Bank of Dallas entitled a paper "Red Lining or Red Herring?" "City Journal warned that the Clinton administration had turned CRA into 'a vast extortion scheme against the nation's banks,'committing $1 trillion for mortgages and development projects, most of it funneled through the community organizers."

PEW Research Study - "From 1995 through the middle of this decade, homeownership rates rose more rapidly among all minorities than among whites. But since the start of the housing bust in 2005, rates have fallen more steeply for two of the nation's largest minority groups -- blacks and native-born Latinos -- than for the rest of the population"

THIS ALL PROVES BEYOND A SHADOW OF A DOUBT THAT THE CRA / GSE AFFIRMATIVE ACTION - SOCIALISM CAUSED THE ECONOMIC MELTDOWN!!! Just grow a spine & admit that the Congressional Black Caucus are racist who will stop at nothing to get more & more reparations from people who never benefited from & were never involved with slavery. Their poor credit scores & high default rates are due to the I am not paying the man because he owes me mentality. If OBAMACORN had spent half as much energy teaching minorities about credit & being responsible American citizens as they did going after banks this crisis would have been avoided. Instead they are taught to be African-American Dependants & how to stick it to the man.

 

[FireFly]

Facts prove Democrats GSE's & CRA were the primary cause of the subprime housing bubble & meltdown. Clinton & Congressional Black Cacaus most at fault. They love subprime loans.

The nation's top subprime lenders, including New Century Financial (NEWC), which has filed for Chapter 11, have lavished generous donations on homeownership programs sponsored by black or Hispanic members of Congress. Still, a key lawmaker and caucus officials say subprime lenders remain important options. About 50% of black and Hispanic borrowers used subprime loans in 2005, compared with 17% of whites. "Not all subprime lenders are bad," says Rep. Joe Baca, D-Calif., chair of the Hispanic Caucus Institute. "The solution … is not to get rid of all subprime loans but instead to make sure there are safeguards."...The Congressional Hispanic Caucus Institute's "Hogar" (Spanish for hearth or home) initiative, provides fellowships, financial education and other efforts to boost homeownership in 63 congressional districts in 11 state. The group's 2007 funding has not been finalized. But in 2006, one of Hogar's "trusted friends" who paid $50,000 for a line on the caucus' website, special mention in its newsletters, listing on materials and advertising at events, was Countrywide Financial, which like a number of lenders makes both prime and subprime loans. Countrywide did not respond to interview requests.

 

[FireFly]

Facts prove Democrats GSE's & CRA were the primary cause of the subprime housing bubble & meltdown. Clinton & Congressional Black Cacaus most at fault. They love subprime loans.

The nation's top subprime lenders, including New Century Financial (NEWC), which has filed for Chapter 11, have lavished generous donations on homeownership programs sponsored by black or Hispanic members of Congress. Still, a key lawmaker and caucus officials say subprime lenders remain important options. About 50% of black and Hispanic borrowers used subprime loans in 2005, compared with 17% of whites. "Not all subprime lenders are bad," says Rep. Joe Baca, D-Calif., chair of the Hispanic Caucus Institute. "The solution … is not to get rid of all subprime loans but instead to make sure there are safeguards."...The Congressional Hispanic Caucus Institute's "Hogar" (Spanish for hearth or home) initiative, provides fellowships, financial education and other efforts to boost homeownership in 63 congressional districts in 11 state. The group's 2007 funding has not been finalized. But in 2006, one of Hogar's "trusted friends" who paid $50,000 for a line on the caucus' website, special mention in its newsletters, listing on materials and advertising at events, was Countrywide Financial, which like a number of lenders makes both prime and subprime loans. Countrywide did not respond to interview requests.

 

[Douger]

The blame game. Uniquely Americant.

Remember Archie Bunker ? Union dockworker ?
Do you recall his house and lifestyle ?
He lived within a union dockworkers means. So did Al Bundy on married with chillunz.A lowly shoe salesman.Andy Griffith. A low paid country cop.

OOOOOOOOOOOOOO Nooooooooooo >Murkinz can't do that." I only owe 100 grand and my house is now miraculously worth 450 grand. Lets borrow two hundred grand and get us some new cars, his and hers Harleys and put in a swimming pool." " I always wanted a Rolex honey"

It's nobody's fault but your own. you are too stupid to live within your means and balance a simple budget.
Greed and ego were the entire problem with this movie. Plain and simple.

 

[Douger]

The blame game. Uniquely Americant.

Remember Archie Bunker ? Union dockworker ?
Do you recall his house and lifestyle ?
He lived within a union dockworkers means. So did Al Bundy on married with chillunz.A lowly shoe salesman.Andy Griffith. A low paid country cop.

OOOOOOOOOOOOOO Nooooooooooo >Murkinz can't do that." I only owe 100 grand and my house is now miraculously worth 450 grand. Lets borrow two hundred grand and get us some new cars, his and hers Harleys and put in a swimming pool." " I always wanted a Rolex honey"

It's nobody's fault but your own. you are too stupid to live within your means and balance a simple budget.
Greed and ego were the entire problem with this movie. Plain and simple.

 

[Vast LWC]

A better question is: why didn't the dems undo this crap when they had an unstoppable majority? because they are whores just like the GOP

Why didn't the dems stop tax breaks for moving jobs overseas? same answer

The dems do a lot of whining and finger-pointing instead of actually fixing problems. You can't name anything that the dems did during 2009 that created jobs and made the financial system sounder. They are all addicted to K-street money.

Hey, look, I'm willing to admit that most of Congress is indeed filled with whores, on both sides of the aisle.

But the OP is attempting to blame Democrats for the financial meltdown, and I was responding to that.

 

[Vast LWC]

You built up all the facts and stopped short of naming names. Do you know who took the most money from GSEs? Obama
Do you know who else got huge amounts of money from GSEs? Barney Frank
Do you know who blocked all GOP attempts to regulate GSEs? Obama & Barney Frank

I want derivatives stopped, and only investments that create capital & jobs allowed. No short-selling, no options, no more financial casino. No more "capturing" of government agencies like the SEC by Wall Street companies. How can someone like Bernie Madoff brag about becoming the next SEC head, and almost buy his way in?

Cool, who got the most money from Bear Stearns from 2000-2007? From AIG?

Never mind, allow me:

Bear Stearns political donations during the lead up to the meltdown:

Campaign contributions
James E. Cayne, Chairman and Chief Executive Officer of Bear Stearns, is a Bush Pioneer having raised at least $100,000 for Bush in the 2004 presidential election.

Bear Stearns gave $127,500 to federal candidates in the 2006 election through its political action committee - 25% to Democrats and 75% to Republicans.

Other political campaign contributions:
P. Nicholas Hurtgen, Bush Pioneer, Texans for Public Justice, accessed August 2007.
Douglas R. Korn, Bush Pioneer, Texans for Public Justice, accessed August 2007.
Peter J. Murphy, Bush Pioneer, Texans for Public Justice, accessed August 2007.
Bear Stearns & Co., Inc Political Campaign Committee FKA Bear Stearns PCC], Candidate Contributions, Congress.org: 2003-2004 Campaign Cycle: Total contributions: $66,500; and 2005-2006 Campaign Cycle: Total contributions: $79,000.
Bear Stearns & Co Inc Political Campaign Committee FKA Bear Stearns PCC Political Action Committee, Campaign Contribution Details '04 Election Cycle, CampaignMoney.com.

Source: http://www.sourcewatch.org/index.php?title=Bear,_Stearns_&_Co.,_Inc.

AIG seems to have contributed evenly through the years, contributing most to whomever was in charge at the time:

Over time, AIG hasn't shown an especially partisan streak, splitting evenly the $9.3 million it has contributed since 1989.

http://www.opensecrets.org/news/2009/03/before-the-fall-aig-payouts-we.html

 

[NYcarbineer]

No one was forced to make a single loan to an unqualified borrower under CRA. Even the banks that have gone under haven't made that claim. The best defense the banks could have would be to show that they went under because the government forced them to make bad loans,

and no banks make that defense.

There's one more example of inanity of this myth, in another nutshell.

Oh how stupid you are! Every day you dumbocraps regurgitate fact less talking points & lies trying to defend criminals only to get you ass kicked. Yet you somehow desire to get out of bed come on here & do it all over again. Maybe you are just to stupid to understand that the facts prove you wrong every single time.

THE KEY IS ENFORCEMENT, FEAR OF HAVING THE US ATTORNEY GENERAL SUE YOU INTO OBLIVION! --1995--"Attorney General Janet Reno, who had already won a number of bank lending discrimination settlements, sternly announces, "We will tackle lending discrimination wherever it appears." With the new policy in full force, "No loan is exempt; no bank is immune. For those who thumb their nose at us, I promise vigorous enforcement."

FEAR OF THE CONGRESSIONAL BLACK CAUCUS SCREWING UP YOUR BANKING BUSINESS.

FEAR OF HAVING THE US DEPARTMENT OF HOUSING & URBAN DEVELOPMENT SUE YOU INTO OBLIVION! [ame="http://www.youtube.com/watch?v=ivmL-lXNy64&feature=player_embedded"]HUD LAWSUIT[/ame]

NY Times - "But the storm has fallen with a special ferocity on black and Latino homeowners, the analysis shows. Defaults occur three times as often in mostly minority census tracts as in mostly white ones. Eighty-five percent of the worst-hit neighborhoods — where the default rate is at least double the regional average — have a majority of black and Latino homeowners."

--September 1999-- "A study by Freddie Mac, confirming earlier Federal Reserve and FDIC studies, contradicts race discrimination arguments for CRA. The study found that African-Americans with annual incomes of $65,000-$75,000 have on average worse credit records than whites making under $25,000. This showed that the difficulty in qualifying was not because of race but bad credit records. Accordingly, the Federal Reserve Bank of Dallas entitled a paper "Red Lining or Red Herring?" "City Journal warned that the Clinton administration had turned CRA into 'a vast extortion scheme against the nation's banks,'committing $1 trillion for mortgages and development projects, most of it funneled through the community organizers."

PEW Research Study - "From 1995 through the middle of this decade, homeownership rates rose more rapidly among all minorities than among whites. But since the start of the housing bust in 2005, rates have fallen more steeply for two of the nation's largest minority groups -- blacks and native-born Latinos -- than for the rest of the population"

THIS ALL PROVES BEYOND A SHADOW OF A DOUBT THAT THE CRA / GSE AFFIRMATIVE ACTION - SOCIALISM CAUSED THE ECONOMIC MELTDOWN!!! Just grow a spine & admit that the Congressional Black Caucus are racist who will stop at nothing to get more & more reparations from people who never benefited from & were never involved with slavery. Their poor credit scores & high default rates are due to the I am not paying the man because he owes me mentality. If OBAMACORN had spent half as much energy teaching minorities about credit & being responsible American citizens as they did going after banks this crisis would have been avoided. Instead they are taught to be African-American Dependants & how to stick it to the man.

Let me repeat:

1. the CRA never required any bank against its will to make any loan to any unqualified buyer. Not even the banks who went under ever made any such claim.

2. the real estate meltdown was never primarily in minority neighborhoods.

Now grow up and learn something