FACTS on Dubya's great recession

[Rshermr]

This is a great example of a moron throwing around stats without any understanding of their meaning.

Stop projecting Bubba



The "turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007," the President's Working Group on Financial Markets OCT 2008

standards can be as low as possible but unless the Fed is printing the money to buy and bid up prices no bubble is possible. Do you even know what the Fed is?

Please prove that the fed was printing money and spending it to bid up prices, me poor ignorant troll. Because you have NO credibility.
Try an impartial and expert source, not your bat shit crazy con sites. Try to act like an actual scholar, which I know is asking a whole lot. Which is why I say "try" and "act".

 

[EdwardBaiamonte]

Stop projecting Bubba



The "turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007," the President's Working Group on Financial Markets OCT 2008

standards can be as low as possible but unless the Fed is printing the money to buy and bid up prices no bubble is possible. Do you even know what the Fed is?

Please prove that the fed was printing money and spending it to bid up prices, me poor ignorant troll. Because you have NO credibility.
Try an impartial and expert source, not your bat shit crazy con sites. Try to act like an actual scholar, which I know is asking a whole lot. Which is why I say "try" and "act".

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.

 

[Dad2three]

This is a great example of a moron throwing around stats without any understanding of their meaning.

Stop projecting Bubba



The "turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007," the President's Working Group on Financial Markets OCT 2008

standards can be as low as possible but unless the Fed is printing the money to buy and bid up prices no bubble is possible. Do you even know what the Fed is?

Examining the big lie: How the facts of the economic crisis stack up


The boom and bust was global. Proponents of the Big Lie ignore the worldwide nature of the housing boom and bust.


Examining the big lie: How the facts of the economic crisis stack up | The Big Picture

 

[Dad2three]

standards can be as low as possible but unless the Fed is printing the money to buy and bid up prices no bubble is possible. Do you even know what the Fed is?

Please prove that the fed was printing money and spending it to bid up prices, me poor ignorant troll. Because you have NO credibility.
Try an impartial and expert source, not your bat shit crazy con sites. Try to act like an actual scholar, which I know is asking a whole lot. Which is why I say "try" and "act".

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.

Was it easy money or easy regulation that caused the housing bubble?



. The common center-right theory blames an overly easy Fed in the early to mid-2000s. From 2002 to 2006, the fed funds rate was well below what a “Taylor rule” approach would have recommended.

But when the Fed did begin to tighten, there was a bifurcation in the mortgage market, as documented in a new paper by Ambrogio Cesa-Bianchi and Alessandro Rebucci:

… after the Fed started to tighten its monetary-policy stance and the prime segment of the mortgage market promptly turned around, the subprime segment of the mortgage market continued to boom, with increased perceived risk of loans portfolios and declining lending standards. Despite this evidence, the first regulatory action to rein in those financial excesses was undertaken only in late 2006, after almost two years of steady increases in the federal funds rate. …

When regulators finally decided to act, it was too late


: in fact, it was not until September 2006 that regulators agreed on new guidelines (the vertical line labelled FDIC 1) aimed at tightening ‘non-traditional’ mortgage-lending practices. Even if it this measure may have served as a signal that regulatory policy was changing direction, it should be noted the new underwriting criteria did not apply to subprime loans, whose standards were discussed in a subsequent regulatory measure introduced in June 2007 (the vertical line labeled FDIC 2). By that time, more than 30 subprime lenders had already gone bankrupt and many more followed suit.



And here are charts showing that once the Fed tightened, different mortgage markets showed different behavior. And note how subprime reacted to various regulatory actions:

The economists’ conclusion: “In the context of our model and according to this evidence, regulatory rather than monetary-policy failures are largely to blame for the occurrence and the severity of the Great Recession.”

Was it easy money or easy regulation that caused the housing bubble? | AEIdeas



KEEP TRYING BUBBA, LOL





No, government did not cause the housing crisis




Let's go through some things we know.

1. Private markets, rather than the GSEs, created the subprime mortgage boom.


2. The Community Reinvestment Act and the GSE's affordability mission didn't cause the crisis




3. There's a lot of research to back this up and little against it.


No, Marco Rubio, government did not cause the housing crisis - The Washington Post

 

[Dad2three]

standards can be as low as possible but unless the Fed is printing the money to buy and bid up prices no bubble is possible. Do you even know what the Fed is?

Please prove that the fed was printing money and spending it to bid up prices, me poor ignorant troll. Because you have NO credibility.
Try an impartial and expert source, not your bat shit crazy con sites. Try to act like an actual scholar, which I know is asking a whole lot. Which is why I say "try" and "act".

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.

Stiglitz was talking QE 2


YOU KNOW IF FREDDIE/FANNIE WERE BUYING OR GUARANTEEING THE LOANS, THE BANKS WOULDN'T HAD LOST MONEY RIGHT? lol

The Myth of Fannie Mae, Freddie Mac, Barney Frank, the Housing Bubble and the Recession



Start with the most basic fact of all: virtually none of the $1.5 trillion of cratering subprime mortgages were backed by Fannie or Freddie. That’s right — most subprime mortgages did not meet Fannie or Freddie’s strict lending standards. All those no money down, no interest for a year, low teaser rate loans? All the loans made without checking a borrower’s income or employment history? All made in the private sector, without any support from Fannie and Freddie.

Look at the numbers. While the credit bubble was peaking from 2003 to 2006, the amount of loans originated by Fannie and Freddie dropped from $2.7 trillion to $1 trillion. Meanwhile, in the private sector, the amount of subprime loans originated jumped to $600 billion from $335 billion and Alt-A loans hit $400 billion from $85 billion in 2003. Fannie and Freddie, which wouldn’t accept crazy floating rate loans, which required income verification and minimum down payments, were left out of the insanity.



The Myth of Fannie Mae, Freddie Mac, Barney Frank, the Housing Bubble and the Recession | The Long Goodbye




“The idea that they were leading this charge is just absurd,” said Guy Cecala, publisher of Inside Mortgage Finance, an authoritative trade publication. “Fannie and Freddie have always had the tightest underwriting on earth…They were opposite of subprime.”



Wall Street, Not Fannie and Freddie, Led Mortgage Meltdown - The Daily Beast


WORLD WIDE CREDIT BUBBLE AND BUST. ONE DUBYA CHEERED ON IN THE US

 

[CrusaderFrank]

Fannie and Freddie were the financial binary black holes at the epicenter of the meltdown, using their AAA Credit rating to suck in as much subprime paper as they could buy

 

[CrusaderFrank]

Please prove that the fed was printing money and spending it to bid up prices, me poor ignorant troll. Because you have NO credibility.
Try an impartial and expert source, not your bat shit crazy con sites. Try to act like an actual scholar, which I know is asking a whole lot. Which is why I say "try" and "act".

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.

Stiglitz was talking QE 2


YOU KNOW IF FREDDIE/FANNIE WERE BUYING OR GUARANTEEING THE LOANS, THE BANKS WOULDN'T HAD LOST MONEY RIGHT? lol

The Myth of Fannie Mae, Freddie Mac, Barney Frank, the Housing Bubble and the Recession



Start with the most basic fact of all: virtually none of the $1.5 trillion of cratering subprime mortgages were backed by Fannie or Freddie. That’s right — most subprime mortgages did not meet Fannie or Freddie’s strict lending standards. All those no money down, no interest for a year, low teaser rate loans? All the loans made without checking a borrower’s income or employment history? All made in the private sector, without any support from Fannie and Freddie.

Look at the numbers. While the credit bubble was peaking from 2003 to 2006, the amount of loans originated by Fannie and Freddie dropped from $2.7 trillion to $1 trillion. Meanwhile, in the private sector, the amount of subprime loans originated jumped to $600 billion from $335 billion and Alt-A loans hit $400 billion from $85 billion in 2003. Fannie and Freddie, which wouldn’t accept crazy floating rate loans, which required income verification and minimum down payments, were left out of the insanity.



The Myth of Fannie Mae, Freddie Mac, Barney Frank, the Housing Bubble and the Recession | The Long Goodbye




“The idea that they were leading this charge is just absurd,” said Guy Cecala, publisher of Inside Mortgage Finance, an authoritative trade publication. “Fannie and Freddie have always had the tightest underwriting on earth…They were opposite of subprime.”



Wall Street, Not Fannie and Freddie, Led Mortgage Meltdown - The Daily Beast


WORLD WIDE CREDIT BUBBLE AND BUST. ONE DUBYA CHEERED ON IN THE US

Whhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhat????

F/F were the one who gave their AAA Stamp to NiNa loans.

No Income No Asset = Subprime!

You maybe be dumber than Krugman

 

[Toro]

BS

You said no economists were mentioning increasing taxes WHILE the US went to 2 UNFUNDED WARS? Stockman (an economist headed CBO and Krugman are 2. Need more?

THE AUTHOR IS SAYING REGULATOR FAILURE WAS THE PRIMARY CAUSE OF THE SUBPRIME CRISIS. It was. I've REPEATEDLY shown that

Canada didn't have a housing boom AND if they bust, it'll be 10%-15% range, that's ALWAYS acceptable, 40%-60% (bust) range that the US and other nations had? Not so much!

No economists were saying we should raise taxes on the housing market. That's what the authors in your link argued.

The authors argue the Fed was not responsible. You shouting in caps doesn't change the fact that they are wrong.

Canada most certainly is a housing boom. Its housing market is one of the most expensive in the world relative to income. Prices have risen as much as they did in the US.

The problem with all of these “rates were too low” theories is that a very large portion of the mortgage market – the flippers and investors – were almost completely rate insensitive. They didn’t care what rates were, only that there were buyers.



A recent report from the Feds states that aggressive real estate investors investors played a major role in today’s housing crisis which has led to record amounts of foreclosure across the country, especially in hard-hit states like California, Florida, Nevada, and Arizona. In these states the average home price nearly doubled in just six years from 2000 to 2006.

In 2006, about a third of all home loans originated that year were granted to borrowers who already owned one or more properties. The researchers report that a large amount of property owners during the boom years owned three or more homes.


The report from the Fed says that mortgage lenders should regulate properties purchased by investors to avoid future housing problems. Researchers point out that China now requires real estate investors to pay more of a down payment than normal buyers along with a higher interest rate as well. -

House Flippers Caused the Housing Crisis, Says Feds | LoanSafe.org

As Minsky, Kindelberger and Soros all correctly note, bubbles enter a phase of self-reinforcing euphoria, where the only thing that matters is that the price keeps moving higher. The cash flows of the bubble asset don't matter in the bubble phase. That the flippers at the end didn't care about the mortgage rate is what we'd expect. They care only about it when the perpetual motion machine stops.

 

[Dad2three]

Fannie and Freddie were the financial binary black holes at the epicenter of the meltdown, using their AAA Credit rating to suck in as much subprime paper as they could buy

LIE

“The idea that they were leading this charge is just absurd,” said Guy Cecala, publisher of Inside Mortgage Finance, an authoritative trade publication. “Fannie and Freddie have always had the tightest underwriting on earth…They were opposite of subprime.”


Mortgages financed by Wall Street from 2001 to 2008 were 4½ times more likely to be seriously delinquent than mortgages backed by Fannie and Freddie.

Wall Street, Not Fannie and Freddie, Led Mortgage Meltdown - The Daily Beast


Start with the most basic fact of all: virtually none of the $1.5 trillion of cratering subprime mortgages were backed by Fannie or Freddie. That’s right — most subprime mortgages did not meet Fannie or Freddie’s strict lending standards. All those no money down, no interest for a year, low teaser rate loans? All the loans made without checking a borrower’s income or employment history? All made in the private sector, without any support from Fannie and Freddie.

Look at the numbers. While the credit bubble was peaking from 2003 to 2006, the amount of loans originated by Fannie and Freddie dropped from $2.7 trillion to $1 trillion. Meanwhile, in the private sector, the amount of subprime loans originated jumped to $600 billion from $335 billion and Alt-A loans hit $400 billion from $85 billion in 2003. Fannie and Freddie, which wouldn’t accept crazy floating rate loans, which required income verification and minimum down payments, were left out of the insanity.


The Myth of Fannie Mae, Freddie Mac, Barney Frank, the Housing Bubble and the Recession | The Long Goodbye

 

[Dad2three]

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.

Stiglitz was talking QE 2


YOU KNOW IF FREDDIE/FANNIE WERE BUYING OR GUARANTEEING THE LOANS, THE BANKS WOULDN'T HAD LOST MONEY RIGHT? lol

The Myth of Fannie Mae, Freddie Mac, Barney Frank, the Housing Bubble and the Recession



Start with the most basic fact of all: virtually none of the $1.5 trillion of cratering subprime mortgages were backed by Fannie or Freddie. That’s right — most subprime mortgages did not meet Fannie or Freddie’s strict lending standards. All those no money down, no interest for a year, low teaser rate loans? All the loans made without checking a borrower’s income or employment history? All made in the private sector, without any support from Fannie and Freddie.

Look at the numbers. While the credit bubble was peaking from 2003 to 2006, the amount of loans originated by Fannie and Freddie dropped from $2.7 trillion to $1 trillion. Meanwhile, in the private sector, the amount of subprime loans originated jumped to $600 billion from $335 billion and Alt-A loans hit $400 billion from $85 billion in 2003. Fannie and Freddie, which wouldn’t accept crazy floating rate loans, which required income verification and minimum down payments, were left out of the insanity.



The Myth of Fannie Mae, Freddie Mac, Barney Frank, the Housing Bubble and the Recession | The Long Goodbye




“The idea that they were leading this charge is just absurd,” said Guy Cecala, publisher of Inside Mortgage Finance, an authoritative trade publication. “Fannie and Freddie have always had the tightest underwriting on earth…They were opposite of subprime.”



Wall Street, Not Fannie and Freddie, Led Mortgage Meltdown - The Daily Beast


WORLD WIDE CREDIT BUBBLE AND BUST. ONE DUBYA CHEERED ON IN THE US

Whhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhat????

F/F were the one who gave their AAA Stamp to NiNa loans.

No Income No Asset = Subprime!

You maybe be dumber than Krugman

liar

 

[Dad2three]

No economists were saying we should raise taxes on the housing market. That's what the authors in your link argued.

The authors argue the Fed was not responsible. You shouting in caps doesn't change the fact that they are wrong.

Canada most certainly is a housing boom. Its housing market is one of the most expensive in the world relative to income. Prices have risen as much as they did in the US.

The problem with all of these “rates were too low” theories is that a very large portion of the mortgage market – the flippers and investors – were almost completely rate insensitive. They didn’t care what rates were, only that there were buyers.



A recent report from the Feds states that aggressive real estate investors investors played a major role in today’s housing crisis which has led to record amounts of foreclosure across the country, especially in hard-hit states like California, Florida, Nevada, and Arizona. In these states the average home price nearly doubled in just six years from 2000 to 2006.

In 2006, about a third of all home loans originated that year were granted to borrowers who already owned one or more properties. The researchers report that a large amount of property owners during the boom years owned three or more homes.


The report from the Fed says that mortgage lenders should regulate properties purchased by investors to avoid future housing problems. Researchers point out that China now requires real estate investors to pay more of a down payment than normal buyers along with a higher interest rate as well. -

House Flippers Caused the Housing Crisis, Says Feds | LoanSafe.org

As Minsky, Kindelberger and Soros all correctly note, bubbles enter a phase of self-reinforcing euphoria, where the only thing that matters is that the price keeps moving higher. The cash flows of the bubble asset don't matter in the bubble phase. That the flippers at the end didn't care about the mortgage rate is what we'd expect. They care only about it when the perpetual motion machine stops.

So, AS I POSITED, regulator failure (mainly Dubya) caused the subprime crisis!

 

[CrusaderFrank]

Fannie and Freddie were the financial binary black holes at the epicenter of the meltdown, using their AAA Credit rating to suck in as much subprime paper as they could buy

LIE

“The idea that they were leading this charge is just absurd,” said Guy Cecala, publisher of Inside Mortgage Finance, an authoritative trade publication. “Fannie and Freddie have always had the tightest underwriting on earth…They were opposite of subprime.”


Mortgages financed by Wall Street from 2001 to 2008 were 4½ times more likely to be seriously delinquent than mortgages backed by Fannie and Freddie.

Wall Street, Not Fannie and Freddie, Led Mortgage Meltdown - The Daily Beast


Start with the most basic fact of all: virtually none of the $1.5 trillion of cratering subprime mortgages were backed by Fannie or Freddie. That’s right — most subprime mortgages did not meet Fannie or Freddie’s strict lending standards. All those no money down, no interest for a year, low teaser rate loans? All the loans made without checking a borrower’s income or employment history? All made in the private sector, without any support from Fannie and Freddie.

Look at the numbers. While the credit bubble was peaking from 2003 to 2006, the amount of loans originated by Fannie and Freddie dropped from $2.7 trillion to $1 trillion. Meanwhile, in the private sector, the amount of subprime loans originated jumped to $600 billion from $335 billion and Alt-A loans hit $400 billion from $85 billion in 2003. Fannie and Freddie, which wouldn’t accept crazy floating rate loans, which required income verification and minimum down payments, were left out of the insanity.


The Myth of Fannie Mae, Freddie Mac, Barney Frank, the Housing Bubble and the Recession | The Long Goodbye

You don't even know what a subprime mortgage is!! Your handlers should get a refund

 

[Dad2three]

Fannie and Freddie were the financial binary black holes at the epicenter of the meltdown, using their AAA Credit rating to suck in as much subprime paper as they could buy

LIE

“The idea that they were leading this charge is just absurd,” said Guy Cecala, publisher of Inside Mortgage Finance, an authoritative trade publication. “Fannie and Freddie have always had the tightest underwriting on earth…They were opposite of subprime.”


Mortgages financed by Wall Street from 2001 to 2008 were 4½ times more likely to be seriously delinquent than mortgages backed by Fannie and Freddie.

Wall Street, Not Fannie and Freddie, Led Mortgage Meltdown - The Daily Beast


Start with the most basic fact of all: virtually none of the $1.5 trillion of cratering subprime mortgages were backed by Fannie or Freddie. That’s right — most subprime mortgages did not meet Fannie or Freddie’s strict lending standards. All those no money down, no interest for a year, low teaser rate loans? All the loans made without checking a borrower’s income or employment history? All made in the private sector, without any support from Fannie and Freddie.

Look at the numbers. While the credit bubble was peaking from 2003 to 2006, the amount of loans originated by Fannie and Freddie dropped from $2.7 trillion to $1 trillion. Meanwhile, in the private sector, the amount of subprime loans originated jumped to $600 billion from $335 billion and Alt-A loans hit $400 billion from $85 billion in 2003. Fannie and Freddie, which wouldn’t accept crazy floating rate loans, which required income verification and minimum down payments, were left out of the insanity.


The Myth of Fannie Mae, Freddie Mac, Barney Frank, the Housing Bubble and the Recession | The Long Goodbye

You don't even know what a subprime mortgage is!! Your handlers should get a refund

It was that thing Banksters created by the PRIVATE LABEL SECURITIZATION PROCESS FOR THE 3RD TIME SINCE 1890 THAT HAD FAILED (1890, 1920'S AND DUBYA'S 2000'S) that knocked F/F off of their chair, though Dubya requiring F/F to buy $440 billion in MBS's in the secondary market sure hosed F/F....

 

[CrusaderFrank]

LIE

“The idea that they were leading this charge is just absurd,” said Guy Cecala, publisher of Inside Mortgage Finance, an authoritative trade publication. “Fannie and Freddie have always had the tightest underwriting on earth…They were opposite of subprime.”


Mortgages financed by Wall Street from 2001 to 2008 were 4½ times more likely to be seriously delinquent than mortgages backed by Fannie and Freddie.

Wall Street, Not Fannie and Freddie, Led Mortgage Meltdown - The Daily Beast


Start with the most basic fact of all: virtually none of the $1.5 trillion of cratering subprime mortgages were backed by Fannie or Freddie. That’s right — most subprime mortgages did not meet Fannie or Freddie’s strict lending standards. All those no money down, no interest for a year, low teaser rate loans? All the loans made without checking a borrower’s income or employment history? All made in the private sector, without any support from Fannie and Freddie.

Look at the numbers. While the credit bubble was peaking from 2003 to 2006, the amount of loans originated by Fannie and Freddie dropped from $2.7 trillion to $1 trillion. Meanwhile, in the private sector, the amount of subprime loans originated jumped to $600 billion from $335 billion and Alt-A loans hit $400 billion from $85 billion in 2003. Fannie and Freddie, which wouldn’t accept crazy floating rate loans, which required income verification and minimum down payments, were left out of the insanity.


The Myth of Fannie Mae, Freddie Mac, Barney Frank, the Housing Bubble and the Recession | The Long Goodbye

You don't even know what a subprime mortgage is!! Your handlers should get a refund

It was that thing Banksters created by the PRIVATE LABEL SECURITIZATION PROCESS FOR THE 3RD TIME SINCE 1890 THAT HAD FAILED (1890, 1920'S AND DUBYA'S 2000'S) that knocked F/F off of their chair, though Dubya requiring F/F to buy $440 billion in MBS's in the secondary market sure hosed F/F....

Do yourself a favor and just shut the fuck up

 

[Toro]

The problem with all of these “rates were too low” theories is that a very large portion of the mortgage market – the flippers and investors – were almost completely rate insensitive. They didn’t care what rates were, only that there were buyers.



A recent report from the Feds states that aggressive real estate investors investors played a major role in today’s housing crisis which has led to record amounts of foreclosure across the country, especially in hard-hit states like California, Florida, Nevada, and Arizona. In these states the average home price nearly doubled in just six years from 2000 to 2006.

In 2006, about a third of all home loans originated that year were granted to borrowers who already owned one or more properties. The researchers report that a large amount of property owners during the boom years owned three or more homes.


The report from the Fed says that mortgage lenders should regulate properties purchased by investors to avoid future housing problems. Researchers point out that China now requires real estate investors to pay more of a down payment than normal buyers along with a higher interest rate as well. -

House Flippers Caused the Housing Crisis, Says Feds | LoanSafe.org

As Minsky, Kindelberger and Soros all correctly note, bubbles enter a phase of self-reinforcing euphoria, where the only thing that matters is that the price keeps moving higher. The cash flows of the bubble asset don't matter in the bubble phase. That the flippers at the end didn't care about the mortgage rate is what we'd expect. They care only about it when the perpetual motion machine stops.

So, AS I POSITED, regulator failure (mainly Dubya) caused the subprime crisis!

Not as you posited.

Bubbles happened all around the world. A bubble in Spain or Canada doesn't happen because of deregulation in the US. It pours fuel on the fire in the US, but it doesn't cause a housing bubble in Ireland.

That's also true of the CRA or the GSEs. They too were not the cause of the meltdown. Both, at best, were minor reasons, behind Wall Street and deregulation. However, all pale compared to the Fed, the institution that has the most influence on the price of credit on the planet.

 

[EdwardBaiamonte]

As Minsky, Kindelberger and Soros all correctly note, bubbles enter a phase of self-reinforcing euphoria, where the only thing that matters is that the price keeps moving higher. The cash flows of the bubble asset don't matter in the bubble phase. That the flippers at the end didn't care about the mortgage rate is what we'd expect. They care only about it when the perpetual motion machine stops.

So, AS I POSITED, regulator failure (mainly Dubya) caused the subprime crisis!

Not as you posited.

Bubbles happened all around the world. A bubble in Spain or Canada doesn't happen because of deregulation in the US. It pours fuel on the fire in the US, but it doesn't cause a housing bubble in Ireland.

That's also true of the CRA or the GSEs. They too were not the cause of the meltdown. Both, at best, were minor reasons, behind Wall Street and deregulation. However, all pale compared to the Fed, the institution that has the most influence on the price of credit on the planet.

yes for sure and the Fed was heavily backed up by Fan/Fred, truly massive lib organizations designed to get millions into homes the free market said they could not afford! Liberals overlook the obvious to parrot their beloved anti-business Marxism.

 

[Dad2three]

You don't even know what a subprime mortgage is!! Your handlers should get a refund

It was that thing Banksters created by the PRIVATE LABEL SECURITIZATION PROCESS FOR THE 3RD TIME SINCE 1890 THAT HAD FAILED (1890, 1920'S AND DUBYA'S 2000'S) that knocked F/F off of their chair, though Dubya requiring F/F to buy $440 billion in MBS's in the secondary market sure hosed F/F....

Do yourself a favor and just shut the fuck up

Got it, You are to ignorant to add up 2+2....

 

[mudwhistle]

Barney Fwank and Chris Dodd threatened to come after banks with the FDIC if they didn't give out those bad loans.......so they did it.

The FDIC is currently going after businesses in the same exact manner, threatening banks that loan to gun dealers and other 'unsavory' businesses.

 

[CrusaderFrank]

It was that thing Banksters created by the PRIVATE LABEL SECURITIZATION PROCESS FOR THE 3RD TIME SINCE 1890 THAT HAD FAILED (1890, 1920'S AND DUBYA'S 2000'S) that knocked F/F off of their chair, though Dubya requiring F/F to buy $440 billion in MBS's in the secondary market sure hosed F/F....

Do yourself a favor and just shut the fuck up

Got it, You are to ignorant to add up 2+2....

I take it back.

Please keep confirming you're as dumb as Paul Krugman who also has no idea what a subprime mortgage is

 

[Dad2three]

As Minsky, Kindelberger and Soros all correctly note, bubbles enter a phase of self-reinforcing euphoria, where the only thing that matters is that the price keeps moving higher. The cash flows of the bubble asset don't matter in the bubble phase. That the flippers at the end didn't care about the mortgage rate is what we'd expect. They care only about it when the perpetual motion machine stops.

So, AS I POSITED, regulator failure (mainly Dubya) caused the subprime crisis!

Not as you posited.

Bubbles happened all around the world. A bubble in Spain or Canada doesn't happen because of deregulation in the US. It pours fuel on the fire in the US, but it doesn't cause a housing bubble in Ireland.

That's also true of the CRA or the GSEs. They too were not the cause of the meltdown. Both, at best, were minor reasons, behind Wall Street and deregulation. However, all pale compared to the Fed, the institution that has the most influence on the price of credit on the planet.

MORE bullshit from the (NOT) right winger from Canada

Sorry, I've shown, OVER AND over that CRA , GSE's, DEREGULATION had almost ZERO to do with Dubya's great subprime crisis in the US AS the Banksters created aa WORLD WIDE CREDIT BUBBLE. You hang onto the false posit that it was mainly the fed reserve instead of Dubya's policies as outlined!