The Derp
Gold Member
- Apr 12, 2017
- 9,620
- 661
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- Banned
- #81
The Republicans tried many times to ensure there were better regulations and more oversight over the lending practices that led to the crisis. .
No they didn't. In fact, they did the exact opposite of that. Conservatives met with Wall Street in April 2004, and that meeting resulted in the Bush Administration's regulators ceased enforcement of lending standards for subprime loans, removed leveraging restrictions on Wall Street banks, and allowed the industry to police itself. Democrats had nothing to do with that and actually, in October 2003, there was broad bipartisan consensus on GSE Reform that the Bush Administration killed in October 2003.
Not that it would have mattered anyway, since the problems in the mortgage market were tied not to GSE's, but by poor, private-sector loan performance. You can see it in the chart below, how default rates for private-label subprime ARMs started skyrocketing before all other types of loans:
When you look at this chart, what is it you are seeing? Because when I look at it, I see those private-label, non-GSE subprime ARMs and Loans entering default about 2 years prior to the GSE loans. Which proves that the private label loans had a waterfall effect on the mortgage market as soon after they started defaulting, less risky loans began defaulting. One happened before the other. So which came first? The defaulting, private-label, non-GSE subprime defaults, or the GSE-backed defaults? The chart is pretty clear. Now it's just a matter of you accepting facts.