Housing Starts Soar

[Dad2three]

IF only you could show ONE time conservative policy of ANY sort EVER worked you might have something. You don't!

dear, America is the result of a conservative policy to strictly limit liberal govt, if not make it illegal. Do you understand?

Oh your misguided opinions again. Got it. The most liberal activists of their times created the US, but they were conservative? lol

dear, if they were liberals then were liberals for very very tiny govt!!

Yes, that's why they CHOSE the BIG FEDERAL Gov't over the states rights Articles of Confederation

 

[Dad2three]

THEN you make a stupid posit that F/F guaranteed the loans? lol.

dear I said they seemingly guaranteed the loans

What does seemingly mean Bubba

it means it seemed that the Fan/Fred guarantee and the Greenspan Put would always save them!

So you are IGNORANT, and STILL don't get it that F/F didn't guarantee the loans and what caused the crash was 'free market' crap that fails EVERY TIME it's EVER tried

A long-time cheerleader for deregulation, Greenspan admitted to a congressional committee yesterday that he had been "partially wrong" in his hands-off approach towards the banking industry and that the credit crunch had left him in a state of shocked disbelief. "I have found a flaw," said Greenspan, referring to his economic philosophy. "I don't know how significant or permanent it is. But I have been very distressed by that fact."


..."I made a mistake in presuming that the self-interests of organisations, specifically banks and others, were such that they were best capable of protecting their own shareholders and their equity in the firms," said Greenspan.

Greenspan - I was wrong about the economy. Sort of Business The Guardian

 

[HenryBHough]

Housing STARTS.

What counts is completions followed quickly by sales.

There were thousands of STARTS around Las Vegas just before Obama's anointment and most of those thousands remained unfinished and crumbling six years in.

 

[Dad2three]

Housing STARTS.

What counts is completions followed quickly by sales.

There were thousands of STARTS around Las Vegas just before Obama's anointment and most of those thousands remained unfinished and crumbling six years in.

Yep, Dubya's subprime crisis consequences... Conservatives did it AGAIN

FACTS on Dubya s great recession US Message Board - Political Discussion Forum

 

[EdwardBaiamonte]

Greenspan - I was wrong about the economy. Sort of Business The Guardian

what he meant was that he thought capitalist corporations could operate safely in a market hugely distorted by liberal interference! He was wrong but is more capitalist than ever.

 

[EdwardBaiamonte]

'free market' crap that fails EVERY TIME it's EVER tried

dear, China just tried it and instantly eliminated 40% of the world's poverty. See why we say liberalism is based in pure ignorance?

 

[saveliberty]

Derivatives created a false sense of risk and with the pressure from government types like Franks (D) to expand credit to the poor, banks were able to accommodate. In a free market, no bank would accept the risk these loans posed.

 

[EdwardBaiamonte]

So you are IGNORANT, and STILL don't get it that F/F didn't guarantee the loans

dumbto3 strikes again:
Fannie Mae, Freddie Mac, and the Federal Role in the Secondary ...
Fannie Mae Freddie Mac and the Federal Role in the Secondary Mortgage Market Congressional Budget Office
‎
Dec 22, 2010 ... Because of their implicit federal guarantee, Fannie Mae and Freddie Mac could borrow to fund their portfolio holdings at much lower interest .

 

[Dad2three]

So you are IGNORANT, and STILL don't get it that F/F didn't guarantee the loans

dumbto3 strikes again:
Fannie Mae, Freddie Mac, and the Federal Role in the Secondary ...
Fannie Mae Freddie Mac and the Federal Role in the Secondary Mortgage Market Congressional Budget Office
‎
Dec 22, 2010 ... Because of their implicit federal guarantee, Fannie Mae and Freddie Mac could borrow to fund their portfolio holdings at much lower interest .

So you are STILL ignorant? Implicit guarantee OF F/F NOT the Banksters who didn't have the UNDERWRITING standards that met F/F standards dummy!


Grow a brain

 

[Dad2three]

'free market' crap that fails EVERY TIME it's EVER tried

dear, China just tried it and instantly eliminated 40% of the world's poverty. See why we say liberalism is based in pure ignorance?

China? Oh right that place that is fighting Hong Kong over Democracy thing, lol

 

[Dad2three]

Greenspan - I was wrong about the economy. Sort of Business The Guardian

what he meant was that he thought capitalist corporations could operate safely in a market hugely distorted by liberal interference! He was wrong but is more capitalist than ever.

Sure, EVERY time conservatives try laizze affaire, it destroys economies. EVERY TIME!

 

[Dad2three]

Derivatives created a false sense of risk and with the pressure from government types like Franks (D) to expand credit to the poor, banks were able to accommodate. In a free market, no bank would accept the risk these loans posed.

Really? Frank? Who is this Frank you speak of?

Wall Street, Not Fannie and Freddie, Led Mortgage Meltdown

The evidence indicates Fannie and Freddie contributed to the mortgage meltdown, but they played a secondary role to Wall Street. Wall Street firms and the mortgage lenders they bankrolled led the growth of the market for subprime loans and other risky mortgages.

Government data show Fannie and Freddie didn’t take the same risks that Wall Street’s mortgage-backed securities machine did. 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.

Tagging Fannie and Freddie as the primary suspects in the mortgage debacle diverts attention from bigger offenders and from policy decisions that helped create the climate for out-of-control lending.

Some 6 percent of Fannie- and Freddie-sponsored loans made during that span were 90 days late at some point in their history, according to Fannie and Freddie’s regulator, the Federal Housing Finance Agency. By contrast, the FHFA says, roughly 27 percent of loans that Wall Street folded into mortgage-backed investments were at least 90 days late at some point.

“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

Q When did the Bush Mortgage Bubble start?

A The general timeframe is it started late 2004.

From Bush’s President’s Working Group on Financial Markets October 2008

“The Presidents Working Group’s March policy statement acknowledged that 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.”



Q Did the Community Reinvestment Act under Carter/Clinton caused it?


A "Since 1995 there has been essentially no change in the basic CRA rules or enforcement process that can be reasonably linked to the subprime lending activity. This fact weakens the link between the CRA and the current crisis since the crisis is rooted in poor performance of mortgage loans made between 2004 and 2007. "

http://www.federalreserve.gov/newsevents/speech/20081203_analysis.pdf

Q HOLY JESUS! DID YOU JUST PROVE THAT OVER 50 % OF ALL MORTGAGES IN 2006 DIDNT REQUIRE BORROWERS TO DOCUMENT THEIR INCOME?!?!?!?

A Yes.




Q WHO THE HELL LOANS HUNDREDS OF THOUSANDS OF DOLLARS TO PEOPLE WITHOUT CHECKING THEIR INCOMES?!?!?

A Banks.

Q WHY??!?!!!?!

A Two reasons, greed and Bush's regulators let them


FACTS on Dubya s great recession US Message Board - Political Discussion Forum

 

[EdwardBaiamonte]

Greenspan - I was wrong about the economy. Sort of Business The Guardian

what he meant was that he thought capitalist corporations could operate safely in a market hugely distorted by liberal interference! He was wrong but is more capitalist than ever.

Sure, EVERY time conservatives try laizze affaire, it destroys economies. EVERY TIME!

dear China is trying it now and it instantly eliminated 40% of the world's poverty!
USA is richest in human history because it tried it most!! See why say liberalism is based in pupre ignorance.

 

[Dad2three]

Derivatives created a false sense of risk and with the pressure from government types like Franks (D) to expand credit to the poor, banks were able to accommodate. In a free market, no bank would accept the risk these loans posed.

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.

A McKinsey Global Institute report noted “from 2000 through 2007, a remarkable run-up in global home prices occurred.” It is highly unlikely that a simultaneous boom and bust everywhere else in the world was caused by one set of factors (ultra-low rates, securitized AAA-rated subprime, derivatives) but had a different set of causes in the United States. Indeed, this might be the biggest obstacle to pushing the false narrative.

Nonbank mortgage underwriting exploded from 2001 to 2007, along with the private label securitization market, which eclipsed Fannie and Freddie during the boom.


Check the mortgage origination data: The vast majority of subprime mortgages — the loans at the heart of the global crisis — were underwritten by unregulated private firms.

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


It is clear to anyone who has studied the financial crisis of 2008 that the private sector’s drive for short-term profit was behind it.


Lest We Forget Why We Had A Financial Crisis - Forbes

 

[EdwardBaiamonte]

It is clear to anyone who has studied the financial crisis of 2008 that the private sector’s drive for short-term profit was behind it.

too completely stupid since all industries drive for short term profits!! What was special about the USSR and USA housing market? Right- there was massive liberal regulation to subvert the free market and get folks into homes the free market said they could not afford!!u

 

[HenryBHough]

It is clear that an idiot speaking loudly (using huge bolded fonts) is still an idiot.

 

[Dad2three]

It is clear to anyone who has studied the financial crisis of 2008 that the private sector’s drive for short-term profit was behind it.

too completely stupid since all industries drive for short term profits!! What was special about the USSR and USA housing market? Right- there was massive liberal regulation to subvert the free market and get folks into homes the free market said they could not afford!!u

Weird you hang onto tired bullshit that has LONG been refuted

Free markets forces did it to US AND the world dummy, grow a brain, get honest or just kill yourself!

 

[saveliberty]

I expect nothing less than dad2three's stupid/lair dance. Sad when environment AND heredity conspire against some folks.

For example, this idiot thinks building a house in France effects a home purchase in the US.

 

[Avorysuds]

This is good news. And it is very expected news.

If you did the math, it was just a matter of time. We have been building too few homes the past few years.

lol... You're a smart guy but sometimes you say stupid stuff.

How can you possibly know how many homes there needs to be? Wages are still falling or stagnant and yet housing is increasing as fast as it was under Bush, meaning once again there will be a crash. There is no good news in FDR style economics. Poor people not being able to afford housing (or food) does not create a strong economy. Housing needs to decrease or remain the same for a long long time while wages catch up.

 

[Toro]

This is good news. And it is very expected news.

If you did the math, it was just a matter of time. We have been building too few homes the past few years.

lol... You're a smart guy but sometimes you say stupid stuff.

How can you possibly know how many homes there needs to be? Wages are still falling or stagnant and yet housing is increasing as fast as it was under Bush, meaning once again there will be a crash. There is no good news in FDR style economics. Poor people not being able to afford housing (or food) does not create a strong economy. Housing needs to decrease or remain the same for a long long time while wages catch up.

We forecasted five years ago that excess supply would be wiped out by 2015, give or take a year. And we were right, although about a year earlier than we thought. We were buying thousands of unfinished lots beginning in 2010, and have generated unleveraged mid-teens returns.

Housing in secondary and tertiary markets are still one of the cheapest assets in the world right now. I continue to be bullish on housing.

It doesn't take a rocket scientist to forecast housing growth. In fact, its one of the easier things to forecast. It's primarily driven by demographic growth, which changes at glacial speed. It may be quite different in any given year, but if you have a long time horizon, the supply demand dynamics are fairly consistent.