“I Cannot Afford To Live”: Americans Get Emotional As The U.S. Economy Goes Off The Rails

[Papageorgio]

Don't worry help is on the way. 2023 unions won big. Wages for uneductaed blue collar workers went up. Inflation is being fixed.

Joe Biden's first two years: He could be a president on par with FDR and LBJ

Don't laugh: As a presidential historian, I can tell you that FDR and LBJ were also underestimated at first

www.salon.com

Biden's two-year record stacks up well against the very high bars set by FDR and LBJ, beginning with the $1.9 trillion American Rescue Plan to stimulate the economy, followed by the Infrastructure Investment and Jobs Act to provide for repairs and extensions to the nation's roads, bridges, railroads, water systems (the need for which is obvious, for instance, in Jackson, Mississippi, where I live) and broadband. In 2022, he secured passage of the PACT Act, expanding health care and benefits for those who were exposed to toxic substances during their military service, and the CHIPS and Science Act, funding advanced scientific research and investing $53 billion to manufacture silicone microchips in the U.S. The crown jewel in 2022 was the Inflation Reduction Act, which does more than any previous legislation to mitigate climate change, allows Medicare to negotiate with Big Pharma to cut prescription drug prices, begins to crack down on tax evasion by corporations and the very rich and much more. ,...reform of the Electoral Count Act, making it more difficult to overturn an election

How is inflation being “fixed”?

 

[sealybobo]

lying dunce. Rates were quickly raised from zero to over 2% pre deep state flu. Graph available for proof.

So you understand why it happened.

 

[sealybobo]

How is inflation being “fixed”?

The feds raise interest rates to slow down the red hot economy. Helps lower wages too when they raise interest. Same way they did it in Reagan's first years. Google it.

 

[Man With A Plan]

Yea, I remember Trump said that about interest rates under Obama. Then the Feds kept interest rates low for Trump too. Are you saying they didn't?

The chief executive spent nearly a year insisting that the Fed was getting it wrong, first urging officials to cut interest rates when they were still on the sidelines, and then to start growing its balance sheet while the Fed was still underway with shrinking it.


But that’s exactly how the story ended in 2019 — one of the most tumultuous years for monetary policy in recent memory — and it might have justified Trump’s position all along. The U.S. central bank cut interest rates at three straight meetings, as global and domestic headwinds gathered amid slowing global growth and lukewarm inflation. Then, last fall, a cash crunch occurred in money markets, prompting the Fed to start purchasing assets again after realizing they might’ve taken the process too far.

Come February 2020, and the Fed is still in the middle of untangling those policies. But experts caution that the president, who has made a habit of jawboning Fed officials, wasn’t wholly correct — even if his calls ended up being right.

Trump rails against Powell a day after the Fed cuts rates for a third time this year​

PUBLISHED THU, OCT 31 2019

Your reading comprehension skills are lacking, Sealy! I just posted that the Fed raised interest rates six times from when Trump was elected until he left office. That's what they do when an economy is overheated. Conversely when an economy is tepid...they keep interest rates low. So when you see the Fed keeping interest rates near zero for almost ALL of Barry's eight years in office...that tells you that the Fed viewed the economy under Obama as weak!

 

[sealybobo]

Your reading comprehension skills are lacking, Sealy! I just posted that the Fed raised interest rates six times from when Trump was elected until he left office. That's what they do when an economy is overheated. Conversely when an economy is tepid...they keep interest rates low. So when you see the Fed keeping interest rates near zero for almost ALL of Barry's eight years in office...that tells you that the Fed viewed the economy under Obama as weak!

He added jobs every month for like 70 months. I did very well for his 8 years. Well, not in the beginning but I knew his economy was good and just getting better. All Trump did was give everyone a tax break. That caused inflation too. And his stimulus during covid was bigger than Biden's. And he doubled the debt.

I bet the Feds raised interest rates after Trump passed that tax break to everyone.

 

[AntonToo]

Obama supported the sub-prime loan policies that caused the sub-prime crash of 2008.
He was directly involved in suing banks to make sub-prime loans. And he supported those policies while in congress.

You don't know whatyou are talking about, failures were primarily in private unregulated loan originations not under ARA program that actually had underwriting standards.

To say that Bush, a president with national Home Ownership expansion and market deregulation policies, had nothing to with it, while blaming a community organizer in Chicago is some next level partisan horseshit.

 

[leftwinger]

^^^^^hopeless moronic Deep State Parrots given the freedom to show their lowIQ and ability to use reasoning, logical thought process‘ and true facts. As if a one-off anecdotal BS story is relevant.

 

[Man With A Plan]

He added jobs every month for like 70 months. I did very well for his 8 years. Well, not in the beginning but I knew his economy was good and just getting better. All Trump did was give everyone a tax break. That caused inflation too. And his stimulus during covid was bigger than Biden's. And he doubled the debt.

I bet the Feds raised interest rates after Trump passed that tax break to everyone.

You're right about him adding jobs every month for quite some time, Sealy but would you agree that the amount of jobs was very small? That's using statistics to fool people. If I gave you $100 today and nothing for the next 11 months and someone else gave you five dollars each month for a year...who gave you more money?

 

[leftwinger]

You're right about him adding jobs every month for quite some time, Sealy but would you agree that the amount of jobs was very small? That's using statistics to fool people. If I gave you $100 today and nothing for the next 11 months and someone else gave you five dollars each month for a year...who gave you more money?

dead cat bounce. No where to go but up or complere collapse. Congress caused it. No-show obama was a Senator while Frank and others worked the collapse.

also used phony $1T stimulus each yr. Adding $1-$2 T debt annually when $200B deficits before were the norm.

now? The flu collapse is similar and still being unwound. Congress deep state causes all of it. No amount of BS sugar will change the facts.

 

[Andylusion]

You don't know whatyou are talking about, failures were primarily in private unregulated loan originations not under ARA program that actually had underwriting standards.

To say that Bush, a president with proactive Home Ownership expansion and market deregulation policies, had nothing to with it, while blaming a community organizer in Chicago is some next level partisan horseshit.

The problem is why? Why did private lenders make sub prime loans?
So let's look at it. First we need to find out when the housing price bubble started.

So the first problem is that housing bubble didn't start under Bush. It started in 1997, under Bill Clinton.

That's not opinion, or partisan stuff. That's just flat out documented fact.

So now, why did the Bubble start in 1997?

So we can clearly see that before 1997, sub-prime mortgages were a niche market, but for some reason in 1998, that market exploded from barely being 1% of the market to 12% of all mortgages, and then higher.

So why did sub-prime loans become a huge part of the market?

1st Union Bundles CRA Asset-Backeds

First Union Corp. and Freddie Mac racked up a first on Monday by packaging CRA loans into mortgage-backed securities.

www.americanbanker.com

This is behind a pay wall, but here's the full press release from 1997

Bear Stearns, the CRA, and Freddie Mac - Cafe Hayek

I keep hearing that the subprime crisis was caused by people willing to buy stuff they couldn't evaluate. Why would smart people do that? One answer is that they were stupid. In an era of rising home prices, it's hard...

cafehayek.com

You can read the entire article, but here's the key points.

Freddie Mac made a deal with First Union (which became Wachovia) and Bear Stearns, to package sub-prime loans into Mortgage Backed Securities, and give them a "AAA" rating.

The Federal Government using their GSEs like Freddie Mac, guaranteed sub-prime mortgage backed securities. That's why the market exploded.

But not only that...... but they also sued banks to force them to make sub-prime loans.



Andrew Cuomo in 1998 announcing proudly, that the Clinton administration had sued banks to make them give sub-prime loans, to in his own words... unqualified buyers. And Andrew Cuomo even admitted openly that the default rate for these loans would be higher.

And he was right on that.

So again, the entire sub-prime crash was due to government regulations and actions by the Democrats.

Now specifically with Obama, Obama was a lawyer on the lawsuit against citibank to give sub-prime loans.

Buycks-Roberson v. Citibank Federal Sav. Bank, 162 F.R.D. 322 | Casetext Search + Citator

Read Buycks-Roberson v. Citibank Federal Sav. Bank, 162 F.R.D. 322, see flags on bad law, and search Casetext’s comprehensive legal database

casetext.com

His name is listed in the first page. And nearly every single one of these unqualified borrowers in this lawsuit that Citibank was forced to give loans to, ended up defaulting and being foreclosed on. Last I read, not one was able to pay their loans back.

So there you have it.

 

[Harpy Eagle]

Sealy but would you agree that the amount of jobs was very small?

Average jobs added per month by year...

It does not seem Obama's numbers were any worse than Trump's pre-COVID numbers.

 

[AntonToo]

The problem is why? Why did private lenders make sub prime loans?

Because they were making money hand over fist and like the rest of the society they didn't think real estate investments could be a serious risk. Duh.

Look, I know you are a died in the wool partisan politico and are not receptive to anything outside of your regularly scheduled Democrat bashing, so I'm not even going to waste anymore of my time relitigating real estate collapse that happened at the end of Bush's presidency. You want to keep beliveing that half-baked horseshit about Obama causing it? Go right ahead. Everyone else long ago moved on and is laughing at your dumb ass.

 

[Papageorgio]

The feds raise interest rates to slow down the red hot economy. Helps lower wages too when they raise interest. Same way they did it in Reagan's first years. Google it.

So that is why inflation went up last month because the Fed raised interest? Biden then has nothing to do with inflation or fixing inflation, so no reason to vote for him because of the economy.

 

[Andylusion]

Because they were making money hand over fist and like the rest of the society they didn't think real estate investments could be a serious risk. Duh.

Look, I know you are a died in the wool partisan politico and are not receptive to anything outside of your regularly scheduled Democrat bashing, so I'm not even going to waste anymore of my time relitigating real estate collapse that happened at the end of Bush's presidency. You want to keep beliveing that half-baked horseshit about Obama causing it? Go right ahead. Everyone else long ago moved on and is laughing at your dumb ass.

I posted the facts. You can choose to be ignorant and ignore them, but that just makes you unqualified to talk on this subject.

 

[Man With A Plan]

I posted the facts. You can choose to be ignorant and ignore them, but that just makes you unqualified to talk on this subject.

I can already tell you that Anton doesn't want anything to do with facts...he's got his talking points that have been fed to him by CNN and MSNBC and he's quite content to stay ignorant!

When you bring legal action by the government against lenders that won't lend money to people who have poor credit and almost nothing for a down payment...you shouldn't be shocked when you have defaults in the event of a real estate market crash! Canada didn't go down that legislative path. The commonly expected down payment there was 20%. When the market crashed Canada didn't experience what we did here in the US. People didn't walk away from loans because they would have been losing money that THEY had invested!

 

[AntonToo]

When you bring legal action by the government against lenders that won't lend money to people who have poor credit and almost nothing for a down payment...you shouldn't be shocked when you have defaults in the event of a real estate market crash!

Thats nothing but ignorant rightwing FANTASY.

FINANCIAL CRISIS INQUIRY COMMISSION findings:

"...the CRA was not a significant factor in subprime lending or the crisis. Many subprime lenders were not subject to the CRA. Research indicates only 6% of high-cost loans -- a proxy for subprime loans -- had any connection to the law. Loans made by CRA-regulated lenders in the neighborhoods in which they were required to lend were half as likely to default as similar loans made in the same neighborhoods by independent mortgage originators not subject to the law."

https://fcic-static.law.stanford.edu/cdn_media/fcic-reports/fcic_final_report_conclusions.pdf

There is litterally not a single respected economist that is stupid enough to try to pin the whole real estate and finance failures on some sort of litigation, instead far and away #1 underlying reason cited is general market over-exuberance and risk management failures.

You are bound for a huge bubble (and huge bubble burst) when everyone and ther mother belives that real estate investments are downside free. This was a system market failure at every point in the chain from consumers, to loan originators, to loan underwriters, to derivative market and of course regulators and risk managers.

 

[Andylusion]

Thats nothing but ignorant rightwing FANTASY.

There is litterally not a single respected economist that pins the whole real estate and finance failures on some sort of litigation, instead for and away #1 underlying reason cited is general market over-exuberance and risk management failures.

You are bound for a huge bubble (and huge bubble burst) when everyone and ther mother belives that real estate investments are downside free.

And yet why did that "market over-exuberance" magically start in 1997? Why did sub prime loans magically dramatically increase in 1997?
Why did Freddie Mac and First Union and Bear Stears just happen to announce that the government was guaranteeing sub-prime loans in 1997?
Why did the government just happen to announce they successfully forced banks to make sub-prime loans in 1998, and admit openly they would have a higher default rate?

To sit there and look at facts after facts after facts, and conclude "Nah, just random chance of market over exuberance" and everything was just a coincidence after coincidence....

I will agree with you that one of us is a "partisan politico" that refuses to see anything outside their bigotry, but I wager we disagree on who that is.

 

[AntonToo]

And yet why did that "market over-exuberance" magically start in 1997?

IT DID.

Real Estate is where alot of the dot-com bubble investments ran to, in a sense it is the second part.

 

[Andylusion]

IT DID.

Real Estate is where alot of the dot-com bubble investments ran to, in a sense it is the second part.

So... let's look at the FACTS that are relevant to this topic of sub-prime crash. Not mixing in dot-com nothing burgers that are not relevant.

The housing price bubble started in 1997.

This was caused by a massive increase in sub-prime lending that started in 1997.
What caused that???

Bear Stearns, the CRA, and Freddie Mac - Cafe Hayek

I keep hearing that the subprime crisis was caused by people willing to buy stuff they couldn't evaluate. Why would smart people do that? One answer is that they were stupid. In an era of rising home prices, it's hard...

cafehayek.com

Capital Markets Corp. and Bear, Stearns & Co. Inc. have priced a
$384.6 million offering of securities backed by Community Reinvestment
Act (CRA) loans – marking the industry’s first public securitization of
CRA loans.
The $384.6 million in senior certificates are guaranteed by Freddie Mac and
have an implied "AAA" rating. First Union Capital Markets Corp. is the
investment banking subsidiary of First Union Corporation.

Freddie Mac under the direction of Bill Clinton's administration, guaranteed sub-prime loans in 1997, and gave them a "AAA" rating.



Additionally Andrew Cuomo sued banks to force them to make Sub-prime loans, and admitted openly that they would have a higher default rate.

You are telling me that despite all of these amazing random chance lucky ducky coincidences that it was just random market over exuberance that caused the sub-prime crash? None of these clearly documented factors had anything to do with it? Really? Then why didn't the sub-prime bubble start in 2001, or 2004 or even before, maybe in 1995 or 1992?

The random market exuberance just happened to completely coincide with government forcing sub-prime loans on the market? But that wasn't the cause at all? Based on what? What logic do you conclude perfectly coinciding effects that are directly related, were absolutely not the cause?

I will agree with you that one of us is a "partisan politico" that refuses to see anything outside their bigotry, but I wager we disagree on who that is.

 

[AntonToo]

So... let's look at the FACTS that are relevant to this topic of sub-prime crash. Not mixing in dot-com nothing burgers that are not relevant.

Thats laughable. just because you are clueless and do not understand the evolution of investment mentality from .com bubble into real estate blow up doesn't mean it's off the table.