AntonToo
Diamond Member
- Jun 13, 2016
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So now let's go look at the facts, not just what you claim.
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
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 gave sub-prime mortgage backed securities a "AAA" rating by guaranteeing them.
You claim no one gave them a "AAA" rating.
Freddie Mac itself gave them a "AAA" rating by guaranteeing them.
Freddie Mac guaranteed sub-prime mortgage backed securities, giving them a "AAA" rating.
That is not up for debate. That is exactly what happened. If that did not happen, then Freddie Mac should have sued First Union for false advertising.
Did that happen in 1997? No it did not. They did not sue them for falsely saying that these sub-prime MBS were guaranteed and had a "AAA" rating.
So, you can keep saying these lies, but I'm going to keep posting the facts EVERY SINGLE TIME.
So back to you. Keep going. I'll be right here.
Dummy, SECURITIES were rated AAA, because they had high % of high quality loans to offset low quality loan risk. Sub-prime mortgages themselves were never rated as AAA. You don't seem to understand the concept.
Are you going to actually address my posting or not?
HERE IT IS AGAIN:
Yes GSE's AAA rated securities that mixed in sub-prime mortgages eventually contributed to the problem, because they weren't ACTUALLY AAA risk grade, which is, again, a risk management failure that happened at every level.
You want to put some blame on Clinton admin? Sure ok, but when at the same time you give Bush admin a full pass for not only not fixing anything in 7 years leading up to the collapse, but actively pushing for EXPANDING GSE's sub-prime holdings (among all the other Home Ownership and deregulation policies) you just show your hand as just another tribalist politico with no interest for any sort of objectivity.
Try READING and UNDERSTANDING that BEFORE replying.
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