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Utter nonsense. Minorities were not much of a problem during the real estate bubble. CRA loans were heavily regulated, poor minorities were purchasing lower priced properties and the bubble didn't even start deflating until about a decade later, all the while, CRA loans were holding up fine. The real problem was repealing parts of Glass-Steagall, predatory lending and folks flipping houses who owned multiple properties they defaulted on when house prices dropped while interest rates increased. That's not on Obama or Bush. Clinton played a bigger role than either of them.
NOT one source of your information! JUST your personal evidently uninformed opinion.because banks didnt discriminate against blacks as much as they used to, that caused the subprime mortgage meltdown; the typical racist view. This is exactly what i was referring to.
The primary cause of the 2008 mortgage crisis was these mortgage-backed securities created by hedge funds and banks. Then, insurance companies covered those securities with credit default swaps. This created an asset bubble that collapsed with the slightest increase in interest rates.
Banks did lend to those with insufficient credit rating, but that was a tiny fraction of what was going on compared to the mortgage-backed securities and credit default swaps.
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the same thing is right there on that investopedia page under "the rise of mortgage related investment products.That is your unsubstantiated, subjective opinion.
Here is the link to the following factors:
The Fall of the Market in the Fall of 2008
Explore how America's strong economy tumbled so quickly after the 2008 house market crash.www.investopedia.com
KEY TAKEAWAYS
Not my uninformed opinion... but experts.
- The stock market and housing crash of 2008 had its origins in the unprecedented growth of the subprime mortgage market beginning in 1999.
- U.S. government-sponsored mortgage lenders Fannie Mae and Freddie Mac made home loans accessible to borrowers who had low credit scores and a higher risk of defaulting on loans.
- These borrowers were called "subprime borrowers" and were allowed to take out adjustable-rate mortgages, which would start out with low monthly payments that would become much larger after a few years.
- Financial firms sold these subprime loans to large commercial investors in pools of mortgages known as mortgage-backed securities (MBS).
- By the fall of 2008, borrowers were defaulting on subprime mortgages in high numbers, causing turmoil in the financial markets, the collapse of the stock market, and the ensuing global Great Recession.
Robert R. Prechter Jr., the founder of Elliott Wave International, consistently argued that the out-of-control mortgage market was a threat to the U.S. economy as the whole industry was dependent on ever-increasing property values. In his 2002 book Conquer the Crash, Prechter stated, "confidence is the only thing holding up this giant house of cards
Again NOT my opinion!! READ the article!
What percentage of subprime loans were CRA?That is your unsubstantiated, subjective opinion.
Here is the link to the following factors:
The Fall of the Market in the Fall of 2008
Explore how America's strong economy tumbled so quickly after the 2008 house market crash.KEY TAKEAWAYS
Not my uninformed opinion... but experts.
- The stock market and housing crash of 2008 had its origins in the unprecedented growth of the subprime mortgage market beginning in 1999.
- U.S. government-sponsored mortgage lenders Fannie Mae and Freddie Mac made home loans accessible to borrowers who had low credit scores and a higher risk of defaulting on loans.
- These borrowers were called "subprime borrowers" and were allowed to take out adjustable-rate mortgages, which would start out with low monthly payments that would become much larger after a few years.
- Financial firms sold these subprime loans to large commercial investors in pools of mortgages known as mortgage-backed securities (MBS).
- By the fall of 2008, borrowers were defaulting on subprime mortgages in high numbers, causing turmoil in the financial markets, the collapse of the stock market, and the ensuing global Great Recession.
Robert R. Prechter Jr., the founder of Elliott Wave International, consistently argued that the out-of-control mortgage market was a threat to the U.S. economy as the whole industry was dependent on ever-increasing property values. In his 2002 book Conquer the Crash, Prechter stated, "confidence is the only thing holding up this giant house of cards
Again NOT my opinion!! READ the article!
As a result, the percentage of subprime mortgages doubled, from 10 percent to 20 percent, of all mortgages between 2001 and 2006. By 2007, it had grown into a $1.3 trillion industry. The creation of mortgage-backed securities and the secondary market was what got us out of the 2001 recession.What percentage of subprime loans were CRA?
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So if the CRA was covering these loans, where was the gamble? It was a sure thing that the loans would be covered...something Obama/Clinton and this guy at the time who LATER changed his mind opinion!Yep, without the repeal of G/S, every single minority homeowner could have defaulted on their loans and we wouldn't have had the problem we had. The problem was banks gambling money that wasn't even theirs and being insured by the government.
It was much like telling anyone that wants to go, to go to Vegas and gamble all you want. Don't worry, if you lose the government will cover you.
Attacking truckers, locking down for covid among the healthy, paying people not to work, giving idiots free money creates artificial supply and artificial demand at the same time---leading to shortages.I have a client who's a Regional VP of a paint company. We met last week. He was telling me how almost every step in the production process is fucked up.
They can't get cans to put the fucking paint in. They can't get the right color ink to put on the labels that go on their cans. They can't make certain shades of paint because they can't get the right ingredients. Meanwhile, demand is stronger than ever. It was fucking mind-blowing to listen to. If the overall supply chain is as messed up for other industries as it is for his, we're a long way from this being over.
Their production and distribution process is running at about 25% of normal, everything is backordered, and their competition is in the same mess. So what are they all having to do? Increase prices at the wholesale and consumer levels, of course. Economics at its most fundamental.
So if the CRA was covering these loans, where was the gamble? It was a sure thing that the loans would be covered...something Obama/Clinton and this guy at the time who LATER changed his mind opinion!
For years, Barney Frank was a staunch supporter of Fannie Mae and Freddie Mac, the giant government housing agencies that played such an enormous role in the financial meltdown that thrust the economy into the Great Recession.
But in a recent CNBC interview, Frank told me that he was ready to say goodbye to Fannie and Freddie.
"I hope by next year we'll have abolished Fannie and Freddie," he said. Remarkable. And he went on to say that "it was a great mistake to push lower-income people into housing they couldn't afford and couldn't really handle once they had it." He then added,
"I had been too sanguine about Fannie and Freddie."
Barney Frank Comes Home to the Facts | RealClearPolitics
Can you teach an old dog new tricks? In politics, the answer is usually no. Most elected officials cling to their ideological biases, despite the real-world facts that disprove their theories time...www.realclearpolitics.com
So maybe you could also be "too sanguine"???
its just like they blamed Obama for the subprime mortgage meltdown, aka the "great recession". The subprime mortgage meltdown was gaining full steam during the mccain-obama campaign. Then it peaked a month or two after Obama went into office. Yet somehow blamed even though there was no time yet to implement anything.
Today the inflation is global. I'd like to hear how Biden is responsible for British inflation.
Attacking truckers, locking down for covid among the healthy, paying people not to work, giving idiots free money creates artificial supply and artificial demand at the same time---leading to shortages.
Oh brother...the libs and their hatred of women. Jealous or what.This is his preaching of family values. He openly spat in the face of his own voters. This is just a mockery of the right-wing Americans.
Yes I agree! But some things were larger and had more of an effect.healthmyths Faun dudmuck
There was no one thing or even 2-3 things that caused the subprime mortgage debacle. It was all the things you all are talking about that combined to cause it.
Glass Steagal
CRA
Credit Agencies
Hedge Funds
.com burst
Lenders
Borrowers
etc
Everyone has their piece of the large blame pie in this one.
Now THAT's an opinion.Yes I agree! But some things were larger and had more of an effect.
Yes, it was simple. The idea was by having you find that number, you would see for yourself how ridiculous it was for you to blame the CRA for the real estate crash given such a small percentage of subprime loans were CRA.As a result, the percentage of subprime mortgages doubled, from 10 percent to 20 percent, of all mortgages between 2001 and 2006. By 2007, it had grown into a $1.3 trillion industry. The creation of mortgage-backed securities and the secondary market was what got us out of the 2001 recession.
Such a simple internet search!Did a 1977 Law Create the 2008 Financial Crisis?
The Community Reinvestment Act is a federal law that encourages bank lending to low income neighborhoods. It did not cause the 2008 financial crisis.www.thebalance.com
math means nothing. LOLYes, it was simple. The idea was by having you find that number, you would see for yourself how ridiculous it was for you to blame the CRA for the real estate crash given such a small percentage of subprime loans were CRA.
So? Did you learn?
Yes, but lessening the spread of covid is an economic issue. I personally think the worry about truckdrivers is just another example of elitist liberals needing to micromanage other lives, thoughEverything about our economy has been artificial for decades. We created new bubbles to cover for the last bubble.
Yes, but lessening the spread of covid is an economic issue. I personally think the worry about truckdrivers is just another example of elitist liberals needing to micromanage other lives, though
Well, I won't disagree that the gop stopped being conservative when Reagan threw goldwater under the bus to capture the Xiantheocrat vote. BUT they kept abortion legal until McConnell saw giving them victory was his only way to keep the senate.There are minority examples of where this is not true but IMO the vast majority of people who go into politics do so because they have a desire to micromanage others.
