McCain's advisor created financial crisis

[Navy1960]

This, term predetory lending, as if the the people that took these loans out have no responsiblity. The bottom line is this, if you make 30,000.00 a year and your looking at a 400,000.00 house with 0.00 down and a 1 % ARM that matures in 3 years. Sooner or later your going to have to make that house payment. The bottom line is this, as a borrower you couldn't afford that house in the first place. Now these lenders that blatently broke the law and lent money to people cound not afford to pay in the first place, do NOT deserve to be bailed out, as the market takes care of people that are doing business in a shotty manner if we let it. The bad thing here, is that these lenders and insurers made so many bad loans that the impact on the economy has been tremendeous. However, the borrowers are not the innocent parties in all this. So to point a finger at Phil Gramm or Charlie Black is funny as to border on the absurd. The democrats need to start with their own house before they start pointing fingers in this mess. Starting with Jimmy Carter, to Bill Clinton, to Chriss Dodd, to Barney Frank, and yes even Barack Obama. John McCain was sounding the alarm in 2005 when S. Res 190 was brought to the floor of the Senate. Barack Obama was busy accepting more money in three years from Fannie/Freddie than all the Senators on the list have in 10 years except Chris Dodd. Oh and what was Chris Dodd doing? he was busy getting on the preferred customer list at Countrywide. So you finger pointing at Phil Gramm doesn't wash.

 

[rayboyusmc]

Wow, now another reason I can't vote for Obama. He has only been in Washington for about three years but he caused this crisis. McCain has been there 26 years and he has been fighting to stop it.

2005. Who was in charge of the House and Senate then?

The current republican buttwipes in charge brought this on and now are trying to blame everyone else.


Graham, Graham, GrahamGraham, Graham, GrahamGraham, Graham, GrahamGraham, Graham, Graham

He has all the money he needs and we are whiners. What a little slimey bastard.

McMumbles was right when he said the economy wasn't his strong point.

 

[Navy1960]

Wow, now another reason I can't vote for Obama. He has only been in Washington for about three years but he caused this crisis. McCain has been there 26 years and he has been fighting to stop it.

2005. Who was in charge of the House and Senate then?

The current republican buttwipes in charge brought this on and now are trying to blame everyone else.


Graham, Graham, GrahamGraham, Graham, GrahamGraham, Graham, GrahamGraham, Graham, Graham

He has all the money he needs and we are whiners. What a little slimey bastard.

McMumbles was right when he said the economy wasn't his strong point.

The Clinton Administration's regulatory revisions [1] with an effective starting date of January 31, 1995 were credited with substantially increasing the number and aggregate amount of loans to small businesses and to low- and moderate-income borrowers for home loans. Part of the increase in home loans was due to increased efficiency and the genesis of lenders, like Countrywide, that do not mitigate loan risk with savings deposits as do traditional banks using the new subprime authorization. This is known as the secondary market for mortgage loans. The revisions allowed the securitization of CRA loans containing subprime mortgages. ***

The Community Reinvestment Act (or CRA, Pub.L. 95-128, title VIII, 91 Stat. 1147, 12 U.S.C. § 2901 et seq.) is a United States federal law that requires banks and thrifts to offer credit throughout their entire market area and prohibits them from targeting only wealthier neighborhoods with their services, a practice known as "redlining." The purpose of the CRA is to provide credit, including home ownership opportunities to underserved populations and commercial loans to small businesses.

Among some economists this is widely credited with the beginning of the subprime mortgage crisis ..


you question " Who was in charge of the White House in 1999?" Bill Clinton

"This legislation is truly historic and it indicates what can happen when Republicans and Democrats work together in a spirit of genuine cooperation," Bill Clinton when he signed the Gramm-Leach-Bliley Act

The issue here is this, Barack Obama, your candidate likes to portray John McCain as out of touch with the economy when in fact, he was the person in the Senate actually calling these people to task. While many including Barack Obama were doing Nothing but accepting large sums of money and favors from mortgage companies. So what do the democrats do, they look for something to blame this on, and go back to S.900 which Bill Clinton signed into law because it was a banking bill that reformed the banking system, to tie John McCain to this crisis in order to take heat of the fact that Barack Obama is knee deep in this mess and takes away from his message of "hope and change"

 

[jschuck12001]

This, term predatory lending, as if the the people that took these loans out have no responsibility. The bottom line is this, if you make 30,000.00 a year and your looking at a 400,000.00 house with 0.00 down and a 1 % ARM that matures in 3 years. Sooner or later your going to have to make that house payment. The bottom line is this, as a borrower you couldn't afford that house in the first place. Now these lenders that blatently broke the law and lent money to people cound not afford to pay in the first place, do NOT deserve to be bailed out, as the market takes care of people that are doing business in a shotty manner if we let it. The bad thing here, is that these lenders and insurers made so many bad loans that the impact on the economy has been tremendeous. However, the borrowers are not the innocent parties in all this. So to point a finger at Phil Gramm or Charlie Black is funny as to border on the absurd. The democrats need to start with their own house before they start pointing fingers in this mess. Starting with Jimmy Carter, to Bill Clinton, to Chriss Dodd, to Barney Frank, and yes even Barack Obama. John McCain was sounding the alarm in 2005 when S. Res 190 was brought to the floor of the Senate. Barack Obama was busy accepting more money in three years from Fannie/Freddie than all the Senators on the list have in 10 years except Chris Dodd. Oh and what was Chris Dodd doing? he was busy getting on the preferred customer list at Countrywide. So you finger pointing at Phil Gramm doesn't wash.

Look, let me educate you, Everyone just thinks Countrywide was so unethical because they hear the bullshit on the news. Let me explain why the industry tumbled. Countrywide itself was heavily audited every month and they had some good rules. If someone came to the bank for a loan and was sold a subprime loan we had a program we ran on the application that tried to qualify them for every government loan that we had and those are the cheapest loans, no loan was ever approved without the Multi run clues report. The problem was the broker world. These people were lying left and right and forging documents, lying about income, grossing up fixed income 400% and putting people in pay option arms. The problem with Countrywide is they bought packages (by the thousands) from these banks like Freemont Investment, Accredited home loans, New Century, Argent(subsidiary of Ameriquest) and they did not properly audit all of the files to see that there was massive fraud when these loans were originated. I would get these people calling in to refi after Countrywide bought the loans. I would see 2 people on fixed income get a stated income loan and they were both on Soc sec and their income was stated at $6k per month and the max benefit is around $2,200 for a single person. Then the A paper consumers started to foreclose. This goes much furthur than subprime. I can remember one month where we had $400 million in bad 2nd mortgages and they were all A paper loans. This crisis is not limited to the subprime borrower but it was blamed on the subprime borrower because the government needed someone to blame. The broker world needed to be regulated and it never was and these guys were out there chopping people to pieces charging high closing costs and putting people in 2 yr arms that have a 3 yr prepay penalties. To say that John Mccain knew we needed help just doesnt fly, it was obvious. He made his case in 2005 and the damage was done at that point. Someone needed to step up in 2002-2003 when the refi boom started. Thats when we sank our country. People will come on the board and say that loans were given out that were shotty or Countrywide is the reason the industry sank but it shows ignorance because as a whole country we did nothing about this and every bank and financial institution and senator and congressman or woman did nothing when something needed to be done. EVERYONE NEEDS TO TAKE RESPONSIBILITY.

 

[Chris]

How many mortgages does McCain have?

Oh....yea.....he can't remember because he was a POW.

 

[jschuck12001]

That was a single loan...point is I know how the financial sector works.

Fine, truce, not looking for a pissing contest just passionate because I have been extremely affected by the meltdown.

 

[jreeves]

This is a slam dunk! The race is OVER. No way the Republicans can ask for another 4 years. No way McCain is going to get away with calling himself a maverick or suggesting he can fix the mess we are in.

By the way, I want everyone to see how McCain was able to be a maverick for the past 8 years:

Employing a method known as "catch and release," DeLay allowed centrist or moderately conservative Republicans to take turns voting against controversial bills. If a representative said that a bill was unpopular in his district, then DeLay would ask him to vote for it only if his vote were necessary for passage; if his vote were not needed, then the representative would be able to vote against the party without reprisal.

Hey air for brains, Mccain called for reform to these financial institutions back in 2005. While Obama did absolutely nothing in 2005 to head off this trainwreck.

 

[oreo]

Let me guess, John McCain was unsuccessful in stopping this predatory lending, right?

Employing a method known as "catch and release," DeLay allowed centrist or moderately conservative Republicans to take turns voting against controversial bills. If a representative said that a bill was unpopular in his district, then DeLay would ask him to vote for it only if his vote were necessary for passage; if his vote were not needed, then the representative would be able to vote against the party without reprisal.

You my friend are what they call a sucker.

I don't know why they call it common sense when it isn't all that common.

Go ahead & COMPLETELY IGNORE THE congressional record, where in fact John McCain's statements are of permanent record back in 2005--as co-sponsor of a bill that would rein in Freddie Mac & Fannie Mae.

When you don't have an argument you turn to someone in the past. Well here's one for you.

Ever heard of democrat Barney Frank, who is in fact, head of the senate banking committee? Who in fact, insisted on loaning out money to lower income people. Where in the hell was he in all of this? In the same dam chair--that's where. (He hasn't even lost his freaking position!)

That's your democrat lead congress at work!

 

[jschuck12001]

Yep, he did it all by himself, while Obama was what? Oh yeah, smokin' dope and organizing his community.

Whats wrong with smokin' dope and organizing his community?

 

[jschuck12001]

Hey air for brains, Mccain called for reform to these financial institutions back in 2005. While Obama did absolutely nothing in 2005 to head off this trainwreck.

He was only elected in Nov 2004, I'm sure he had a lot of pull being in office 6 months before Mccain pointed out the obvious.

 

[oreo]

How many mortgages does McCain have?

Oh....yea.....he can't remember because he was a POW.

Why don't we count how many mansions the Kennedy's or John Kerry ownes.

As a matter of fact, all of the 7 homes that the McCain family owns, do not add up to the value of ONE of John Kerry's mansions.

Funny--how the liberal main stream media never brought that up, Huh?

 

[oreo]

He was only elected in Nov 2004, I'm sure he had a lot of pull being in office 6 months before Mccain pointed out the obvious.

Nope--as soon as Barack Obama walked onto the floor of the senate he had his sights set on the oval office. You have no debate here.

Barack Obama was sure there long enough to be the second largest money taker from Fannie Mae & Freddie Mac, wasn't he?

 

[Chris]

McCain Monday morning....

"The fundamentals of the economy are sound."

McCain Monday afternoon....

"The fundamentals of the economy are at risk."

 

[oreo]

Karl Rove just got into it with Holmes on Hannity & Holmes. tonight 9/17/08.

Rove is so ticked off about Freddie Mac & Fannie Mae--stating the Bush Adminstration (5 years ago), that Rove personally worked on trying to reign in Freddie Mac & Fannie Mae. Each & every time, they were blocked by democrat Criss Dodd & democrat head of senate banking committee Barney Frank.

Rove says! democrats on the hill--"let this happen"-at each time---more than 40 democrats on the hill would block every effort to reign in Freddie Mac & Fannie Mae

I don't think I have ever seen Karl Rove like this. He is pretty mellow most of the time, not tonight!

As most know, Karl Rove is now a political anaylist on Fox News.

BTW--354 politicians received millions in pay-outs from Freddie Mac & Fannie Mae-1st largest is democrat Criss Dodd &the second largest donations went to Barack Obama. John McCain did not receive any money from Freddie Mac or Fannie Mae.

 

[Chris]

Wow, Karl Rove, the lyinest piece of shit on the planet.

You really need help, dude.

 

[frazzledgear]

Democrats and their allies attempted to tie Wall Street's growing financial crisis to the policies advocated by John McCain's former senior adviser.

The critics are pointing to a 1999 law co-sponsored by then-Sen. Phil Gramm (R-Texas) and that paved the way for consolidation between commercial and investment banks.

"The system of regulation of these integrated banks has failed, and it is clear that much stronger firewalls are needed," AFL-CIO President John Sweeney said of the so-called Gramm-Leach-Bliley Act.

Senate Majority Leader Harry Reid (D-Nev.) picked up on that line during a scathing floor speech Tuesday morning that compared Sen. McCain's (R-Ariz.) approach to the economy with that of the Hoover administration. In his speech, Reid blasted the Republican candidate's decision to choose Gramm as a top economic adviser.

"The same Phil Gramm who, as a senator, was responsible for deregulation in the financial services industries that paved the way for much of this crisis to occur," Reid said. “It was Phil Gramm who pushed legislation through a Republican Senate that allowed firms like Enron to avoid regulation and destroy the life savings of its employees, and it was Phil Gramm’s legislation that now allows Wall Street traders to bid up the price of oil, leaving us to pay the bill."

Gramm served as McCain's chief economic adviser until July when he resigned after saying the country is in a "mental recession" and has "sort of become a nation of whiners."

TheHill.com - Dems tie Wall Street woes to Phil Gramm

What a hoot. Neither party has clean hands here but Democrats take the blame for what they have done and not done for the last six years. And in spite of repeated warnings about what would happen if they didn't take actions. Of all people running for President though - McCain by far has the cleanest hands. Not Obama.

Let's consider the fact that Obama's TOP two economic advisors are Jim Johnson, once the head of Fannie Mae before becoming head of Lehman's, who then walked off with MILLIONS -you know, the one going bankrupt? And the other is Franklin Raines, the head of Fannie Mae who coerced his underlings to falsify accounting facts so he could maximize his bonus. That guy "earned" $90 million in just six years at Fannie Mae. Guess who got stuck with the bill for it though?

This bs of top execs bilking the government, their own companies while enacting a policy of the most risky investments -all with the use of their clients' money and not their own -is THE reason what is happening in this ONE industry -is even happening. Obama's top two advisors are two of the very people MOST involved with this, two of the people who had most to do with actually bringing events to where they are now. Two of the VERY people who were determined to make a personal killing at it before taking off -but fully anticipating the eventual collapse and making sure they got out before it did. These two people are MOST responsible for Fannie Mae taking advantage of taxpayer financed low-interest loans in order to use those loans as a hedge fund against the risky investments they made with money that wasn't even theirs.

And Obama -who by the way, received the SINGLE most largest donation to a Senator last year from -none other than Fannie Mae (and just sheer coincidence he hired two of Fannie Mae's chief executives to give him economic "advice") -is THE guy who is telling me he is going to bring "change"? His kind of "change" I can do without, sorry. OMG -just so looking forward to seeing what kind of economic "advice" two of the VERY people responsible for what is happening today have to give Obama. Who has zero business experience and zero economic EDUCATION even - and whose record shows he is in bed with whoever pays him the most. But Obama will make sure it is still taxpayers who end up slaughtered here. Not his friends he hired for their economic "advice". This guy came up through the corrupt Chicago political machine and that is how he learned to play the "game" -and is still playing the game.

Bush tried to get a reform bill passed through this DO-NOTHING Democrat Congress in 3 of the last 5 years -trying to rein in the risky investments these firms were taking with their clients' money, even specifically WARNING Congress this may likely happen unless reform was enacted. Guess which party refused to get those bills out of committee 2 of those times and which party voted it down when it did come to a Senate vote one time? It wasn't Republicans -because they were near unanimous in their vote FOR that reform bill. I'm sure whacko liberals will insist that the fact that 9 of the top 10 recipients of Fannie Mae campaign donations to Senators were DEMOCRATS -had nothing to do with their vote against reform legislation regarding Fannie Mae. Heard one tonight use the excuse for that failure of Democrats was that bill wasn't really effective enough anyway and didn't go far enough. All while never even INITIATING -much less passing ANY reform legislation of their own -EVER. Yet they hold the majority! And Congress controls oversight here -not the President! Yet Bush tried to do what this useless Democrat Congress refused to do at all. Everyone who voted against this bill was milking this cow for all it was worth and taxpayers got stuck with the bill. Obama doesn't represent "change". He represents the TYPICAL slimeball politician in the game to make a buck, line his pocket or play the usual "scratch my back and I'll scratch yours" game -all at taxpayer expense.

However, the really good news is -that since Obama took office -he has by far and away surpassed EVERYONE and is now THE top recipient of Frannie Mae donations. And in just a single year! What an accomplishment to brag about. They know a Senator who is up for sale when they see one.

But Obama is going to tell me HE is the guy to fix that by having two of the most greedy and unethical heads of this organization, the ones who made MILLIONS at taxpayer expense -give him economic "advice"? LOL -yeah sure, whatever "advice" will once again fill their pockets with more taxpayer funds no doubt.

The gripe about Phil Gramm pales in comparison -and he isn't one who bilked the system to line their pockets either. Obama hired those people. And it was Democrats who voted against ANY attempt at reforming this industry or demands for oversight -in spite of repeated warnings what would happen if they didn't enact some kind of reform on it.

We will all be no less thrilled with the Democrats No-energy Energy Bill too. Thrown as a sop to Americans who overwhelmingly support offshore drilling. What Democrats intend to pass is a bill that allows drilling only more than 50 miles out -while more than 85% of our energy lies within 50 miles. No doubt they will clap themselves on the back about how SENSITIVE they were to the demands of voters -but made sure it was a bill that wouldn't produce a damn thing.

I don't get some of the idiots here. This Congress has one of THE lowest approval ratings in history -it has a lower approval rating than Bush. The guy they rant and foam at the mouth about. But NOW they want to put TWO members of that Congress which has even lower approval ratings than Bush into power? LOL Must have a real death wish for the country then. And considering their approval of the policies Obama holds out that are known killers of an economy, maybe they really do.

 

[Chris]

Bush borrowed $700 billion dollars from the Chinese to fund the war in Iraq.

McCain's advisor Phil Gramm wrote the legislation that deregulated financial institutions.

The Republicans have had the White House for the last eight years, and the Congress for six of the last eight years.

The Republicans are to blame.

 

[del]

Wow, Karl Rove, the lyinest piece of shit on the planet.

actually, karl is in second place behind you.
kudos. you've earned it.

 

[del]

Do you know what the government is designed to do? They are supposed to protect the citizens from things like PREDATORY LENDING.

So when I go sign a mortgage, I assume that the company I'm dealing with can't take advantage of me because the government wouldn't allow them to. Just like I don't read everything they put in front of me when I sign the mortgage. The broker tells me what it says and I trust them.

But this is not true when the GOP are in charge. Industries are deregulated to the point that they can get away with unethical business practices and the consumer gets screwed in the end.

So if the banks weren't being affected by all the foreclosures, you would think all the predatory lending was hunky dorey, right? That's bullshit.

Imagine how many other things the GOP did that caused this recession. We just don't know about them yet.

if you assume a company of any type can't take advantage of you, you're stupid.
if you assume the broker is working with your best interests in mind, you're stupid.
if you sign documents without reading them yourself or having you're attorney do so, you're stupid.

you can't fix stupid, sorry.


flail away now. it's funny.

 

[Ravi]

if you assume a company of any type can't take advantage of you, you're stupid.
if you assume the broker is working with your best interests in mind, you're stupid.
if you sign documents without reading them yourself or having you're attorney do so, you're stupid.

you can't fix stupid, sorry.


flail away now. it's funny.

And if you assume your yahoo account is private, you're really stupid.