New study confirms economy was destroyed by Democrat policies

[SassyIrishLass]

Deflection and spin. The Democrat party twins. Poor things, it's all they've got.

Well that, and the DOW, Nasdaq, and S&P 500 are at all-time record high levels under a democratic administration. Whereas during the last Republican administration I seem to remember a market crash. What happens when Republicans remove market regulations.

Why did it crash? Sheesh talk about not seeing the forest for the trees.

PS Clintoon's Dot.com bubble?

2008 Crash = Republican administration
1987 Crash = Republican administration

2015 markets at all-time highs = Democrat administration

Yo, chit for brains WHY did they crash? You're too stupid to recognize what is under your nose

 

[NYcarbineer]

Let's face it, leftists are gullible (see GLOBULL warming)

"Tax cuts pay for themselves and create jobs".......Polly Anna

And for that we have timely news:

Scott Walker cut $541 million in taxes last year. Now his state will miss a $108 million debt payment.

Scott Walker cut 541 million in taxes last year. Now his state will miss a 108 million debt payment. - The Washington Post

The OP opened the door for expanded topics when she brought up Global Warming. Do you see Global Warming in post 1?

 

[TyroneSlothrop]

social justice through government manipulation = FAILURE

Jobs and tax cuts for wealthy... GOP fail
Tax cuts and large deficits ...GOP success

 

[Where_r_my_Keys]

The Community Reinvestment Act (CRA) of 1977 was passed by Congress to ensure that banks meet the credit needs of their local communities and to encourage investment in the immediate communities served by depository institutions. Banks are rated periodically on their efforts to achieve these goals.

The Federal Financial Institutions Examination Council (FFIEC) provides an interagencyCRA rating database on its website.

In addition, each bank has available for public review a file giving its CRA rating and additional information that it is required to prepare.

The Federal Reserve Board has found no connection between CRA and the subprime mortgage problems. In fact, the Board's analysis (102 KB PDF) found that nearly 60 percent of higher-priced loans went to middle- or higher-income borrowers or neighborhoods, which are not the focus of CRA activity. Additionally, about 20 percent of the higher-priced loans that were extended in low- or moderate-income areas, or to low- or moderate-income borrowers, were loans originated by lenders not covered by the CRA. Our analysis found that only six percent of all higher-priced loans were made by CRA-covered lenders to borrowers and neighborhoods targeted by the CRA. Further, our review of loan performance found that rates of serious mortgage delinquency are high in all neighborhood groups, not just in lower-income areas.

FRB Did the Community Reinvestment Act CRA contribute to foreclosures and the financial crisis And is the CRA being reformed

The government agency charged with enforcing the CRA determined that it didn't cause any problems? Only the terminally gullible would swallow that.

I certainly trust the Federal Reserve Board over EC, SIL or you.

LOL!

Anyone need anything else?

 

[g5000]

When you combine all the investor wealth in the world together, there were tens of trillions of dollars available.

There were not enough good borrowers on the planet to invest all that money in, and so Wall Street used derivatives which they believed eliminated risk which had the result of undermining the underwriting laws of the Universe. Lending standards were lowered in order to put all that cash to work. Lowered, and then lowered again, and then lowered some more.

The middle men (the bankers) get a fee every time they succeed in getting investor cash into a borrower's hands, and so they had every motivation in the world to keep the music playing.

It is as simple as that.

This was going on all over the world, not just here in the US. This is the part the "because CRA" tards are ignorant of.

Look at why AIG failed. They failed because they had written credit default swaps against toxic CDOs, and they did not have any cash reserves set aside to cover those swaps because they believed the CDOs were rock solid. They thought they were getting free money from the swaps. They never believed they were ever going to have to pay out on a single one.

In the beginning of CDOs and swaps, that line of thinking was correct, but it became completely corrupted by greed.

Lehman Brothers acquired its own supply chain of mortgage brokers to feed their CDO manufacturing process. CDOs they were manufacturing to sell to investors in exchange for fees. If they couldn't make any more CDOs, they could not make any more fees, and so the supply chain had to start shoving more and more toxic loans into the pipeline to keep the game going after all the low risk borrowers were used up.

To offset the risks, they bought CDS from companies like AIG CP. AIG never did the due diligence on these CDOs until it was too late. AIG CP's boss was under the impression that no more than 10 percent of the loans in the CDOs being made were subprime, when in actuality it was approaching 90 percent.

Once AIG realized this, they notified Wall Street they were no longer going to sell swaps. This was in 2006. AIG believed it had gotten out of the game in time, but it hadn't.

When AIG got out of the swaps market, Wall Street, instead of stopping the music based on this information, started selling synthetic CDOs to their investors. These synthetic CDOs were mountains of toxic credit default swap policies which transferred all the risk of the CDOs onto the investors themselves. The investors never fully realized this. All they knew was that when they bought a tranche of a synthetic CDO, they began getting steady revenue streams. What they did not fully realize was that those revenue streams were, basically, insurance premium payments, which meant they were the insurers, which meant they were on the hook for any losses experienced by those swaps.

That's what imploded AIG and Lehman and all the others. As people's mortgages began resetting and they could not make their payments, the losses were felt in the CDOs, and this triggered calls on the credit default swaps written against them. And since they sellers of these swaps never kept any cash reserves to cover any losses, they collapsed. And as companies began collapsing, no one knew what other banks were zombies and which ones were not. And this froze everything. No bank wanted to lend to another bank.

This problem was magnified by the fact that not only were the holders of those CDOs allowed to buy CDS against them, ANYONE could buy CDS against them, and they did.

This is like me being able to buy a life insurance policy against your life, even though I don't stand to lose anything if you die.

If anyone could buy a life insurance policy against your life, and had nothing to lose and everything to gain by your death, how safe would you be?

Exactly.

And that is what happened with derivatives. There were some actors who realized they had everything to gain and nothing to lose by creating extremely toxic investment product which they could then bet against. This was just the extra spice in the whole picture.


Nevertheless, even honest actors were buying CDS against CDOs they did not have an insurable interest in.

If you had a $200,000 house, and ten people all had a fire insurance policy against it, and that house burned down, the result is that instead of the insurance company experiencing a $200,000 loss, they experience a $2 million loss. All thanks to derivatives.

That is what happened here and around the world.

 

[BlindBoo]

The Community Reinvestment Act (CRA) of 1977 was passed by Congress to ensure that banks meet the credit needs of their local communities and to encourage investment in the immediate communities served by depository institutions. Banks are rated periodically on their efforts to achieve these goals.

The Federal Financial Institutions Examination Council (FFIEC) provides an interagencyCRA rating database on its website.

In addition, each bank has available for public review a file giving its CRA rating and additional information that it is required to prepare.

The Federal Reserve Board has found no connection between CRA and the subprime mortgage problems. In fact, the Board's analysis (102 KB PDF) found that nearly 60 percent of higher-priced loans went to middle- or higher-income borrowers or neighborhoods, which are not the focus of CRA activity. Additionally, about 20 percent of the higher-priced loans that were extended in low- or moderate-income areas, or to low- or moderate-income borrowers, were loans originated by lenders not covered by the CRA. Our analysis found that only six percent of all higher-priced loans were made by CRA-covered lenders to borrowers and neighborhoods targeted by the CRA. Further, our review of loan performance found that rates of serious mortgage delinquency are high in all neighborhood groups, not just in lower-income areas.

FRB Did the Community Reinvestment Act CRA contribute to foreclosures and the financial crisis And is the CRA being reformed

The government agency charged with enforcing the CRA determined that it didn't cause any problems? Only the terminally gullible would swallow that.

I certainly trust the Federal Reserve Board over EC, SIL or you.

LOL!

Anyone need anything else?

I trust them over you too.

The seven members of the Board of Governors of the Federal Reserve System are nominated by the President and confirmed by the Senate. A full term is fourteen years.

 

[TyroneSlothrop]

The Conservative Origins of the Sub-Prime Mortgage Crisis
At the heart of the crisis are the conservative free market ideologists whose views increasingly influenced American politics since the 1980s, and who still dominate the Bush administration. They believe that government is always the problem, never the solution, and that regulation of private business is always bad. Lenders and brokers who fell outside of federal regulations made most of the sub-prime and predatory loans.

In 2000, Edward M. Gramlich, a Federal Reserve Board member, repeatedly warned about sub-prime mortgages and predatory lending, which he said "jeopardize the twin American dreams of owning a home and building wealth." He tried to get chairman Alan Greenspan to crack down on irrational sub-prime lending by increasing oversight, but his warnings fell on deaf ears, including those in Congress.

 

[JakeStarkey]

[lass writes, "Either stay on topic and cease with your childish left loonery or off to iggy you go."

You have not defended your OP. You have not responded to the accurate rebuttal of your nonsense.

You are only a silly, ignorant person.

Bye...see how it works dumb ass?

Typical far right reactionary behavior, and can't take what s/he dishes out.

 

[JakeStarkey]

Put this in the badlands please.

It is a straight troll thread. Want proof? Just read Key's deviant non-history based reasoning.

 

[Plasmaball]

Anyone really paying attention already knew this.

A new study from the widely respected National Bureau of Economic Research released this week has confirmed beyond question that the left's race-baiting attacks on the housing market (the Community Reinvestment Act--enacted under Carter, made shockingly more aggressive under Clinton) is directly responsible for imploding the housing market and destroying the economy.

The study painstakingly sorted through failed home loans that caused the housing market collapse and identified an overwhelming connection between them and CRA mortgages.

Again, let's review...

ah yes this old story, which means you are a sock of somebody. Neat!

Thanks for youj input....weak as it was anyway.

im not wasting my time on something we have already covered..
Im sure you know what i mean. hows that Iraqi road?

 

[Where_r_my_Keys]

The Conservative Origins of the Sub-Prime Mortgage Crisis
At the heart of the crisis are the conservative free market ideologists whose views increasingly influenced American politics since the 1980s, and who still dominate the Bush administration.

It's crap like this that got the above cited troll BANNED TO IGNORE...

Who would like to inform the cretin how long the The Bush Administration has been out of power, thus articles which speak to such in the present tense, as six years old... and therefore written at ground zero of the crash, thus do not possess the benefit of historical perspective.

"Free Markets" do not crash... MARKETS OPERATING PRINCIPLE-FREE ... CRASH!. And the only reasoning on earth which rejects the laws of nature (Sound Principle) is THE IDEOLOGICAL LEFT.. OKA: The means by which Evil is politically manifested.

 

[JakeStarkey]

Keys now is ranting.

Put the thread and troll in the flame zone, please.

 

[Where_r_my_Keys]

Deflection and spin. The Democrat party twins. Poor things, it's all they've got.

Well that, and the DOW, Nasdaq, and S&P 500 are at all-time record high levels under a democratic administration. Whereas during the last Republican administration I seem to remember a market crash. What happens when Republicans remove market regulations.

Why did it crash? Sheesh talk about not seeing the forest for the trees.

PS Clintoon's Dot.com bubble?

2008 Crash = Republican administration
1987 Crash = Republican administration

2015 markets at all-time highs = Democrat administration

You forgot the 2001 crash...

 

[Where_r_my_Keys]

The current Depression is the result of the Ideological Left in the Legislature, and through several Leftist Regimes, having coerced the US Financial Markets to turn from sound, actuarial lending principle, and favor a perverse sense of 'fairness', which defined such in the absurdity that 'Everyone Deserves to own their own home'.

Then, after decades of the effort to shove the lending industry from the principles essential to sustaining lending viability, the Left ran to public flagellation, weeping and gnashing their collective tooth that the Financial Industry failed because of unprincipled behavior.

This is seen again in a micro-example, wherein the Left RAILED ON about "BUSH DEFICITS", claiming that such was IMMORAL and UNPATRIOTIC! Only to instantly increase US Federal Deficits by an ORDER OF MAGNITUDE and sustaining those previously UNIMAGINABLE LEVELS... for the next 8 years... beginning in 2007.

Again, this all demonstrates the deviant reasoning common to the Ideological Left.

It is the same perversion of reasoning that leads people to demand that demonstrably deviant sexual behavior is perfectly normal; that paying people to not work, will promote those people to seek gainful employment and that they have a RIGHT to murder their pre-born children, where bearing those children are seen as an inconvenience.

In short, what we're witnessing is nothing short of the rise of Old Testament Evil... madness, on a massive scale.

 

[rdean]

Republicans controlled most of the government for six years and used reconciliation three times. And yet, these Republicans feel those Republicans were "Powerless" against those evil Democrats who couldn't even stop the GOP from using "reconciliation". Why doesn't the GOP simply face their failed policies? The fact is, these Republicans are those Republicans. Failure hurts. Too much for them to even face their own failed policies.

 

[Where_r_my_Keys]

From time to time a new member will PM and ask "I love your work... You are in total control of the Liberals here... Can you send me a link to a post which you feel truly demonstrates the fear that the Left has of you?".

So I dig around and send whatever comes first.

For the New members, the below post is a CLASSIC example of what happens when American Principle is unapologetically and consistently advanced... TOTAL, UNMITIGATED DOMINATION!

Keys now is ranting.

Put the thread and troll in the flame zone, please.

 

[bendog]

Ah so we're back to the queers are icky. And, I've never really tracked since most of us like oral sex with different sex partners.

 

[AceRothstein]

But PC is loony, but imo in a fun way, and she's not uncivil

She's econchick, who was loony in a non-fun way and quite uncivil. Some have hypothesized that both were LGS creations.

 

[bendog]

But PC is loony, but imo in a fun way, and she's not uncivil

She's econchick, who was loony in a non-fun way and quite uncivil. Some have hypothesized that both were LGS creations.

I don't know who LGS is/was.

 

[TyroneSlothrop]

It's crap like this that got the above cited troll BANNED TO IGNORE...