New Study Finds Democrats Fully to Blame for Subprime Mortgage Crisis

[daveman]

Already been a thread on this debunked bullshit. http://www.usmessageboard.com/polit...nfirms-democrats-crashed-the-economy-duh.html

Yeah well tough shit. We're gonna keep hammering away at this issue for as long as it takes to fully expose democrat culpability for crashing the real estate marketplace.

Keep screaming until you hope everyone believes it's true? That's a new strategy for the right wing...

Oh, sorry, didn't know the Left has the exclusive franchise.

 

[NYcarbineer]

Already been a thread on this debunked bullshit. http://www.usmessageboard.com/polit...nfirms-democrats-crashed-the-economy-duh.html

Yeah well tough shit. We're gonna keep hammering away at this issue for as long as it takes to fully expose democrat culpability for crashing the real estate marketplace.

Keep screaming until you hope everyone believes it's true? That's a new strategy for the right wing...

Kind of like they kept screaming for years that Rasmussen was the most accurate pollster.

 

[NYcarbineer]

For the right to come up with a tale that blames a major crisis on non-white poor people and liberals is the Holy Grail of modern conservatism. Or one of them anyway.

 

[Gadawg73]

let me be the first to say the left was a part of the problem here, to say otherwise is just silly.

Im a hard core Democrat and I will say, we were wrong here and do deserve a lot of blame. Sure, we thought if we could get the banks to lower their lending standers good things would happen. Us progressives were taken to the bank, no pun intended. The Banks robbed us all blind and were worse off for it.

So, there you have it. Ill admit the lefts fault in this. However, at some point the rest of the payers have to take blame and stand up as well.

Exactly and I am a fiscal conservative.
Well said. Not everyone that defaulted on those mortgages was a Democrat.

 

[Katzndogz]

Democrats wouldn't believe the facts no matter what.

The housing crisis started in the 70s with Jimmy Carter's Community Reinvestment Act which relaxed lending standards and allowed lenders to write mortgages to people with poor credit.

Giving lenders the power and ability to write bad loans didn't mean that they would and they didn't. Contrary to democrat belief, money hungry lenders want to lend to those individuals who will pay the loan back with interest, not absconders. The greed of the lenders wouldn't be tolerated. Bill Clinton mandated quotas of loans to be given to those known not to pay back their loans. The no doc loan, or liar loan was born. As an incentive to agree and not fight expansion of the CRA, lenders were given the ability to bundle bad loans along with good loans and sell them. After all, weren't all these bad loans insured? Yes they were, by AIG. Banks that refused to make bad loans got punished. They couldn't expand, they couldn't merge, they were prohibited from growing. These were the banks still healthy after the bubble burst. These were the banks closed and taken over by obama regulators.

The CRA and the no doc loan did get support from George W. Bush. He was compromising with democrats by acting as emotionally as a democrat. Fine print should not prevent someone from owning a home. In a state of the union address, Bush mentioned that under this leadership minority home ownership had increased. Of course it did. They were just all bad loans with no one to pay them back. 45% of all defaults were from minority low income borrowers.

Here's How The Community Reinvestment Act Led To The Housing Bubble's Lax Lending - Business Insider

 

[thereisnospoon]

Yeah well tough shit. We're gonna keep hammering away at this issue for as long as it takes to fully expose democrat culpability for crashing the real estate marketplace.

Just like us Democrats wont let the Bush disaster be forgotten, early and often. Game on dude.

The difference is, but for the democrats screwing with the marketplace, you people would have no excuses to blame Bush.

 

[thereisnospoon]

Democrats wouldn't believe the facts no matter what.

The housing crisis started in the 70s with Jimmy Carter's Community Reinvestment Act which relaxed lending standards and allowed lenders to write mortgages to people with poor credit.

Giving lenders the power and ability to write bad loans didn't mean that they would and they didn't. Contrary to democrat belief, money hungry lenders want to lend to those individuals who will pay the loan back with interest, not absconders. The greed of the lenders wouldn't be tolerated. Bill Clinton mandated quotas of loans to be given to those known not to pay back their loans. The no doc loan, or liar loan was born. As an incentive to agree and not fight expansion of the CRA, lenders were given the ability to bundle bad loans along with good loans and sell them. After all, weren't all these bad loans insured? Yes they were, by AIG. Banks that refused to make bad loans got punished. They couldn't expand, they couldn't merge, they were prohibited from growing. These were the banks still healthy after the bubble burst. These were the banks closed and taken over by obama regulators.

The CRA and the no doc loan did get support from George W. Bush. He was compromising with democrats by acting as emotionally as a democrat. Fine print should not prevent someone from owning a home. In a state of the union address, Bush mentioned that under this leadership minority home ownership had increased. Of course it did. They were just all bad loans with no one to pay them back. 45% of all defaults were from minority low income borrowers.

Here's How The Community Reinvestment Act Led To The Housing Bubble's Lax Lending - Business Insider

The CRA was a reaction to the well documented practice of "red lining". Where banks literally used red lines to draw maps of exclusion to offer credit.
Truth is, while with some banks the practice was based mostly on racial issues, other lenders doing business in a manner that eliminated or reduced risk.
Quite simply, poorer neighborhoods with low property values were bad risks.
The do- gooders in government said, "well we will just see about that".
Banks implored with the government NOT to do this. The damage potential was immense.

 

[zeke]

Yea, I remember when I was writing mortgage loans for a living. Every day we had to enter our offices under armed guards because there were thousands of black poor people standing out side the door of our offices DEMANDING that all mortgage loan guidelines be eliminated for blacks and that they be given homes with no mortgages.

And that's what we did and now look what has happened.

Who ever would have thought that those poor blacks could have that kind of influence on the titans of Wall Steet to get free homes and no mortgage underwriting guidelines.

Those titans must be more on the side of poor black people than I ever suspected.

I hope those poor black people don't rise up again. They may want the rich peoples houses next time.

 

[NYcarbineer]

As I quoted Bank of America from the OP's own links,

83% of BAC's bad loans are non-CRA loans.

Blaming the whole crisis on CRA doesn't even make sense as a math problem, let alone all the other nonsense being thrown around.

 

[Sallow]

by Jim Hoft at Human Events blogs posts this absolutely shocking item:

In his early activist days, Barack Obama the community organizer sued banks to ease lending practices.

State Sen. Barack Obama and Fr. Michael Pfleger led a protest against the payday loan industry demanding the State of Illinois to regulate loan businesses in January 2000. During his time as a community organizer Barack Obama led several protests against banks to make loans to high risk individuals. (NBC 5 Week of January 3, 2000)

Here’s something that won’t get any play in the liberal media…
A new study by the respected National Bureau of Economic Research found that Democrats are to blame for the subprime mortgage crisis.
Investor’s Business Daily reported:

Read more @ New Study Finds Democrats Fully to Blame for Subprime Mortgage Crisis | Conservative News, Views & Books

Getting rid of red lining had zero to do with the Subprime crisis.

Nothing. Nadda. Bupkis.

 

[zeke]

Democrats wouldn't believe the facts no matter what.

The housing crisis started in the 70s with Jimmy Carter's Community Reinvestment Act which relaxed lending standards and allowed lenders to write mortgages to people with poor credit.

Giving lenders the power and ability to write bad loans didn't mean that they would and they didn't. Contrary to democrat belief, money hungry lenders want to lend to those individuals who will pay the loan back with interest, not absconders. The greed of the lenders wouldn't be tolerated. Bill Clinton mandated quotas of loans to be given to those known not to pay back their loans. The no doc loan, or liar loan was born. As an incentive to agree and not fight expansion of the CRA, lenders were given the ability to bundle bad loans along with good loans and sell them. After all, weren't all these bad loans insured? Yes they were, by AIG. Banks that refused to make bad loans got punished. They couldn't expand, they couldn't merge, they were prohibited from growing. These were the banks still healthy after the bubble burst. These were the banks closed and taken over by obama regulators.

The CRA and the no doc loan did get support from George W. Bush. He was compromising with democrats by acting as emotionally as a democrat. Fine print should not prevent someone from owning a home. In a state of the union address, Bush mentioned that under this leadership minority home ownership had increased. Of course it did. They were just all bad loans with no one to pay them back. 45% of all defaults were from minority low income borrowers.

Here's How The Community Reinvestment Act Led To The Housing Bubble's Lax Lending - Business Insider

The CRA was a reaction to the well documented practice of "red lining". Where banks literally used red lines to draw maps of exclusion to offer credit.
Truth is, while with some banks the practice was based mostly on racial issues, other lenders doing business in a manner that eliminated or reduced risk.
Quite simply, poorer neighborhoods with low property values were bad risks.
The do- gooders in government said, "well we will just see about that".
Banks implored with the government NOT to do this. The damage potential was immense.

You should have heard the bull shit that the mortgage lenders were telling their loan officers about the Community Reinvestment Act (CRA).

They (banks) told us that the reason we had to comply with the CRA requirements was that, in the old days, banks would come into a poorer community and solicit bank deposits from the citizens of a particular community. Then, even though they (banks) had increased their deposit base from that community, the banks wouldn't offer much in the way of loans. Mortgage loans in particular.

Some sense of fair play is what the governmnet was going for. You know don't take the poor peoples deposit if you aren't gonna offer some sort of lending.

So the CRA was born to address this issue.

But you all know what it was really about. Cause I read the REAL reasons right here all the time.

It was so those blacks could get over on the banks and take their revenge on the rest of us by tanking the economy.

Pitiful what they were allowed to do.

 

[NYcarbineer]

There is of course the other side of the story (aka the facts) from Businessweek in this case:


Community Reinvestment Act had nothing to do with subprime crisis

Posted by: Aaron Pressman on September 29, 2008

Fresh off the false and politicized attack on Fannie Mae and Freddie Mac, today we’re hearing the know-nothings blame the subprime crisis on the Community Reinvestment Act — a 30-year-old law that was actually weakened by the Bush administration just as the worst lending wave began. This is even more ridiculous than blaming Freddie and Fannie....

Community Reinvestment Act had nothing to do with subprime crisis - BusinessWeek

 

[Gadawg73]

Democrats wouldn't believe the facts no matter what.

The housing crisis started in the 70s with Jimmy Carter's Community Reinvestment Act which relaxed lending standards and allowed lenders to write mortgages to people with poor credit.

Giving lenders the power and ability to write bad loans didn't mean that they would and they didn't. Contrary to democrat belief, money hungry lenders want to lend to those individuals who will pay the loan back with interest, not absconders. The greed of the lenders wouldn't be tolerated. Bill Clinton mandated quotas of loans to be given to those known not to pay back their loans. The no doc loan, or liar loan was born. As an incentive to agree and not fight expansion of the CRA, lenders were given the ability to bundle bad loans along with good loans and sell them. After all, weren't all these bad loans insured? Yes they were, by AIG. Banks that refused to make bad loans got punished. They couldn't expand, they couldn't merge, they were prohibited from growing. These were the banks still healthy after the bubble burst. These were the banks closed and taken over by obama regulators.

The CRA and the no doc loan did get support from George W. Bush. He was compromising with democrats by acting as emotionally as a democrat. Fine print should not prevent someone from owning a home. In a state of the union address, Bush mentioned that under this leadership minority home ownership had increased. Of course it did. They were just all bad loans with no one to pay them back. 45% of all defaults were from minority low income borrowers.

Here's How The Community Reinvestment Act Led To The Housing Bubble's Lax Lending - Business Insider

So all Republicans are rich and none of them ever qualified for a loan under CRA?
45% of defaults of CRA loans were from minorities but that represented about 6% of the total loan value mortgages in total mortgage dollars at that time. Most of these loans were less than 180K. National average for a foreclosure is over 440K.
Fact is lack of personal responsibility be it Democrat or Republican caused these loans to go bad. Did politics play a role in this? Of course but it would be PEOPLE, not politicians, that do not pay mortgages in a timely matter.
I do consulting work for large mega banks. They fucked themselves as most of the bad loans are in the 600K area.

 

[NYcarbineer]

Have you noticed that anything good that happened after 1994 (when the GOP won their 'revolutionary' election) gets credited to the Republican Congress,

but anything bad somehow gets blamed on whatever Democrats are handy?

 

[Gadawg73]

There is of course the other side of the story (aka the facts) from Businessweek in this case:


Community Reinvestment Act had nothing to do with subprime crisis

Posted by: Aaron Pressman on September 29, 2008

Fresh off the false and politicized attack on Fannie Mae and Freddie Mac, today we’re hearing the know-nothings blame the subprime crisis on the Community Reinvestment Act — a 30-year-old law that was actually weakened by the Bush administration just as the worst lending wave began. This is even more ridiculous than blaming Freddie and Fannie....

Community Reinvestment Act had nothing to do with subprime crisis - BusinessWeek

Good article by Businessweek but when Bush went to Congress and warned them not once BUT TWICE, they did nothing in 2003-2006. Congress was run by REPUBLICANS then but when it hit in 2007 Democrats controlled it and DID NOTHING to stop Freddie or Fannie.
Democrats failed to react after the Republicans failed to react when Bush went up there long before the crisis.
Both parties to blame but when the shit hit the fan Democrats dropped the ball.

 

[Mac1958]

Fact is lack of personal responsibility be it Democrat or Republican caused these loans to go bad. Did politics play a role in this? Of course but it would be PEOPLE, not politicians, that do not pay mortgages in a timely matter.

I would only add that "personal responsibility" includes NOT taking out loans that you're not sure you can afford. It includes NOT taking out home equity loans to pay off credit cards and buy a new car. It includes NOT putting yourself in a lousy financial position just because you CAN.

An "evil banker" has nothing to do with that stuff.

.

 

[healthmyths]

Democrats wouldn't believe the facts no matter what.

The housing crisis started in the 70s with Jimmy Carter's Community Reinvestment Act which relaxed lending standards and allowed lenders to write mortgages to people with poor credit.

Giving lenders the power and ability to write bad loans didn't mean that they would and they didn't. Contrary to democrat belief, money hungry lenders want to lend to those individuals who will pay the loan back with interest, not absconders. The greed of the lenders wouldn't be tolerated. Bill Clinton mandated quotas of loans to be given to those known not to pay back their loans. The no doc loan, or liar loan was born. As an incentive to agree and not fight expansion of the CRA, lenders were given the ability to bundle bad loans along with good loans and sell them. After all, weren't all these bad loans insured? Yes they were, by AIG. Banks that refused to make bad loans got punished. They couldn't expand, they couldn't merge, they were prohibited from growing. These were the banks still healthy after the bubble burst. These were the banks closed and taken over by obama regulators.

The CRA and the no doc loan did get support from George W. Bush. He was compromising with democrats by acting as emotionally as a democrat. Fine print should not prevent someone from owning a home. In a state of the union address, Bush mentioned that under this leadership minority home ownership had increased. Of course it did. They were just all bad loans with no one to pay them back. 45% of all defaults were from minority low income borrowers.

Here's How The Community Reinvestment Act Led To The Housing Bubble's Lax Lending - Business Insider

The CRA was a reaction to the well documented practice of "red lining". Where banks literally used red lines to draw maps of exclusion to offer credit.
Truth is, while with some banks the practice was based mostly on racial issues, other lenders doing business in a manner that eliminated or reduced risk.
Quite simply, poorer neighborhoods with low property values were bad risks.
The do- gooders in government said, "well we will just see about that".
Banks implored with the government NOT to do this. The damage potential was immense.

You should have heard the bull shit that the mortgage lenders were telling their loan officers about the Community Reinvestment Act (CRA).

They (banks) told us that the reason we had to comply with the CRA requirements was that, in the old days, banks would come into a poorer community and solicit bank deposits from the citizens of a particular community. Then, even though they (banks) had increased their deposit base from that community, the banks wouldn't offer much in the way of loans. Mortgage loans in particular.

Some sense of fair play is what the governmnet was going for. You know don't take the poor peoples deposit if you aren't gonna offer some sort of lending.

So the CRA was born to address this issue.

But you all know what it was really about. Cause I read the REAL reasons right here all the time.

It was so those blacks could get over on the banks and take their revenge on the rest of us by tanking the economy.

Pitiful what they were allowed to do.

Actually are right about the blacks tanking the economy but they didn't do it as you evidently fervently believe i.e. "take revenge". The reason it did happen is because people like YOU FEEL that blacks need help because you are a racist but you don't know it!

See most blacks are perceived by YOUR ILK as not being capable of working hard, saving money and buying homes the traditional way.
YOU and your racists ilk look at blacks as a disadvantage group that needs a helping hand, i.e. you want to feed them daily keep them docile and not TEACH them to get a job and feed themselves!

Consequently YOU perceive the blacks as tanking the economy facetiously but you are right!
Given the snowballing affect that a growing number of subprime loans AFFECT those that are making their loan payments!
So lenders looked to the Government for help.. i.e. securitizing mortgages re-sold by Fannie/Freddie.
And when investors READ quotes like these THESE investors Bought the securitized BACKED by the full faith and credit KNOWING there were NO risks!

BUT FDIC said we'll close you cause loans are poor quality!
Banks re-packaged and sold with Fannie/Freddie Using CDswaps banks could unload the sub-prime loans by having Fannie/Freddie securitizing them as explained in this statement:
Oct. 23,2008 (Bloomberg) -- Fannie Mae and Freddie Mac have an ``effective'' federal guarantee, not the "full faith and credit'' of the U.S. government, Federal Housing Finance Agency Director James Lockhart said after the hearing. That does give them effectively a guarantee of the U.S. government.''
Lockhart's Fannie, Freddie Guarantee Remarks Stir Up Confusion - Bloomberg

California Teachers Union Cartoon Video Has Rich Urinating On Poor | RealClearPolitics

So you are right... blacks tanked the economy because people like you are racists feeling blacks can't get ahead because they are disadvantaged!
People like you are still of the slave owner mentality... keep the slaves feed and healthy and cull out those that have initiative and want to get ahead.
Your racist mentality is keep them dumb and happy! Give them SNAP. Give them Obamaphones!! Give them free rent!
Keep the blacks dumb and happy! That's how you want it to happen!

 

[Gadawg73]

Many foreclosures are from lack of personal responsibility.
And what party allows excuses and a backup taxpayer financed solution to people that make bad choices?
DEMOCRATS,

 

[Yurt]

Anyone with a modicum of understanding of the real estate boom and bust knows that the sub prime mortgages were a scheme entirely exploited and abused by mortgage-hungry lenders,

whose motive was to generate as many mortgages as possible and then sell them off for a profit.

yeah, sure... as you say, sub prime mortgages were a scheme entirely exploited and abused by mortgage-hungry lenders, whose motive was to generate as many mortgages as possible and then sell them off for a profit...

but, as I understand it, it was the Dems who opened the door that allowed this to happen...


the Dems, in their usual shit-for-brains manner, were the ones who hatched the scheme that was then exploited...

The Democrats weren't in power in the 2000's until 2009. By then the real estate bubble had burst.

Believe what you want. In Conservatopia, it's always the left's fault. We get that.

But most people live in normal America, where facts, not wishes, determine the truth.

you are truly uninformed

they won both the house and senate in 2006

 

[Remodeling Maidiac]

LOL. The truth is well known to most American Voters. That is why our President was re-elected. We know who created the economic debacle of 2008. And it was not the Dems.

But by going back and trying to re-write history, the GOP is once again demonstrating the basic dishonesty that their now extremist positions have forced them into. And the voters in our nation recognized that extremism for what it is.

The president was NOT reelected based on truth. He was reelected based on talking points.