Study: Housing Collapse Steeper Than During Great Depression

[Meister]

I blame corprate influence for this mess.

They bought and paid for the policies that created this mess.

Corporate America twisted the arm of my neighbor to run up his credit cards every 2 years, get a higher mortgage that he could not pay for so he could travel to Jamaica and Punta Cana 4 weeks each year?
They forced him to give up his home, which he could still afford, because the value now is what IT SHOULD HAVE BEEN?
No one was forced to do a damn thing.

Heres a tip that works to figure out who planned what to make money.

FOLLOW the MONEY.


If you are too uninformed and or dull you may not be able to figure out who set you up.

Are you talking about the Stimulus Money, Cash For Clunkers and the unions?

 

[WillowTree]

It was the demonRats and their "community organizers" who pressured the banks and their representatives to make housing available to those who could not afford it.

 

[Gadawg73]

Are you familiar with the Floridas felons list?

Have you heard of Clint Curtis?

Most of my work the last 4 years has been consulting for the big banks going after all of the crooks. That would be the millionaire developers that received the bulk of the $$$ for future speculation. The housing collapse was a result of that.
Not the other way around.
Guess why they all run to Florida.

 

[Gadawg73]

It was the demonRats and their "community organizers" who pressured the banks and their representatives to make housing available to those who could not afford it.

True, but that was maybe 7-10% of the entire dollar amount loaned.
The big $$ was what collapsed the market and that was not appraisals on 200K homes that were worth $160K.
The large loan segment is what brought the collapse. Those averaged $600k+ and those were not people that were from community organizers.
Most of the collapse was from people WALKING AWAY from their homes in the large $$ sector.
Market forces, not government regulations or lack of them, forced the collapse.
Blame is easier than personal responsibility which is lacking in America these days.
It was the fault of EVERYONE.

 

[MaggieMae]

I blame corprate influence for this mess.

They bought and paid for the policies that created this mess.

Corporate America twisted the arm of my neighbor to run up his credit cards every 2 years, get a higher mortgage that he could not pay for so he could travel to Jamaica and Punta Cana 4 weeks each year?
They forced him to give up his home, which he could still afford, because the value now is what IT SHOULD HAVE BEEN?
No one was forced to do a damn thing.

Buy now, pay later was the way of life and it was highly promoted by credit card companies and mortgage lenders, the only ones who stood to make a profit. That doesn't excuse the ignorance of both individuals and the government(s) thinking the ride would last forever, but it sure was helped along by corporate interests.

 

[Gadawg73]

I blame corprate influence for this mess.

They bought and paid for the policies that created this mess.

Corporate America twisted the arm of my neighbor to run up his credit cards every 2 years, get a higher mortgage that he could not pay for so he could travel to Jamaica and Punta Cana 4 weeks each year?
They forced him to give up his home, which he could still afford, because the value now is what IT SHOULD HAVE BEEN?
No one was forced to do a damn thing.

Heres a tip that works to figure out who planned what to make money.

FOLLOW the MONEY.


If you are too uninformed and or dull you may not be able to figure out who set you up.

I get paid 6 figures to follow the $$. I am a licensed private detective agency license holder for 29 years. I have been consulting the banks for 4 years now.
The big $$$ was in the speculative investor market-the developers. When that market stopped the rest folded up. Nothing sells, everything declines.
Chase it for a living.

 

[Gadawg73]

I blame corprate influence for this mess.

They bought and paid for the policies that created this mess.

Corporate America twisted the arm of my neighbor to run up his credit cards every 2 years, get a higher mortgage that he could not pay for so he could travel to Jamaica and Punta Cana 4 weeks each year?
They forced him to give up his home, which he could still afford, because the value now is what IT SHOULD HAVE BEEN?
No one was forced to do a damn thing.

Buy now, pay later was the way of life and it was highly promoted by credit card companies and mortgage lenders, the only ones who stood to make a profit. That doesn't excuse the ignorance of both individuals and the government(s) thinking the ride would last forever, but it sure was helped along by corporate interests.

I am not denying corporate America jumped on board this run away freight train and manipulated it to their advantage every way they could.

 

[MaggieMae]

It was the demonRats and their "community organizers" who pressured the banks and their representatives to make housing available to those who could not afford it.

Not even close.

Get Me ReWrite! | The Big Picture

When writing Bailout Nation, I tried to steer clear of partisan finger pointing. I kept the focus on what actually occurred, what could be proven mathematically. I blamed Democrats and Republicans — not equally, but in proportion to their actions, and what they did. Unsupported theories, tenuous connection, loose affiliations were not part of the analysis.

To be blameworthy, every legislative change, each regulatory failure, any corporate action had to manifest themselves in actual mathematical proof. This led me to ascertain the following 30 year sequence:

-Free market absolutism becomes the dominant intellectual thought.

-Deregulation of markets, investment houses, and banks becomes a broad goal: This led to Glass Steagall repeal, unfettering of Derivatives, Investing house leverage exemptions, and a new breed of unregulated non bank lenders.

-Legislative actions reduce or eliminate much of the regulatory oversight; SEC funding is weakened.

-Rates come down to absurd levels.

-Bond managers madly scramble for yield.

-Derivatives, non-bank lending, leverage, bank size, compensation levels all run away from prior levels.

-Wall Street securitizes whatever it can to satisfy the demand for higher yields.

-”Lend to securitize” nonbank mortgage writers sell enormous amounts of subprime loans to Wall Street for this purpose.

-To meet this huge demand, non bank lenders collapse lending standards (banks eventually follow), leading to a credit bubble.

-The Fed approves of this “innovation,” ignores risks.

-Housing booms . . . then busts

-Credit freezes, the markets collapse, a new recession begins.

You will note that the CRA is not part of this sequence. I could find no evidence that they were a cause or even a minor factor. If they were, the housing bubbles would not have been in California or S. Florida or Las Vegas or Arizona — Harlem and South Philly and parts of Chicago and Washington DC would have been the focus of RE bubbles.

 

[waltky]

Granny says she can't remember a time when more peoples was losin' their homes.