Zone1 Tax the Rich! Make them Pay their Fair Share!

[JonKoch]

When posters claim it was global, it means they do not know. Housing is not global in the USA.

•The boom and bust was global. Proponents of the Big Lie ignore the worldwide nature of the housing boom and bust.



A McKinsey Global Institute report noted “from 2000 through 2007, a remarkable run-up in global home prices occurred.”


It is highly unlikely that a simultaneous boom and bust everywhere else in the world was caused by one set of factors (ultra-low rates, securitized AAA-rated subprime, derivatives) but had a different set of causes in the United States. Indeed, this might be the biggest obstacle to pushing the false narrative. How did U.S. regulations against redlining in inner cities also cause a boom in Spain, Ireland and Australia?


How can we explain the boom occurring in countries that do not have a tax deduction for mortgage interest or government-sponsored enterprises? And why, after nearly a century of mortgage interest deduction in the United States, did it suddenly cause a crisis?

https://archive.ph/20200215001736/https://www.washingtonpost.com/business/examining-the-big-lie-how-the-facts-of-the-economic-crisis-stack-up/2011/11/16/gIQA7G23cN_story.html#selection-937.0-947.773

Jun 16th 2005
NEVER before have real house prices risen so fast, for so long, in so many countries. Property markets have been frothing from America, Britain and Australia to France, Spain and China. Rising property prices helped to prop up the world economy after the stockmarket bubble burst in 2000. What if the housing boom now turns to bust?




According to estimates by The Economist, the total value of residential property in developed economies rose by more than $30 trillion over the past five years, to over $70 trillion, an increase equivalent to 100% of those countries' combined GDPs. Not only does this dwarf any previous house-price boom, it is larger than the global stockmarket bubble in the late 1990s (an increase over five years of 80% of GDP) or America's stockmarket bubble in the late 1920s (55% of GDP). In other words, it looks like the biggest bubble in history.

https://archive.ph/8Wb5V#selection-943.0-970.0

 

[Robert W]

Almost nothing Cupcake. A youtube video from 2008 proves how stoopid u are is all


Financial institutions that produced risky securities were more likely to hold onto them as investments. For example, by the summer of 2007, UBS held onto $50 billion of high-risk MBS or CDO securities, Citigroup $43 billion, Merrill Lynch $32 billion, and Morgan Stanley $11 billion. Since these institutions were producing and investing in risky loans, they were thus extremely vulnerable when housing prices dropped and foreclosures increased in 2007. A final analysis shows that firms that were engaged in many phases of producing mortgage-backed securities were more likely to experience loss and bankruptcy.

What caused predatory lending and securities fraud?​

In a 2015 working paper, Fligstein and co-author Alexander Roehrkasse (doctoral candidate at UC Berkeley)3 examine the causes of fraud in the mortgage securitization industry during the financial crisis. Fraudulent activity leading up to the market crash was widespread: mortgage originators commonly deceived borrowers about loan terms and eligibility requirements, in some cases concealing information about the loan like add-ons or balloon payments.


Banks gave risky loans, such as “NINJA” loans (a loan given to a borrower with no income, no job, and no assets) and Jumbo loans (large loans usually intended for luxury homes), to individuals who could not afford them, knowing that the loans were likely to default. Banks that created mortgage-backed securities often misrepresented the quality of loans.



For example, a 2013 suit by the Justice Department and the U.S. Securities and Exchange Commission found that 40 percent of the underlying mortgages originated and packaged into a security by Bank of America did not meet the bank’s own underwriting standards.4

What Really Caused the Great Recession? – Institute for Research on Labor and Employment

Overview The Great Recession that began in 2008 led to some of the highest recorded rates of unemployment and home foreclosures in the U.S. since the Great Depr

irle.berkeley.edu

You refuse to admit, but you never were in the mortgage business and are way out of your league.

 

[JonKoch]

I get it Cupcake, you think a 2 minute video from 2008 proves your BS. it doesn't


The relative market share of Fannie Mae and Freddie Mac dropped from a high of 57 percent of all new mortgage originations in 2003, down to 37 percent as the bubble was developing in 2005-06

https://archive.ph/20200215001736/https://www.washingtonpost.com/business/examining-the-big-lie-how-the-facts-of-the-economic-crisis-stack-up/2011/11/16/gIQA7G23cN_story.html#selection-989.423-989.613

 

[JonKoch]

You refuse to admit, but you never were in the mortgage business and are way out of your league.

Yeah, I'm the idiot posting a vid from 2008 youtube

LMAOROG



The Presidents Working Groups March 2008 policy statement acknowledged that turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007.



Right-wingers Want To Erase How George Bush's "Homeowner Society" Helped Cause The Economic Collapse





2004 Republican Convention:

Another priority for a new term is to build an ownership society, because ownership brings security and dignity and independence.
...

Thanks to our policies, home ownership in America is at an all- time high.

(APPLAUSE)

Tonight we set a new goal: 7 million more affordable homes in the next 10 years, so more American families will be able to open the door and say, "Welcome to my home."


June 17, 2004


Builders to fight Bush's low-income plan


NEW YORK (CNN/Money) - Home builders, realtors and others are preparing to fight a Bush administration plan that would require Fannie Mae and Freddie Mac to increase financing of homes for low-income people, a home builder group said Thursday.


Home builders fight Bush's low-income housing - Jun. 17, 2004


AGAIN MY FORUM

Thread 'FACTS on Dubya's great recession'

Jul 2, 2014

Q When did the Bush Mortgage Bubble start?

A The general timeframe is it started late 2004.

From Bush’s President’s Working Group on Financial Markets October 2008

“The Presidents Working Group’s March policy statement acknowledged that turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007.”



Q Did the Community Reinvestment Act under Carter/Clinton caused it?


A "Since 1995 there has been essentially no change in the basic CRA rules or...

• Dad2three
• Replies: 481
• Forum: Economy

• 

 

[Robert W]

•The boom and bust was global. Proponents of the Big Lie ignore the worldwide nature of the housing boom and bust.



A McKinsey Global Institute report noted “from 2000 through 2007, a remarkable run-up in global home prices occurred.”


It is highly unlikely that a simultaneous boom and bust everywhere else in the world was caused by one set of factors (ultra-low rates, securitized AAA-rated subprime, derivatives) but had a different set of causes in the United States. Indeed, this might be the biggest obstacle to pushing the false narrative. How did U.S. regulations against redlining in inner cities also cause a boom in Spain, Ireland and Australia?


How can we explain the boom occurring in countries that do not have a tax deduction for mortgage interest or government-sponsored enterprises? And why, after nearly a century of mortgage interest deduction in the United States, did it suddenly cause a crisis?

https://archive.ph/20200215001736/https://www.washingtonpost.com/business/examining-the-big-lie-how-the-facts-of-the-economic-crisis-stack-up/2011/11/16/gIQA7G23cN_story.html#selection-937.0-947.773

Jun 16th 2005
NEVER before have real house prices risen so fast, for so long, in so many countries. Property markets have been frothing from America, Britain and Australia to France, Spain and China. Rising property prices helped to prop up the world economy after the stockmarket bubble burst in 2000. What if the housing boom now turns to bust?




According to estimates by The Economist, the total value of residential property in developed economies rose by more than $30 trillion over the past five years, to over $70 trillion, an increase equivalent to 100% of those countries' combined GDPs. Not only does this dwarf any previous house-price boom, it is larger than the global stockmarket bubble in the late 1990s (an increase over five years of 80% of GDP) or America's stockmarket bubble in the late 1920s (55% of GDP). In other words, it looks like the biggest bubble in history.

https://archive.ph/8Wb5V#selection-943.0-970.0

You keep pulling the same stunt. Using others work. When I showed you the report about this. you learned nothing.

Question. what was your role in the crisis?

My role was as a competitor to Country Wide Mortgage, a giant.

Appraisers were ruled over by Fannie Mae and their cousin Freddie Mac and so were mortgage lenders.
You appear to be talking a lot but knowing little. And unable to learn. Today Appraisers are ruled over by the Federal Government as are mortgage lenders.

 

[Robert W]

LMAOROG



Get real Cupcake

Examining the big lie: How the facts of the economic crisis stack up​

https://archive.ph/20200215001736/https://www.washingtonpost.com/business/examining-the-big-lie-how-the-facts-of-the-economic-crisis-stack-up/2011/11/16/gIQA7G23cN_story.html#selection-763.0-826.0

MY OLD FORUM ON IT

Thread 'FACTS on Dubya's great recession'

Jul 2, 2014

Q When did the Bush Mortgage Bubble start?

A The general timeframe is it started late 2004.

From Bush’s President’s Working Group on Financial Markets October 2008

“The Presidents Working Group’s March policy statement acknowledged that turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007.”



Q Did the Community Reinvestment Act under Carter/Clinton caused it?


A "Since 1995 there has been essentially no change in the basic CRA rules or...

• Dad2three
• Replies: 481
• Forum: Economy

• 

Koch, did you ever originate any mortgage loan?

 

[JonKoch]

You keep pulling the same stunt. Using othersd work. When I showed uou the report about this,. you learned nothing.

Question. what was your role in the crisis?

My role was as a competitor to Country Wide Mortgage, a giant.

Appraisers were ruled over by Fannie Mae and their cousin Freddie Mac and so were mortgage lenders.
You appear to be talking a lot but knowing little. And unable to learn. Today Appraisers are ruled over by the Federal Government as are mortgage lenders.

You are an idiot, did you used to call yourself Edward? You sound as dumb as him



Countrywide Financial Corporation, once the largest independent U.S. mortgage lender, was acquired by Bank of America in July 2008 for roughly $4 billion following its collapse during the subprime mortgage crisis. Founded in 1969, the company became synonymous with risky, predatory lending, leading to billions in legal settlements, with the brand retired by 2009.



Key Details of Countrywide Financial:

• Rise and Fall: By 2006, it was a top Fortune 500 company originating nearly $500 billion in loans. It collapsed due to subprime mortgage defaults, high-risk "pick-a-payment" loans, and lack of underwriting.

• Acquisition: Bank of America acquired the company during the financial crisis, a deal that eventually cost it over $40 billion in legal liability and damages.

• Legal Issues: The company faced numerous lawsuits regarding predatory lending, overcharging, inflating home values, and steering minority borrowers into subprime loans, resulting in major lawsuits like the $335 million DOJ settlement.

• Leadership: Former CEO Angelo Mozilo was charged with fraud and insider trading by federal regulators

No. 1 of The Subprime 25: Countrywide Financial Corp.​

No. 1 of The Subprime 25: Countrywide Financial Corp. – Center for Public Integrity

Who’s Behind the Financial Meltdown? Stories in this series Ginnie Mae’s troubling endorsements By Brian Grow and Zachary Goldfarb December 10, 2009 You broke it? You fix it. By John Dunbar August 26, 2009 Meltdown 101 By John Dunbar May 6, 2009 Commentary: The mega-banks behind the meltdown By...

publicintegrity.org

AGAIN MY OLD FORUM HERE

DAD2THREE

Thread 'FACTS on Dubya's great recession'

Jul 2, 2014

Q When did the Bush Mortgage Bubble start?

A The general timeframe is it started late 2004.

From Bush’s President’s Working Group on Financial Markets October 2008

“The Presidents Working Group’s March policy statement acknowledged that turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007.”



Q Did the Community Reinvestment Act under Carter/Clinton caused it?


A "Since 1995 there has been essentially no change in the basic CRA rules or...

• Dad2three
• Replies: 481
• Forum: Economy

• 

 

[JonKoch]

Koch, did you ever originate any mortgage loan?

You mean did I create the ponzi scheme Dubya cheered on and the Banksters hosed the world with? No


Which means, I didn't create the BS you and your partners did


60% of loans in 2006 were low or no doc loans, how many did you do then?

 

[JonKoch]

You keep pulling the same stunt. Using others work. When I showed you the report about this. you learned nothing.

Question. what was your role in the crisis?

My role was as a competitor to Country Wide Mortgage, a giant.

Appraisers were ruled over by Fannie Mae and their cousin Freddie Mac and so were mortgage lenders.
You appear to be talking a lot but knowing little. And unable to learn. Today Appraisers are ruled over by the Federal Government as are mortgage lenders.

LMAOROG. Gawd you are dumb, at least the other two righties are just liars



No doc loans went from 4% of all loans in 2004 to about 50% in 2006. Let that soak in. In 2006, about 50% of all loans were No Doc loans. You cant stop checking the borrowers ability to repay the loan until you preempt all state laws against predatory lending and federal regulators let you.





Predatory Lenders' Partner in Crime

Predatory lending was widely understood to present a looming national crisis.



What did the Bush administration do in response? Did it reverse course and decide to take action to halt this burgeoning scourge?



Not only did the Bush administration do nothing to protect consumers, it embarked on an aggressive and unprecedented campaign to prevent states from protecting their residents from the very problems to which the federal government was turning a blind eye



In 2003, during the height of the predatory lending crisis, the OCC invoked a clause from the 1863 National Bank Act to issue formal opinions preempting all state predatory lending laws, thereby rendering them inoperative


ALL 50 STATES SUED IN LATE 2003 TO STOP THE ADMIN, BUT IT TOOK UNTIL 2009 BEFORE THEY FINALLY WON IN COURT, TOO LATE

https://www.washingtonpost.com/wp-dyn/content/article/2008/02/13/AR2008021302783.html

 

[Leo123]

Banks created the 2007–2008 subprime crisis by adopting an "originate-to-distribute" model, where they issued risky, high-interest loans to borrowers with poor credit, then immediately sold them to investors as mortgage-backed securities (MBS). This broke the link between lender risk and borrower quality, encouraging lenders to prioritize loan volume over quality, while securitization spread toxic debt throughout the global financial system.
How the Crisis Was Created Without Holding Loans:

• The Originate-to-Distribute Model: Lenders stopped holding loans on their books ("originate-to-hold") and instead sold them off, reducing their accountability for the long-term viability of the loans.

• Declining Loan Quality: The drive for volume led to rampant predatory lending and high-risk loans, including NINJA loans (No Income, No Job, no Assets).

• Securitization and Toxic Debt: Banks packaged these risky, subprime mortgages into Mortgage-Backed Securities (MBS) and Collateralized Debt Obligations (CDOs), often deceiving rating agencies into marking them as safe, high-quality investments.

• Misaligned Incentives: Because lenders made profits on the fees from creating and selling the loans, they were incentivized to create as many as possible, regardless of whether the borrower could pay them back.

• Systemic Spread: By selling these "toxic" loans to investors worldwide, banks allowed the risks from the U.S. housing bubble to corrupt the global financial system, leading to a liquidity crisis when defaults spiked.

What Really Caused the Great Recession? – Institute for Research on Labor and Employment

Overview The Great Recession that began in 2008 led to some of the highest recorded rates of unemployment and home foreclosures in the U.S. since the Great Depr

irle.berkeley.edu

And that has nothing to do with what I posted.

 

[Robert W]

LMAOROG. Gawd you are dumb, at least the other two righties are just liars

I happen to be the known expert on this topic. I pity you never were in the business. Talking to you is like talking to a toddler.

 

[JonKoch]

Koch, did you ever originate any mortgage loan?

Based on a 2009 analysis by the Center for Public Integrity, the financial meltdown was driven by major investment banks and lenders—including Lehman Brothers, JPMorgan Chase, and Citigroup—which backed or owned the top subprime mortgage lenders. These institutions pushed risky, high-cost loans, ultimately leading to a global collapse

 

[JonKoch]

And that has nothing to do with what I posted.

I know you are trying to say the appraisers were innocent and the mortgage companies too right? lol

 

[JonKoch]

I happen to be the known expert on this topic. I pity you never were in the business. Talking to you is like talking to a toddler.

Projection there Cupcake. TRY TO REFUTE ANYTHING I POST. ANYTHING

 

[Robert W]

In 2003, during the height of the predatory lending crisis, the OCC invoked a clause from the 1863 National Bank Act to issue formal opinions preempting all state predatory lending laws, thereby rendering them inoperative

Do you not understand that both Fannie Mae and Freddie Mac bought those loans and told us the rules to follow?

Here is another fact. The borrowers had flaky credit and were eager to get one of the approved Fannie Mae loans.

Lehman Brothers were a huge lender of those risky loans.

I talked to a beautiful woman agent who represented Lehman Brothers one day and the following day the firm was closed up totally

 

[Robert W]

Projection there Cupcake. TRY TO REFUTE ANYTHING I POST. ANYTHING

No,. you try to refute me.

I know the facts and you admit you are no expert.

 

[JonKoch]

Do you not understand that both Fannie Mae and Freddie Mac bought those loans and told us the rules to follow?

Here is another fact. The borrowers had flaky credit and were eager to get one of the approved Fannie Mae loans.

Lehman Brothers were a huge lender of those risky loans.

I talked to a beautiful woman agent who represented Lehman Brothers one day and the following day the firm was closed up totally

“The idea that they were leading this charge is just absurd,” says Guy Cecala,
publisher of Inside Mortgage Finance, an authoritative trade publication. “Fannie and Freddie have always had the tightest underwriting on earth. … They were opposite of subprime.”



The evidence indicates Fannie and Freddie contributed to the mortgage meltdown, but they played a secondary role to Wall Street. Wall Street firms and the mortgage lenders they bankrolled led the growth of the market for subprime loans and other risky mortgages.

FactWatch: Fannie and Freddie were followers, not leaders, in mortgage frenzy​

Mortgages financed by Wall Street from 2001 to 2008 were 4½ times more likely to be seriously delinquent than mortgages backed by Fannie and Freddie.

FactWatch: Fannie and Freddie were followers, not leaders, in mortgage frenzy – Center for Public Integrity

Ask many Americans who’s to blame for the nation’s economic mess, and two names come to mind: Fannie and Freddie. They see Fannie Mae and Freddie Mac as the villains of the financial crisis. GOP.gov, the official website for Republicans in the House of Representatives, says flatly: “Fannie Mae...

publicintegrity.org

 

[Robert W]

I know you are trying to say the appraisers were innocent and the mortgage companies too right? lol

Leo and I were appraisers. What I did also was review appraisals done by other appraisers for lenders and some appraisers did poor work. But I recall just 2 of these types.

 

[JonKoch]

No,. you try to refute me.

I know the facts and you admit you are no expert.

Cupcake I've refuted EVERYTHING u tried to posit

 

[Robert W]

“The idea that they were leading this charge is just absurd,” says Guy Cecala,
publisher of Inside Mortgage Finance, an authoritative trade publication. “Fannie and Freddie have always had the tightest underwriting on earth. … They were opposite of subprime.”



The evidence indicates Fannie and Freddie contributed to the mortgage meltdown, but they played a secondary role to Wall Street. Wall Street firms and the mortgage lenders they bankrolled led the growth of the market for subprime loans and other risky mortgages.

FactWatch: Fannie and Freddie were followers, not leaders, in mortgage frenzy​

Mortgages financed by Wall Street from 2001 to 2008 were 4½ times more likely to be seriously delinquent than mortgages backed by Fannie and Freddie.

FactWatch: Fannie and Freddie were followers, not leaders, in mortgage frenzy – Center for Public Integrity

Ask many Americans who’s to blame for the nation’s economic mess, and two names come to mind: Fannie and Freddie. They see Fannie Mae and Freddie Mac as the villains of the financial crisis. GOP.gov, the official website for Republicans in the House of Representatives, says flatly: “Fannie Mae...

publicintegrity.org

My mortgage firm never originated loans for Wall St. We originated them under Fannie Mae rules and they ended up with the loans.