We should all agree with this!

[EdwardBaiamonte]

All of this seems predicated on the belief that "corporations" only become "greedy" when the Republicans are in power. How pathetically simplistic and naive.

also, if a corporation is greedy, i.e, it takes too much profit, capitalism corrects it immediately! That is the beauty of capitalism.

 

[Dad2three]

More than five years after the bankruptcy of Lehman Brothers and the beginning of the most severe economic downturn since the Great Depression, lawmakers should ask themselves whether they have done enough to reduce the risk of another financial crisis. In our view, the answer is no.

We definitely need more intervention to try and stem of some of the disasters created by intervention.

Meanwhile, the federal reserve goes untouched, as if it isn't the real systemic problem the country has financially.

Did the Fed Cause the housing Bubble?

According to research by Ambrogio Cesa-Bianchi and Alessandro Rebucci, the housing bubble was caused by "regulatory rather than monetary-policy failures":

Economist's View: Did the Fed Cause the housing Bubble?




Was it easy money or easy regulation that caused the housing bubble?


… after the Fed started to tighten its monetary-policy stance and the prime segment of the mortgage market promptly turned around, the subprime segment of the mortgage market continued to boom, with increased perceived risk of loans portfolios and declining lending standards. Despite this evidence, the first regulatory action to rein in those financial excesses was undertaken only in late 2006, after almost two years of steady increases in the federal funds rate. …

When regulators finally decided to act, it was too late:

Was it easy money or easy regulation that caused the housing bubble? | AEIdeas



One president controlled the regulators that not only let banks stop checking income but cheered them on. And as president Bush could enact the very policies that caused the Bush Mortgage Bubble and he did. And his party controlled congress.

 

[ScienceRocks]

Sure, Maybe we could remake it in away that rewards innovation more.

Definitely make people go to prison for fucking us over.

 

[Dad2three]

All of this seems predicated on the belief that "corporations" only become "greedy" when the Republicans are in power. How pathetically simplistic and naive.

also, if a corporation is greedy, i.e, it takes too much profit, capitalism corrects it immediately! That is the beauty of capitalism.

Fkng idiot

Regulators and policymakers enabled this process at virtually every turn. Part of the reason they failed to understand the housing bubble was willful ignorance: they bought into the argument that the market would equilibrate itself. In particular, financial actors and regulatory officials both believed that secondary and tertiary markets could effectively control risk through pricing.


http://www.tobinproject.org/sites/tobinproject.org/files/assets/Fligstein_Catalyst of Disaster_0.pdf



Conservative Ideas Can't Escape Blame for the Financial Crisis



The onset of the recent financial crisis in late 2007 created an intellectual crisis for conservatives, who had been touting for decades the benefits of a hands-off approach to financial market regulation. As the crisis quickly spiraled out of control, it quickly became apparent that the massive credit bubble of the mid-2000s, followed by the inevitable bust that culminated with the financial markets freeze in the fall of 2008, occurred predominantly among those parts of the financial system that were least regulated, or where regulations existed but were largely unenforced.

Predictably, many conservatives sought to blame the bogeymen they always blamed.


Politics Most Blatant | Center for American Progress

Ayn Rand Greenspan:

The former Federal Reserve chairman, Alan Greenspan, has conceded that the global financial crisis has exposed a "mistake" in the free market ideology which guided his 18-year stewardship of US monetary policy.


"I made a mistake in presuming that the self-interests of organisations, specifically banks and others, were such that they were best capable of protecting their own shareholders and their equity in the firms," said Greenspan.

Greenspan - I was wrong about the economy. Sort of | Business | The Guardian

 

[EdwardBaiamonte]

More than five years after the bankruptcy of Lehman Brothers and the beginning of the most severe economic downturn since the Great Depression, lawmakers should ask themselves whether they have done enough to reduce the risk of another financial crisis. In our view, the answer is no.

We definitely need more intervention to try and stem of some of the disasters created by intervention.

Meanwhile, the federal reserve goes untouched, as if it isn't the real systemic problem the country has financially.

Did the Fed Cause the housing Bubble?

According to research by Ambrogio Cesa-Bianchi and Alessandro Rebucci, the housing bubble was caused by "regulatory rather than monetary-policy failures":

Economist's View: Did the Fed Cause the housing Bubble?




Was it easy money or easy regulation that caused the housing bubble?


… after the Fed started to tighten its monetary-policy stance and the prime segment of the mortgage market promptly turned around, the subprime segment of the mortgage market continued to boom, with increased perceived risk of loans portfolios and declining lending standards. Despite this evidence, the first regulatory action to rein in those financial excesses was undertaken only in late 2006, after almost two years of steady increases in the federal funds rate. …

When regulators finally decided to act, it was too late:

Was it easy money or easy regulation that caused the housing bubble? | AEIdeas



One president controlled the regulators that not only let banks stop checking income but cheered them on. And as president Bush could enact the very policies that caused the Bush Mortgage Bubble and he did. And his party controlled congress.

actually Bush did not control Fed fan Fred


As ranking member of the House Financial Services Committee, Frank blocked tightened oversight over Fannie Mae and Freddie Mac, saying in 2003, “These two entities … are not facing any kind of financial crisis,” and, “I want to roll the dice a little bit more in this situation towards subsidized housing.” More than any other factor, the 2008 financial meltdown was caused by pushing these government-sponsored enterprises to encourage housing loans to risky borrowers. Thanks a lot, Barney.

 

[Dad2three]

All of this seems predicated on the belief that "corporations" only become "greedy" when the Republicans are in power. How pathetically simplistic and naive.

Weird how the GOP was 'in charge' leading up to the GOP great depression of '29, Reagan ignored regulator warnings that started in 1984 that would've stopped 90%+ of his S&L crisis, then Dubya did the same, WHILE being the biggest cheer leader for the Banksters



The Democrats are the party that says government will make you smarter, taller, richer, and remove the crabgrass on your lawn. The Republicans are the party that says government doesn't work and then they get elected and prove it.
P. J. O'Rourke

 

[Dad2three]

We definitely need more intervention to try and stem of some of the disasters created by intervention.

Meanwhile, the federal reserve goes untouched, as if it isn't the real systemic problem the country has financially.

Did the Fed Cause the housing Bubble?

According to research by Ambrogio Cesa-Bianchi and Alessandro Rebucci, the housing bubble was caused by "regulatory rather than monetary-policy failures":

Economist's View: Did the Fed Cause the housing Bubble?




Was it easy money or easy regulation that caused the housing bubble?


… after the Fed started to tighten its monetary-policy stance and the prime segment of the mortgage market promptly turned around, the subprime segment of the mortgage market continued to boom, with increased perceived risk of loans portfolios and declining lending standards. Despite this evidence, the first regulatory action to rein in those financial excesses was undertaken only in late 2006, after almost two years of steady increases in the federal funds rate. …

When regulators finally decided to act, it was too late:

Was it easy money or easy regulation that caused the housing bubble? | AEIdeas



One president controlled the regulators that not only let banks stop checking income but cheered them on. And as president Bush could enact the very policies that caused the Bush Mortgage Bubble and he did. And his party controlled congress.

actually Bush did not control Fed fan Fred


As ranking member of the House Financial Services Committee, Frank blocked tightened oversight over Fannie Mae and Freddie Mac, saying in 2003, “These two entities … are not facing any kind of financial crisis,” and, “I want to roll the dice a little bit more in this situation towards subsidized housing.” More than any other factor, the 2008 financial meltdown was caused by pushing these government-sponsored enterprises to encourage housing loans to risky borrowers. Thanks a lot, Barney.

Got it, You don't know the GSE's didn't cause Dubya's subprime crisis OR that Barney was minoirity member of the GOP majority House where, like today, Dems had ZERO power 1995-2007


YES, EXECUTIVE BRANCH HAD OVERSIGHT OF THE GSE'S, SEC, FBI, ETC

June 17, 2004

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



The Office of Federal Housing Enterprise Oversight (OFHEO) Was an agency within the Department of Housing and Urban Development of the United States of America. It was charged with ensuring the capital adequacy and financial safety and soundness of two government sponsored enterprises—the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). It was established by the Federal Housing Enterprises Financial Safety and Soundness Act of 1992.

OFHEO was managed by a Director, appointed by the President and ratified by the Senate

(HUD) is a Cabinet department in the Executive branch

 

[Dad2three]

We definitely need more intervention to try and stem of some of the disasters created by intervention.

Meanwhile, the federal reserve goes untouched, as if it isn't the real systemic problem the country has financially.

Did the Fed Cause the housing Bubble?

According to research by Ambrogio Cesa-Bianchi and Alessandro Rebucci, the housing bubble was caused by "regulatory rather than monetary-policy failures":

Economist's View: Did the Fed Cause the housing Bubble?




Was it easy money or easy regulation that caused the housing bubble?


… after the Fed started to tighten its monetary-policy stance and the prime segment of the mortgage market promptly turned around, the subprime segment of the mortgage market continued to boom, with increased perceived risk of loans portfolios and declining lending standards. Despite this evidence, the first regulatory action to rein in those financial excesses was undertaken only in late 2006, after almost two years of steady increases in the federal funds rate. …

When regulators finally decided to act, it was too late:

Was it easy money or easy regulation that caused the housing bubble? | AEIdeas



One president controlled the regulators that not only let banks stop checking income but cheered them on. And as president Bush could enact the very policies that caused the Bush Mortgage Bubble and he did. And his party controlled congress.

actually Bush did not control Fed fan Fred


As ranking member of the House Financial Services Committee, Frank blocked tightened oversight over Fannie Mae and Freddie Mac, saying in 2003, “These two entities … are not facing any kind of financial crisis,” and, “I want to roll the dice a little bit more in this situation towards subsidized housing.” More than any other factor, the 2008 financial meltdown was caused by pushing these government-sponsored enterprises to encourage housing loans to risky borrowers. Thanks a lot, Barney.

Bush talked about reform. He talked and he talked. And then he stopped reform. (read that as many times as necessary. Bush stopped reform). And then he stopped it again.



STATEMENT OF ADMINISTRATION POLICY

The Administration strongly believes that the housing GSEs should be focused on their core housing mission, particularly with respect to low-income Americans and first-time homebuyers. Instead, provisions of H.R. 1461 that expand mortgage purchasing authority would lessen the housing GSEs' commitment to low-income homebuyers.

George W. Bush: Statement of Administration Policy: H.R. 1461 - Federal Housing Finance Reform Act of 2005

Yes, he said he was against it because it "would lessen the housing GSEs' commitment to low-income homebuyers".

 

[Dad2three]

Fuck you and the other asshole who thanked you for your partisan Idiot-Gram.

If you can say why you disagree please try to.

It's just that ed loves what the bat shit crazy con web site tells him. And recessions are just fine with him. As long as the banksters are left alone to make lots of money, and screw up the economy.
But it is really not his fault. Ed is a CONGENITAL idiot. He inherited his idiocy fair and square. So, it is really not his fault. Just plain bad luck.

I disagree, he works VERY hard to remain that ignorant, getting his advice from morons like Limpball, Insannity and Cry Baby Beck

 

[Dad2three]

Our economy is just not regulated enough!

It sure wasn't when Dubya was in charge

 

[Dad2three]

It's true that Glass-Steagall needs to be reinstated and updated for the 21st Century. Regulation has to be extended to more than just banks, but to other lenders and Wall Street. But that requires hiring and paying regulators for banking and SECand other regulatory agencies.

absolutely, and we can get tons of ex soviet or VA regulators!! It will be like magic. We'll have good regulation and no more problems!! And to be safe we can have regulators to regulate the regulators.

A liberal will simply lack the IQ to know that capitalism provides the most rigorous regulations. In fact capitalist consumers bankrupt 10,000 companies a month!

FCIC:

A proximate cause of the 2008 crisis was the rise in subprime lending. The percentage of lower-quality subprime mortgages originated during a given year rose from the historical 8% or lower range to approximately 20% from 2004 to 2006, with much higher ratios in some parts of the U.S.


A high percentage of these subprime mortgages, over 90% in 2006 for example, were adjustable-rate mortgages.


CAPITALISM HUH?

These two changes were part of a broader trend of lowered lending standards and higher-risk mortgage products

Comparison of the growth of traditional banking and shadow banking

"In the early part of the 20th century, we erected a series of protections – the Federal Reserve as a lender of last resort, federal deposit insurance, ample regulations – to provide a bulwark against the panics that had regularly plagued America’s banking system in the 20th century. Yet, over the past 30-plus years, we permitted the growth of a shadow banking system – opaque and laden with short term debt – that rivaled the size of the traditional banking system. Key components of the market – for example, the multitrillion-dollar repo lending market, off-balance-sheet entities, and the use of over-the-counter derivatives – were hidden from view, without the protections we had constructed to prevent financial meltdowns. We had a 21st-century financial system with 19th-century safeguards."

Get the Report : Financial Crisis Inquiry Commission

 

[Dad2three]

We definitely need more intervention to try and stem of some of the disasters created by intervention.

Meanwhile, the federal reserve goes untouched, as if it isn't the real systemic problem the country has financially.

Did the Fed Cause the housing Bubble?

According to research by Ambrogio Cesa-Bianchi and Alessandro Rebucci, the housing bubble was caused by "regulatory rather than monetary-policy failures":

Economist's View: Did the Fed Cause the housing Bubble?




Was it easy money or easy regulation that caused the housing bubble?


… after the Fed started to tighten its monetary-policy stance and the prime segment of the mortgage market promptly turned around, the subprime segment of the mortgage market continued to boom, with increased perceived risk of loans portfolios and declining lending standards. Despite this evidence, the first regulatory action to rein in those financial excesses was undertaken only in late 2006, after almost two years of steady increases in the federal funds rate. …

When regulators finally decided to act, it was too late:

Was it easy money or easy regulation that caused the housing bubble? | AEIdeas



One president controlled the regulators that not only let banks stop checking income but cheered them on. And as president Bush could enact the very policies that caused the Bush Mortgage Bubble and he did. And his party controlled congress.

actually Bush did not control Fed fan Fred


As ranking member of the House Financial Services Committee, Frank blocked tightened oversight over Fannie Mae and Freddie Mac, saying in 2003, “These two entities … are not facing any kind of financial crisis,” and, “I want to roll the dice a little bit more in this situation towards subsidized housing.” More than any other factor, the 2008 financial meltdown was caused by pushing these government-sponsored enterprises to encourage housing loans to risky borrowers. Thanks a lot, Barney.

The Myth of Fannie Mae, Freddie Mac, Barney Frank, the Housing Bubble and the Recession



Start with the most basic fact of all: virtually none of the $1.5 trillion of cratering subprime mortgages were backed by Fannie or Freddie. That’s right — most subprime mortgages did not meet Fannie or Freddie’s strict lending standards. All those no money down, no interest for a year, low teaser rate loans? All the loans made without checking a borrower’s income or employment history? All made in the private sector, without any support from Fannie and Freddie.


The Myth of Fannie Mae, Freddie Mac, Barney Frank, the Housing Bubble and the Recession | The Long Goodbye


No, the GSEs Did Not Cause the Financial Meltdown (but thats just according to the data)


1. Private markets caused the shady mortgage boom: The first thing to point out is that the both the subprime mortgage boom and the subsequent crash are very much concentrated in the private market, especially the private label securitization channel (PLS) market. The Government-Sponsored Entities (GSEs, or Fannie and Freddie) were not behind them. The fly-by-night lending boom, slicing and dicing mortgage bonds, derivatives and CDOs, and all the other shadiness of the mortgage market in the 2000s were Wall Street creations, and they drove all those risky mortgages.

Here’s some data to back that up: “More than 84 percent of the subprime mortgages in 2006 were issued by private lending institutions… Private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year.”




2. The government’s affordability mission didn’t cause the crisis



4. Conservatives sang a different tune before the crash: Conservative think tanks spent the 2000s saying the exact opposite of what they are saying now


MY FAV:


AEI'S Peter Wallison, (THE GUY PUSHING THE FALSE, GOV'T DID IT MEME WITH ED PINTO, AEI) in 2004: “In recent years, study after study has shown that Fannie Mae and Freddie Mac are failing to do even as much as banks and S&Ls in providing financing for affordable housing, including minority and low income housing.”



Hey Mayor Bloomberg! No, the GSEs Did Not Cause the Financial Meltdown (but thats just according to the data) | The Big Picture

 

[Wry Catcher]

absolutely, and we can get tons of ex soviet or VA regulators!! It will be like magic. We'll have good regulation and no more problems!! And to be safe we can have regulators to regulate the regulators.

A liberal will simply lack the IQ to know that capitalism provides the most rigorous regulations. In fact capitalist consumers bankrupt 10,000 companies a month!

Fuck you and the other asshole who thanked you for your partisan Idiot-Gram.

If you can say why you disagree please try to.

I don't have to try to, your post was a partisan piece of crap as well as an ad hominem.

 

[The Rabbi]

Gee, I thought Democrats fixed all that with Dodd-Frank. Oh wait, Dodd Frank wrote too big to fail into law. Now it's the law that the government must bail out any institution that poses "systemic risk".
So Dems have created a problem and want us to support them in dealing with the problem they created, trusting they'll somehow do better this time.
Hey, why not repeal Dodd Frank? And no, we dont need Glass Steagal, which failed to prevent numerous banking crises.

 

[Dad2three]

Gee, I thought Democrats fixed all that with Dodd-Frank. Oh wait, Dodd Frank wrote too big to fail into law. Now it's the law that the government must bail out any institution that poses "systemic risk".
So Dems have created a problem and want us to support them in dealing with the problem they created, trusting they'll somehow do better this time.
Hey, why not repeal Dodd Frank? And no, we dont need Glass Steagal, which failed to prevent numerous banking crises.

YOU really need to grow up and grow a brain

Regulators and policymakers enabled this process at virtually every turn. Part of the reason they failed to understand the housing bubble was willful ignorance: they bought into the argument that the market would equilibrate itself. In particular, financial actors and regulatory officials (BUSH) both believed that secondary and tertiary markets could effectively control risk through pricing.


http://www.tobinproject.org/sites/tobinproject.org/files/assets/Fligstein_Catalyst of Disaster_0.pdf



The "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," the President's Working Group on Financial Markets OCT 2008



The Democrats are the party that says government will make you smarter, taller, richer, and remove the crabgrass on your lawn. The Republicans are the party that says government doesn't work and then they get elected and prove it.
P. J. O'Rourke

 

[jwoodie]

Bloviation and vulgarity seem to be the hallmarks of your posts. Give it a rest.

 

[The Rabbi]

Bloviation and vulgarity seem to be the hallmarks of your posts. Give it a rest.

He can't. He's on crack. That explains the volume and content of his posts.

 

[EdwardBaiamonte]

The "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," the President's Working Group on Financial Markets OCT 2008[/B]

and the massive liberal soviet interference with the free market had nothing to do with it? How is that possible? Ever heard of Fan Fred Fed???

Are you suggesting lib soviet govt must set standards for all products so the economy functions correctly?

 

[Dad2three]

Our economy is just not regulated enough!

Regulators and policymakers enabled this process at virtually every turn. Part of the reason they failed to understand the housing bubble was willful ignorance: they bought into the argument that the market would equilibrate itself. In particular, financial actors and regulatory officials both believed that secondary and tertiary markets could effectively control risk through pricing.


http://www.tobinproject.org/sites/tobinproject.org/files/assets/Fligstein_Catalyst of Disaster_0.pdf

 

[EdwardBaiamonte]

they bought into the argument that the market would equilibrate itself.

that is because the free market is self-correcting. That is why for example that you don't have too many or too few banannas in your supermarket. Each store is different and adjusts supply and price to meet demand. It does this every day all year, and the same thing happens for millions and million of products in a free market. In the USSR you no banannas or millions of pounds rotting on the shelves because of central control.

Central soviet control is what liberals want in housing rather than freedom as if the soviets or USA cane someday have good central control.

Also, Notice how dad3 lacks the IQ to counter argue. Instead he just changes subject with a new cut and paste?