Who Do Blame Most For The Recession?

[sealybobo]

I voted for "Government," but more specifically the Federal Reserve is the main perpetrator.

Atta boy Kevin!

But then your reply made me think......

If I owned the Federal Reserve, wouldn't I push to do the same shit they did?

And the answer is, probably I would.

Like, you can't blame a tiger for biting because that's what Tigers do.

So then I blame the government for allowing it.

And I blame the citizens because they are clueless and that is why the politicians and bankers get away with what they do.

I guess everyone really is to blame!!!

Holy shit I'm becoming conservative.

 

[Maple]

If you will also look back and see the legislation started with Jimmy Carter and then again in 1991 the Fair Housing Act that President Clinton signed you will see that this has been going on for years. Banks were encouraged and in some cases strong armed into loaning money to people who had no job, no down payment, and no intention of paying it back. If you watched Date Line on Sunday night, people were reporting incomes that any person with any common sense would know impossible. One was a cleaning lady that reported an income of $15,000 permonth,she got a loan for a $500,000 house, get real, our incompetent Barney Frank head of Banking in congress and in a position of oversite looked the other way. Greed from the bankers took over and this mess musroomed, but do not kid yourself here, it was a liberal agenda on home ownership and the total lack of oversite from our incompetent government, Barney Frank led, that caused this meltdown.

 

[Maple]

People of Massachuchetts would you please do something about this congressional ass that the rest of us have had to put up with for years and vote his plump butt out of office.

 

[Toro]

I'd put the Federal Reserves before all those.

But in reality, this was started by a huge technological shift, re: the Internet, which shifted the cost curves of almost everything down. In English, that means the Internet lowered costs. As often happens with technological shifts, investors poured enormous amounts of capital into Internet ventures, creating a bubble and oversupply. The oversupply lead to fears of deflation, which caused the Fed to gun the money supply. That money supply made its way into the housing market, which also went into a bubble.

It was the Fed's inability to see the after-effects of its policies and even to recognize bubbles under a mistaken belief of efficient markets which contributed to this mess. However, it would never have happened without the commercialization of the Internet.

 

[manu1959]

I'd put the Federal Reserves before all those.

But in reality, this was started by a huge technological shift, re: the Internet, which shifted the cost curves of almost everything down. In English, that means the Internet lowered costs. As often happens with technological shifts, investors poured enormous amounts of capital into Internet ventures, creating a bubble and oversupply. The oversupply lead to fears of deflation, which caused the Fed to gun the money supply. That money supply made its way into the housing market, which also went into a bubble.

It was the Fed's inability to see the after-effects of its policies and even to recognize bubbles under a mistaken belief of efficient markets which contributed to this mess. However, it would never have happened without the commercialization of the Internet.

so it is al gore's fault...........

 

[Annie]

I'd put the Federal Reserves before all those.

But in reality, this was started by a huge technological shift, re: the Internet, which shifted the cost curves of almost everything down. In English, that means the Internet lowered costs. As often happens with technological shifts, investors poured enormous amounts of capital into Internet ventures, creating a bubble and oversupply. The oversupply lead to fears of deflation, which caused the Fed to gun the money supply. That money supply made its way into the housing market, which also went into a bubble.

It was the Fed's inability to see the after-effects of its policies and even to recognize bubbles under a mistaken belief of efficient markets which contributed to this mess. However, it would never have happened without the commercialization of the Internet.

so it is al gore's fault...........

I like that as an answer.

 

[glockmail]

People of Massachuchetts would you please do something about this congressional ass that the rest of us have had to put up with for years and vote his plump butt out of office.

Dream on. After Bwarny, Johnnie and Teddy they have a deep field of assholes to send up.

 

[foggedinn]

Fighting a 5 trillion dollar, multi front war on a credit card with no provision to pay or even any plans for making provision to pay wasn't one of the choices.

Without that particular mess, the mortgage meltdown would never have happened. It would have been a manageable mini-crisis.

Since we aren't even making an attempt to get runaway military spending under control, there isn't even the remote possibility that the current financial crisis can be dealt with.

It will take an Act of God to get us out of this mess. But first we have to submit.

 

[Toro]

I'd put the Federal Reserves before all those.

But in reality, this was started by a huge technological shift, re: the Internet, which shifted the cost curves of almost everything down. In English, that means the Internet lowered costs. As often happens with technological shifts, investors poured enormous amounts of capital into Internet ventures, creating a bubble and oversupply. The oversupply lead to fears of deflation, which caused the Fed to gun the money supply. That money supply made its way into the housing market, which also went into a bubble.

It was the Fed's inability to see the after-effects of its policies and even to recognize bubbles under a mistaken belief of efficient markets which contributed to this mess. However, it would never have happened without the commercialization of the Internet.

so it is al gore's fault...........

Exactly...

 

[TENAC]

Folks, here it is:

Fannie Mae Eases Credit To Aid Mortgage Lending
By STEVEN A. HOLMES
Published: Thursday, September 30, 1999


In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.......

..............Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

Fannie Mae Eases Credit To Aid Mortgage Lending - The New York Times

Andrew Cuomo and Fannie and Freddie
How the youngest Housing and Urban Development secretary in history gave birth to the mortgage crisis
By Wayne Barrett
Tuesday, August 5th 2008 at 11:00am

Andrew Cuomo, the youngest Housing and Urban Development secretary in history, made a series of decisions between 1997 and 2001 that gave birth to the country's current crisis. He took actions that—in combination with many other factors—helped plunge Fannie and Freddie into the subprime markets without putting in place the means to monitor their increasingly risky investments. He turned the Federal Housing Administration mortgage program into a sweetheart lender with sky-high loan ceilings and no money down, and he legalized what a federal judge has branded "kickbacks" to brokers that have fueled the sale of overpriced and unsupportable loans. Three to four million families are now facing foreclosure, and Cuomo is one of the reasons why.

New York News - Andrew Cuomo and Fannie and Freddie - page 1

All this said, keep in mind Bush on 17 occasions called for reining in F&F during his administration along with Alan Greenspan. McCain cosponsored legislation to do this in 2006. Could have Bush been more forceful? You bet, and he should have. The numbers on F&F absolutely skyrocket after the dems took control of the congress in 2006.

Wall Street did what Wall Street does. It makes money. And it did it legally with a compliant government. This is why you should NEVER, EVER mix the public and private sectors.

If you take away the quasi federal corporation of Fannie Mae and Freddie Mac, you have no mortgage crisis, no financial crisis.

And F&F are still functioning today as if nothing happened at all.

 

[garyd]

Anyone, I reapeat anyone who things this problem is due to a lack of regulations is extremely short sighted and has no knowledge whatever of history or is hunting an easy scapegoat or has a political ax to grind primarily on the left hand side.

If the value of the CRA's and derivatives had been as advertised we wouldn't be having an economic melt down. Explain that.

 

[auditor0007]

It's pretty even between Government and Wall Street. Government set up the system and everyone liked it, both Reps and Dems, as it helped the economy in the short run. Wall Street went with the flow, but it should have known better. These people are supposed to be intelligent.

As for greedy consumers, people tend to take the best deal available or that is offered. People don't tend to think long term, and in general, the populace ain't that bright. I give them a pass for the most part.

 

[garyd]

Even my ass.