Why do working class Americans vote against their self interests?

[Toddsterpatriot]

Fannie and Freddies market share dropped from about 90 percent to 10 percent during the subprime gold rush.

Even worse, Bush's SEC voted unanimously in 2004 to waive the net capital rule for the 5 biggest broker-dealers. That waiver led directly to the demise of those broker-dealers.

All five of the broker-dealers who were given that extra special treatment by the SEC no longer exist as independent companies or converted into bank holding companies so they could be bailed out.

Bear Stearns was the first to go under. Then Lehman Brothers went under. Then Merrill Lynch went under.

Goldman Sachs and Morgan Stanley converted to bank holding companies so they could receive bailout money. Goldman was also bailed out by former Goldman Sachs CEO, Hank Paulson, who was Bush's Secretary of Treasury. Goldman Sachs received 100 cents on the dollar for their CDS's from AIG.

SEC.gov | Alternative Net Capital Requirements for Broker-Dealers That Are Part of Consolidated Supervised Entities

www.sec.gov

The Commission is amending Rule 15c3-12 (the “net capital rule”) under the Securities Exchange Act of 1934 (the “Exchange Act”) to establish a voluntary, alternative method of computing net capital for certain broker-dealers.

Fannie and Freddies market share dropped from about 90 percent to 10 percent during the subprime gold rush.

And at the end, when all was said and done, by 2008, how much subprime paper did Fannie and Freddie hold?

Goldman Sachs received 100 cents on the dollar for their CDS's from AIG.

Do you want to stop the panic, or do you want it to spread?

How much did the government lose on AIG and Goldman?

 

[The Sage of Main Street]

Higher wages do contribute to inflation

But if the wages are tied to increased productivity then its ok

Dishonest Appeal to the Consumers

No inflation if higher wages are taken out of the plutocratic parasites' profits. Thinking that they have to raise prices is the kind of shallow and self-serving thinking we are made to believe in.

These greedy liars assume that their huge cut of the pie has somehow been determined by what they preach as economic truth. The same fake news gives us "passing on taxes to the consumers."

 

[Robert W]

Donald Trump did not want the Covid victims on a cruise ship to be allowed to come home because he didn't want them to count toward the number of Covid cases we had.

Look, you did not prove your case. And worse, you operate as were you a mind reader. No way you were able to read Trump's mind even if what you claim is true. Many reasons why ill people are not allowed to contaminate well people. Trump ordered the Navy to place both of it's hospital ships in ports to help ill people.

 

[Robert W]

And at the end, when all was said and done, by 2008, how much subprime paper did Fannie and Freddie hold?

Fannie and Freddie were not buying subprime paper.

AI Overview
Learn more…Opens in new tab

Under the Bush administration, Fannie Mae and Freddie Mac, known as government-sponsored enterprises (GSEs), were placed into conservatorship by the Federal Housing Finance Agency (FHFA) in September 2008 due to the collapsing housing market during the financial crisis, essentially putting them under government control as a way to stabilize the mortgage market and prevent further financial damage; this move was taken after repeated warnings from the Bush administration about the potential risks of the GSEs if not reformed, but Congress largely ignored these concerns until the crisis hit.



Key points about Fannie Mae and Freddie Mac under the Bush administration:

• Function:
  These companies primarily buy mortgages from lenders, package them into securities, and sell them to investors, which helps to provide liquidity to the mortgage market and make home loans more accessible to borrowers.
  
  
  
  
• Crisis Response:
  As the housing market deteriorated in 2008, Fannie Mae and Freddie Mac faced significant financial strain due to the large number of defaulted mortgages they held, leading to the government taking over their operations to prevent a potential collapse.
  
  
  
  
• Conservatorship:
  The Bush administration placed both companies under conservatorship, meaning the government took control of their management and operations to stabilize their finances.
  
  
  
  
• Unheeded Warnings:
  Prior to the crisis, the Bush administration repeatedly urged Congress to reform Fannie Mae and Freddie Mac to mitigate potential risks, but these calls were largely ignored.
  
  
  

• 7 Things You Need to Know About Fannie Mae and Freddie Mac - Center for American Progress
  Sep 6, 2012
  
  
  
  Center for American Progress
  
  
  
• Six Years of Unheeded Warnings for GSE Reform
  Setting the Record Straight: Six Years of Unheeded Warnings for GSE Reform. ... Over the past six years, the President and his Adm...
  
  
  
  George W. Bush White House Archives
  
  
  
• Conservatorship - Federal Housing Finance Agency
  Feb 6, 2024 — History Of Fannie Mae And Freddie Mac Conservatorships On September 6, 2008, with the consent of both Fannie Mae's and ...
  
  Federal Housing Finance Agency (.gov)
  
  
  
• Show all
  

 

[Lesh]

Look, you did not prove your case. And worse, you operate as were you a mind reader. No way you were able to read Trump's mind even if what you claim is true. Many reasons why ill people are not allowed to contaminate well people. Trump ordered the Navy to place both of it's hospital ships in ports to help ill people.

Those were TRUMP’S words. No mind reading required

 

[Robert W]

As a result of his incompetence and stupidity, Covid got a huge head start and he is responsible for the deaths of a million American's he cares fuck-all about.

Trump led the war against Covid in so many ways what you claim, that you refused to prove by the way, shows his leadership is why America got the vaccines super fast.

 

[Robert W]

Those were TRUMP’S words. No mind reading required

Even you produce no evidence.

 

[g5000]

Every mortgage a bank makes is a gamble.

Which is exactly why there are credit ratings and underwriting standards.

Standards which the banks threw out the window during the bubble.

 

[Robert W]

You know who else has received billions in government subsidies?

Donald Trump's new best friend, Elon Musk.

Musk delivered many missions to space and he was extremely successful. And Biden used him a lot. Way more than Trump did.

 

[g5000]

Every mortgage a bank makes is a gamble.

Speaking of gambling, a large part of the crash were the casino operations behind Credit Default Swaps (CDS).

To this day, there are no insurable interest requirements for CDS, which I find outrageous and begging for another disaster.

AIG's collapse was entirely because of credit default swaps.

 

[g5000]

Musk delivered many missions to space and he was extremely successful. And Biden used him a lot. Way more than Trump did.

And the CHIPS Act and IRA have resulted in a factory boom, and a domestic semiconductor boom, all of which will lead to a boom in manufacturing jobs.

 

[Robert W]

Fannie and Freddies market share dropped from about 90 percent to 10 percent during the subprime gold rush.

They were not engaged in making subprime loans. I was a long time mortgage broker. Both of them paid far too much to staff and were taken over by the Feds due to major mismanagement. We got subprimes that I as a company policy only used two times for clients who were in serious trouble and I felt sorry for them. They were far too expensive for homeowners.

 

[Lesh]

Fannie and Freddie were not buying subprime paper.

AI Overview
Learn more…Opens in new tab

Under the Bush administration, Fannie Mae and Freddie Mac, known as government-sponsored enterprises (GSEs), were placed into conservatorship by the Federal Housing Finance Agency (FHFA) in September 2008 due to the collapsing housing market during the financial crisis, essentially putting them under government control as a way to stabilize the mortgage market and prevent further financial damage; this move was taken after repeated warnings from the Bush administration about the potential risks of the GSEs if not reformed, but Congress largely ignored these concerns until the crisis hit.



Key points about Fannie Mae and Freddie Mac under the Bush administration:

• Function:
  These companies primarily buy mortgages from lenders, package them into securities, and sell them to investors, which helps to provide liquidity to the mortgage market and make home loans more accessible to borrowers.
  
  
  
  
• Crisis Response:
  As the housing market deteriorated in 2008, Fannie Mae and Freddie Mac faced significant financial strain due to the large number of defaulted mortgages they held, leading to the government taking over their operations to prevent a potential collapse.
  
  
  
  
• Conservatorship:
  The Bush administration placed both companies under conservatorship, meaning the government took control of their management and operations to stabilize their finances.
  
  
  
  
• Unheeded Warnings:
  Prior to the crisis, the Bush administration repeatedly urged Congress to reform Fannie Mae and Freddie Mac to mitigate potential risks, but these calls were largely ignored.
  
  
  

• 7 Things You Need to Know About Fannie Mae and Freddie Mac - Center for American Progress
  Sep 6, 2012
  View attachment 1040762
  Center for American Progress
  
  
  
• Six Years of Unheeded Warnings for GSE Reform
  Setting the Record Straight: Six Years of Unheeded Warnings for GSE Reform. ... Over the past six years, the President and his Adm...
  View attachment 1040763
  George W. Bush White House Archives
  
  
  
• Conservatorship - Federal Housing Finance Agency
  Feb 6, 2024 — History Of Fannie Mae And Freddie Mac Conservatorships On September 6, 2008, with the consent of both Fannie Mae's and ...
  
  Federal Housing Finance Agency (.gov)
  
  
  
• Show all
  

Since you are supposedly a “real estate expert” you should understand this.

You don’t. So you’re either lying about your expertise or you’re lying here. Either way… fuck off liar

Fannie, Freddie, and the Crisis

We all know the familiar story of the housing crisis that caused the Great Recession: Lenders made too many risky mortgages and packaged them into too many risky financial products, often purchased by Fannie Mae and Freddie Mac. When poorly qualified...

www.nationalaffairs.com

F&F did not go under because of loans to poor folks . The restrictions there were too stringent to allow that to happen.

They bought into the derivatives scam (on the wrong side) and lost their shirts… on PRIVATE mortgages

Fannie, Freddie, and the Crisis

We all know the familiar story of the housing crisis that caused the Great Recession: Lenders made too many risky mortgages and packaged them into too many risky financial products, often purchased by Fannie Mae and Freddie Mac. When poorly qualified...

www.nationalaffairs.com

 

[Robert W]

AIG's collapse was entirely because of credit default swaps.

AIG was not managed by the Bush administration.

 

[Lesh]

They were not engaged in making subprime loans. I was a long time mortgage broker. Both of them paid far too much to staff and were taken over by the Feds due to major mismanagement. We got subprimes that I as a company policy only used two times for clients who were in serious trouble and I felt sorry for them. They were far too expensive for homeowners.

You were a mortgage broker?

So you were SELLING those NINJA loans

 

[Robert W]

F&F did not go under because of loans to poor folks . The restrictions there were too stronger. To allow that to happen.

They bought into the derivatives scam (on the wrong side) and lost their shirts… on PRIVATE mortgages

Fannie Mae and Freddie Mac, also known as government sponsored enterprises (GSEs), played a key role in the 2008 financial crisis. In 2007, the two companies issued around $300 billion in subprime mortgages, which were considered a higher risk. Between 2008 and 2012, Fannie Mae and Freddie Mac lost a combined $265 billion, with more than 60% of those losses attributed to risky products purchased in 2006 and 2007.



Here are some of the roles that Fannie Mae and Freddie Mac play in the mortgage market:

• Guarantee mortgages
  Fannie Mae and Freddie Mac's loan guarantees reduce risk for lenders and investors, making loans more affordable.
  
  
  
  
• Buy mortgages
  Fannie Mae and Freddie Mac buy mortgages from lenders and either keep them or repackage them as mortgage-backed securities (MBS).
  
  
  
  
• Sell MBS
  Fannie Mae and Freddie Mac sell MBS to investors, which attracts more investors to the secondary mortgage market and helps lower interest rates.
  
  
  
  
• Provide liquidity
  Fannie Mae and Freddie Mac act as a constant buyer in the market, which helps ensure liquidity in the lending world.
  
  
  
  
• Support affordable housing
  Fannie Mae and Freddie Mac support mortgage lending that finances affordable housing.
  
  
  

• 7 Things You Need to Know About Fannie Mae and Freddie Mac
  Sep 6, 2012 — In 2008 Fannie and Freddie lost a combined $47 billion in their single-family mortgage businesses, forcing the companie...
  
  
  
  Center for American Progress
  
  
  
• About Fannie Mae & Freddie Mac - Federal Housing Finance Agency
  By packaging mortgages into MBS and guaranteeing the timely payment of principal and interest on the underlying mortgages, Fannie ...
  
  Federal Housing Finance Agency
  
  
  
• What Do Fannie Mae And Freddie Mac Actually Do?
  Feb 4, 2021 — Fannie Mae and Freddie Mac issued about $300 billion worth of subprime mortgages in 2007. While these loans were consid...
  
  
  
  NRL Mortgage
  
  Both of them were not in my supply of money as my firm only did 2 subprime loans. Lehman Brothers was super active in subprime loans and went broke.
  
  
  
• 
  
• Fannie and freddi were taken over by the feds and they were reckless in their operations. So much so that Raines raked in millions for his effort.

 

[Robert W]

You were a mortgage broker?

So you were SELLING those NINJA loans

We did not sell anything. We made use of programs supplied to us by wholesalers who did sell said loans later. I do not believe my firm even did a single ninja loan. We had excellent customers with good credit save for 2 of them.

 

[g5000]

Fannie and Freddies market share dropped from about 90 percent to 10 percent during the subprime gold rush.

And at the end, when all was said and done, by 2008, how much subprime paper did Fannie and Freddie hold?

A lot less than the broker-dealers did.

It was popular to bash the GSE's after the crash. One of the biggest critics who pushed this meme out there as Newt Gingrich.

What Gingrich was counting on was the public not knowing he worked for the GSEs and made a lot of money doing so.

Not only that, when asked in 2007 about GSEs, he said we needed MORE GSES.

Market-Based Models Are Key to Transforming U.S. Government to a 21st Century Organization - Freddie Mac

web.archive.org

I think a GSE for space exploration ought to be seriously considered I'm convinced that if NASA were a GSE, we probably would be on Mars today.

Certainly there is a lot of debate today about the housing GSEs, but I think it is telling that there is strong bipartisan support for maintaining the GSE model in housing. There is not much support for the idea of removing the GSE charters from Freddie Mac and Fannie Mae. And I think it's clear why. The housing GSEs have made an important contribution to homeownership and the housing finance system. We have a much more liquid and stable housing finance system than we would have without the GSEs. And making homeownership more accessible and affordable is a policy goal I believe conservatives should embrace. Millions of people have entered the middle class through building wealth in their homes, and there is a lot of evidence that homeownership contributes to stable families and communities. These are results I think conservatives should embrace and want to extend as widely as possible. So while we need to improve the regulation of the GSEs, I would be very cautious about fundamentally changing their role or the model itself.

Goldman Sachs received 100 cents on the dollar for their CDS's from AIG.

Do you want to stop the panic, or do you want it to spread?

How much did the government lose on AIG and Goldman?

You missed the point. Goldman Sachs should have been given a haircut on their CDS with AIG. But they had a lot of Goldman Sachs alumni in key places who made sure that did not happen, including the Secretary of the Treasury.

AIG cost US taxpayers $182 billion.

 

[g5000]

Look, you did not prove your case. And worse, you operate as were you a mind reader. No way you were able to read Trump's mind even if what you claim is true. Many reasons why ill people are not allowed to contaminate well people. Trump ordered the Navy to place both of it's hospital ships in ports to help ill people.

Trump actually stated his reasons for not allowing the cruise ship passengers to debark. I find it convenient your propagandists did not inform you of this.

It was all about the numbers.

Trump Was Furious That Passengers With Coronavirus Were Brought Back to U.S. (Published 2020)

Among the passengers from the Diamond Princess cruise ship who were flown back were 14 American citizens who tested positive for the virus. The move took Mr. Trump by surprise.

www.nytimes.com

 

[Lesh]

Fannie Mae and Freddie Mac, also known as government sponsored enterprises (GSEs), played a key role in the 2008 financial crisis. In 2007, the two companies issued around $300 billion in subprime mortgages, which were considered a higher risk. Between 2008 and 2012, Fannie Mae and Freddie Mac lost a combined $265 billion, with more than 60% of those losses attributed to risky products purchased in 2006 and 2007.



Here are some of the roles that Fannie Mae and Freddie Mac play in the mortgage market:

• Guarantee mortgages
  Fannie Mae and Freddie Mac's loan guarantees reduce risk for lenders and investors, making loans more affordable.
  
  
  
  
• Buy mortgages
  Fannie Mae and Freddie Mac buy mortgages from lenders and either keep them or repackage them as mortgage-backed securities (MBS).
  
  
  
  
• Sell MBS
  Fannie Mae and Freddie Mac sell MBS to investors, which attracts more investors to the secondary mortgage market and helps lower interest rates.
  
  
  
  
• Provide liquidity
  Fannie Mae and Freddie Mac act as a constant buyer in the market, which helps ensure liquidity in the lending world.
  
  
  
  
• Support affordable housing
  Fannie Mae and Freddie Mac support mortgage lending that finances affordable housing.
  
  
  

• 7 Things You Need to Know About Fannie Mae and Freddie Mac
  Sep 6, 2012 — In 2008 Fannie and Freddie lost a combined $47 billion in their single-family mortgage businesses, forcing the companie...
  View attachment 1040765
  Center for American Progress
  
  
  
• About Fannie Mae & Freddie Mac - Federal Housing Finance Agency
  By packaging mortgages into MBS and guaranteeing the timely payment of principal and interest on the underlying mortgages, Fannie ...
  
  Federal Housing Finance Agency
  
  
  
• What Do Fannie Mae And Freddie Mac Actually Do?
  Feb 4, 2021 — Fannie Mae and Freddie Mac issued about $300 billion worth of subprime mortgages in 2007. While these loans were consid...
  View attachment 1040764
  NRL Mortgage
  
  Both of them were not in my supply of money as my firm only did 2 subprime loans. Lehman Brothers was super active in subprime loans and went broke.
  
  
  
• 
  
• Fannie and freddi were taken over by the feds and they were reckless in their operations. So much so that Raines raked in millions for his effort.

Look at the “Buy Mortgages” paragraph

That does not say “originate” or “made”

It says “buy mortgages from lenders”

Private lenders . And it bit them in the ass

I’m not at all surprised that someone who SOLD those bullshit mortgages on the private market (Robert) would be lying about this