Why do working class Americans vote against their self interests?

[g5000]

AIG was not managed by the Bush administration.

Non sequitur.

 

[Robert W]

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

I am not shocked that you decided to challenge me, an actual long time Mortgage Broker with your con jobs in public. Shame on you.

 

[Lesh]

I am not shocked that you decided to challenge me, an actual long time Mortgage Broker with your con jobs in public. Shame on you.

You were a MORTGAGE BROKER during that debacle

You were a (well paid) foot soldier in it

 

[Robert W]

You were a MORTGAGE BROKER during that debacle

You were a (well paid) foot soldier in it

Familiar as it has become, this story was not how the housing crisis was understood as it was happening. In fact, Fannie and Freddie were initially viewed by policymakers as the potential saviors of a housing-finance market that was quickly unraveling. On March 19, 2008, Fannie and Freddie's regulator, the Office of Federal Housing Enterprise Oversight, moved to ease capital regulations on the GSEs so they could actually grow faster and replace the private lenders that had withdrawn from the mortgage market. The bargain was that the firms would lend now and then boost their capital later. The GSEs instead hit a wall a few months later when equity investors recognized the scale of embedded losses far exceeded their capital reserves.

The expectation that the two GSEs could save the market without a bailout from taxpayers now seems preposterous. Fannie and Freddie were the most highly leveraged financial institutions on the planet and were required by their charters to invest in nothing but American residential mortgages. To expect them to bail out the American mortgage market would be like turning to General Motors to rescue auto-parts suppliers in the midst of a huge slump in car sales. Fannie and Freddie's lack of diversification and comically inadequate capital base always guaranteed they would fail in any significant housing downturn.

 

[g5000]

• 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

You did not provide a link. Maybe because you left out this part:

In fact, Fannie and Freddie lost market share as the bubble grew: The companies backed roughly half of all home-loan originations in 2002 but just 30 percent in 2005 and 2006.


Like I said, Fannie and Freddie lost market share to Wall Street. Wall Street threw their underwriting standards gained from centuries of experience out the window.

In response to losing market share Fannie and Freddie then began lowering their standards to satisfy their shareholders.

The lowering of credit standards began on Wall Street, and then the GSEs followed.

In an ill-fated effort to win back market share, Fannie and Freddie made a few tragic mistakes. Starting in 2006 and 2007—just as the housing bubble was reaching its peak—Fannie and Freddie increased their leverage and began investing in certain subprime securities that credit agencies incorrectly deemed low-risk.

7 Things You Need to Know About Fannie Mae and Freddie Mac

Fannie and Freddie remain two of the world’s largest financial institutions, but most Americans understand very little about the two mortgage giants.

www.americanprogress.org

 

[g5000]

With the invention of CDOs, Wall Street hypnotized themselves into believing they had eliminated risk and could therefore lend money to people living under bridges.

The CDO was not a bad invention, it was just abused beyond belief due to investor demand.

 

[martybegan]

With the invention of CDOs, Wall Street hypnotized themselves into believing they had eliminated risk and could therefore lend money to people living under bridges.

The CDO was not a bad invention, it was just abused beyond belief due to investor demand.

The tipping point is when they made CDO's of CDO's.,

 

[g5000]

Familiar as it has become, this story was not how the housing crisis was understood as it was happening. In fact, Fannie and Freddie were initially viewed by policymakers as the potential saviors of a housing-finance market that was quickly unraveling. On March 19, 2008, Fannie and Freddie's regulator, the Office of Federal Housing Enterprise Oversight, moved to ease capital regulations on the GSEs so they could actually grow faster and replace the private lenders that had withdrawn from the mortgage market. The bargain was that the firms would lend now and then boost their capital later. The GSEs instead hit a wall a few months later when equity investors recognized the scale of embedded losses far exceeded their capital reserves.

The expectation that the two GSEs could save the market without a bailout from taxpayers now seems preposterous. Fannie and Freddie were the most highly leveraged financial institutions on the planet and were required by their charters to invest in nothing but American residential mortgages. To expect them to bail out the American mortgage market would be like turning to General Motors to rescue auto-parts suppliers in the midst of a huge slump in car sales. Fannie and Freddie's lack of diversification and comically inadequate capital base always guaranteed they would fail in any significant housing downturn.

You plagiarized that.

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

You also left out the part which debunks the CRA myth:

The spike in mortgage default volumes in 2007 and 2008 was not a result of resets in mortgage payments, but was instead a function of the collapse in house values, which serve as the collateral for mortgage loans. Fannie and Freddie's losses did not come from subprime loans made to low-income borrowers with checkered credit histories, but from loans made in overheated housing markets to borrowers with better-than-average credit scores.

Bingo. Exactly what I have been saying. The CRA myth bleevers didn't even notice all the foreclosures in their own white middle class neighborhoods.

Willful blindness.

 

[Robert W]

You plagiarized that.

I posted part of an article. I never said I was the author.

 

[The Sage of Main Street]

Ukraine spending actually creates lots of good jobs in the defense industry.

How much aid to Ukraine benefits American workers? - Search Videos

www.bing.com

Defund the Policemen of the World

Why should taxpayers fund a selected tiny minority of industries? The only beneficial result of their profits would be if we quit defending other countries and make these chickenhawk parasites sign over their own taxes to some of our industries. Get our military out of NYETO and the Pacific Rim, and we will benefit from their paranoia about Russia and China. The increased profits of the M-IC will then lower the taxes of those who don't work in it.

 

[g5000]

The tipping point is when they made CDO's of CDO's.,

The tipping point was when the broker-dealers were allowed to over-leverage.

 

[g5000]

I posted part of an article. I never said I was the author.

If you don't post the link, that is the definition of plagiarism.

 

[Lesh]

And Robert is a dishonest poster

Not surprising considering he was MORTGAGE BROKER. During that debacle and made a good buck off it

 

[Robert W]

You also left out the part which debunks the CRA myth:

The spike in mortgage default volumes in 2007 and 2008 was not a result of resets in mortgage payments, but was instead a function of the collapse in house values, which serve as the collateral for mortgage loans. Fannie and Freddie's losses did not come from subprime loans made to low-income borrowers with checkered credit histories, but from loans made in overheated housing markets to borrowers with better-than-average credit scores.

What is the CRA myth??? That came from the same article I posted parts of. What it blames are the excellent credit risks and not the poor risks. And you think that is accurate? It was hard for we lenders to get poor credit risks loans on homes. First those homes ordinarily were in very poor condition. Go to any poor credit persons home and see the filth and the lousy condition. Appraisers have to, by law to downgrade those homes values.

 

[Robert W]

If you don't post the link, that is the definition of plagiarism.

Look, you have a problem with my posting parts of articles. I did not change a word. And you used the article yourself.

 

[Robert W]

And Robert is a dishonest poster

Not surprising considering he was MORTGAGE BROKER. During that debacle and made a good buck off it

You are so awful a poster you have so few here that believe you you get told off by posters a hell of a lot. Loans my firm handled were normally with credit risks that were very good. My area of CA at the time is well known to be affluent. Not like where you live.

 

[g5000]

Are you asking why people voted for Bidenomics? That's a question that their psychiatrists will have to answer. The rest of us are just grateful that food, gas, and housing should become affordable again under Trump. Bidenomics has been a complete disastrous failure. And Kamel-Toe-Nomics would have been even worse.

If you think your grocery prices are going to return to pre-pandemic levels, you are seriously deluded.

The only way that will happen is by a recession/depression.

As for "Bidenomics", Biden was not the cause of inflation.

First, trillions upon trillions of stimulus dollars, starting under Trump, were injected into the economy. In fact, Trump wanted even more stimulus spending than the Democrats.

Second, the Federal Reserve printed $4.2 trillion during the pandemic.

There's your inflation.

Then, after the pandemic, demand for goods went through the roof and the supply chain was overwhelmed.

There's your inflation on steroids.

To make matters worse, the Fed ignored the warning signs, assuming the rising inflation was transitory.

Nothing to do with Biden. But your propagandists never told you these basic economic facts, because "Bidenomics" is all your bumper sticker intellect can handle.

 

[g5000]

Look, you have a problem with my posting parts of articles. I did not change a word. And you used the article yourself.

Definition of PLAGIARIZE

to steal and pass off (the ideas or words of another) as one's own : use (another's production) without crediting the source; to commit literary theft : present as new and original an idea or product derived from an existing source… See the full definition

www.merriam-webster.com

to steal and pass off (the ideas or words of another) as one's own : use (another's production) without crediting the source

 

[g5000]

What is the CRA myth??? That came from the same article I posted parts of. What it blames are the excellent credit risks and not the poor risks. And you think that is accurate? It was hard for we lenders to get poor credit risks loans on homes. First those homes ordinarily were in very poor condition. Go to any poor credit persons home and see the filth and the lousy condition. Appraisers have to, by law to downgrade those homes values.

Appraisers were just as crooked as the brokers.

There was corruption all down the line. Appraisers, realtors, brokers, banks, ratings agencies, and the borrowers themselves.

They were all in it for the fees.

 

[Lesh]

Definition of PLAGIARIZE

to steal and pass off (the ideas or words of another) as one's own : use (another's production) without crediting the source; to commit literary theft : present as new and original an idea or product derived from an existing source… See the full definition

www.merriam-webster.com

to steal and pass off (the ideas or words of another) as one's own : use (another's production) without crediting the source

And he purposely excluded the parts of that plagiarized article that showed him to be lying. Not just wrong but LYING