Why no "Banking Crisis" from 1935 to 1979

[Truthmatters]

SEC Votes for Final Rules Defining How Banks Can Be Securities Brokers
Eight Years After Passage of the Gramm-Leach-Bliley Act, Key Provisions Will Now Be Implemented
FOR IMMEDIATE RELEASE
2007-190
Washington, D.C., Sept. 19, 2007 - Ending eight years of stalled negotiations and impasse, the Commission today voted to adopt, jointly with the Board of Governors of the Federal Reserve System (Board), new rules that will finally implement the bank broker provisions of the Gramm-Leach-Bliley Act of 1999. The Board will consider these final rules at its Sept. 24, 2007 meeting. The Commission and the Board consulted with and sought the concurrence of the Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, and Office of Thrift Supervision.

is this fact?

was the Bush SEC lying when they put out this press release?

 

[Bfgrn]

No Income, No Asset = Subprime

Total bullshit Frank. You've been licking the assholes of your beloved opulent too long. Anal secretion overdose.

Wealthy absentee owner speculators who have no plans of living in the dwelling, are looking for a short term, low or no down scheme = Subprime, and mass speculators/investors walking away in mass from a investments that went south=bust.

 

[Truthmatters]

Oddball ignores the facts I give him becuase he can not refute them.

bad info in ( that means ignoring facts too)


bad decisions out

 

[CrusaderFrank]

No Income, No Asset = Subprime

Total bullshit Frank. You've been licking the assholes of your beloved opulent too long. Anal secretion overdose.

Wealthy absentee owner speculators who have no plans of living in the dwelling, are looking for a short term, low or no down scheme = Subprime, and mass speculators/investors walking away in mass from a investments that went south=bust.

No Income + No Asset = Subprime

No Income + No Asset + Federal Guarantee = 2008 Meltdown

 

[Oddball]

Oddball ignores the facts I give him becuase he can not refute them.

bad info in ( that means ignoring facts too)


bad decisions out

You wouldn't know a fact if it kicked you in the head.

BTW, isn't it time for you to spam that goddamn Bush YouTube again.

 

[Truthmatters]

so you are then claiming the SEC release is lying?

 

[Truthmatters]

Press Release: SEC Votes for Final Rules Defining How Banks Can Be Securities Brokers; 2007-190; Sept. 19, 2007



SEC Votes for Final Rules Defining How Banks Can Be Securities Brokers
Eight Years After Passage of the Gramm-Leach-Bliley Act, Key Provisions Will Now Be Implemented
FOR IMMEDIATE RELEASE
2007-190
Washington, D.C., Sept. 19, 2007 - Ending eight years of stalled negotiations and impasse, the Commission today voted to adopt, jointly with the Board of Governors of the Federal Reserve System (Board), new rules that will finally implement the bank broker provisions of the Gramm-Leach-Bliley Act of 1999. The Board will consider these final rules at its Sept. 24, 2007 meeting. The Commission and the Board consulted with and sought the concurrence of the Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, and Office of Thrift Supervision.




Is this all lies?

 

[Truthmatters]

So what is it you peopole are saying about the BUSH SEC on 2007 in this government document?

 

[Truthmatters]

It is undeniable FACT you morons.


It happened and you will NEVER be able to erase this history

 

[Truthmatters]

and the lying oddball slinks away

 

[Billo_Really]

But, but, but, but, but.....Credit default swaps didn't drive the housing value bubble, either.

And the housing value bubble was immense...Anyone who says it wasn't clearly isn't dealing in reality.

It wasn't a 180 times the collective GNP of all the nations on the planet!

 

[Bfgrn]

No Income, No Asset = Subprime

Total bullshit Frank. You've been licking the assholes of your beloved opulent too long. Anal secretion overdose.

Wealthy absentee owner speculators who have no plans of living in the dwelling, are looking for a short term, low or no down scheme = Subprime, and mass speculators/investors walking away in mass from a investments that went south=bust.

No Income + No Asset = Subprime

No Income + No Asset + Federal Guarantee = 2008 Meltdown

Don't let any facts stop you from licking more opulent assholes Frank.

Private-Label Mortgage Backed Securities

Private-label mortgage backed securities are securitized mortgages that do not conform to the criteria set by the Government Sponsored Enterprises Freddie Mac, Fannie Mae and Ginnie Mae. The mortgages that make up these securities do not have the backing of the government and as a result carry a significantly greater risk.

During the housing bubble build-up, housing prices were inflating and as the average home price increased more and more loans became non-conforming Jumbo Loans.

Without the government insurance, private-label mortgage backed securities relied on credit rating agencies to inspire confidence in investors that the debt was safe. Debt holders relied on credit rating agencies such as Moody's, Standard & Poor's, and Fitch to prescribe the amount of risk associated with private label securities. These private label securities earned great ratings from the credit agencies. In fact, the vast majority of private label debt was rated AAA, the highest rating achievable, second only to debt that was government insured (Gorton 25). The appeal to investors was a higher return as to the comparable government insured securities.

So what was the problem? The ratings weren’t accurate for a number of important reasons. Many of the models that were used to ascertain the riskiness of these mortgage back securities used a method known as “independent observations”. The models assumed that each observed change in an underlying asset would not affect any other asset. This turned out to be a terrible assumption because as people began defaulting placed downward pressure on overall home prices. These ratings looked very appealing with the higher rate of return and many people invested with confidence in the credit rating agencies marks, frequently in individual retirement accounts and pension funds (Adrian & Shin 11). When the bubble eventually collapsed and debt issuers were unable to make good on their securities, investors absorbed the brute impact of the firm failures.

Below is a chart that shows the rise and fall of private-label mortgage backed securities.

Private-Label MBS - Securitization

 

[Freemason9]

All because of the conservative policies of "Bank Deregulation".

actually that is stupid beyond words and perfectly liberal!!

Fed Fanny Freddie CRA FHA FDIC are were 100% busy and huge regulators at the time of the housing collapse.

That anyone would ignore this is worse than pure Nazi propaganda and double think!!

So in 1935 Fanny Freddie were programs?

Outta the gene pool!!

I'm actually surprised that there is someone on this board that does NOT have EdwardBaiamonte on "Ignore."

 

[Truthmatters]

I have no one on ignore

 

[editec]

So you have no specifics, either.

Thanks.

Yeah that's what will happen when you ask questions requiring a doctoral thesis to explain, mate.

But if you have a single easy answer that fully explains the state of the economy today, I've love read it.


And if you tell me that GLASS STEAGAL is the answer, I will ask you at what SPECIFIC DATE (and what specific change) do you think set us on this inevitable path to meltdown?

Please do educate me.

I can take it.

Nobody asked for an easy answer, Captain Strawman...What was asked for was a specific answer.


The question was to be specific about this "deregulation" which allegedly occurred, which neither you or rdunce can because the banking industry is and has remained one of the most heavily regulated areas of the economy.

Just throwing around the leftbat buzzword "deregulation" doesn't make it so.

Specific answer means a simple answer, lad.

Even when one of the events leading up to the meltdown is correctly identified, thinking that that is the definitive answer is misleading.

 

[EdwardBaiamonte]

All because of the conservative policies of "Bank Deregulation".

actually that is stupid beyond words and perfectly liberal!!

Fed Fanny Freddie CRA FHA FDIC are were 100% busy and huge regulators at the time of the housing collapse.

That anyone would ignore this is worse than pure Nazi propaganda and double think!!

So in 1935 Fanny Freddie were programs?

Outta the gene pool!!

Dear, current crisis with 22 million unemployed was largly cause by massive liberal regulation of the Republican free market through Fed Fanny Freddie CRA FHA FDIC.

Who could say with a straight face that they were not at least a huge factor in the crisis??

 

[Truthmatters]

Then WHY did the Bush SEC hold back the bank broker rules in Gramm leach bliely for 8 long years?

 

[Truthmatters]

SEC Votes for Final Rules Defining How Banks Can Be Securities Brokers
Eight Years After Passage of the Gramm-Leach-Bliley Act, Key Provisions Will Now Be Implemented
FOR IMMEDIATE RELEASE
2007-190
Washington, D.C., Sept. 19, 2007 - Ending eight years of stalled negotiations and impasse, the Commission today voted to adopt, jointly with the Board of Governors of the Federal Reserve System (Board), new rules that will finally implement the bank broker provisions of the Gramm-Leach-Bliley Act of 1999. The Board will consider these final rules at its Sept. 24, 2007 meeting. The Commission and the Board consulted with and sought the concurrence of the Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, and Office of Thrift Supervision.

 

[Rat in the Hat]

Then WHY did the Bush SEC hold back the bank broker rules in Gramm leach bliely for 8 long years?

WHY did the Clinton SEC hold back the bank broker rules for the first 14 months of those 8 years?

 

[rdean]

actually that is stupid beyond words and perfectly liberal!!

Fed Fanny Freddie CRA FHA FDIC are were 100% busy and huge regulators at the time of the housing collapse.

That anyone would ignore this is worse than pure Nazi propaganda and double think!!

For six years, Bush and the Republicans controlled all three branches of government. That was when "Freddie/Fannie" were at their height. Then there were the "temporary tax cuts", the two unpaid for wars, the drugs for votes bill, deregulation, many trillions in debt and on and on. If Republicans block everything Democrats try to do now, how did Democrats have so much power then? Short answer: They didn't. You need to try again from a different angle.

Which deregulation?

Please be specific.

How Deregulation Eviscerated the Banking Sector Safety Net and Spawned the U.S. Financial Crisis - Money Morning