Posted: 5/21/2012 2:41:58 AM EDT
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I found this blog while looking around earlier after going back and forth with a friend on FB. Before you ask why he's still a friend, he's very centrist, and goes liberal on some things, and conservative on others. He started in with the "Bushes fault, 0bama saved us from a depression."
Anyway, THIS blog post is very long, but it is very detailed and very well written. It's a good accounting of what led up to the mortgage finance bubble, and the democrats that fought to keep the Titanic on a collision course with an iceberg. It ENRAGED and baffled me. I am so ENRAGED that those things happened, and no one was crucified for it, and in fact, most everybody is completely ignorant of it. Bush and co tried to stop the bubble, but Dems stood in the way even in the face of blatant fraud and lies. I'm baffled at how people were not hung on the White House lawn for treason, or at least given very very long prison sentences. |
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Here's a tidbit from the end of it:
On Christmas Eve the Obama Administration issued executive orders to change the amount – from $400 billion to unlimited — that the US federal government would commit to Fannie Mae and Freddie Mac in the event those agencies/companies could no longer service the mortgages it held/guaranteed. It also deregulated the total amount of mortgages that Fannie and Freddie can own or guarantee, enabling the GSEs to fully return to the lower-quality, higher-risk segments of the mortgage market. Fannie and Freddie currently finance roughly three-quarters of all new mortgages. The order empowers the Obama Administration’s Treasury Department to pressure the GSEs to hold more subprime/non-performing mortgages, instead of clearing the risk off their balance sheets. According to Edward Pinto, Fannie’s chief credit officer in the latter years of the Regan Administration, “They’ve cleared the decks to use Fannie and Freddie as a vessel for whatever they want.”
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Quoted:
Here's a tidbit from the end of it: On Christmas Eve the Obama Administration issued executive orders to change the amount – from $400 billion to unlimited — that the US federal government would commit to Fannie Mae and Freddie Mac in the event those agencies/companies could no longer service the mortgages it held/guaranteed. It also deregulated the total amount of mortgages that Fannie and Freddie can own or guarantee, enabling the GSEs to fully return to the lower-quality, higher-risk segments of the mortgage market. Fannie and Freddie currently finance roughly three-quarters of all new mortgages. The order empowers the Obama Administration’s Treasury Department to pressure the GSEs to hold more subprime/non-performing mortgages, instead of clearing the risk off their balance sheets. According to Edward Pinto, Fannie’s chief credit officer in the latter years of the Regan Administration, “They’ve cleared the decks to use Fannie and Freddie as a vessel for whatever they want.” I want to read this later |
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Quoted:
Quoted:
Here's a tidbit from the end of it: On Christmas Eve the Obama Administration issued executive orders to change the amount – from $400 billion to unlimited — that the US federal government would commit to Fannie Mae and Freddie Mac in the event those agencies/companies could no longer service the mortgages it held/guaranteed. It also deregulated the total amount of mortgages that Fannie and Freddie can own or guarantee, enabling the GSEs to fully return to the lower-quality, higher-risk segments of the mortgage market. Fannie and Freddie currently finance roughly three-quarters of all new mortgages. The order empowers the Obama Administration’s Treasury Department to pressure the GSEs to hold more subprime/non-performing mortgages, instead of clearing the risk off their balance sheets. According to Edward Pinto, Fannie’s chief credit officer in the latter years of the Regan Administration, “They’ve cleared the decks to use Fannie and Freddie as a vessel for whatever they want.” I want to read this later Yes you do. Please do not, though, if you have high blood pressure. Make sure you remove breakable or expensive items from arm's reach. You will want to smash shit. |
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no. Im highly suspect as it contains a "its all the democrats fault" I have studied this in great detail , both sides are VERY much too blame.
gse's were part of the problem , not the complete problem. Its wayyy more complicated than just fannie freddie. FBI warned this was going to happen in 2004 http://www.cnn.com/2004/LAW/09/17/mortgage.fraud/ deregulating ,derivatives http://en.wikipedia.org/wiki/Commodity_Futures_Modernization_Act_of_2000 (pushed by phil gramm signed by clinton) Gramm–Leach–Bliley Act : signed by clinton . It repealed part of the Glass–Steagall Act of 1933, banks could do it all (investment, securities , insurance) banks became huge and too big to fail http://en.wikipedia.org/wiki/Gramm%E2%80%93Leach%E2%80%93Bliley_Act the beginning of Morale Hazard : Long-Term Capital Management Greenspan bailed his wall st buddies out. http://en.wikipedia.org/wiki/Long-Term_Capital_Management "My nightmare scenario is that the government saves Citibank once again, as well as the other banks, and business resumes as usual. Then, the next time the system breaks, it breaks much, much bigger."- Nassim Nicholas Taleb 2009 To fight this recession the Fed needs…soaring household spending to offset moribund business investment. [So] Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble. (dot com bubble) Paul Krugman 2002 (eta -in before joeil is a communist/hippie/liberal etc ) |
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Joeil, I'm sure there were many more things that contributed, but flat out, the GSEs were the lynchpins.
Look at it. The right says "this needs more oversight, it could get bad, and if it gets bad, it will be widespread" to which the left said "oh fuck no, you ain't takin our houses for poor people. In fact, we gonna raise the limit on the size and number of mortgages that they can buy. We'll bail 'em out if it goes bad. Yay subsidized housing!!" There were many pieces that made the domino maze, but they were put there, or able to position themselves, through actions that started with Clinton and the great crusade to have everyone own a house. |
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Quoted:
Joeil, I'm sure there were many more things that contributed, but flat out, the GSEs were the lynchpins. Look at it. The right says "this needs more oversight, it could get bad, and if it gets bad, it will be widespread" to which the left said "oh fuck no, you ain't takin our houses for poor people. In fact, we gonna raise the limit on the size and number of mortgages that they can buy. We'll bail 'em out if it goes bad. Yay subsidized housing!!" There were many pieces that made the domino maze, but they were put there, or able to position themselves, through actions that started with Clinton and the great crusade to have everyone own a house. Really it started with Carter and the cra. every president had a hand in it. it makes for a good political points for those that need to verify their political positions. The truth lies deeper. It could never had happen without cheap money from the fed , mortgages that are packaged and sold with phony bond ratings , and a government that needed to start a housing boom to offset a dotcom bust. since you brought up clinton and the blog which makes it sound like Bush wanted to investigate fannie / freddie ahh streamling loans.. too much fine print we can change the print lol meaning got a heart beat? you qualify got to 4:15 he talks about gse .. 
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