Dubya
Senior Member
- Dec 29, 2012
- 3,056
- 59
You see you want to blame President Bush and the Republicans for the crippled economy, yet the legislative branch was in control by the Democrats (does Nancy Pelosi and Harry Reed ring a bell?). Now you want to blame Congress and the Republicans (notice the flip flopping of blame?) for the recovery, when I JUST listed all of what the Democrats were able to pass without the help of Republicans (none of which you were able to refute). So all this "blame Bush" for the economic mess, and now blame Congress because of the Republicans, tells me you don't have the slightest clue of what you're talking about. You can try passing that crap to your liberal cheering sectiaon, but I doubt anyone else is gullible enough to buy that - hook, line, and sinker.
The Republicans passed legislation when Clinton was President, the GBLA and the CFMA. Bush had the agenda of not using regulation, like the SEC. Legislation didn't crash the economy during Bush, it was prior legislation that allowed this shit to happen, while Bush didn't allow government to do it's job. There is no good reason why those toxic asset bonds were allowed to be traded as triple A securities. Thanks to Republicans, we don't have a triple A bond rate anymore.
People who study economics know what happened to crash the economy and they know people like you are liars trying to cover up who was involved.
I find it hilarious how you simply call those who you can't refute with facts "liars". Gotta love it, especially when you can't even provide in your post, where it is exactly that I have "supposedly" lied and back that up with some actual facts.
Now I will say the economy began to show signs of trouble through Fannie Mae and Freddie Mac. You see President Clinton passed what us to be known as the Community Reinvestment Act (CRA for short). This regulation onto banks, was meant to get people that wouldn't ordinarily be able to "afford" [key word] a home to have the ability to purchase one. Banks were no longer allowed to ask those credit questions, they normally would, to see if they the customer inquiring is a risk to be given the loan. Sure enough, you would have those who had no business OWNING a home in the first place (never mind being given such a substantial "risk" loan), beginning to get behind with the threat of even losing the home through bankruptcy.
Now President Obama didn't help the situation by giving Freddie Mac a huge bailout. Nor did it help for Obama to look at those about to lose their home and provide them with government "taxpayer" assistance, without FIRST inquiring if they could afford the mortgage to start with.
The Government Did It
Yaron Brook
The Community Reinvestment Act (CRA) forces banks to make loans in poor communities, loans that banks may otherwise reject as financially unsound. Under the CRA, banks must convince a set of bureaucracies that they are not engaging in discrimination, a charge that the act encourages any CRA-recognized community group to bring forward. Otherwise, any merger or expansion the banks attempt will likely be denied. But what counts as discrimination?
According to one enforcement agency, "discrimination exists when a lender's underwriting policies contain arbitrary or outdated criteria that effectively disqualify many urban or lower-income minority applicants." Note that these "arbitrary or outdated criteria" include most of the essentials of responsible lending: income level, income verification, credit history and savings history--the very factors lenders are now being criticized for ignoring.
The government has promoted bad loans not just through the stick of the CRA but through the carrot of Fannie Mae and Freddie Mac, which purchase, securitize and guarantee loans made by lenders and whose debt is itself implicitly guaranteed by the federal government.
The Government Did It - Forbes.com
The Trillion-Dollar Bank Shakedown That Bodes Ill for Cities
Howard Husock
"Our job," says Marks, "is to push the envelope." Accordingly, he gladly lends to people with less than $3,000 in savings, or with checkered credit histories or significant debt. Many of his borrowers are single-parent heads of household. Such borrowers are, Marks believes, fundamentally oppressed and at permanent disadvantage, and therefore society must adjust its rules for them. Hence, NACA's most crucial policy decision: it requires no down payments whatsoever from its borrowers. A down-payment requirement, based on concern as to whether a borrower can make payments, is—when applied to low-income minority buyers—"patronizing and almost racist," Marks says.
. . . A no-down-payment policy reflects a belief that poor families should qualify for home ownership because they are poor, in contrast to the reality that some poor families are prepared to make the sacrifices necessary to own property, and some are not. Keeping their distance from those unable to save money is a crucial means by which upwardly mobile, self-sacrificing people establish and maintain the value of the homes they buy. If we empower those with bad habits, or those who have made bad decisions, to follow those with good habits to better neighborhoods—thanks to CRA's new emphasis on lending to low-income borrowers no matter where they buy their homes—those neighborhoods will not remain better for long.
The Trillion-Dollar Bank Shakedown That Bodes Ill for Cities by Howard Husock, City Journal Winter 2000
True Cost of Fannie, Freddie Bailouts: $317 Billion, CBO Says | CNS News Mobile
Fannie & Freddie: The most expensive bailout - Jul. 22, 2009
You see how easy that was? I even included some actual FACTS to support my argument
Dumbass, I didn't make the claim, so let the fool who made the claim prove it and what I know for a fact isn't true! I've spent the time to look up the BLS reports and that's how I know it's a lie. I've also looked up the contribution of government to GDP during those periods. I'm not going to waste my time on lazy fools making claims they can't back up with facts. If you make the claim, you prove it. You idiots are always making claims and it doesn't take much time to type a lie.
The CRA program is very small compared to the amount of money in those ABS bonds. CRA doesn't get loans for $400,000 homes.
The Community Reinvestment Act (CRA, Pub.L. 95–128, title VIII of the Housing and Community Development Act of 1977, 91 Stat. 1147, 12 U.S.C. § 2901 et seq.) is a United States federal law designed to encourage commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods.[1][2][3] Congress passed the Act in 1977 to reduce discriminatory credit practices against low-income neighborhoods, a practice known as redlining.[4][5]
Source: http://en.wikipedia.org/wiki/Community_Reinvestment_Act
The GSE bailout is ongoing and hasn't costed anything.