healthmyths
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- Sep 19, 2011
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Seriously......you may be an even bigger moron than the OP.....OK once again the facts...
Major causes of the initial subprime mortgage crisis and following recession include:
Once the recession began, various responses were attempted with different degrees of success. These included fiscal policies of governments; monetary policies of central banks; measures designed to help indebted consumers refinance their mortgage debt; and inconsistent approaches used by nations to bail out troubled banking industries and private bondholders, assuming private debt burdens or socializing losses.
- International trade imbalances and
- lax lending standards contributing to high levels of developed country household debt and real-estate bubbles that have since burst;
- U.S. government housing policies;
- and limited regulation of non-depository financial institutions.
Causes of the Great Recession - Wikipedia, the free encyclopedia
President Bush publicly called for GSE reform at least 17 times in 2008 alone before Congress acted.
Unfortunately, these warnings went unheeded, as the President's repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems.
Setting the Record Straight: The Three Most Egregious Claims In The New York Times Article On The Housing Crisis
Many prominent Democrats, including House Finance Chairman Barney Frank, opposed any legislation correcting the risks posed by GSEs.
* House Financial Services Committee Chairman Barney Frank (D-MA) criticized
the President's warning saying:
"these two entities - Fannie Mae and Freddie Mac - are not facing any kind of financial crisis .
The more people exaggerate these problems,
the more pressure there is on these companies, the less we will see in terms of affordable
housing."...
(Stephen Labaton, "New Agency Proposed To Oversee Freddie Mac And Fannie Mae,"
New York Times, 9/11/03)
* Senate Committee on Banking, Housing and Urban Affairs Chairman Christopher Dodd also
ignored the President's warnings and called on him to "immediately reconsider his ill-advised"
position. Eric Dash, "Fannie Mae's Offer To Help Ease Credit Squeeze
Is Rejected, As Critics Complain Of Opportunism," New York Times, 8/11/07)
Barney Frank's Fannie and Freddie Muddle
Pure and simple.
A) with Fannie/Freddie (F&F) guaranteeing subprime loans...(Fannie and Freddie remain two of the largest financial institutions in the world, responsible for a combined $5 trillion in mortgage assets.) 7 Things You Need to Know About Fannie Mae and Freddie Mac
B) They have the power to guarantee or purchase mortgages years after the original loan is made.
The commitment of F&F to maintain a liquid market changes the market. Imagine the positive and negative side effects of central banks, apply them to the long-term debt market, lather rinse repeat. Will somebody be there to take this hot potato off my hands? If so, I'm more willing to buy the potato today.
How Many Bad Loans Did Fannie and Freddie Originate? | EconLog | Library of Economics and Liberty
Now for many of you really DUMB people...
Oct. 23,2008 (Bloomberg) -- Fannie Mae and Freddie Mac have an ``effective'' federal guarantee, not the "full faith
and credit'' of the U.S. government, Federal Housing Finance Agency Director James Lockhart
said after the hearing. That does give them effectively a guarantee of the U.S. government.''
http://www.bloomberg.com/apps/news?pid=20601087&sid=ajIEoZCommlk
So IF F&F backed by the U.S. government will take the bad loans off the banks hands
Federal officials heap much of the blame for the subprime mortgage mess on lenders,
claiming they recklessly made too many high-cost home loans to borrowers who couldn't afford them.
It turns out that the U.S. government itself was one of the lenders giving out high-interest, subprime mortgages, some of them predatory, according to government documents filed in federal court.
Case in point: "Rather than immediately shuttering or selling Superior, as it normally does with failed banks, the Federal Deposit Insurance Corp. continued to run the bank's subprime-mortgage business for months as it looked for a buyer. With FDIC people supervising day-to-day operations, Superior funded more than 6,700 new subprime loans worth more than $550 million, according to federal mortgage data."
FDIC Faces Mortgage Mess After Running Failed Bank
So in summary GWB warned 17 times alone in 2008 (by the way why didn't he do it earlier??? Oh I guess there were some other more pressing
issues like the following MAJOR cataclysmic events that preceded the housing bubble!!!!)
Are you aware that a recession started under Clinton and became official 3/01 ended 11/01?
Because idiots don't seem to comprehend... RECESSIONS are like large ships.. it takes miles to turn one...i.e. so does a "RECESSION"...
it doesn't just start the day NBER states... it is a slow degradation and it started under CLINTON!!!
Source: USATODAY.com - It's official: 2001 recession only lasted eight months
A Major $8 trillion market loss
Are you aware that the dot.com bust occurred and cost $8 trillion in losses? Again Clinton laid claim BUT someone had to pay and it occurred during Bush's first year!
$8 trillion in market losses MEAN lost tax revenue. PLUS JOBS!!!!
According to the Los Angeles Times, when the dot-com bubble burst, it wiped out $8 trillion dollars in market value for tech companies.
More than half of the Internet companies created since 1995 were gone by 2004 -
and hundreds of thousands of skilled technology workers were out of jobs.
Source: The dot-com bubble: How to lose $5 trillion
The worst attacks on the USA in History.. 3,000 deaths!!!
Obviously most of you are UNAWARE 9/11 cost 3,000 lives, $2 trillion in lost businesses,market values assets.
Jobs lost in New York owing to the attacks: 146,100 JUST in New York.
Are you aware this happened???
Now before you idiots say "well Bush should have known"! DUMMIES... ever hear of the Gorelick Memo signed under CLINTON??
Gorelick Memo that created the wall between FBI & CIA thus no knowledge of the 9/11 bombers shared with the FBI!!! Looks especially imprudent 10 years later.
Because the memo created a barrier for U.S. intelligence agencies to share information with the FBI, one of its unintended consequences may have been to prevent the FBI from receiving the necessary intelligence to stop the Sept. 11, 2001 terrorist attacks, the worst in American history.
Gorelick Memo Allegedly Impeded Probe of Clinton Fundraising Scandal
1995 memo [Clinton presidency-concerned about Chinese election sales] Gorelick wrote, stated explicitly that they would “go beyond what is legally required, [to] prevent any risk of creating an unwarranted appearance that FISA is being used to avoid procedural safeguards which would apply in a criminal investigation.” GORELICK Memo!
Jamie Gorelick’s wall barred anti-terror investigators from accessing the computer of Zacarias Moussaoui, the 20th hijacker, already in custody on an immigration violation shortly before 9/11.
At the time, an enraged FBI investigator wrote a prophetic memo to headquarters about the wall.
Whatever has happened to this — someday someone will die — and wall or not — the public will not understand why we were not more effective in throwing every resource we had at certain problems…..
especially since the biggest threat to us UBL [Usama bin Laden], is getting the most protection.
So, a year before the 9/11 attacks, a special unit in the U.S. military was aware of the presence of an al-Queda cell in Brooklyn, New York, and sought to share its information with the FBI but was stopped cold.Why?Because (as described in the April 16, 2004 Washington Times piece) “on March 4, 1995, [Jamie Gorelick, the then number 2 official in the Clinton Justice Department, sent a 4-page directive] to FBI Director Louis Freeh and Mary Jo White, the New York-based U.S. attorney investigating the 1993 World Trade Center bombing.
In the memo, Ms. Gorelick ordered Mr. Freeh and Ms. White to follow information-sharing procedures
that ‘go beyond what is legally required,’ in order to avoid ‘any risk of creating an unwarranted appearance’
that the Justice Department was using Foreign Intelligence Surveillance Act (FISA) warrants, instead of ordinary criminal investigative procedures, in an effort to undermine the civil liberties of terrorism suspects.”
Could 9/11 Have Been Prevented? The Gorelick Memo and What We Knew
Year 2001: September 11 Terrorist Attacks
The 9/11 terrorist attacks were the events that helped shape other financial events of the decade. After that terrible day in September 2001, our economic climate was never to be the same again. It was only the third time in history that the New York Stock Exchange was shut down for a period of time. In this case, it was closed from September 10 - 17. Besides the tragic human loss of that day, the economic loss cannot even be estimated. Some estimate that there was over $60 billion in insurance losses alone. Airlines didn't fly for 3 days!
Approximately 18,000 small businesses were either displaced or destroyed in Lower Manhattan after the Twin Towers fell. There was a buildup in homeland security on all levels. 9/11 caused a catastrophic financial loss for the U.S.
Source: 10 Events That Rocked the Financial World
Anthrax Attacks...
The 2001 anthrax attacks in the United States, also known as Amerithrax from its Federal Bureau of Investigation (FBI) case name, occurred over the course of several weeks beginning on Tuesday, September 18, 2001, one week after the September 11 attacks. Letters containing anthrax spores were mailed to several news media offices and two DemocraticU.S. Senators, killing five people and infecting 17 others.
$1 trillion in losses due to the WORST Hurricane SEASONS in history. 2,215 lives lost
The worst, Katrina made landfall in Louisiana as a Category 3 in 2005. It took 1,836 lives and caused $81.2 billion in damages. It quickly became the biggest natural disaster in U.S. history, almost destroying New Orleans due to severe flooding.
Rank Disaster Year Deaths Damage* $250 Billion in damages in the 8 disasters of the top 15 disasters in history!
1. Hurricane Katrina (LA/MS/AL/FL) 2005 1833 $133,800,000,000
6. Hurricane Ike (TX/LA/MS) 2008 112 $27,000,000,000
7. Hurricane Wilma (FL) 2005 35 $17,100,000,000
8. Hurricane Rita (TX/LA) 2005 119 $17,100,000,000
9. Hurricane Charley (FL) 2004 35 $16,500,000,000
12. Midwest Floods 2008 24 $15,000,000,000
13. Hurricane Ivan (FL/AL) 2004 57 $13,000,000,000
14. 30-State Drought 2002 0 $11,400,000,000
Costliest U.S. Weather Disasters | Weather Underground
THESE events OCCURRED!
YET in SPITE of:
a) 400,000 jobs lost due to Hurricanes Katrina/Rita ,
b) 2,800,000 jobs lost in alone due to 9/11,
c) 300,000 jobs lost due to dot.com busts... In spite of nearly $8 trillion in lost businesses, market values, destroyed property..
IN SPITE of the above:
2002 $157.8 billion deficit.. also 9/11 occurred and tax revenues lowered for years later due to dot.com/9-11 losses against revenue.
2003 $377.6 billion deficit.. BRAND new cabinet Homeland Security, plus loans made to businesses.. again tax revenues down..affect of 9/11
2004 $412.7 billion deficit.. Revenues up by 5.5% spending increased and economy getting back.
2005 $318.3 billion deficit.. revenues up by 14.5% deficit decreasing at rate of 22%
2006 $248.2 billion deficit.. revenues up by 11.7% deficit decrease 22%
2007 $160.7 billion deficit.. revenues up by 6.7% deficit decrease 35%
2008 $458.6 billion deficit.. revenues down and deficit INCREASED TARP loan mostly...
http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=20
BEA National Economic Accounts
Average annual growth in the Gross Domestic Product over 8 years 2.9% compared to the Idiot's..
SMPLY THE WORST=> Obama is First President Ever to Not See Single Year of 3% GDP Growth
SIMPLY THE WORST=> Obama is First President Ever to Not See Single Year of 3% GDP Growth
IN Spite of all the events AND if the housing bubble caused by the below people hadn't occurred it would have
been: 4.4% compared to what now???
2001 2.3% increase
2002 2.4%
2003 6.8%
2004 6.4%
2005 5.4%
2006 4.6%
2007 3.2%
2008 -7.7%
Why do you persist in comparing REAL to NOMINAL GDP numbers? Have you reconciled this crap you've collected with Reality?
Are you aware that a recession started under Clinton and became official 3/01
A recession doesn't "start" on one date and become "official" on another.....You've already been told this, but you are simply too dim to grasp it...
OK since you can't handle NUMBERS here are pictures!!!
GWB's GDP IS IN REAL GDP! NOT NOMINAL! And it is the GREEN LINE in case you don't know the difference!
More importantly though READ the comments to the right! That is what idiots and a lot of people seem to IGNORE!!!
These events were monumental. Our country never had such events occur in a span of 6 years... Worst attack, recession that started under Clinton
because any idiot knows just because NBER says started on 3/1/01 doesn't mean one day no recession... next day RECESSION!
Economic Record: President Bush Jr.
View attachment 83803
You're an idiot.......
http://www.bea.gov/national/xls/gdpchg.xls
GDP percent change based on chained 2009 dollars
2001 1.0
2002 1.8
2003 2.8
2004 3.8
2005 3.3
2006 2.7
2007 1.8
2008 -0.3
........
recession that started under Clinton
because any idiot knows just because NBER says started on 3/1/01 doesn't mean one day no recession... next day RECESSION!
Uh...yes it does.......Though NBER doesn't peg start and end to a particular date.....instead of staying stupid for the rest of your life, why don't you go over to the NBER site and learn how they go about it.....
OK let's look at NBER site...
Q: Isn't a recession a period of diminished economic activity?
A: It's more accurate to say that a recession-the way we use the word-is a period of diminishing activity rather than diminished activity.
We identify a month when the economy reached a peak of activity and a later month when the economy reached a trough.
The time in between is a recession, a period when the economy is contracting.
The following period is an expansion.
Economic activity is below normal or diminished for some part of the recession and for some part of the following expansion as well.
Some call the period of diminished activity a slump.
The NBERs Recession Dating Procedure
So idiot.... NBER clearly states a RECESSION doesn't start on 3/1/01 but it is MORE accurate is a period of diminishing activity!
And of course common sense will tell anyone with it... that Feb 28,2001 NO RECESSION! OOPs! Mar 1,2001 RECESSION STARTS!!!
More importantly geez... idiot... GWB took the oath of office on 1/20/2001... And you expected him to change immediately the wasted phony
DOT.com frenzy that collapsed a loss of almost $8 trillion of wealth. The Dot Com Bubble Burst That Caused The 2000 Stock Market Crash | Stock Picks System
Oh and by the way... Market losses are written off against tax payments! Which again worked against GWB!
But of course NOT ONE of you seem to be aware of any of these events!
"Diminishing activity" is CONTRACTION........NOT a decreasing rate of growth......this is Econ 1 stuff........all a mystery to you because you were out in the parking lot drinking Ripple during class...The business cycle looks like a rising sine wave......as such there is a point of inflection.......this would be "the month" to which NBER refers......
Market losses are written off against tax payments! Which again worked against GWB!
Only to the extent that they are REALIZED....and they are NETTED against realized profits...
DUH! Of course.
BUT FACTS please get me facts on which to base your opinions!
But in the 2000s, with the dot-com crash and 9/11, government revenue declined hitting $3.3 trillion in 2002 before resuming its increase again.
US Government Recent Revenue History with Charts - a www.usgovernmentrevenue.com briefing
