“I Cannot Afford To Live”: Americans Get Emotional As The U.S. Economy Goes Off The Rails

[AntonToo]

The Democrats have beautiful hearts, just so they're spending/risking other people's money.

From USNews and World Report

Barney Frank's Fannie and Freddie Muddle
By Sam Dealey
September 10, 2008

[…]

So five years ago, there was one of those rare moments in Washington when the branches and personalities of government—in this case, the Bush administration—are less interested in protecting or expanding their turf than in fixing a looming catastrophe. What was Frank's response to the proposal?

''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''

[…]

http://www.usnews.com/opinion/blogs/sam-dealey/2008/09/10/barney-franks-fannie-and-freddie-muddle

Yep, Republicans questioning accounting,. while nodding along to assumptions that real estate values are bulletproof.

Relavance to Great Recession ZERO.


And by the way, there was the bipartisan Federal Housing Finance Reform Act that would have increased capital and limited portfolios at GSEs. Bush admin sank it.

Ohio Republican Mike Oxley (the bill's author): "The critics have forgotten that the House passed a GSE reform bill in 2005 that could well have prevented the current crisis. All the handwringing and bedwetting is going on without remembering how the House stepped up on this. What did we get from the White House? We got a one-finger salute."

 

[Markle]

Yep, Republicans questioning accounting,. while nodding along to assumptions that real estate values are bulletproof.

Relavance to Great Recession ZERO.

And by the way, there was the bipartisan Federal Housing Finance Reform Act that would have increased capital and limited portfolios at GSEs. Bush admin sank it.

Ohio Republican Mike Oxley (the bill's author): "The critics have forgotten that the House passed a GSE reform bill in 2005 that could well have prevented the current crisis. All the handwringing and bedwetting is going on without remembering how the House stepped up on this. What did we get from the White House? We got a one-finger salute."

That's just goofy. But I understand your desperation.

HUD TO FIGHT DISCRIMINATION, BOOST MINORITY HOMEOWNERSHIP AND WORK WITH URBAN LEAGUE TO FURTHER GOALS
https://archives.hud.gov/news/1997/pr97-135.cfm

###

New York Times - 1999
Fannie Mae Eases Credit To Aid Mortgage Lending -
Fannie Mae Eases Credit To Aid Mortgage Lending (Published 1999)


August 5, 1997

President Bush’s and the Administrations Unheeded Warnings About the Systemic Risk Posed by the GSEs – Fannie and Freddie dating back to 2001

Just the Facts: The Administration’s Unheeded Warnings About the Systemic Risk Posed by the GSEs

For many years the President and his Administration have not only warned of the systemic consequences of financial turmoil at a housing government-sponsored enterprise (GSE) but also put forward th…

swampie.wordpress.com

###

By Elliot Blair Smith,
USA TODAY
Fannie Mae to pay $400 million fine
Bloomberg Politics - Bloomberg

Franklin Raines was Director of the Office of Management and Budget under Clinton and returned to Fannie Mae as its CEO in 1999. Raines is not a “chief” economic adviser for President Barack Hussein Obama but has advised the administration on mortgage and housing matters. Obama had hired another former Fannie CEO, Jim Johnson as a member of Obama’s V.P. search committee and who was forced to quit under fire.

Bloomberg News -
How the Democrats Created the Financial Crisis -

Bloomberg Politics - Bloomberg

Bloomberg delivers business and markets news, data, analysis, and video to the world, featuring stories from Businessweek and Bloomberg News on everything pertaining to politics

www.bloomberg.com

###

Democrats in their own words covering up the Fannie Mae, Freddie Mac


###

Timeline shows Bush, McCain warning Democrats of Financial Crisis


###

From the New York Times
New Agency Proposed to Oversee Freddie Mac and Fannie Mae
By STEPHEN LABATON
Published: September 11, 2003 WASHINGTON,

Sept. 10— The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.

Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.

The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.

The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac -- which together have issued more than $1.5 trillion in outstanding debt -- is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.

Read more:

New Agency Proposed to Oversee Freddie Mac and Fannie Mae (Published 2003)

Bush administration proposes new agency be created within Treasury Department to assume supervision of Fannie Mae and Freddie Mac, House Financial Services Committee hearing; new agency would have authority, which now rests with Congress, to set one of two capital-reserve requirements for...

www.nytimes.com

[…]

From USNews and World Report
Barney Frank's Fannie and Freddie Muddle
By Sam Dealey
September 10, 2008

[…]

So five years ago, there was one of those rare moments in Washington when the branches and personalities of government—in this case, the Bush administration—are less interested in protecting or expanding their turf than in fixing a looming catastrophe. What was Frank's response to the proposal?

''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.'

[…]

http://www.usnews.com/opinion/blogs/sam-dealey/2008/09/10/barney-franks-fannie-and-freddie-muddle

###

Wall Street Journal Barney’s Rubble – September 17, 2008

Barney's Rubble - WSJ

online.wsj.com

Barney Frank in 2005: What Housing Bubble?



###

Democrats Were Wrong on Fannie Mae and Freddie Mac

The White House called for tighter regulation 17 times.

https://www.usnews.com/opinion/blogs/barone/2008/10/06/democrats-were-wrong-on-fannie-mae-and-freddie-mac

Steve Kroft On Credit Default Swaps And Their Central Role In The Unfolding Economic Crisis -
The Bet That Blew Up Wall Street

###

All this, in addition to the repeal of the Glass-Steagall Act by President William Jefferson Clinton caused the meltdown.

It COULD have been stopped or greatly reduced. Democrats fought that every step of the way and the Republicans wilted under the barrage of being called racist and worse.

###

 

[sealybobo]

I thought you wanted more things made here in America. How did President Biden's efforts control inflation? Do you want more things made here or do you want them cheaper and made overseas?

Although futile, I'll ask again differently; maybe a bit of a hint?

Suppose the income taxes paid by a corporation go from $1,000,000 to $2,000,000. The government would have $1,000,000 more to spend, right?

The customers of that business pay that $1,000,000 more to the company to buy their widgets. Right?

Some things need to be brought back to America. Every country except America protected it's vital industries when globalization happened. They didn't just send every job they could do cheaper to africa, mexico and china.

America DID destroy our vital industry. Manufacturing. Why? Because the uneducated blue collar workers made too much. So the same unhappy blue collar people you fucked, are now voting for Trump? Makes no sense.

Trump is using another angle. Blame illegal workers. Say you want to build a wall. In the 2000's it was a fence. But it's not going to stop the flow when companies like Trump's hire illegal workers. We need to go after illegal employers.

And wages have already gone up as far as they are going to go for low wage workers. The feds are making sure of that by raising interest rates to slow wage growth. So wake up.

Consider this. Just a side thought. Making Nike in China has not lowered the cost of Nike shoes. It only adds to the companies profits.

 

[AntonToo]

That's just goofy. But I understand your desperation.

HUD TO FIGHT DISCRIMINATION, BOOST MINORITY HOMEOWNERSHIP AND WORK WITH URBAN LEAGUE TO FURTHER GOALS
https://archives.hud.gov/news/1997/pr97-135.cfm

###

New York Times - 1999
Fannie Mae Eases Credit To Aid Mortgage Lending -
Fannie Mae Eases Credit To Aid Mortgage Lending (Published 1999)


August 5, 1997

President Bush’s and the Administrations Unheeded Warnings About the Systemic Risk Posed by the GSEs – Fannie and Freddie dating back to 2001

Just the Facts: The Administration’s Unheeded Warnings About the Systemic Risk Posed by the GSEs

For many years the President and his Administration have not only warned of the systemic consequences of financial turmoil at a housing government-sponsored enterprise (GSE) but also put forward th…

swampie.wordpress.com

###

By Elliot Blair Smith,
USA TODAY
Fannie Mae to pay $400 million fine
Bloomberg Politics - Bloomberg

Franklin Raines was Director of the Office of Management and Budget under Clinton and returned to Fannie Mae as its CEO in 1999. Raines is not a “chief” economic adviser for President Barack Hussein Obama but has advised the administration on mortgage and housing matters. Obama had hired another former Fannie CEO, Jim Johnson as a member of Obama’s V.P. search committee and who was forced to quit under fire.

Bloomberg News -
How the Democrats Created the Financial Crisis -

Bloomberg Politics - Bloomberg

Bloomberg delivers business and markets news, data, analysis, and video to the world, featuring stories from Businessweek and Bloomberg News on everything pertaining to politics

www.bloomberg.com

###

Democrats in their own words covering up the Fannie Mae, Freddie Mac


###

Timeline shows Bush, McCain warning Democrats of Financial Crisis


###

From the New York Times
New Agency Proposed to Oversee Freddie Mac and Fannie Mae
By STEPHEN LABATON
Published: September 11, 2003 WASHINGTON,

Sept. 10— The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.

Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.

The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.

The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac -- which together have issued more than $1.5 trillion in outstanding debt -- is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.

Read more:

New Agency Proposed to Oversee Freddie Mac and Fannie Mae (Published 2003)

Bush administration proposes new agency be created within Treasury Department to assume supervision of Fannie Mae and Freddie Mac, House Financial Services Committee hearing; new agency would have authority, which now rests with Congress, to set one of two capital-reserve requirements for...

www.nytimes.com

[…]

From USNews and World Report
Barney Frank's Fannie and Freddie Muddle
By Sam Dealey
September 10, 2008

[…]

So five years ago, there was one of those rare moments in Washington when the branches and personalities of government—in this case, the Bush administration—are less interested in protecting or expanding their turf than in fixing a looming catastrophe. What was Frank's response to the proposal?

''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.'

[…]

http://www.usnews.com/opinion/blogs/sam-dealey/2008/09/10/barney-franks-fannie-and-freddie-muddle

###

Wall Street Journal Barney’s Rubble – September 17, 2008

Barney's Rubble - WSJ

online.wsj.com

Barney Frank in 2005: What Housing Bubble?



###

Democrats Were Wrong on Fannie Mae and Freddie Mac

The White House called for tighter regulation 17 times.

https://www.usnews.com/opinion/blogs/barone/2008/10/06/democrats-were-wrong-on-fannie-mae-and-freddie-mac

Steve Kroft On Credit Default Swaps And Their Central Role In The Unfolding Economic Crisis -
The Bet That Blew Up Wall Street

###

All this, in addition to the repeal of the Glass-Steagall Act by President William Jefferson Clinton caused the meltdown.

It COULD have been stopped or greatly reduced. Democrats fought that every step of the way and the Republicans wilted under the barrage of being called racist and worse.

###

Unheeded warnings?

Dumbass dupe, Bush admin had 7 years to do something and did THE OPPOSITE of reducing sub-prime loans. THE OPPOSITE of making financial institutions increase capital. THE OPPOSITE of regulating market excess.

When GSE reform finally landed on his desk he threw in the garbage.

 

[Sparker]

Minimum wage workers have work experience. People who have never done anything but invest and play money games may be the most shit outta luck. That much of an economic crash seems likely, this year.

 

[Andylusion]

Dumbass what the hell does your graph have to do with comparing performance of real estate securities portfolios?

Do you understand anything at all?

And lets for a second pretend that your graph somehow represents such comparison:

GSE's held about 50% of all American mortgage debt, if you add up all the other financial institutions in your graph (the other 50%) and ASSume their exposure was also from securitization then GSE's bail was actually SMALLER with respect to the volume they were dealing with.

I thought I explained this already.

The GSEs were guaranteeing the securities of the private market. That's part of their business model.
A private bank, with a private mortgage, backed into a Mortgage Backed Security, is then guaranteed by Fannie and Freddie.

When you look at the failures in the private market, most of those losses were on Mortgage Backed Securities, that Freddie and Fannie guaranteed. That's why Freddie and Fannie were the largest bailouts of the entire sub-prime crash.

Again, back to the evidence I posted....

Bear Stearns, the CRA, and Freddie Mac - Cafe Hayek

I keep hearing that the subprime crisis was caused by people willing to buy stuff they couldn't evaluate. Why would smart people do that? One answer is that they were stupid. In an era of rising home prices, it's hard...

cafehayek.com

The affordable mortgages were originated or acquired by First Union Corporation and subsidiaries.

The $384.6 million in senior certificates are guaranteed by Freddie Mac and have an implied "AAA" rating. First Union Capital Markets Corp. is the investment banking subsidiary of First Union Corporation.

The affordable mortgages were originated... or acquired by First Union.
But.... they were guaranteed by Freddie Mac.

So when First Union becomes Wachovia and reports a $9 billion dollar loss, and requires a Well Fargo to buy them out with a $25 Billion dollar bailout.... that is because of Freddie Mac. Freddie Mac guarnateed that First Unions sub-prime MBS were safe. Without them doing that, First Union would never have made a sub-prime Mortgage Backed Securities, and wouldn't have record losses.

And Freddie Mac had to pay out on those Guarantees, which was more billions in bailout to Freddie Mac in addition to the bailout to Well Fargo to buy Wachovia.

Yes.... Freddie Mac and Fannie Mae were the biggest bailouts, because they guaranteed the toxic assets they convinced private lenders to make.

So every single time you see private lender portfolio losing money, that is also due to Freddie Mac and Fannie Mae.

 

[Andylusion]

and he owns the responsibility by saying "whoops, my bad, I will resign" and gets 30 million in stock.

that will really teach em!

If you have a contract that says you get $30 Million in stock, then that's what you get.
And you still didn't even explain what he did that was bad? What did he do that was bad?

 

[Andylusion]

No, you're missing something. I'm not an accountant but basically, these mega corps aren't paying any taxes. Somehow. And, you fucking Republican hypocrites. I remember when Obama was president you pointed to GE and said they paid no taxes. See? You said. See? Obama does it too. Why doesn't Obama tax GE?

Trump doubled the companies who now pay no taxes. Not a shocker.

And if I explained how it works, you'd say it makes them smart, and they shouldn't pay taxes. So ultimately if that's what you believe, fundamentally, you're wrong. IMO.

Again, it was a rebate. They DID pay tax. They paid so much in taxes, that they not only didn't owe anymore, but they over paid, and were owed a rebate.

Your own article proves this. You can't get a rebate for taxes you never paid. You get a rebate when you over pay taxes.

So you keep saying "they aren't paying taxes" when your own article that you posted, says they did.

Stop saying that. You are wrong sir. Your own evidence proves you are wrong. They did pay tax. Period. End of story.

And yes, I totally agree with your last point. I totally support companies paying zero tax. Why do you want working people to be poorer? That makes no sense to me.

 

[sealybobo]

Again, it was a rebate. They DID pay tax. They paid so much in taxes, that they not only didn't owe anymore, but they over paid, and were owed a rebate.

Your own article proves this. You can't get a rebate for taxes you never paid. You get a rebate when you over pay taxes.

So you keep saying "they aren't paying taxes" when your own article that you posted, says they did.

Stop saying that. You are wrong sir. Your own evidence proves you are wrong. They did pay tax. Period. End of story.

And yes, I totally agree with your last point. I totally support companies paying zero tax. Why do you want working people to be poorer? That makes no sense to me.

WHATEVER you boot lickers.

And if you are right, then don't complain about the poor. America is doing great. The top 20% anyways. It's your job to rise above inflation and a weak dollar and unaffordable college. Figure it out! The CEO of your company gets all the raises unless you can show you are worth more? Can you? Then piss off!

 

[Harpy Eagle]

If you have a contract that says you get $30 Million in stock, then that's what you get.
And you still didn't even explain what he did that was bad? What did he do that was bad?

He is as the CEO responsible for things that happen under his watch? Doors falling off and some new emergency every couple of week with a Boeing airplane?

 

[Andylusion]

That's not what Trump is saying. He's saying tariffs. BIG tariffs. Doesn't matter that it's cheaper to make it over there. You don't think that's going to cause "inflation" which is the cost of things to go up?

But, perhaps what you are saying is true. But like NAFTA, don't flip flop on us years down the road and say Democrats went along with charging companies no taxes, even though they use our government, military and courts and roads more than we do. And they benefit from our public schools, cops, ambulances. But you say they shouldn't pay taxes because they employ people. Got it. I disagree but that's just me. I don't bend over for corporations. Know who else doesn't? China. If corporations want to do business in China, they follow China's laws and rules. Pay employees a fair wage. And pay taxes to the state.

Also, don't cry that your taxes went up and the debt is out of control.

No, on this point alone, we agree. I don't support tariffs.

Um.... your point about china is a little off though. Yes China makes OUR companies follow endless rules and controls and taxes and regulations. TRUE!

But they don't do that to THEIR companies. The state owned steel companies, are given massive leeway to do as they please, from what I've read. After all, the communist leaders benefit from the state owned companies. They screw over the public for the benefit of the elite in governments, all the time.

That's one of the reasons people like Trump are pissed about it. In China the rules for American companies is almost entirely different from the rules for Chinese companies, putting us at a disadvantage to them. And then the moment we put some rules on Chinese companies, suddenly the government of China is all offended by it.

But I still oppose Trumps tariffs, and always have been.

 

[leftwinger]

Bottom line: Congress set rules to ALLOW the housing crisis. Then when they had the chance to correct it and avoid the meltdown.....they chose not to do that. WHY? Because they knew they could use the dirty MSM to blame it all on the "R" President. Then they could steal the next election easier (even though they had not candidate at the time).
They pushed aside the Beast as they discovered the purple lipped jug eared muslim unknown no-show in Congress and it was full speed ahead.......$11.5T later they claimed they had "solved" GWBs' housing collapse. whew doggies!

Congress caused and allowed it even though they could have stopped it.

 

[Andylusion]

WHATEVER you boot lickers.

And if you are right, then don't complain about the poor. America is doing great. The top 20% anyways. It's your job to rise above inflation and a weak dollar and unaffordable college. Figure it out! The CEO of your company gets all the raises unless you can show you are worth more? Can you? Then piss off!

So are you claiming that any of those companies didn't pay taxes? Do you want me to pull up their SEC pages, and show you line by line, where they paid taxes?

https://d18rn0p25nwr6d.cloudfront.net/CIK-0001018724/02da2a86-7bb9-4bcb-95ae-4ce27ea5e3bc.pdf

Amazon.com, Inc. - SEC filings - SEC Filings Details

ir.aboutamazon.com

2018, SEC filed 10-K report. PDF page 29.

"We recorded a provision for income taxes of $950 million , $1.4 billion , and $769 million in 2015 , 2016 , and 2017 ."

They paid $950 Million in taxes in 2015.
$1.4 Billion in 2016.
$769 Million in taxes in 2017.

They paid taxes every single one of those years. You are WRONG sir. PERIOD. You are dead wrong. You have always been wrong. Stop arguing about this, because if you keep say this when it is now proven conclusive fact, that makes no longer wrong on this, but a complete LIAR on this.

Are you liar now? Because no one should listen to someone is just a flat out serial liar. Yes or no, are you just a liar now?

 

[Cellblock2429]

“I Cannot Afford To Live”: ​

Americans Get Emotional As The U.S. Economy Goes Off The Rails​

"I Cannot Afford To Live": Americans Get Emotional As The U.S. Economy Goes Off The Rails

As we approach what is likely to be the most chaotic presidential election in U.S. history, trouble signs are starting to erupt for the U.S. economy. In fact, CNN is actually admitting that "the long-predicted

theeconomiccollapseblog.com

10 Apr 2024 ~~ By Michael Snyder

As we approach what is likely to be the most chaotic presidential election in U.S. history, trouble signs are starting to erupt for the U.S. economy. In fact, CNN is actually admitting that “the long-predicted storm clouds in the economy may actually be forming”. I can’t remember the last time that I saw a CNN article with a headline like that. But at this point, it is becoming extremely difficult for the mainstream media to avoid the truth. Inflation is getting worse at the same time that many key sectors of our economy are slowing down. If you thought that the last couple of years were rough for the economy, just wait until you see what is coming next. Tremendous turmoil is on the horizon, and the American people are becoming increasingly emotional about our rapidly growing economic problems.
On Wednesday, we learned that prices jumped even more than expected during the month of March…
~Snip~
For example, Fox Business is reporting that the cost of energy “is up 36.9% from where it was in Jan. 2021″…

Tuesday’s inflation numbers punctuate what has been a dreadful three years for energy consumers. The overall cost of energy in March is up 36.9% from where it was in Jan. 2021, according to the Department of Labor’s Bureau of Labor Statistics.​

Of course energy prices are going to go a lot higher than they are right now.
~Snip~
Just like me, so many of you can feel what is coming.
A tipping point has arrived, and the outlook for the months ahead is very bleak.
The U.S. economy is going off the rails, and the worse things get the more frustrated the American people are going to become.


Commentary:
Not according to our 46th president and his administration. We are doing so well, we don’t have to worry about the cost of illegals or of forgiving student loans, and we can freely help Ukraine with many hundreds of billions of dollars for something that could have been handled with a peace treaty.
Everything is fine!
Don't worry about housing, food, or fuel for heating, cooking or transportation. Our president has it covered.
Yes, The Rats in Washington have it covered. They tell us they won’t cut Social Security benefits, but they have no problem creating high inflation, or fudging the numbers to limit Social Security COLA’s for retirees.
The next round of inflation is going to be absolutely brutal. Many already on the brink who never would've considered crime will start to ponder it.
America's largely service sector economy will take a massive hit as what little discretionary spending still exists evaporates and near-minimum wage workers can barely afford to commute.
What happens when rural youth begin behaving like urban youth?
There is a level of hardship at which this starts to happen en-masse.

/——-/ democRATs love it when their plan comes together.

 

[Andylusion]

He is as the CEO responsible for things that happen under his watch? Doors falling off and some new emergency every couple of week with a Boeing airplane?

Yes. He has taken responsibility to correct these problems. They started reviewing every aspect of the production of the planes, and are reviewing how the accident happened, and cooperating with the FAA.

That is more taking responsibility than just collecting his money and leaving, right? Or do you think just taking the money and going is how you "take responsibility"?

Again, it's not like he's the one that installed the door. If that was the case, and he negligently put it in wrong, now you have a case for him being put in prison.

Or let me guess... you think that the company should have confiscated his contractually obligated pay? How would that work?

If you and me signed a contract to run my house, and then my son sets the house on fire, can I just deny you all the money I contractually owe you, because my son set the house on fire, and you need to take responsibility?

You would sue me. And you would win in court. So would this guy.

 

[Markle]

Unheeded warnings?

Dumbass dupe, Bush admin had 7 years to do something and did THE OPPOSITE of reducing sub-prime loans. THE OPPOSITE of making financial institutions increase capital. THE OPPOSITE of regulating market excess.

When GSE reform finally landed on his desk he threw in the garbage.

Here is a timeline of Bush's efforts. I don't care what you desperately want to believe.

For many years the President and his Administration not only warned of the systemic consequences of financial turmoil at a housing government-sponsored enterprise (GSE) but also put forward thoughtful plans to reduce the risk that either Fannie Mae or Freddie Mac would encounter such difficulties. President Bush publicly called for GSE reform 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.

2001
April: The Administration’s FY02 budget declares that the size of Fannie Mae and Freddie Mac is “a potential problem,” because “financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity.”

2002
May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)

2003
January: Freddie Mac announces it has to restate financial results for the previous three years. [Obama advisor, Franklin Raines was CEO of Freddie Mac when they lied about earnings to increase bonuses]

February: The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that “although investors perceive an implicit Federal guarantee of [GSE] obligations,” “the government has provided no explicit legal backing for them.” As a consequence, unexpected problems at a GSE could immediately spread into financial sectors beyond the housing market. (“Systemic Risk: Fannie Mae, Freddie Mac and the Role of OFHEO,” OFHEO Report, 2/4/03).

September: Fannie Mae discloses SEC investigation and acknowledges OFHEO’s review found earnings manipulations.

September: Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact “legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises” and set prudent and appropriate minimum capital adequacy requirements.

October: Fannie Mae discloses $1.2 billion accounting error.

November: Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any “legislation to reform GSE regulation should empower the new regulator with sufficient strength and credibility to reduce systemic risk.” To reduce the potential for systemic instability, the regulator would have “broad authority to set both risk-based and minimum capital standards” and “receivership powers necessary to wind down the affairs of a troubled GSE.” (N. Gregory Mankiw, Remarks At The Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03).

2004
February: The President’s FY05 Budget again highlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: “The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore…should be replaced with a new strengthened regulator.” (2005 Budget Analytic Perspectives, pg. 83)

February: CEA Chairman Mankiw cautions Congress to “not take [the financial market's] strength for granted.” Again, the call from the Administration was to reduce this risk by “ensuring that the housing GSEs are overseen by an effective regulator.” (N. Gregory Mankiw, Op-Ed, “Keeping Fannie And Freddie’s House In Order,” Financial Times, 2/24/04).

June: Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed by the GSEs and called for reform, saying “We do not have a world-class system of supervision of the housing government sponsored enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve demands the best in supervision to ensure the long-term vitality of that system. Therefore, the Administration has called for a new, first class, regulatory supervisor for the three housing GSEs: Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System.” (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04).

2005
April: Treasury Secretary John Snow repeats his call for GSE reform, saying “Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-measures will only exacerbate the risks to our financial system.” (Secretary John W. Snow, “Testimony Before The U.S. House Financial Services Committee,” 4/13/05).

2007
July: Two Bear Stearns hedge funds invested in mortgage securities collapse.

August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying “first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options.” (President George W. Bush, Press Conference, The White House, 8/9/07).

September: RealtyTrac announces foreclosure filings up 243,000 in August – up 115 percent from the year before.

September: Single-family existing home sales decreases 7.5 percent from the previous month – the lowest level in nine years. Median sale price of existing homes fell six percent from the year before.

December: President Bush again warns Congress of the need to pass legislation reforming GSEs, saying “These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. So I’ve called on Congress to pass legislation that strengthens independent regulation of the GSEs – and ensures they focus on their important housing mission. The GSE reform bill passed by the House earlier this year is a good start. But the Senate has not acted. And the United States Senate needs to pass this legislation soon.” (President George W. Bush, Discusses Housing, The White House, 12/6/07).

2008
January: Bank of America announces it will buy Countrywide.

January: Citigroup announces mortgage portfolio lost $18.1 billion in value.

February: Assistant Secretary David Nason reiterates the urgency of reforms, says “A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully.” (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08).

March: Bear Stearns announces it will sell itself to JPMorgan Chase.

March: President Bush calls on Congress to take action and “move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages.” (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08).

April: President Bush urges Congress to pass the much needed legislation and “modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by … helping people stay in their homes.” (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08).

May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further.

· “Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans.” (President George W. Bush, Radio Address, 5/3/08).

· “[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator.” (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08).

· “Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans.” (President George W. Bush, Radio Address, 5/31/08).

June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying “we need to pass legislation to reform Fannie Mae and Freddie Mac.” (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08).

July: Congress heeds the President’s call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing.

Just the Facts: The Administration’s Unheeded Warnings About the Systemic Risk Posed by the GSEs

For many years the President and his Administration have not only warned of the systemic consequences of financial turmoil at a housing government-sponsored enterprise (GSE) but also put forward th…

swampie.wordpress.com

 

[Markle]

Minimum wage workers have work experience. People who have never done anything but invest and play money games may be the most shit outta luck. That much of an economic crash seems likely, this year.

IF they had work experience, they wouldn't be minimum wage workers.

 

[Markle]

Some things need to be brought back to America. Every country except America protected it's vital industries when globalization happened. They didn't just send every job they could do cheaper to africa, mexico and china.

America DID destroy our vital industry. Manufacturing. Why? Because the uneducated blue collar workers made too much. So the same unhappy blue collar people you fucked, are now voting for Trump? Makes no sense.

Trump is using another angle. Blame illegal workers. Say you want to build a wall. In the 2000's it was a fence. But it's not going to stop the flow when companies like Trump's hire illegal workers. We need to go after illegal employers.

And wages have already gone up as far as they are going to go for low wage workers. The feds are making sure of that by raising interest rates to slow wage growth. So wake up.

Consider this. Just a side thought. Making Nike in China has not lowered the cost of Nike shoes. It only adds to the companies profits.

It's good to see you backpedaling...again.

Please show us the sources and working links supporting your allegations. You cannot. They are fragments of your liberal imagination.

 

[AntonToo]

Here is a timeline of Bush's efforts. I don't care what you desperately want to believe.

For many years the President and his Administration not only warned of the systemic consequences of financial turmoil at a housing government-sponsored enterprise (GSE) but also put forward thoughtful plans to reduce the risk that either Fannie Mae or Freddie Mac would encounter such difficulties. President Bush publicly called for GSE reform 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.

2001
April: The Administration’s FY02 budget declares that the size of Fannie Mae and Freddie Mac is “a potential problem,” because “financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity.”

2002
May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)

2003
January: Freddie Mac announces it has to restate financial results for the previous three years. [Obama advisor, Franklin Raines was CEO of Freddie Mac when they lied about earnings to increase bonuses]

February: The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that “although investors perceive an implicit Federal guarantee of [GSE] obligations,” “the government has provided no explicit legal backing for them.” As a consequence, unexpected problems at a GSE could immediately spread into financial sectors beyond the housing market. (“Systemic Risk: Fannie Mae, Freddie Mac and the Role of OFHEO,” OFHEO Report, 2/4/03).

September: Fannie Mae discloses SEC investigation and acknowledges OFHEO’s review found earnings manipulations.

September: Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact “legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises” and set prudent and appropriate minimum capital adequacy requirements.

October: Fannie Mae discloses $1.2 billion accounting error.

November: Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any “legislation to reform GSE regulation should empower the new regulator with sufficient strength and credibility to reduce systemic risk.” To reduce the potential for systemic instability, the regulator would have “broad authority to set both risk-based and minimum capital standards” and “receivership powers necessary to wind down the affairs of a troubled GSE.” (N. Gregory Mankiw, Remarks At The Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03).

2004
February: The President’s FY05 Budget again highlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: “The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore…should be replaced with a new strengthened regulator.” (2005 Budget Analytic Perspectives, pg. 83)

February: CEA Chairman Mankiw cautions Congress to “not take [the financial market's] strength for granted.” Again, the call from the Administration was to reduce this risk by “ensuring that the housing GSEs are overseen by an effective regulator.” (N. Gregory Mankiw, Op-Ed, “Keeping Fannie And Freddie’s House In Order,” Financial Times, 2/24/04).

June: Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed by the GSEs and called for reform, saying “We do not have a world-class system of supervision of the housing government sponsored enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve demands the best in supervision to ensure the long-term vitality of that system. Therefore, the Administration has called for a new, first class, regulatory supervisor for the three housing GSEs: Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System.” (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04).

2005
April: Treasury Secretary John Snow repeats his call for GSE reform, saying “Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-measures will only exacerbate the risks to our financial system.” (Secretary John W. Snow, “Testimony Before The U.S. House Financial Services Committee,” 4/13/05).

2007
July: Two Bear Stearns hedge funds invested in mortgage securities collapse.

August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying “first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options.” (President George W. Bush, Press Conference, The White House, 8/9/07).

September: RealtyTrac announces foreclosure filings up 243,000 in August – up 115 percent from the year before.

September: Single-family existing home sales decreases 7.5 percent from the previous month – the lowest level in nine years. Median sale price of existing homes fell six percent from the year before.

December: President Bush again warns Congress of the need to pass legislation reforming GSEs, saying “These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. So I’ve called on Congress to pass legislation that strengthens independent regulation of the GSEs – and ensures they focus on their important housing mission. The GSE reform bill passed by the House earlier this year is a good start. But the Senate has not acted. And the United States Senate needs to pass this legislation soon.” (President George W. Bush, Discusses Housing, The White House, 12/6/07).

2008
January: Bank of America announces it will buy Countrywide.

January: Citigroup announces mortgage portfolio lost $18.1 billion in value.

February: Assistant Secretary David Nason reiterates the urgency of reforms, says “A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully.” (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08).

March: Bear Stearns announces it will sell itself to JPMorgan Chase.

March: President Bush calls on Congress to take action and “move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages.” (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08).

April: President Bush urges Congress to pass the much needed legislation and “modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by … helping people stay in their homes.” (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08).

May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further.

· “Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans.” (President George W. Bush, Radio Address, 5/3/08).

· “[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator.” (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08).

· “Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans.” (President George W. Bush, Radio Address, 5/31/08).

June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying “we need to pass legislation to reform Fannie Mae and Freddie Mac.” (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08).

July: Congress heeds the President’s call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing.

Dumbass, do you know what posting content without atribution is against this forum policies?

You are copying and pasting this bullshit from...wait for it....BUSH'S WHITE HOUSE PAGE.

Take your little braindead copy and pastes and shove them up your ass.

Yes, Bush's admin is not going to be publishing on their official WH webpage all the ways Bush fucked up leading up to Real Estate collapse - thats reserved for serious economic policy analisys and Congressional hearings on the topic, all of which find plenty culpability from his administration that I've already listed.

 

[leftwinger]

Sealy so dumb he thinks America can build car parts at $50/hr labor +++ regulations and benefits off the charts.........yet compete with Mexico at $5/day labor with barely any regulations and benefits.

So far America has been able to invent.......capitalize on the initial offering...MFG for a time...then ship MFG to the lesser labor market. Then on to the next Trillion dollar idea.

Problem is bringing all the lesser labor across the border and making us pay to care for them. Sealy dumb as bag o hammer' and stuck in the blue DET 1950 mentality. Like Johnny cash "one piece at a time". That dog don't hunt in a hi-tech world dummy.