IBD: Carter More to Blame for Financial Crisis Than Bush or McCain

[rayboyusmc]

The right isn't accountable for anything? I love the way they say let's not point fingers now, let's fix it. That means let's hope they forget we fucked it up and move on.

What percent of the current loans that lead to this shit pile were so called affirmative action loans? I didn't see any data on that.

I guess the unregulated markets with the financial insitution putting all their money in the housing market has nothing to do with this.

Right, Ali, of the grate big mind.

 

[dilloduck]

I especially like this damning blerp

Here's the lead of a New York Times story on Sept. 11, 2003: "The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago."

Bush tried to act. Who stopped him? Congress, especially Democrats with their deep financial and patronage ties to the two government-sponsored enterprises, Fannie and Freddie.
"These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis," said Rep. Barney Frank, then 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."


Who chose that hack to head up the Financial Services Committe? I'm thinking we need some major congressional hearings!!

I'm sorta fond of the race based loaning quote myself. When will we ever learn ?

 

[Haro]

I was talking to Red Dawn who was poo pooing the threads source.

Lol my bad.

 

[Red Dawn]

Are you saying Carter's 1977's Community Reinvestment Act does not exist?

if so provide a link.

I'm saying its an opinion piece, from some website I've never heard of, from some guy nobody has ever heard of.

Just because "some guy" says the CRA was the root of the problem, doesn't make it true.

I can see why you thought the Iraq war was a good idea. You'll believe anything some anonymous rightwing blogger tells you to believe.

 

[dilloduck]

I'm saying its an opinion piece, from some website I've never heard of, from some guy nobody has ever heard of.

Just because "some guy" says the CRA was the root of the problem, doesn't make it true.

I can see why you thought the Iraq war was a good idea. You'll believe anything some anonymous rightwing blogger tells you to believe.

So you approve of race based affirmative action lending ? over and over and over ?

 

[Shadow]

That legislation is the sole reason we now have sub prime loans.

Sub Prime loans = housing market collapse= investment banks go broke= government bails them out.

 

[WillowTree]

I especially like this damning blerp

Here's the lead of a New York Times story on Sept. 11, 2003: "The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago."

Bush tried to act. Who stopped him? Congress, especially Democrats with their deep financial and patronage ties to the two government-sponsored enterprises, Fannie and Freddie.
"These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis," said Rep. Barney Frank, then 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."


Who chose that hack to head up the Financial Services Committe? I'm thinking we need some major congressional hearings!![/QUOTE]





well ya gotta wait till the goracle tells you hell is freezing over..

 

[Missourian]

That legislation is the sole reason we now have sub prime loans.

Sub Prime loans = housing market collapse= investment banks go broke= government bails them out.

I already gave you Rep today, so all I have to offer now is a round of applause.



While I do think that this is an oversimplification, the Community Reinvestment Act set up the first few dominoes.

Clinton set up a few more with deregulating the banks.

The Republican congress passed the deregulation and did nothing when Bush called attention to the problem.

The Democratic congress did nothing when Senator McCain called attention to the problem.

Now the horse is out and all the politicians are falling over themselves to place blame on someone else for leaving the barn door open.

(Talk about a mixed metaphor, yikes.)

Does that about sum it up?

 

[Chris]

It was not a problem until McCain's advisor Phil Gramm took the risk out of loaning money to people with bad credit.

 

[Shadow]

Wrong again Kirky...

Carter's original bill from 1977 forced banks to give sub prime loans to minorities who could not pay for them.

this started it ALL.

 

[jschuck12001]

Snip:

Much as Bush-hating media members conveniently ignore historical events that led to the invasion of Iraq in March 2003, their current finger-pointing at the White House, John McCain, and all Republican politicians for the collapse of the financial services industry lacks any honest assessment of decades-old legislation that laid the groundwork for today's problems.

In particular, 1977's Community Reinvestment Act which required banks and savings institutions to make loans to the lower-income areas in the communities they served.

Snip:

To hear today's Democrats, you'd think all this started in the last couple years. But the crisis began much earlier. The Carter-era Community Reinvestment Act forced banks to lend to uncreditworthy borrowers, mostly in minority areas.
Age-old standards of banking prudence got thrown out the window. In their place came harsh new regulations requiring banks not only to lend to uncreditworthy borrowers, but to do so on the basis of race.

These well-intended rules were supercharged in the early 1990s by President Clinton. Despite warnings from GOP members of Congress in 1992, Clinton pushed extensive changes to the rules requiring lenders to make questionable loans. [...]
Failure to comply meant your bank might not be allowed to expand lending, add new branches or merge with other companies. Banks were given a so-called "CRA rating" that graded how diverse their lending portfolio was. [...]

IBD: Carter More to Blame for Financial Crisis Than Bush or McCain | NewsBusters.org

Hello, its not about the low income families, it was blue collar, white collar and rich people that have all defaulted, not just the low income people. I would be willing to bet they were the smallest percentage.

 

[HoleInTheVoid]

Hello, its not about the low income families, it was blue collar, white collar and rich people that have all defaulted, not just the low income people. I would be willing to bet they were the smallest percentage.

Facts? Who needs facts? Just run with your best partisan wild-assed wish.

 

[Chris]

''The fundamentals of our economy are strong," John McCain said as Wall Street went into white-knuckle panic over diving investor confidence. Does he believe that? It doesn't really matter, because the Republican has outsourced his economic policy to the ideologues whose opposition to regulations brought the financial markets to their knees.

McCain's former economic adviser is ex-Texas Sen. Phil Gramm. On Dec. 15, 2000, hours before Congress was to leave for Christmas recess, Gramm had a 262-page amendment slipped into the appropriations bill. It forbade federal agencies to regulate the financial derivatives that greased the skids for passing along risky mortgage-backed securities to investors.

And that, my friends, is why everything's falling apart. That is why the taxpayers are now on the hook for the follies of Fannie Mae, Freddie Mac, Bear Stearns and now the insurance giant AIG to the tune of $85 billion.

On Monday, McCain issued a tough-talk statement that he was "glad" that the feds "have said no to using taxpayer money to bail out Lehman Brothers, a position I have spoken about throughout this campaign." On Tuesday, the government did the daddy of all bailouts. It took over AIG, fearing its bankruptcy could set off a cataclysmic chain of events.

And do you know where the problems lay at AIG? They weren't in its main insurance business. They were in its derivatives-trading unit.

Last February, Fortune Magazine called Gramm "McCain's Econ Brain." Gramm lost the official title of economic adviser for making an impolitic remark about this being "a nation of whiners." But Gramm's belief in letting speculators do as they please was never an issue. And even after he left the campaign, Gramm had been mentioned as a possible Treasury secretary in a McCain administration.

Another Gramm contribution was the "Enron loophole," which prevented federal oversight of Enron's electronic energy trading. Such favors proved very expensive to consumers but profitable to the Gramms. Enron CEO Ken Lay chaired Gramm's 1992 re-election campaign, and wife Wendy Gramm spent years on the Enron board, earning as much as $1.8 million, according to Public Citizen, a consumer advocate.

Froma Harrop: Gramm's fingerprints on market mess | Viewpoints, Outlook | Chron.com - Houston Chronicle

 

[Shadow]

I already gave you Rep today, so all I have to offer now is a round of applause.



While I do think that this is an oversimplification, the Community Reinvestment Act set up the first few dominoes.

Clinton set up a few more with deregulating the banks.

The Republican congress passed the deregulation and did nothing when Bush called attention to the problem.

The Democratic congress did nothing when Senator McCain called attention to the problem.

Now the horse is out and all the politicians are falling over themselves to place blame on someone else for leaving the barn door open.

(Talk about a mixed metaphor, yikes.)

Does that about sum it up?

Yep... that about does it...now Congress is going to take a vacation and try to hide from the fall out.

Bunch of losers....

 

[oreo]

Fannie Mae & Freddie Mac were set up by DEMOCRATS--in order to loan out money to lower income people. It sounded good. It was an encouragement to banks to loan out money to minorities & lower income people so they could own homes.

THE PROBLEM--Democrats ran Freddie Mac & Fannie Mae into the ground. Democrat appointed CFO's walking away with hundreds of millions of dollars--then the congress used these agencies for their own personal piggy banks. Barack Obama being second to the top of their donor list.

I listened to an audio tape of a 1995 discussion from the CFO of Fannie to the black caucas of the congress. It was clear back then that there were many indescrepancies in the household accounting. The then CFO promised to get Fannie back in order, ha.ha--& also to keep their committment to loan out to minorities & lower income people.

Who would have ever guessed they would succumb to lending out to people who had no income, or insufficient income, to pay the loans back?

 

[jschuck12001]

Fannie Mae & Freddie Mac were set up by DEMOCRATS--in order to loan out money to lower income people. It sounded good. It was an encouragement to banks to loan out money to minorities & lower income people so they could own homes.

THE PROBLEM--Democrats ran Freddie Mac & Fannie Mae into the ground. Democrat appointed CFO's walking away with hundreds of millions of dollars--then the congress used these agencies for their own personal piggy banks. Barack Obama being second to the top of their donor list.

I listened to an audio tape of a 1995 discussion from the CFO of Fannie to the black caucas of the congress. It was clear back then that there were many indescrepancies in the household accounting. The then CFO promised to get Fannie back in order, ha.ha--& also to keep their committment to loan out to minorities & lower income people.

Who would have ever guessed they would succumb to lending out to people who had no income, or insufficient income, to pay the loans back?

Wow, this proves how stupid you are. Fannie mae and Freddie Mac dont have stated income or no doc loans, that was Non conforming which were private investors. You have to show tax returns if you are self employed and if your full doc you need w-2's. So tired of you fucking idiots that know nothing about the mortgage industry claiming who ruined Fannie and Freddie. The only stated income loan Fannie has is if you have over a 720 fico score and its called Fast n Easy program and you need to have a deep history of tradelines with that huge fico to qualify. Freddie is FHA and they have never done stated loans and they wants ratios at 45/45 which is even stricter than Fannie. One loan program by Fannie didnt sink the industry.

 

[Shadow]

Wow, this proves how stupid you are. Fannie mae and Freddie Mac dont have stated income or no doc loans, that was Non conforming which were private investors. You have to show tax returns if you are self employed and if your full doc you need w-2's. So tired of you fucking idiots that know nothing about the mortgage industry claiming who ruined Fannie and Freddie. The only stated income loan Fannie has is if you have over a 720 fico score and its called Fast n Easy program and you need to have a deep history of tradelines with that huge fico to qualify. Freddie is FHA and they have never done stated loans and they wants ratios at 45/45 which is even stricter than Fannie. One loan program by Fannie didnt sink the industry.

Right lots of things sunk the industry many of which relate back to sub prime loans and low interests rates. All of the get rich quick profiteers from the investment industry buying house after house after house to flip for a profit,while benefitting from the low interest rates and choice loan options being another.

In the case of Fannie Mae and Freddie Mac prominent democrats were also taking advantage of the loose rules caused by dergualtion and cooked the books. Giving themselves millions in bonuses. Jamie Gorelick 75 million Franklin Raines 100 million just to name two.

 

[Navy1960]

Fannie Mae was created in 1938 as part of Franklin Delano Roosevelt's New Deal. The collapse of the national housing market in the wake of the Great Depression discouraged private lenders from investing in home loans. Fannie Mae was established in order to provide local banks with federal money to finance home mortgages in an attempt to raise levels of home ownership and the availability of affordable housing.

Initially, Fannie Mae operated like a national savings and loan, allowing local banks to charge low interest rates on mortgages for the benefit of the home buyer. This lead to the development of what is now known as the secondary mortgage market. Within the secondary mortgage market, companies such as Fannie Mae are able to borrow money from foreign investors at low interest rates because of the financial support that they receive from the U.S. Government. It is this ability to borrow at low rates that allows Fannie Mae to provide fixed interest rate mortgages with low down payments to home buyers. Fannie Mae makes a profit from the difference between the interest rates homeowners pay and foreign lenders charge.


Franklin Roosevelt DEMOCRAT

Lyndon Johnson DEMOCRAT

Lyndon B. Johnson privatized Fannie Mae in order to remove it from the national budget.

In late 2004, Fannie Mae was under investigation for its accounting practices. The Office of Federal Housing Enterprise Oversight released a report [3] on September 20, 2004, alleging widespread accounting errors, including shifting of losses so senior executives could earn bonuses.

Christopher Dodd DEMOCRAT - top receiptent of PAC money from Fannie.Freddie
Barack Obama #2 DEMOCRAT - PAC money from Fannie.Freddie
Chuck Schumer DEMOCRAT - PAC money from Fannie.Freddie
etc etc.

Both Bill Clinton and Jimmy Carter signed the CRA, in addition Bill Clinton in the signing ceremony for the Gramm-Leach-Bliley Act.

WASHINGTON (CNN) -- The biggest change in the nation's banking system since the Great Depression became law Friday, when President Bill Clinton signed a measure overhauling federal rules governing the way financial institutions operate.

"This legislation is truly historic and it indicates what can happen when Republicans and Democrats work together in a spirit of genuine cooperation," Clinton said at a White House signing ceremony."

Jimmy Carter DEMOCRAT
Bill Clinton DEMOCRAT

So now where does this all lead us? It basically say's that the talk from the democrats that somehow this crisis is somehow made by the republicans is a complete lie. Even Barack Obama admits they ALL had a hand in the crisis. I wonder why? could it be because he was knee deep in PAC money?

 

[Ravi]

So, Carter is to blame and a man that's been in the Senate since practically the beginning of time has been powerless all these years to do anything about it. McCain, along with all the rest of the Republicans who have had a choke hold on the country for big chunks of time can do nothing but sit back and wring their hands and cry because Jimmy Carter once was president.

Good to know.

 

[editec]

Snip:

Much as Bush-hating media members conveniently ignore historical events that led to the invasion of Iraq in March 2003, their current finger-pointing at the White House, John McCain, and all Republican politicians for the collapse of the financial services industry lacks any honest assessment of decades-old legislation that laid the groundwork for today's problems.

In particular, 1977's Community Reinvestment Act which required banks and savings institutions to make loans to the lower-income areas in the communities they served.

Snip:

To hear today's Democrats, you'd think all this started in the last couple years. But the crisis began much earlier. The Carter-era Community Reinvestment Act forced banks to lend to uncreditworthy borrowers, mostly in minority areas.
Age-old standards of banking prudence got thrown out the window. In their place came harsh new regulations requiring banks not only to lend to uncreditworthy borrowers, but to do so on the basis of race.

These well-intended rules were supercharged in the early 1990s by President Clinton. Despite warnings from GOP members of Congress in 1992, Clinton pushed extensive changes to the rules requiring lenders to make questionable loans. [...]
Failure to comply meant your bank might not be allowed to expand lending, add new branches or merge with other companies. Banks were given a so-called "CRA rating" that graded how diverse their lending portfolio was. [...]

IBD: Carter More to Blame for Financial Crisis Than Bush or McCain | NewsBusters.org

What sheer fucking racist and partisan blather.

This crises has nothing whatever to do with this law.

This law didn't force banks to make questionable loans.

It made banks loan money back into the communities from WHENCE IT ORIGINATED.

It demanded that banks reinvest in the communities where they did business.

That's a pretty big difference than the way you're mischaracterizing the intent of that law.