Dad2three
Gold Member
You are becoming the copy and paste queen of the board, Dad2three. Don't you have anything original to say? Democrat congressmen and that ugly bitch, Watters, caused the housing crises. They demanded the banks to give loans to people out of work.BUT ANDY SAID WHAT WAS GOING ON BEFORE BUSH WAS EVEN PRESIDENT....ANDY AND BLOW JOB OWN THE HOUSING BUBBLE COLLAPSE!!!
No he didn't, lol LYING POS
No, the GSEs Did Not Cause the Financial Meltdown (but thats just according to the data)
1. Private markets caused the shady mortgage boom: The first thing to point out is that the both the subprime mortgage boom and the subsequent crash are very much concentrated in the private market, especially the private label securitization channel (PLS) market. The Government-Sponsored Entities (GSEs, or Fannie and Freddie) were not behind them. The fly-by-night lending boom, slicing and dicing mortgage bonds, derivatives and CDOs, and all the other shadiness of the mortgage market in the 2000s were Wall Street creations, and they drove all those risky mortgages.
Here’s some data to back that up: “More than 84 percent of the subprime mortgages in 2006 were issued by private lending institutions… Private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year.”
“But from 2002-2005, [GSEs] saw a fairly precipitous drop in market share, going from about 50% to just under 30% of all mortgage originations. Conversely, private label securitization [PLS] shot up from about 10% to about 40% over the same period. This is, to state the obvious, a very radical shift in mortgage originations that overlapped neatly with the origination of the most toxic home loans.”
2. The government’s affordability mission didn’t cause the crisis:
3. There is a lot of research to back this up and little against it: This is not exactly an obscure corner of the wonk world — it is one of the most studied capital markets in the world.
4. Conservatives sang a different tune before the crash: Conservative think tanks spent the 2000s saying the exact opposite of what they are saying now
Hey Mayor Bloomberg No the GSEs Did Not Cause the Financial Meltdown but thats just according to the data The Big Picture
In 2004, as regulators warned that subprime lenders were saddling borrowers with mortgages they could not afford, the U.S. Department of Housing and Urban Development helped fuel more of that risky lending.
...In 1995, President Bill Clinton's HUD agreed to let Fannie and Freddie get affordable-housing credit for buying subprime securities that included loans to low-income borrowers. The idea was that subprime lending benefited many borrowers who did not qualify for conventional loans. HUD expected that Freddie and Fannie would impose their high lending standards on subprime lenders.
In 2000 (CLINTON), as HUD revisited its affordable-housing goals, the housing market had shifted. With escalating home prices, subprime loans were more popular. Consumer advocates warned that lenders were trapping borrowers with low "teaser" interest rates and ignoring borrowers' qualifications.
HUD restricted Freddie and Fannie, saying it would not credit them for loans they purchased that had abusively high costs or that were granted without regard to the borrower's ability to repay. Freddie and Fannie adopted policies not to buy some high-cost loans.
That year, Freddie bought $18.6 billion in subprime loans; Fannie did not disclose its number.
In 2001, HUD researchers warned of high foreclosure rates among subprime loans.
"Given the very high concentration of these loans in low-income and African American neighborhoods, the growth in subprime lending and resulting very high levels of foreclosure is a real cause for concern," an agency report said.
But by 2004, (DUBYA) when HUD next revised the goals, Freddie and Fannie's purchases of subprime-backed securities had risen tenfold. Foreclosure rates also were rising.
That year, President Bush's HUD ratcheted up the main affordable-housing goal over the next four years, from 50 percent to 56 percent. John C. Weicher, then an assistant HUD secretary, said the institutions lagged behind even the private market and "must do more."
In 2003, the two bought $81 billion in subprime securities. In 2004, they purchased $175 billion -- 44 percent of the market. In 2005, they bought $169 billion, or 33 percent. In 2006, they cut back to $90 billion, or 20 percent. Generally, Freddie purchased more than Fannie and relied more heavily on the securities to meet goals.
"The market knew we needed those loans," said Sharon McHale, a spokeswoman for Freddie Mac. The higher goals (BY DUBYA, 2004, LOL) "forced us to go into that market to serve the targeted populations that HUD wanted us to serve," she said.
How HUD Mortgage Policy Fed The Crisis
June 17, 2004
Builders to fight Bush's low-income plan
NEW YORK (CNN/Money) - Home builders, realtors and others are preparing to fight a Bush administration plan that would require Fannie Mae and Freddie Mac to increase financing of homes for low-income people, a home builder group said Thursday.
Home builders fight Bush's low-income housing - Jun. 17, 2004
Yeah, sorry, how rude of me to pop the right wing bubble, lol'
It was poor people who caused the subprime bubble, NOT the Banktsers creating a world wide credit bubble and bust in DOZENS OF NATIONS, cheered on by Dubya in the USA. I forgot it was poor areas that received loans during Dubya's bubble, NOT middle class areas that Banksters flooded with money
Examining the big lie: How the facts of the economic crisis stack up
) and will continue to entertain us throughout the day.... You have to bet that THIS is more interesting than reruns of LAW & ORDER!
