Obama and the US economy!

[Rambunctious]

Trump's first full month brings massive employment boom | Daily Mail Online

 

[AntonToo]

Stop. Seriously. Just fucking stop. you are posting PURE FABRICATIONS.

Bush administration certainly did not see the real estate and finance bubble coming and was long a big proponent of home ownership.

Flat out lie. Some of his public statements indicated his desire for more home owners but...he also wanted them to be qualified.

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.

All bullshit.

Guess what, it is 2017 and GSEs are here with us to stay, can you point to the "reform" that is supposed to save us now?

And yes, if another real estate bubble happens they will need another bail due to their highly leveraged nature.

Your points about accounting problems in those institutions had literally NOTHING to do with Great Recession - it wasn't accounting that was the problem, it was RISK MANAGEMENT failures throughout entire system. GSE's assets literally turned from AAA holdings into junk overnight when real estate started collapsing.

 

[rightwinger]

Trump's first full month brings massive employment boom | Daily Mail Online

95 million people are out of work in Trump's America
Trump will also bring us to $20 trillion in debt

 

[Dragonlady]

Actually it did, but not by much. He never achieved 3% growth. A new all time failure.

Which is more than made up by ALSO NOT GETTING US INTO A FUCKING RECESSION.

What good is 4% growth if it is nothing but a mirage right before the bubble explodes?

With a decade of almost o% interest, there is a lot of money sloshing around look for opportunities to make money, thus driving over valuation. Look at the stock market. Do not be surprised if within four years we have a recession that makes 2008 and 2009 look mild.

Don't disagree. If Trump is successful in returning offshore money things will zoom out of control. It can be done correctly, but I have some doubts about Trump's ability to execute it in a way that is beneficial to the average wage earners. Stay safe with majority of your investments. Btw... you remember who was in charge the last eight years, right?

GOP obstructionists? At least we had no corrupt GOP bubble...

The Clinton internet bubble was bad, but completely expected. Mostly private. The real estate, government created bubble, was completely avoidable. Bill Clinton had a major hand in it. He threatened banks if they refused to make insane loans. But it was good for "progress" and the bankers, so he did as was told.

Bullshit. It was Republican gutting of 1930's banking regulations put in place after the Great Depression late in Clinton's presidency which allowed banks to package subprime mortgages into high yield junk bonds which set the housing bubble into motion

 

[JakeStarkey]

Which is more than made up by ALSO NOT GETTING US INTO A FUCKING RECESSION.

What good is 4% growth if it is nothing but a mirage right before the bubble explodes?

With a decade of almost o% interest, there is a lot of money sloshing around look for opportunities to make money, thus driving over valuation. Look at the stock market. Do not be surprised if within four years we have a recession that makes 2008 and 2009 look mild.

Don't disagree. If Trump is successful in returning offshore money things will zoom out of control. It can be done correctly, but I have some doubts about Trump's ability to execute it in a way that is beneficial to the average wage earners. Stay safe with majority of your investments. Btw... you remember who was in charge the last eight years, right?

GOP obstructionists? At least we had no corrupt GOP bubble...

The Clinton internet bubble was bad, but completely expected. Mostly private. The real estate, government created bubble, was completely avoidable. Bill Clinton had a major hand in it. He threatened banks if they refused to make insane loans. But it was good for "progress" and the bankers, so he did as was told.

Bullshit. It was Republican gutting of 1930's banking regulations put in place after the Great Depression late in Clinton's presidency which allowed banks to package subprime mortgages into high yield junk bonds which set the housing bubble into motion

Remember that Clinton signed the legislation.

 

[JBond]

Which is more than made up by ALSO NOT GETTING US INTO A FUCKING RECESSION.

What good is 4% growth if it is nothing but a mirage right before the bubble explodes?

With a decade of almost o% interest, there is a lot of money sloshing around look for opportunities to make money, thus driving over valuation. Look at the stock market. Do not be surprised if within four years we have a recession that makes 2008 and 2009 look mild.

Don't disagree. If Trump is successful in returning offshore money things will zoom out of control. It can be done correctly, but I have some doubts about Trump's ability to execute it in a way that is beneficial to the average wage earners. Stay safe with majority of your investments. Btw... you remember who was in charge the last eight years, right?

GOP obstructionists? At least we had no corrupt GOP bubble...

The Clinton internet bubble was bad, but completely expected. Mostly private. The real estate, government created bubble, was completely avoidable. Bill Clinton had a major hand in it. He threatened banks if they refused to make insane loans. But it was good for "progress" and the bankers, so he did as was told.

Bullshit. It was Republican gutting of 1930's banking regulations put in place after the Great Depression late in Clinton's presidency which allowed banks to package subprime mortgages into high yield junk bonds which set the housing bubble into motion

So republicans forced all those people to default on the loans Bill Clinton insisted banks make? Sure thing.

 

[AntonToo]

With a decade of almost o% interest, there is a lot of money sloshing around look for opportunities to make money, thus driving over valuation. Look at the stock market. Do not be surprised if within four years we have a recession that makes 2008 and 2009 look mild.

Don't disagree. If Trump is successful in returning offshore money things will zoom out of control. It can be done correctly, but I have some doubts about Trump's ability to execute it in a way that is beneficial to the average wage earners. Stay safe with majority of your investments. Btw... you remember who was in charge the last eight years, right?

GOP obstructionists? At least we had no corrupt GOP bubble...

The Clinton internet bubble was bad, but completely expected. Mostly private. The real estate, government created bubble, was completely avoidable. Bill Clinton had a major hand in it. He threatened banks if they refused to make insane loans. But it was good for "progress" and the bankers, so he did as was told.

Bullshit. It was Republican gutting of 1930's banking regulations put in place after the Great Depression late in Clinton's presidency which allowed banks to package subprime mortgages into high yield junk bonds which set the housing bubble into motion

So republicans forced all those people to default on the loans Bill Clinton insisted banks make? Sure thing.

If people have easy access to credit they will use it wether or not they can pay it back. It's up to the creditors and regulators to manage the risk and set unwriting standards.

Problem was that real estate pricing collapse was so unprecedented in modern history that it was thought of as fail proof assets. Risk on them was grossly underestimated by institutions on just about every level.

 

[Markle]

Guess what, it is 2017 and GSEs are here with us to stay, can you point to the "reform" that is supposed to save us now?

As you know, EVERYTHING in my post is 100% true. Each provided the date and who was quoted.

As you know too, Fannie and Freddie followed the rules placed on them by congress. At the time, specifically by Barney Frank and Chris Dodd. Frank's lover was on the board of directors of Freddie Mac and received bonuses based on the number of subprime loans they were forced to buy.

 

[JakeStarkey]

Frank and Dodd were fully supported by the Republican President and Congress, so Markle is loose as a goose with the facts.

 

[Markle]

If people have easy access to credit they will use it wether or not they can pay it back. It's up to the creditors and regulators to manage the risk and set unwriting standards.

Problem was that real estate pricing collapse was so unprecedented in modern history that it was thought of as fail proof assets. Risk on them was grossly underestimated by institutions on just about every level.

Fannie and Freddie were mandated, by congress to make a higher percentage of their portfolio up of subprime loans. That left the door open for ALL loans to have the same lack requirements.

MANY of us saw the crash coming in mid-2006 and the turn in prices came in July of 2007. That was the optimum time to run for the exists.

This is a chart of the Case-Shiller Index. A service that tracks home prices in both ten major cities and twenty major cities. I followed that almost daily and, as you can see, half way through 2004 and 05, you KNEWd the doo doo was about to hit the fan. We didn't realize that the Democrats were going to force it to go on so long. The average price dropped July 2007. The year before I had told my customers and did so myself started selling anything every they or I owned. Several sold their own house then leased it back for a year. Wow...did they make out!

 

[Markle]

And yes, if another real estate bubble happens they will need another bail due to their highly leveraged nature.

The next bubble will be the student loan bubble.

We have 43 million students with $1.3 Trillion in loans.

Of those, 7 million not made a payment in a year

Government is doing the same thing for student loans as they did for housing loans.

 

[Markle]

Frank and Dodd were fully supported by the Republican President and Congress, so Markle is loose as a goose with the facts.

Just to remind all our FRIENDS from the far left, the responsibility for this mess lies with Jimmy Carter, Bill Clinton, Barney Frank and Chris Dodd. AND WITH REPUBLICANS for backing off every time Barney Frank and his cronies played…THE RACE CARD! The housing bubble is what led to the downfall and that was driven by Democrats, starting with Jimmy Carter and hugely expanded by Bill Clinton. Here are the facts, once again, for you to ignore….

HUD TO FIGHT DISCRIMINATION, BOOST MINORITY HOMEOWNERSHIP AND WORK WITH URBAN LEAGUE TO FURTHER GOALS
August 5, 1997
http://www.thefreelibrary.com/HUD+to+Fight+Discrimination,+Boost+Minority+Homeownership+and+Work...-a019650647

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

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

By Elliot Blair Smith,
USA TODAY
Fannie Mae to pay $400 million fine
http://www.bloomberg.com/apps/news?pid=newsarchive&refer=columnist_hassett&sid=aSKSoiNbnQY0


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 -
http://www.bloomberg.com/apps/news?pid=newsarchive&refer=columnist_hassett&sid=aSKSoiNbnQY0

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


[…]

###

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

Barney Frank in 2005: What Housing Bubble?


Maxine Waters & Barney Frank - Then Vs. Now -

Embedded media from this media site is no longer available

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.

 

[Rambunctious]

Clinton and Janet Reno didn't like the way banks loaned money. Not enough home loans in the inner city, not enough loans to minority's. So Reno threatened the banks, Then Clinton called them out. The pressure was on so the banks lowered their loan standards.
Everything was fine for a while. People all over the nation was refinancing their homes and using the money for whatever they wanted to use it for. New this and new that. Then the economy started to tank a bit so the new home owners just refinanced again but this time the money was used to pay their bills.
That was the beginning of the crash. Senator Schumer in order to win an election for his party so the dems could win the house and senate went in front of the cameras and said there is a crash coming, basically he pulled a card out of the democrat created house of cards and the rest is history.
The democrats are so evil and anyone in the media that sides with them are equally as evil. They know the truth but they hide it, that's evil.

 

[JakeStarkey]

Markle is engaged in Alt Right history fabrication.

The Republican President and the Republican Congress passed the legislation.

End of story.

 

[boilermaker55]

Just so all those on the alt-right will realize, this all rides on the backs of the regean administration for their voodoo economics and 4 decades of trickle down economics.
The middle class has eroded because of the actions of regeans policies and deregulation.

Frank and Dodd were fully supported by the Republican President and Congress, so Markle is loose as a goose with the facts.

Just to remind all our FRIENDS from the far left, the responsibility for this mess lies with Jimmy Carter, Bill Clinton, Barney Frank and Chris Dodd. AND WITH REPUBLICANS for backing off every time Barney Frank and his cronies played…THE RACE CARD! The housing bubble is what led to the downfall and that was driven by Democrats, starting with Jimmy Carter and hugely expanded by Bill Clinton. Here are the facts, once again, for you to ignore….

HUD TO FIGHT DISCRIMINATION, BOOST MINORITY HOMEOWNERSHIP AND WORK WITH URBAN LEAGUE TO FURTHER GOALS
August 5, 1997
http://www.thefreelibrary.com/HUD+to+Fight+Discrimination,+Boost+Minority+Homeownership+and+Work...-a019650647

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

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

By Elliot Blair Smith,
USA TODAY
Fannie Mae to pay $400 million fine
http://www.bloomberg.com/apps/news?pid=newsarchive&refer=columnist_hassett&sid=aSKSoiNbnQY0


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 -
http://www.bloomberg.com/apps/news?pid=newsarchive&refer=columnist_hassett&sid=aSKSoiNbnQY0

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


[…]

###

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

Barney Frank in 2005: What Housing Bubble?


Maxine Waters & Barney Frank - Then Vs. Now -

Embedded media from this media site is no longer available

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.

 

[JBond]

Don't disagree. If Trump is successful in returning offshore money things will zoom out of control. It can be done correctly, but I have some doubts about Trump's ability to execute it in a way that is beneficial to the average wage earners. Stay safe with majority of your investments. Btw... you remember who was in charge the last eight years, right?

GOP obstructionists? At least we had no corrupt GOP bubble...

The Clinton internet bubble was bad, but completely expected. Mostly private. The real estate, government created bubble, was completely avoidable. Bill Clinton had a major hand in it. He threatened banks if they refused to make insane loans. But it was good for "progress" and the bankers, so he did as was told.

Bullshit. It was Republican gutting of 1930's banking regulations put in place after the Great Depression late in Clinton's presidency which allowed banks to package subprime mortgages into high yield junk bonds which set the housing bubble into motion

So republicans forced all those people to default on the loans Bill Clinton insisted banks make? Sure thing.

If people have easy access to credit they will use it wether or not they can pay it back. It's up to the creditors and regulators to manage the risk and set unwriting standards.

Problem was that real estate pricing collapse was so unprecedented in modern history that it was thought of as fail proof assets. Risk on them was grossly underestimated by institutions on just about every level.

No, the problem was Fannie and Freddie buying 12 million crap loans and guaranteeing their $1.8 trillion value. They were then packaged and sold as a safe investment because they were guaranteed.

 

[JBond]

Just so all those on the alt-right will realize, this all rides on the backs of the regean administration for their voodoo economics and 4 decades of trickle down economics.
The middle class has eroded because of the actions of regeans policies and deregulation.

Frank and Dodd were fully supported by the Republican President and Congress, so Markle is loose as a goose with the facts.

Just to remind all our FRIENDS from the far left, the responsibility for this mess lies with Jimmy Carter, Bill Clinton, Barney Frank and Chris Dodd. AND WITH REPUBLICANS for backing off every time Barney Frank and his cronies played…THE RACE CARD! The housing bubble is what led to the downfall and that was driven by Democrats, starting with Jimmy Carter and hugely expanded by Bill Clinton. Here are the facts, once again, for you to ignore….

HUD TO FIGHT DISCRIMINATION, BOOST MINORITY HOMEOWNERSHIP AND WORK WITH URBAN LEAGUE TO FURTHER GOALS
August 5, 1997
http://www.thefreelibrary.com/HUD+to+Fight+Discrimination,+Boost+Minority+Homeownership+and+Work...-a019650647

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

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

By Elliot Blair Smith,
USA TODAY
Fannie Mae to pay $400 million fine
http://www.bloomberg.com/apps/news?pid=newsarchive&refer=columnist_hassett&sid=aSKSoiNbnQY0


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 -
http://www.bloomberg.com/apps/news?pid=newsarchive&refer=columnist_hassett&sid=aSKSoiNbnQY0

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


[…]

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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

Barney Frank in 2005: What Housing Bubble?


Maxine Waters & Barney Frank - Then Vs. Now -

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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.

It has nothing to do with Reagan and everything to do with Clinton rewriting the CRA which would punish banks if they did not loan enough to people that had no means to repay the loan.

 

[Rambunctious]

The middle class has eroded because of the actions of regeans policies and deregulation.

That is ridiculous first of all get his name right it's Reagan you dweeb. And the economy was roaring during Reagan's presidency. He saved the middle class in the 80's. The middle class was nearly destroyed by Carter's ruination. You guys use to be better at rewriting history, now you all just make shit up. Removing nonsensical regulations always leads to a better economy. We just had the best jobs month in 7 years by telling businesses the regulations are going away and you completely over look that fact and then you go and post the stupidest post of the week. Too bad for the dems the people have wised up...well some have.

 

[JBond]

The middle class shrunk, because they moved up a level. The poor have stayed about the same.

 

[francoHFW]

GOP obstructionists? At least we had no corrupt GOP bubble...

The Clinton internet bubble was bad, but completely expected. Mostly private. The real estate, government created bubble, was completely avoidable. Bill Clinton had a major hand in it. He threatened banks if they refused to make insane loans. But it was good for "progress" and the bankers, so he did as was told.

Bullshit. It was Republican gutting of 1930's banking regulations put in place after the Great Depression late in Clinton's presidency which allowed banks to package subprime mortgages into high yield junk bonds which set the housing bubble into motion

So republicans forced all those people to default on the loans Bill Clinton insisted banks make? Sure thing.

If people have easy access to credit they will use it wether or not they can pay it back. It's up to the creditors and regulators to manage the risk and set unwriting standards.

Problem was that real estate pricing collapse was so unprecedented in modern history that it was thought of as fail proof assets. Risk on them was grossly underestimated by institutions on just about every level.

No, the problem was Fannie and Freddie buying 12 million crap loans and guaranteeing their $1.8 trillion value. They were then packaged and sold as a safe investment because they were guaranteed.

Funny how only a quarter of bailouts for bad loans went to F+F. They lost at least half of their 75% of the market in 2003 when private GOP crony institutions started giving mortgages to anyone breathing, all insured by DITTO AIG, bundled, and sold around the world. Great job. F+F got into the BS GOP mortgage market late, dupe. The problem was bs GOP oversight of the market. Blaming F+F, Carter, and Clinton is ridiculous GOP propaganda.