JonKoch
VIP Member
- May 14, 2017
- 1,779
- 151
- 65
As a matter of fact....yes. In this entire thread, you've been praising socialism. For instance, in response to someone stating that "socialism has never worked and never will", you replied in post #902:YepSo I just want to be crystal clear on this: your saying that the housing bubble was the result of George W. Bush's policies. Is that correct?
Q When did the Bush Mortgage Bubble start?
A The general timeframe is it started late 2004.
From Bush's President's Working Group on Financial Markets March 2008
"The Presidents Working Groups March policy statement acknowledged that turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007."
ANYTHING ELSE CUPCAKE?
You've had at least half a dozen comments in this thread supporting the "wonders" of socialism. And yet you just proved that government intervention in the free market causes collapse (specifically, Bill Clinton's intervention - but hey, if it makes you feel slightly better to blame George W. Bush - go for it...you're still proving that government intervention in the free market always ends in collapse). Thanks for being my bitch, bitch!US was Founded on socialism cupcake.....
![]()
Got it Cupcake YOU WILL STICK WITH LIES AND SELECTIVE EDITING
Examining the big lie: How the facts of the economic crisis stack up
The boom and bust was global. Proponents of the Big Lie ignore the worldwide nature of the housing boom and bust.
A McKinsey Global Institute report noted “from 2000 through 2007, a remarkable run-up in global home prices occurred.” It is highly unlikely that a simultaneous boom and bust everywhere else in the world was caused by one set of factors (ultra-low rates, securitized AAA-rated subprime, derivatives) but had a different set of causes in the United States. Indeed, this might be the biggest obstacle to pushing the false narrative.
...The market share of financial institutions that were subject to the CRA has steadily declined since the legislation was passed in 1977. As noted by Abromowitz & Min, CRA-regulated institutions, primarily banks and thrifts, accounted for only 28 percent of all mortgages originated in 2006.
Nonbank mortgage underwriting exploded from 2001 to 2007, along with the private label securitization market, which eclipsed Fannie and Freddie during the boom. Check the mortgage origination data: The vast majority of subprime mortgages — the loans at the heart of the global crisis — were underwritten by unregulated private firms. These were lenders who sold the bulk of their mortgages to Wall Street, not to Fannie or Freddie. Indeed, these firms had no deposits, so they were not under the jurisdiction of the Federal Deposit Insurance Corp or the Office of Thrift Supervision. The relative market share of Fannie Mae and Freddie Mac dropped from a high of 57 percent of all new mortgage originations in 2003, down to 37 percent as the bubble was developing in 2005-06.
•Private lenders not subject to congressional regulations collapsed lending standards. Taking up that extra share were nonbanks selling mortgages elsewhere, not to the GSEs. Conforming mortgages had rules that were less profitable than the newfangled loans. Private securitizers — competitors of Fannie and Freddie — grew from 10 percent of the market in 2002 to nearly 40 percent in 2006. As a percentage of all mortgage-backed securities, private securitization grew from 23 percent in 2003 to 56 percent in 2006
These firms had business models that could be called “Lend-in-order-to-sell-to-Wall-Street-securitizers.” They offered all manner of nontraditional mortgages — the 2/28 adjustable rate mortgages, piggy-back loans, negative amortization loans. These defaulted in huge numbers, far more than the regulated mortgage writers did.
....A 2008 analysis found that the nonbank underwriters made more than 12 million subprime mortgages with a value of nearly $2 trillion. The lenders who made these were exempt from federal regulations.
WAPO
Examining the big lie: How the facts of the economic crisis stack up