What did either the democrats or republicans do to prevent the housing bubble?

[BobPlumb]

In 2008 there was an economic crisis in which the housing bubble burst, leading to the recession. President Bush gets the blame for this from the left on this forum. They point to Bush to say that republican principles such as trickle down ecomics do not work.

It is true that Bush and the republicans did little if anything to prevent the crisis in 2008. But where were the democrats? Where was the Paul Revere on the democrat side trying to warn everyone of the impending crisis? What legislation did the democrates propose that would have prevented the crises? The democrats took control of congress in 2006. Did they see this crisis coming? Maybe they did, but I don't remember anyone in power warning of the problem until it was too late.

The blame Bush crowd want to ignore the good economic times throughout most of Bush's two terms. We had a short recession after 9-11 but the policies that the left keep saying did not work, did work.

I want to know what bills/policies were being perposed by the democrat controlled congress that would had prevented the economic crisis in 2008? What did senator Oboma do other than vote "present" and run for president that would have prevented the housing bubble from bursting?

 

[MeBelle]

Don't Blame President Bush, and the Republicans for the 2008 Financial Mess - Yahoo Voices - voices.yahoo.com

 

[MeBelle]

Bush Called For Reform of Fannie Mae & Freddie Mac 17 Times in 2008 Alone? Dems Ignored Warnings | The Gateway Pundit

 

[Agit8r]

"The democrats took control of congress in 2006. Did they see this crisis coming?"

The crisis had already begun by mid 2006: Getting real about real estate - Aug. 25, 2006

 

[Kosh]

"The democrats took control of congress in 2006. Did they see this crisis coming?"

The crisis had already begun by mid 2006: Getting real about real estate - Aug. 25, 2006

So the answer to the question would be No?

 

[Agit8r]

"The democrats took control of congress in 2006. Did they see this crisis coming?"

The crisis had already begun by mid 2006: Getting real about real estate - Aug. 25, 2006

So the answer to the question would be No?

And they actually took control of congress January 2007.

 

[eflatminor]

"Prevent"? You're asking who sought to prevent the bubble from bursting from the very group that created and inflated the bubble in the first place. OF COURSE the central planners in either party didn't stop it...they supported the laws, bureaucracies and meddling that ensured it!

Please, let's stop looking to central planners to fix the problems brought about by central planning.

 

[martybegan]

In 2008 there was an economic crisis in which the housing bubble burst, leading to the recession. President Bush gets the blame for this from the left on this forum. They point to Bush to say that republican principles such as trickle down ecomics do not work.

It is true that Bush and the republicans did little if anything to prevent the crisis in 2008. But where were the democrats? Where was the Paul Revere on the democrat side trying to warn everyone of the impending crisis? What legislation did the democrates propose that would have prevented the crises? The democrats took control of congress in 2006. Did they see this crisis coming? Maybe they did, but I don't remember anyone in power warning of the problem until it was too late.

The blame Bush crowd want to ignore the good economic times throughout most of Bush's two terms. We had a short recession after 9-11 but the policies that the left keep saying did not work, did work.

I want to know what bills/policies were being perposed by the democrat controlled congress that would had prevented the economic crisis in 2008? What did senator Oboma do other than vote "present" and run for president that would have prevented the housing bubble from bursting?

Neither side wanted to do anything about the housing boom (remember we didnt know it was a crisis until after the shit hit the fan) because there were ZERO losers in the equation.

People were able to buy houses well beyond thier financial means, Winners. Sellers were getting top dollar for thier houses as values went up. Winners. Real estate brokers made tons in commissions. Winners. Mortgage brokers bundled thier mortgages for tons of money. Winners. Local governments made off on increased property values and sales tax values. winners. The feds made money off of all the income taxes. winners. Investors made money off the MBS's when they were still solvent. Winners. Investment firms made money of the fees, both the MBS's and the credit default swaps, Winners.

No one lost until the end, and then everyone lost.

 

[iamwhatiseem]

"Prevent"? You're asking who sought to prevent the bubble from bursting from the very group that created and inflated the bubble in the first place. OF COURSE the central planners in either party didn't stop it...they supported the laws, bureaucracies and meddling that ensured it!

Please, let's stop looking to central planners to fix the problems brought about by central planning.

 

[occupied]

Nearly everyone saw the crash coming, no one wanted to upset the applecart, plans were made to make the taxpayer liable, bankers covered their asses, the end.

The crash caught no one by surprise, anyone who says so is a lying SOB.

No one did a damned thing to prevent it because there is nothing anyone could have done to stop it, the bankers said damn the torpedoes and now the banks own us more than ever, The ultimate winners were predestined years in advance with all the political cover that money can buy.

This is one of those things that should have been a non partisan unifying outrage from day one but financial industry lobbying is apparently very effective.

 

[occupied]

deleted double post

 

[Kosh]

"The democrats took control of congress in 2006. Did they see this crisis coming?"

The crisis had already begun by mid 2006: Getting real about real estate - Aug. 25, 2006

So the answer to the question would be No?

And they actually took control of congress January 2007.

So in other words you want to dismiss the Democrats (far left) form any responsibility before 2007.

 

[martybegan]

Nearly everyone saw the crash coming, no one wanted to upset the applecart, plans were made to make the taxpayer liable, bankers covered their asses, the end.

The crash caught no one by surprise, anyone who says so is a lying SOB.

No one did a damned thing to prevent it because there is nothing anyone could have done to stop it, the bankers said damn the torpedoes and now the banks own us more than ever, The ultimate winners were predestined years in advance with all the political cover that money can buy.

This is one of those things that should have been a non partisan unifying outrage from day one but financial industry lobbying is apparently very effective.

I doubt the people at Lehman et all really saw their stock values plummet due to MBS's becoming worth next to nothing. They may have seen the risk, but the CDS's were supposed to be the insurance in case the shit mildly hit the fan. What happened was all the shit hit all the fans at once, and AIG's large investment in CDS's concentrated all the risk in one area.

Never underestimate the ability of people to ignore bad news.

 

[Bluedog]

The bubble began under President Clinton.

The Affordable Mortgage Depression: Origin of the Housing Bubble: ?The National Homeownership Strategy?


Both democrats and republicans are responsible for playing politics. When it made the economy look good, they took credit. When it blew up in peoples faces they pointed fingers. Shocked, I tell you.


JMO

 

[Agit8r]

So the answer to the question would be No?

And they actually took control of congress January 2007.

So in other words you want to dismiss the Democrats (far left) form any responsibility before 2007.

The OP suggested that the Democrats controlled congress prior to the housing crisis beginning. I was setting the record straight. Simple as that.

 

[blackhawk]

Let's remember that collapse started with Freddie Mac and Fannie Mae and the heads of the committed supposed to be overseeing them were Democrats Chris Dodd and Barney Frank this absolve Bush and the Republicans it just shows both blew it.

 

[Kosh]

Let's remember that collapse started with Freddie Mac and Fannie Mae and the heads of the committed supposed to be overseeing them were Democrats Chris Dodd and Barney Frank this absolve Bush and the Republicans it just shows both blew it.

There is plenty of blame to go around, but when you have the money machine (the government) backing up al the bad loans, well what did anyone expect?

It was far left thinking (everyone deserves a home loan) that got us into the crisis.

..snip...

The meltdown was the consequence of a combination of the easy money and low interest rates engineered by the Federal Reserve and the easy housing engineered by a variety of government agencies and policies. Those agencies include the Department of Housing and Urban Development (HUD) and two nominally private “government-sponsored enterprises” (GSEs), Fannie Mae and Freddie Mac. The agencies — along with laws such as the Community Reinvestment Act (passed in the 1970s, then fortified in the Clinton years), which required banks to make loans to people with poor and nonexistent credit histories — made widespread homeownership a national goal. This all led to a home-buying frenzy and an explosion of subprime and other non-prime mortgages, which banks and GSEs bundled into dubious securities and peddled to investors worldwide. Hovering in the background was the knowledge that the federal government would bail out troubled “too-big-to-fail” financial corporations, including Fannie and Freddie.

Clinton?s Legacy: The Financial and Housing Meltdown - Reason.com

 

[edthecynic]

Let's remember that collapse started with Freddie Mac and Fannie Mae and the heads of the committed supposed to be overseeing them were Democrats Chris Dodd and Barney Frank this absolve Bush and the Republicans it just shows both blew it.

The MAJORITY Party controls the HEADS of the committees, Dodd and Frank were ranking Dems on the committee headed by the GOP. None of the "reform" bills got out of committee controlled by the GOP when all it would have taken was a Party line vote. The GOP killed all reform in committee while TALKING about reform, a typical GOP tactic, say one thing and do the opposite.

 

[Truthmatters]

In 2008 there was an economic crisis in which the housing bubble burst, leading to the recession. President Bush gets the blame for this from the left on this forum. They point to Bush to say that republican principles such as trickle down ecomics do not work.

It is true that Bush and the republicans did little if anything to prevent the crisis in 2008. But where were the democrats? Where was the Paul Revere on the democrat side trying to warn everyone of the impending crisis? What legislation did the democrates propose that would have prevented the crises? The democrats took control of congress in 2006. Did they see this crisis coming? Maybe they did, but I don't remember anyone in power warning of the problem until it was too late.

The blame Bush crowd want to ignore the good economic times throughout most of Bush's two terms. We had a short recession after 9-11 but the policies that the left keep saying did not work, did work.

I want to know what bills/policies were being perposed by the democrat controlled congress that would had prevented the economic crisis in 2008? What did senator Oboma do other than vote "present" and run for president that would have prevented the housing bubble from bursting?

did you know that gramm leach bliely had protections written into that the BUSH admin refused to implement for 8 years?

 

[zeke]

When Bill Clinton signed the Graham Leach Bliley legislation into law, he set in motion the vehicles that caused the collapse.

Fannie nor Freddie ever made liars loans, NINA loans or any of the other shitty mortgage loan products that flooded the market AFTER this legislation was passed. ARM's with crazy teaser rates that went up like crazy AFTER the first year (or less).

You all don't even understand that the CRA requirements applied to Federally insured banks. Not mortgage brokers or mortgage bankers.

And primarily it was mortgage brokers that were marketing these junk loans to unsuspecting consumers. Mortgage brokers used phone banks to call and solicit loans from low income areas of cities and towns. Knowing that if they got an unsophisticated home owner, they could lay them away with a shitty mortgage loan. And make a great deal of commission on the closing. With no repercussions if the loan went bad.

Unless you were in the mortgage business during this time (I was) you have no idea how shitty these loans were and how they were marketed.

This flood of shitty product sold to unsuspecting home owners or buyers set the stage for the rest of the collapse.

True story. And the CRA didn't cause this mess. No matter how many times you right wingers say it did.

Bill Clinton did cause this mess. In my loan originator opinion.