serendipity
Verified User
What a stupid cunt Con Artist is, he claims to be a shit hot economist yet seemingly has never heard of the Glass-Steagall Act and BJ Clinton's hand in repealing it.
GDP: US Economy grows at fastest pace in nearly two years. God Bless Bidenomics.
- Thread starter Joe Capitalist
- Start date
What a stupid cunt Con Artist is, he claims to be a shit hot economist yet seemingly has never heard of the Glass-Steagall Act and BJ Clinton's hand in repealing it.
Joe Capitalist
Racism is a disease
After years of financial deregulation accelerating under the Bush administration, banks lent subprime mortgages to more and more home buyers, causing a housing bubble. Many of these banks also invested in credit default swaps and derivatives that were essentially bets on the soundness of these loans. In response to declining housing prices and fears of an impending recession, the Bush administration arranged passage of the Economic Stimulus Act of 2008. Falling home prices started threatening the financial viability of many institutions, leaving Bear Stearns, a prominent U.S.-based investment bank, on the brink of failure in March 2008. Recognizing the growing threat of a financial crisis, Bush allowed Treasury secretary Paulson to arrange for another bank, JPMorgan Chase, to take over most Bear Stearn's assets. Out of concern that Fannie Mae and Freddie Mac might also fail, the Bush administration put both institutions into conservatorship. Shortly afterwards, the administration learned that Lehman Brothers was on the verge of bankruptcy, but the administration ultimately declined to intervene on behalf of Lehman Brothers.
QP!
Verified User
That does not change the fact that if none of the mass number of fraudulent loans written, that did not qualify under Dodd Frank, and were not in the bundles, and thus started the domino effect, this issue would not have been triggered.
There is a domino effect to having the entire foundation of any structure made of fraudulent sand, as everything that sits on top, then destabilizes and collapses.
QP!
Verified User
I'll say again. 'HIgh risk' mortgages ARE NOT, 'fraudulent mortgages' which should never have been written and were combined in with the high risk mortgage bundles.
It is the greedy bankers who allowed the Fraudulent Mortgages to get in to the bundles en masse as they were making so much short term profit and thought the remainder of the bundles would bury any losses. That was a gamble they choose to take.
And as always happens, instead of blaming the system and banks and elites who made all the profits, the right and Magats always find a way to blame 'the poors'.
Phyllis Diller
Was it me?
the bankers shirked due diligence knowing they would be reselling these bad mortgages.
they knew they were bad the whole time and knew they would be bailed out the whole time.
they even developed new derivatives that made the default collapse cleaner and predictable. the credit default swap.
these people are pure evil.
they are the parasites.
QP!
Verified User
And let me through some red meat to the Magats to show my position is not a partisan one.
I blame Obama not for the Banking System bailout as the liquidity to the system HAD to happen lest the US and maybe the world be tipped into another great recession or even a depression as cascading bank failures would be triggered world wide. But what Obama and the US should have done, was not just say to the biggest Banks (mostly Wall Street Banks), 'here is mass amounts of tax payer money to provide you liquidity' which largely fixed those banks issues to the point they could pay out bonuses (shameful), and instead here is what they should have done.
The same amount of money paid out should have been divided between every citizen with a mortgage and paid out as a mortgage credit to them, that they redeemed at the bank that held their mortgage, thus getting a 'Three for One' benefit from the same amount of cash.
First benefit, is the homeowners, now many under water and at threat of losing their home, would see a significant percent be able to maintain their homes. that is not just good for them but also for those who are forced to sell, reducing the glut hitting the market.
Second is the homeowners not being devastated means they will also continue spending in their communities thus providing another needed benefit.
Third, that Mortgage credit, provides great liquidity to the mostly State Banks who write and hold the bulk of mortgages, strengthening that sector, while allow the 'Too big to Fail' Wall Street banks to sink or swim, without the systemic risk. If State banks grow while Wall Street shrinks, great.
I blame Obama not for the Banking System bailout as the liquidity to the system HAD to happen lest the US and maybe the world be tipped into another great recession or even a depression as cascading bank failures would be triggered world wide. But what Obama and the US should have done, was not just say to the biggest Banks (mostly Wall Street Banks), 'here is mass amounts of tax payer money to provide you liquidity' which largely fixed those banks issues to the point they could pay out bonuses (shameful), and instead here is what they should have done.
The same amount of money paid out should have been divided between every citizen with a mortgage and paid out as a mortgage credit to them, that they redeemed at the bank that held their mortgage, thus getting a 'Three for One' benefit from the same amount of cash.
First benefit, is the homeowners, now many under water and at threat of losing their home, would see a significant percent be able to maintain their homes. that is not just good for them but also for those who are forced to sell, reducing the glut hitting the market.
Second is the homeowners not being devastated means they will also continue spending in their communities thus providing another needed benefit.
Third, that Mortgage credit, provides great liquidity to the mostly State Banks who write and hold the bulk of mortgages, strengthening that sector, while allow the 'Too big to Fail' Wall Street banks to sink or swim, without the systemic risk. If State banks grow while Wall Street shrinks, great.
QP!
Verified User
Yes. The DNGAF.
I think they believed the system was otherwise healthy enough that even as the NINJA and other fraudulent loans exploded, they would just be absorbed in the margins of the better performing loans, but at worst, they just DNGAF, knowing it would not be their problem and would end being the Tax payers paying for it.
You poor little troll. Of course I am aware of the repeal of Glass Steagal. It is akin to leaving your door unlocked. You still need a burglar to rob the place. 86% of subprime loans were purchased by investment banks some of whom were leveraged at 30:1. That is the principal cause of the crash. No other factor comes close. I’ve forgotten more about the crash than Tou have learned. Just another dumb fuck parroting the right wing bullshit.
IN YOUR OWN WORDS tell me why the Bear Stearns failure by itself was so problematic. I’ll wait.
Phyllis Diller
Was it me?
yes the government is to blame too, conservatives, but private companies certainly the fuck are as well.
break the fascist spell.
Trump 2024!
break the fascist spell.
Trump 2024!
serendipity
Verified User
The saving frenzy of the Chinese created the cheap money, which fuelled the housing bubble and its subsequent collapse.
QP!
Verified User
yes the government is to blame too, conservatives, but private companies certainly the fuck are as well.
break the fascist spell.
Trump 2024!
And Trump is the worst of them.
He was on a path to do to the entire US economy what the fraudulent loans did to the mortgage sector.
He was piling in debt at record levels with no desire to slow that while gutting revenues to pay for that debt or basics with the idea that creating an epic crisis would lead to the gutting of Social Security and Medicare to provide revenues back into the system. The only goal being to massively shift more money to the rich while gutting the programs that the MC and poor rely upon.
That is why the Republi'cans' are so obsessed with trying to get to SS and MC as it will provide a lot of revenue that they can then shift to rich.
(which is how Trump runs his own empire of debt. It is basically a ponsi scheme of refinance one stumble from a collapse, which he has triggered many times as demonstrated by all his continual corporate bankruptcy's, he claims are just smart business.)
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PostmodernProphet
fully immersed in faith..
no linky, it stinky.....
PostmodernProphet
fully immersed in faith..
sorry...we realize you know nothing about the situation, being a mindless demmycrat, but the only problem we faced was the federal guarantee....without that we could have let the fucking bankers go under and there would have been no domino effect......the federal guarantee falls directly in the demmycrats lap......demmycrats who walked away with taxpayer bailouts.....
BartenderElite
Verified User
If Trump had this economy, with close to 14 million jobs added, and growth steady - it would be the greatest economy we've ever known.
PostmodernProphet
fully immersed in faith..
PostmodernProphet
fully immersed in faith..
shouldn't you be rational?......atheists are weeping.....
Completely wrong. F-.
The Chinese were purchasings MBS's at a record pace, which is why the investment banks kept bundling them, even though they were crap. The ratings agencies corruptly propped up those securities, unregulated mortgage brokers kept offering the subprime crap to borrowers with basically no documentation, and everyone took a haircut. The bottom falling out was inevitable. The crash was almost entirely caused by investment banks overleveraged with absolute crap home loans.
You don't know a fucking a thing. It's laughable. The cheap money was not because of the Chinese. The cheap money was because of exotic loans with a low teaser rate. IO loans, neg am loans, arm loans with a ridiculously low initial rate, balloons with a ridiculously low rate.