what would have prevented 2008 would have been keeping the US government from guaranteeing the underlying debt in remarketing bundles of subprime mortgages.......that wasn't a mistake in not overseeing the banks......that was a mistake of actively involving Fannie and Freddy in a ponzi scheme.......for that you can blame Clinton........later Obama appointed some of the same idiots who set it up to his cabinet......
Isaiah 6:5
“Woe to me!” I cried. “I am ruined! For I am a man of unclean lips, and I live among a people of unclean lips, and my eyes have seen the King, the Lord Almighty.”
Daniel Patrick Moynihan said it best, "You are entitled to your opinion. But you are not entitled to your own facts."
Paul Begala, "Politics is show business for ugly people."
Stephen Colbert, "Reality has a well known liberal bias."
QP! (01-29-2023)
???....seriously?.....are you unaware that the federal government guaranteed the debt so that the bundles of subprime mortgages could be sold?.......were you unaware that this was approved during the Clinton presidency?.......were you unaware that the fact the federal government had to pay off the debts is what kept us from just letting the people who were stupid enough to buy bad loans from losing what they paid for it?....if you were unaware of those irrefutable facts I guess the whole mess wouldn't make sense to you.......educate yourself...
Isaiah 6:5
“Woe to me!” I cried. “I am ruined! For I am a man of unclean lips, and I live among a people of unclean lips, and my eyes have seen the King, the Lord Almighty.”
The United States Government did not guarantee the repackaged mortgage debts. If they had, there would not have been problems for the holders of the repackaged mortgage debts. I do not know where you got the idea the US Government had guaranteed them.
Could you mean the government underwrote Fannie Mae and Freddie Mac? Those were just two possible buyers of repackaged mortgage debt. They were bailed out, but were not guaranteed, and their mortgages were certainly not guaranteed.
I am just guessing what you meant, because you are very outside reality here. Fannie Mae and Freddie Mac were allowed to buy extremely limited numbers of subprime mortgages when Clinton was President. Bush demanded they buy huge amounts of subprime mortgages when he was President. There were no guarantees on those mortgages, the diversity of the market was supposed to protect them from systemic default.
Back to the bailouts. They were not guaranteed ahead of time. They were put in place to prevent systemic collapse. They were mostly loans, so were paid back. The government made a profit off them.
Daniel Patrick Moynihan said it best, "You are entitled to your opinion. But you are not entitled to your own facts."
Paul Begala, "Politics is show business for ugly people."
Stephen Colbert, "Reality has a well known liberal bias."
Isaiah 6:5
“Woe to me!” I cried. “I am ruined! For I am a man of unclean lips, and I live among a people of unclean lips, and my eyes have seen the King, the Lord Almighty.”
Nordberg (01-29-2023)
Daniel Patrick Moynihan said it best, "You are entitled to your opinion. But you are not entitled to your own facts."
Paul Begala, "Politics is show business for ugly people."
Stephen Colbert, "Reality has a well known liberal bias."
Ok, then stopping pushing this false idea that the Debt Ceiling, is the issue, and that it would be right for the GOP to vote against raising it, and stick instead to the issue of omnibus bills.
I am glad you are admitting now the debt ceiling is not the problem and it should be raised. I am glad you realize not raising it, does nothing to address the debt already accrued in the PAST, and will only add to the debt and make it more expensive.
So if your goal is to add more debt, and make the interest payments on it higher, you support not raising the debt ceiling. If you do that you cannot PRETEND you are against debt, as you are voting, not only for more debt, but for more expensive debt.
There was no regulations that allowed for loans to dead beats.
The problems with the sub prime crisis, was things like NINJA loans (No Income, NO Job) which were not in fact legal but due to weak regulations and enforcement flooded the system. If there was more required regulations to verify the loans, instead of GOP pushes to dismantle that ability, (same as they do with IRS to make sure they cannot enforce laws), the 2008/9 crisis would not have happened.
FALSE.
None of that becomes an issue, if the underwritten loan up front, is simply required, via regulation to be verified and qualified.
That is Step 1 and if you do Step 1, no Step is a problem. Fanny and Freddie can help the banks alleviate their balance sheets of the properly issued loans, and there would be no problems. Defaults would be in line with the bundles tolerance, as it was meant to work.
It was the lack of oversight up front, pushed by the GOP, that set up the downstream failures.
Glad to see someone here finally gets it. A large part of the problem is that every Tom, Dick and Harry decided they were qualified to be a loan broker. And the banks were so hungry for these loans that they did not care about the underwriting standards. The crooked brokers took their cut, the short term lenders took their cut, the loans ended up with MBS issuers, and the rating agencies refused to acknowledge the absolute crap that was in those instruments. Throw in some 30+ to 1 leverage and investment banks owned by S&Ls and you have the 2009 crisis. Over 80% of subprime loans were bought by private investment banks, many that Fannie and Freddie refused. This was a crisis of greed. Nothing more, nothing less.
Bush had the house and senate. Phil Gramm, a republican, keep trying until he got the Economic Modernization Act through. It removed banking restraints that kept banks from intermingling the people.s bank accounts and their investment services. He also gutted the FDR age regulations of Glass/Steagal. Gramm's wife was an Exon exec. I remember when Gramm got it through. It was late at night, 2 0r 3 AM. The Dems came out saying that a very dangerous act was passed.
I like the debt sealing, it embarrasses the Republicans every time it becomes an issue
4,487
18 U.S. Code § 2071 - Concealment, removal, or mutilation generally
44 U.S.C. 2202 - The United States shall reserve and retain complete ownership, possession, and control of Presidential records; and such records shall be administered in accordance with the provisions of this chapter.
LOCK HIM UP!
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