Greenspan: Recent Decline 'Typical' of Recovery

[Cancel 2018. 3]

What the fuck are you rambling about? Are you simply being your normal moronic self?

The recession and financial crisis were a result of many things. FYI... the DEMS were in charge of Congress from 2007-2008.

That said... an example of what I was referring to was the removal of Glass Steagall which had the overwhelming support of BOTH parties. Add in the moronic policies of Greenspan, the removal of the uptick rule by the SEC, the implementation of the mark-to-market accounting by FASB and you can see how government interference can screw things up.

THAT said.... the lack of regulations can also aid in a downturn. ie... again the removal of Glass Steagall, the unregulated status of the mortgage industry, the unregulated status of the hedge fund industry, the allowance of Wall Street investment banks to trade derivatives off books and of course the bullshit manner in which Moody's, S&P and Fitch rate securities.

Bottom line Jarod... BOTH parties had their hands all over this problem. All in the name of getting re-elected.

i agree with the above....but imo, the housing bubble was a large factor in the recession and both parties were responsible for that, i hold dems more responsible as the repubs tried to stop it, however, the repubs also never pushed anything through or to my knowledge, tried very hard to

 

[Cancel 2016.2]

i agree with the above....but imo, the housing bubble was a large factor in the recession and both parties were responsible for that, i hold dems more responsible as the repubs tried to stop it, however, the repubs also never pushed anything through or to my knowledge, tried very hard to

I agree the housing bubble via the 'more homeowners than ever' push by both parties was a part of it. That ties in to the points of the unregulated mortgage industry, the removal of Glass Steagall (which took down the natural firewall between lenders and investors), the trading of derivatives off books, the insane monetary policy of Greenspan and the crappy ass ratings by the big 3.

While there were a few instances of individuals trying to slow things down or stop them, as you stated, no one tried really hard to do so.

I applaud the 10 Senators who did not vote to remove Glass Steagall, especially the 8 that voted AGAINST it (all Dems) as well as their counterparts in the House. But other than that, little effort was done to stem the insanity.

 

[Onceler]

I agree the housing bubble via the 'more homeowners than ever' push by both parties was a part of it. That ties in to the points of the unregulated mortgage industry, the removal of Glass Steagall (which took down the natural firewall between lenders and investors), the trading of derivatives off books, the insane monetary policy of Greenspan and the crappy ass ratings by the big 3.

While there were a few instances of individuals trying to slow things down or stop them, as you stated, no one tried really hard to do so.

I applaud the 10 Senators who did not vote to remove Glass Steagall, especially the 8 that voted AGAINST it (all Dems) as well as their counterparts in the House. But other than that, little effort was done to stem the insanity.

The mortgage industry can be a real double-edged sword. Right now, I think there is a great danger or over-regulating the market, to the point where we're going too much in the other direction & actually discouraging home ownership for buyers that might otherwise be perfectly qualified in a common-sense run world.

Like it or not, home ownership, loans & mortgage activity, as well as construction, is a huge pillar of the U.S. economy since we transitioned from a more manufacturing-oriented base. Probably my biggest concern right now is that we'll over-regulate our way out of a recovery....

 

[Cancel 2016.2]

The mortgage industry can be a real double-edged sword. Right now, I think there is a great danger or over-regulating the market, to the point where we're going too much in the other direction & actually discouraging home ownership for buyers that might otherwise be perfectly qualified in a common-sense run world.

Like it or not, home ownership, loans & mortgage activity, as well as construction, is a huge pillar of the U.S. economy since we transitioned from a more manufacturing-oriented base. Probably my biggest concern right now is that we'll over-regulate our way out of a recovery....

I understand and agree with your thoughts above. That said, I think that is WHY we need some regulations for the industry. The pendulum swung way too far in the other direction.

My thoughts...

1) If you have the VERIFIED income qualifications for a 30 year fixed, you get the loan.

2) If you qualify for the 30 year fixed, then you can have the option of exploring potential ARMs. (or if you qualify, you can get a 15 fixed)

3) The Credit Scoring agencies need a major overhaul. If anyone doubts this, call up Experian, Transunion or the third that I am blanking on.... ASK them to explain to you how they arrived at your score. They can't. Add in the fact that their scoring system drops your score quickly for any negatives and only slowly creeps back up over time. There is NO reason a late payment from 7 years ago should be affecting your score. (which I believe is the timeframe all negatives stay on your report.

4) If you have had three years with no late payments over 60 days and no bankruptcy within 7 years... you should be able to get any income qualified loan at the best rates available.

 

[Onceler]

I understand and agree with your thoughts above. That said, I think that is WHY we need some regulations for the industry. The pendulum swung way too far in the other direction.

My thoughts...

1) If you have the VERIFIED income qualifications for a 30 year fixed, you get the loan.

2) If you qualify for the 30 year fixed, then you can have the option of exploring potential ARMs. (or if you qualify, you can get a 15 fixed)

3) The Credit Scoring agencies need a major overhaul. If anyone doubts this, call up Experian, Transunion or the third that I am blanking on.... ASK them to explain to you how they arrived at your score. They can't. Add in the fact that their scoring system drops your score quickly for any negatives and only slowly creeps back up over time. There is NO reason a late payment from 7 years ago should be affecting your score. (which I believe is the timeframe all negatives stay on your report.

4) If you have had three years with no late payments over 60 days and no bankruptcy within 7 years... you should be able to get any income qualified loan at the best rates available.

Those are all what I would consider reasonable, common sense measures.

From some of what I have read over the past few months, I think it's clear that - at both the national and local level - legislators are realizing that anything with the characterization of "loan regulation" is very politically popular. I know in some areas - like mine - some of the proposals go well beyond what is needed for the market, and could "cut off the nose to spite the face" as far as the overall economy is concerned.

We need people to buy, sell & build homes; they shouldn't lose sight of that.

 

[Bonestorm]

Those are all what I would consider reasonable, common sense measures.

From some of what I have read over the past few months, I think it's clear that - at both the national and local level - legislators are realizing that anything with the characterization of "loan regulation" is very politically popular. I know in some areas - like mine - some of the proposals go well beyond what is needed for the market, and could "cut off the nose to spite the face" as far as the overall economy is concerned.

We need people to buy, sell & build homes; they shouldn't lose sight of that.

What regulations are you talking about? At the federal level, they are encouraging home sales with the dumbass homebuyer tax credit. What local regulations are you talking about?

Here in MA the regulations only dealt with mortgage brokers not acting like used car salesmen or at least disclosing the fact that they are used car salesmen and aren't acting in the best interests of the borrowers.

And really, I don't see why it is necessary to encourage people to buy or sell homes. People should buy homes if it makes sense for them. There is nothing magical about homeownership and for some people it isn't really a good idea.

 

[Cancel 2018. 3]

What regulations are you talking about? At the federal level, they are encouraging home sales with the dumbass homebuyer tax credit. What local regulations are you talking about?

Here in MA the regulations only dealt with mortgage brokers not acting like used car salesmen or at least disclosing the fact that they are used car salesmen and aren't acting in the best interests of the borrowers.

And really, I don't see why it is necessary to encourage people to buy or sell homes. People should buy homes if it makes sense for them. There is nothing magical about homeownership and for some people it isn't really a good idea.

i agree....for decades that is how we operated and home prices for the part were stable....