This recession/depression started with the infantile oversight of Bush, with a small bit of help from Clinton on CDS’ as I recall.
Your complaint is nearly right, but it would have to say ‘Recovery is when Phil Grams goes to prison’ to be accurate, or do you still believe, wrongly, that CRA’s caused this mess?
“This recession/depression started with …”
I know you think you are financial “hot stuff”, penigma, but it’s hard to take your opinion seriously. The constant, raging BDS is hard to miss. I’m certainly not saying GWB is blameless, but chanting “it’s all Bush’s fault” will not make it true. *shrug*
Ya know Peev, if you were any dumber you’d fit right in the Barney post below. Who the #@&* is “Phil Grams”? Rod’s older brother?
it’s hard to take your opinion seriously
I’d say impossible, but that’s just me.
Penigma, Roosh still believes, correctly, that the CRA led in large part to this mess. What part of “when you ignore time tested standards of lending, you get foreclosures” are you failing to understand?
And I’ll grant that Bush was part of the problem–specifically in NOT using his bully pulpit to shut down the Barney Frank/ Fannie Mae corruption machine.
As usual, Steve Sailer has the numbers.
As usual, lefties insist that numbers are racist.
More rooting against America. Too bad the market doesn’t agree with you.
Hey Clown, drop me a line with your email. That way whenever the Dow is down a hundred or so I can email you some snark about America hating Obama.
Now come on, Peni swaps out hard drives for a bank… So he’s more qualified to be an economist than Obama is to be President.
One of the things that bothers about the press worship of Obama is that they just sit and nod when he talks about economics. GW Bush was a businessman. Not a particularly successful businessman, but at least he seemed to know that you couldn’t write checks forever without putting money in the bank. Obama knows nothing about economics, not even by education. Yet no one in the press seems to know that stimulus by debt has utterly failed for the Japanese, not only ‘within living memory’ but right now.
But Obama said the problem with the Japanese was they didn’t spend enough! Just like the reason we are now out of money is because we didn’t nationalize health care yet.
WEE! Nonsense is fun!
Penigma works for a bank, and is unclear on how loosening credit standards might lead to foreclosures? Shoot, I would have thought that even the Janitor would know that!
Never let a crisis go to waste. Yer doin a bang up job there, bimmy. The Obama Depression will make a memorable legacy.
I was surfing the web on something and saw these replies …
Let me help you all understand some things.
First CRA is a requirement to NOT engage in abusive lending practices toward low income borrowers, thus providing similar loan offers to low income borrowers as you do higher income borrowers. It in NO WAY says you have to ‘loosen’ credit standards unless you are loosening them for eveyrone.
Second, CRA accounts for 3% of a bank’s mortgage book (on average), and almost NEVER more than 5%.
Third, loose standards were put in place for REGULAR loans – and hundreds of thousands of those, not just for CRA. DtoE ratios were raised repeatedly by lenders, then eliminated entirely, trusting in an ever escalating real estate price as the savior should ANY lender default, not just (and really especially not for) low income/lower priced homes.
However, Lehman and Bear Stearns, they lumped CRA heavily into CDS’, as a way of – other investment houses, included banks, bought those rather stupid investments. They weren’t ‘low risk’ they were high risk, but they didn’t care, it was a deal, and they got paid on deals, so they went ahead.
So, it wasn’t the ‘government’ forcing these deals on people, it was morons making bad decisions and calling low income, higher risk loans, low risk.
You must be logged in to post a comment.