Posted on 10/11/2008 10:09:12 PM PDT by RushingWater
Federal Reserve Board data show that:
_ More than 84 percent of the subprime mortgages in 2006 were issued by private lending institutions.
_ Private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year.
_ Only one of the top 25 subprime lenders in 2006 was directly subject to the housing law that's being lambasted by conservative critics.
(Excerpt) Read more at mcclatchydc.com ...
let me guess this was a research done by Anneburg foundation or Columbia, University of Chicago.....Ayers Research group.....
Even if this was true, you think the Dems would have allowed a law to be passed that required someone to have 20 percent down AND actually qualify for the loan. ID, proof of employment, etc.
And if those “private lending institutions” hadn’t made those subprime loans- they’d have been successfully sued by Obama for “red-lining”.
BS...I jave heard lenders on Talk radio state that Fannie / Freddie were telling them if you don’t follow our guidelines good luck with your business
How disintelligent does David Goldstein think Americans are.
He calls this “data”?
This is not Star Trek, but if your want Star Trek David, then let me say this:
There has been a policy link of Utopian dreams that “poh” folk who could not afford houses, between HUD, Fannie Mae, and Freddie Mac, would be accomodated. It was in effect a pyramid selling scheme doomed to failure when housing values fell, and interest rates made ARMs unworkable for those “ poh folk.” Again, well intentioned Utopianism has screwed the very people they were trying to help, and ruined the economy by doing it.
SHAME!
Our finance system exists to make PROFIT, David! You do not blame them.
And you and other socialists like you have tried to make our lending system dedicated to “Social Action.”
It DID NOT WORK.
Banks have NO BUSINESS being involved in so called “Social Action” or affirmative action mortgage lending.
It has nothng to do with your Star Trek Data.
And now these socialist policy makers, including Raines, Acorn and similar Organizations, Obama, Bahwney Fwanks and Chris Dodds, all need a swift ejection into the infamy they deserve.
Take the profit motive away from our financing system?
You won’t have any economy, which is what is happening now.
The continuing brain farts of people like David Goldstein are abominable, for they mean to shift blame away from the villains responsible for it.
We have a socialist housing policy that threatens to bankrupt the world economy.
Yes indeedy, it started with Jimmy the Peanut Carter and his Fair Housing Act, and continued to grow uncontrolled so that we have this present situation.
And Fannie and Freddie are STILL issuing subprime mortgages as we speak!
Shame! Its tantamount to treason.
No David, Captain Data, you are not!
Put your electronic glasses on, at least!!!
Then you will get to see the wrath descending upon you and your ilk, from America!!!
You’d better beam yourself up while you still can.
” they’d have been successfully sued by Obama for “red-lining”.
Like Citibank in 1995
Exactly . Another pile of crap from the hands that feed the machine.
2. The FMs were required to lower their standards for loans they would buy. Subprimes became a nice profitable asset for both the GSEs and for the banks. Without FMs' cooperation, the number of subprimes would have been much much less.
3. No one said that every subprime loan was in default. But having more than 10% in default is enough to bring down any bank, and it did bring down the FMs.
4. The Bee papers are liberal rags and print lies regularly.
I find it IMPOSSIBLE to believe that the 2.5% of US home mortgages that are in default have suddenly caused a worldwide financial crisis. I think there is something much more sinister than that going on here. These loans have been made in California for years. We didn’t just wake up a couple of weeks ago to this.
Fannie and Freddie didn’t issue the subprime mortgages, they guaranteed and bought them which was the carrot to the stick of the regulators who were pushing banks to make loans to people who couldn’t afford them under the CRA.
I live in Sarasota, FL. We have two papers available - I call one the “Socialist” choice and the other the “Communist” choice.
The Socialist choice is the Manatee Herald, owned by the McClatchy group. I used to read it but several years ago when a hot issue casting Dimocratz in a bad light was never even mentioned, and I was in touch with them asking when will you put it in the paper, and they never did, I switched to the Communist choice.
Socialists just act as if some issues don’t exist, have never existed and therefore you need not worry about it.
The Commies (The Sarasota Herald Tribune, owned by the NY Slimes) go ahead and include the issues. They lie about the ones they don’t agree with. Still, they sort of put the news out there.
The McClatchy group doesn’t put the news out.
Not to say that Socialism OR Communism is good, just a little different, one from the other.
“I’m Barack Obuma and I approve of this new story!”
I think OPEC overpriced oil so that it affected the global market. And no one was buying anything, or going anywhere. Business was way down in many sectors. That is what started this whole mess. There are always home foreclosures. That is not new.
No way to prove the markets are being manipulated, let alone who. Yes it is possible. But with ACORN we can pin the tail on the DONKEY. Lets not talk about pissing away the Golden Goose.
to funny.. anyone watching the Tampa vs Boston game....whats up with the bad music? Whatever happened to take me out to the ballgame?
It has been reported that Fannie and Freddie own 70 percent of the mortgages in the USA. Originally they would take mortgages, which met certain criteria, from lenders and package them into securities and sell them to investors. Towards the end of the 1990’s, they started accumulating these mortgages and just started selling debt to the markets. I remember when they passed 1 trillion in assets and Freddie passed 700 million. The excuse they gave was that they were simply managing their portfolios to maximize income. In reality they were making loans so toxic that they didn’t dare sell them to any investors as they would certainly be guilty of fraud. And yes Virginia, CRA caused many of these loans to be made in the first place.
It wasn’t the loans per se. The banks tried to protect themselves against defaults for the lowest cost, and to do that, they bought Credit Default Swaps from companies like AIG.
However, the CDS instruments were never regulated and AIG was not required to have enough capital to cover the policies in case of massive numbers of borrowers defaulting. No one thought that would ever happen.
Eliot Spitzer (the same idiot who had to resign later from the governorship of NY after he was caught with hookers) forced CEO Hank Greenberg out of AIG, and then the company went nuts with these policies.
As you probably know, AIG is being propped up by government loans. No telling if they will face any criminal prosecution.
CDS fraud is apparently in the trillions of dollars because they were written into the accounts as assets. They let the banks and brokerage houses lend even more money on high-return loans. The banks don’t have these CDS instruments on their books any more and are very reluctant to loan money to others, because the subprime “assets” are bundled as securities and will have to be unbundled, an extremely laborious process.
Read this article about Joseph Cassano and his infamous credit swaps.
http://www.portfolio.com/news-markets/top-5/2008/09/28/AIGs-Derivatives-Run-Amok
What a mess!
$ ping
the problem is that so many institutions began buying into “derivatives”, complex contracts that accompanied mortgage backed securities. These things were so complex but no one cared because at the time of the housing boom they were worth so much. Then many of these properties went way down in value as the housing boom died.
The banks had to write off any asset that couldn’t be immediately sold as mark to market accounting rules dictated, and therefore their balance sheets didn’t reflect reality
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