I still remember Barney Frank-eater and Chris Dodd telling us that Fannie and Freddy were on solid granite a very short while before the whole market crashed.
Bush should have come to the People and laid out the fraud that was being perpetrated on everyone - it may not have stopped it but it would have given credibility to our side of the aisle.
Unlike Bush, Trump won't pull any punches on either side of the aisle when someone needs to be B!$ch-slapped....
Equally damning is that the Republicans have controlled both houses since 2011 and have absolutely nothing to show for it. It's time to clean house...on both sides of the isle.
The thing is, the housing crash became inevitable the moment Bill Clinton signed the “housing reform” bills into law. Anyone with a three digit IQ could see that at the time. What I don’t get is why the Republicans at the time weren’t shouting from the rooftops that granting mortgages to people who can’t afford them is a failing strategy from the get-go and bound to end up badly.
The effects of stupid monetary policy might not be immediate, but they are unavoidable. I think the Democrat strategy is to put the stupid policy in place while talking about how good it is for poor people, and gambling that they will not be in power when the effects of the policy finally become too large to ignore. That way, Democrats can always run on the issue that they “care”, while never suffering any consequence from their abysmally rotten economic policies.
The cause was libtard social engineering, which began in 1994, when Clinton launched the National Partners in Homeownership, a private-public cooperative with one goal, which was to raise the numbers of homeowners across America.
The problem on this that I see, is not that Trump or anyone else, sought to buy low and sell high, but the fact that DJT has, in the past, blamed BUSH for the housing collapse. He appears to not know how the Clinton’s rigged the system. I am a long standing DJT supporter and he needs to address this. Because it is false, and it was baked in the cake for the housing market to fail by the time we had the 2000 election. Had Gore won, it would have fallen on HIS watch.
It is 100% true that Bush was unable to fix this; he never had the votes on the right committees, even from his own party. Some of the congress members from the south come to mind, in fact. There were too many in Congress who had their beaks in the water pool, both parties.
I will never forgive Karl Rove, EVER, for not putting GWB in front of the camera, on a nationally televised address, warning the American people that unless Congress gets their crap together, the housing market is going to collapse. And the economy will go to hell.
Never, ever.
But now Hillary Clinton seems to think it’s a crime,
Except little things like white water deals.
I stopped reading this because of the sloppy research. The cattle future gain for Hillary was $1,000 into $100,000, not $1million as the article claims. Whatever else follows in the article has lost all credibility. I’m surprised at Kudlow. Read Thomas Sowell for the causes of the housing market crash.
I live in Seattle.
In 2007, Bank of America was running home mortgage Internet ads here that said: “No Social Security Number Required.”
That same year, my neighbor across the hall, a very nice Black man, explained to me that he was earning a six figure income by recruiting minority home buyers.
His sales pitch? You can own a home for less money than you are paying in rent.
I have no sympathy for many of the people who “lost” a home in the Great Recession.
Many of those folks never lost a dime.
They just walked away from their homes when their Adjustable Rate Mortgages became more expensive than renting an apartment.
Watch Congressional Democrats in 2004 go after people trying to sound the alarm on Fannie Mae and Freddie Mac, insisting that there is no impending problem.
https://www.youtube.com/watch?v=Yga7TlsA-1A
On another thread is the following comment re Clinton's server violations:
" She wants to be able to communicate with husband, with daughter, with friends and not have somebody looking over her shoulder into her emails," Feinstein said."
Then, this wife and husband who have amassed hundreds of millions of dollars on the backs of their hard working fellow citizens can have just that kind of privacy off the federal payroll and out of public office!!
These two Arkansas machiavellians have stayed on the national scene far too long, passing themselves off as "public servants," when, in fact, their actions as public figures have revealed a different nature altogether, and one that advanced technology finally may have enabled "the People" to discern.
“Under Clintons HUD secretary Andrew Cuomo, Community Reinvestment Act regulators gave banks higher ratings for home loans made in “credit-deprived” areas.”
So how come the genius GW Bush didn’t change this? Wasn’t he President after Clinton?
” Banks were effectively rewarded for throwing out sound underwriting standards and writing loans to those who were at high risk of defaulting. “
This isn’t accurate. CRA required banks to make some loans, and they didn’t have to be mortgages, in the areas where they were taking in deposits. This applied only to retail banks and not all lenders. Again Bush could have changed this policy and didn’t.There was no requirement for banks under the CRA to ignore conforming loan standards. They were pressured to do so by the market because non-CRA lenders were rolling out high yield non-conforming mortgages and that’s what investors wanted to buy.
“These new HUD rules lowered down payments from the traditional 20% to 3% by 1995 and zero down payments by 2000.”
GW Bush passed the American Dream Downpayment Initiative, which gave “free” downpayments to select minorities.
“Fannie and Freddie made a common practice to virtually end credit documentation, low credit scores were disregarded, and income and job history was also thrown aside”
That’s not true at all. F&F continued to write conforming paper all through the bubble. Their private sector competition wrote NINJA, Option ARM, No Down high yield mortgages. The high yield/high risk sector grew enormously and was crowding out F&F’s stodgy low yield conforming paper.
“Fannie and Freddie were securitizing these home loans and offering 100 percent taxpayer guarantees of repayment.”
There was no obligation for the American taxpayer to guarantee F&F’s paper. They were listed stocks on the New York Exchange owned by investors. The Bush administration decided to stick the taxpayer with bailing out these investors. There was no legal obligation. Why, you’ll have to decide for yourself. To save the banking system was the surface excuse.
A lot of what happened with the Sub-Prime collapse started under Bill Clinton with the Community Re-Investment Act that was passed to spur people to buy homes. Accelerated when Glass-Stegal was repealed and went into overdrive with Bush 43 and the ceiling on leverage was essentially taken off risk for banks and mortgage companies. That is thumb nail version. We have yet to recover from any of this and have in reality been in a Deep Recession or Depression since the Tech Bust in 2000.
There were also a number of very astute Hedge Fund operators that saw that crash coming and bet accordingly. Many of the same people Hillary and Bill have taken money from over the years.
AND what was BO’s role in all this????
Wasn’t he a contributor to the ninja loans for blacks?
In the start of 2005 I was wrapping up a year-long project at work, my wife was increasingly nagging me about working too much... but I kept saying there's no way I can try and start my own business and still afford our mortgage and live in L.A.
I was well aware of the absurd housing values in the area, and knew that they were artificially high. I had this nagging sense that this was a once in a lifetime opportunity.
So we made a plan... and in June of 2005 we sold both our house (had been in only 5 years) and our investment triplex (owned 2 years). After taxes and paying off the mortgages and gains taxes, we cleared about $1.3 million. That allowed us to buy a beautiful waterfront home in WA and a handful of rental properties all for cash, and I set out on my own doing consulting (which worked pretty well too).
The housing market in Los Angeles crashed big time literally about 2 weeks after we closed escrow on those 2 properties.
The woman that bought our residence never moved in and eventually lost it to foreclosure. The couple that bought the triplex (their first investment property) wound up losing their asses and got divorced over the episode (our broker/friend knew they guy's brother so he heard all the gory details).
I definitely think God was looking out for me back then... and I'm still very grateful for being freed from living paycheck to paycheck in the corporate rat race.
MASSIVE MORTGAGE FRAUD---TAXPAYERS GET SOCKED A 2009 Wall Street Journal investigative report WRT the subprime mortgage borrowing spree that wreaked havoc on the US economy revealed that----according to the Federal Financial Institutions Examination Council---financial schemes by low-income housing groups, Hispanic lawmakers on Capitol Hill, including a congressional Hispanic housing initiative, subprime mortgage lenders and brokers, colluded together in fraudulent schemes to increase homeownership among Latinos using falsified applications, and other tricks of the trade.
The massive mortgage fraud ended in disaster for which no one has been held responsible. Taxpayers got saddled with billions of dollars in bailout bills.
These subprime activities were not simply the mortgage market at work. They were fueled by avarice, greed, stupidity--all enabled by Congressmen and other groups which leave a trail at the door of then-Cong Joe Baca (D-Cali).
Between 2000 and 2009, Hispanic populations increased; but Hispanic home ownership grew even faster, increasing by 47%, to 6.1 million from 4.1 million, according to the US Census Bureau. Over that same period, homeownership nationally grew by an enemic 8%. In 2005 alone, mortgages to Hispanics jumped by 29%; Latinos with multiple fraudulent identities in low-paying jobs obtained costly non-prime mortgages---soaring to a shocking 169%, (Research provided by Wall Street Journal)
The subprime mortgage bank fraud network was spearheaded by then-Cong Joe Baca (D-Calif 43rd), in his powerful position as chairman of the Congressional Hispanic Caucus. Baca's district ranks No.5 among all US Congressional districts in percentage of home loans tailored to sub-prime borrowers.
Baca used his the legislative power of his office and his leadership position in the Congressional Hispanic Caucus to calculatedly launch a housing initiative called "HOGAR"-- Spanish for home.
=====================================
CONSPIRACY AND COLLUSION---The Congressuial Hispanic caucuss has been quiet about its role in financing, and, earmarking, the blood-thirsty America-hating La Raza. race-based "La Raza" was given tax dollars and Congressionsl earmarks to finance its so-valled mortgage activities. La Raza's "strategic partnerships with Wachovia and Bank of America forced the fraudulent mortgage-application requirements and documentation standards.......whuch caused taxpayers to be socked w/ billions in bailouts......decimating the US economy. economy.
La Raza aided and abetted risky federal and private-home loans to latinos over the last decade. thanks to the lending industrys version of dont ask, dont tell.
In addition to millions of federal tax dollars, La Raza also collected a $1 million Democratic earmark that funded community-development projects. Analysts report that much of it went to "mortgage counseling." (cue laugh machine)
In a word - yes.....
Thank you, Larry Kudlow.
This should be repeated regularly and often.