Posted on 04/10/2010 11:49:39 AM PDT by day21221
(GREAT YOU MUST SEE) http://www.youtube.com/watch?v=CbRzt7ORnhs
Good video.
Great post.
the guy is still a leftist and an arsehole
No mention of the lawmakers who encouraged people who had no business buying a home to buy one even though homes were completely over-priced.
No mention of Fannie and Freddie... 2 Democratic darlings... who also got cheap funds from the Fed and used those funds to facilitate millions and millions of mortgages that could never be paid back.
No mention of Franklin Raines’, Fannie Mae CEO and another darling of the Democrats, $90 million dollar paycheck.
No mention of Janet Reno’s threats in the 1990’s to shut down banks that did not do enough low-income lending.
No mention of ACORN protests in the lobby of the banks.
No mention of the Federal income tax system that encouraged people to over-invest in real estate.
No mention of the lack of financial literacy taught in our failed public schools.
No mention of the fact that Ben Bernanke has doubled-down on Alan Greenspan’s low rate policy by taking rates down to almost zero.
No mention of the fact that Tim Geithner and Bernanke are old-timers at the Fed.
No mention of the fact that the majority of political donations from Wall Street and Fannie/Freddie go to Democrats.
You want a video that explains what happened?
Here ya go:
“Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis”
http://www.youtube.com/watch?v=_MGT_cSi7Rs
It is true that the video does not connect all the dots, but it is simple enough to wake some people up.
It puts all of the blame on fat cat bankers (representing the free market in most people’s minds) and tries to deflect the blame from the real cause, which was the government’s meddling in the free market.
I am a huge advocate of educating people also... however, pieces like this will lead to even more heavy-handed regulation which will further distort the free market and deepen the crisis.
The new Credit CARD Act is a product of populist outcry. It is going to have terrible unintended consequences.
But those consequences will pale compared to the disastrous ones that will come about due to Dodd’s proposed financial overhaul bill... that one will pretty much put the nail in the financial market’s coffin.
This video does not educate people about the terrible effects of government meddling. It only serves to inflame their distrust of the free market and give more ammunition to the very same politicians who caused the crisis in the first place to increase regulation.
That’s the only point I’m trying to make...
Thanks for the discussion.
Important additions. Also
Timeline shows Bush, McCain warning Dems of financial and housing crisis; meltdown
Youtube ^ | 9-24-08 | Proud To Be Canadian
http://www.youtube.com/watch?v=cMnSp4qEXNM&NR=1
The Bush Admin and Senator McCain warned repeatedly about Fanny Mae and Freddy Mac and what thus became the 2008 financial crisis — starting in 2002 (and actually even earlier — in the Clinton and Carter White Houses.
Democrats resisted and kept to their party line, extending loans to people who couldn’t afford them — just like you would expect of socialists.
http://www.freerepublic.com/focus/f-news/2451424/posts
~~~~~~~~~~
The CRA Scam and its Defenders (ACORN’s role in the subprime crisis)
http://www.freerepublic.com/focus/news/2084666/posts
The myth that the CRA would not be harmful to bank-industry profits was hidden for years by the Fed-created housing bubble, which allowed for easy refinancing of all the bad debt. “[The] CRA increased lending and homeownership in poor communities without undermining banks’ profitability,” Robert Gordon proudly proclaims.”
How ACORN Helped The Housing Crisis Harm Taxpayers
The Virginian ^ | 9/27/2008 | Moneyrunner
http://www.freerepublic.com/focus/f-bloggers/2091698/posts
WHAT CAUSED THE ECONOMIC CRISIS
Now we know what a community organizer does
http://www.jeffhead.com/obama/communityorgan.htm
Obama sued Citibank Under CRA to Force it to Make Bad Loans
http://www.freerepublic.com/focus/news/2101106/posts
~~~~~~~~~
Freeper Liz has done great research on financial corruption. Here she ties in Rahm Emmanuel and the BHO administration:
Rahm Emanuel’s Profitable Raping of Freddie_Mac
Freddie Mac records exempt from FOIA (Obama Admin Denies Request)
Rahm Emanuel’s Profitable Raping of Freddie_Mac
http://www.freerepublic.com/focus/news/2296845/posts?page=46#46
~~~~~~~~~~
Truth Comes Out at Financial Crisis Hearings; State-Run Media Ignores: Greenspan says the subprime crisis started it all.
http://www.rushlimbaugh.com
RUSH: “Now, it’s fascinating because Angelides, when the microphones are off, after Greenspan finished, there was a little audio from the former chairman. Angelides said that Greenspan had given a lights-out performance. And that’s in the Politico: “Greenspan Defends Legacy, Jabs Hill.” So Angelides, Democrat, he told the truth.
It’s just fascinating. Well, it’s not fascinating. It’s interesting to point out that when they’re leaving the game, when Washington and the culture there can no longer do anything for them, they tell the truth. In the middle of the scandal don’t dare tell the truth if you want to remain a player in the game.”
~~~~~~~~~~
Greenspan says Congress pushed Fed on housing boom
http://www.freerepublic.com/focus/f-news/2488415/posts
Greenspan Could Have Prevented Housing Collapse Claims NY Times Op-Ed
http://www.freerepublic.com/focus/f-news/2486757/posts
~~~~~~~~~~~
PBS Frontline: The Warning — How Greenspan, Summers & Rubin Conspired To Silence Derivatives Whistleblower Brooksley Born:
Born says. “That puzzled me. What was it that was in this market that had to be hidden?”
http://www.pbs.org/wgbh/pages/frontline/warning/view/
I disagree. Thanks for the discussion.
Bookmark
This crisis is so much bigger than subprime it is not even funny. Subprime was simply the first link to break in a horrendously over-stretched chain of debt.
To describe this crisis as something that was caused by, started by, or limited to subprime is to completely misrepresent and/or misunderstand the scope of the problem.
There are trillions of dollars in other types of loans that are defaulting at just as high or possibly an even higher rate than subprime.
75% of the 5 - 7 million mortgages that are 6 months delinquent right now were originally packaged as “traditional prime”.
By the early 2000’s, the average “prime” loan DID NOT fit the traditional definition of a prime mortgage: 20% down payment, fully documented income, fixed rate, low debt-ratio.
Back then, a down payment was not called an “investment”, it was “an obstacle to home ownership”. Practically nobody wanted to put 20% down. Instead, they wanted to “invest” that money in the stock market and borrow as much as possible on their mortgage so that they could maximize their mortgage interest deduction on their tax returns.
A 2008 study of 4 million foreclosures found that “low or no down payment” is the #1 common denominator in foreclosed mortgages... 51% of the 4 million foreclosures in that 2008 study were originally packaged as “prime” loans.
We have almost 12 TRILLION dollars in outstanding residential mortgage debt (that does not include apartments or commercial, 12 trillion is just 1 - 4 family residential mortgages). Half of that 12 trillion was originated in 8 short years from 2000 - 2008.
(To put that in some sort of perspective, 1 Trillion, just ONE, is $1 per second for 32,000 years, without interest!)
When a person can grasp the fact that the vast majority of 6 Trillion dollars in mortgages that were done during that 8 year period when the market was OVER-PRICED were technically non-prime loans (and they were “under water” from day one), then they will understand the scope of this problem.
That does not even begin to take into account all of the commercial real estate debt, corporate debt, municipal debt, state debt and federal debt.
Then throw in hundreds of billions of dollars in underfunded pensions and 100 trillion dollars in unfunded entitlement programs...
In short, subprime is a small piece of an overall amount of debt that is simply incomprehensible.
Add to that, the fact that millions of jobs existed only because of the boom that was fueled by all of that debt. Those jobs are not coming back any time soon.
Rush asked the other day when he was talking about the $500 billion pension shortfall in CA, “was it all just a house of cards?!?!”
The answer is yes. Yes to all of the above.
Some of us are very aware that the jobs are not coming back soon because the debt bubble burst. Having said that, it is really hard to hear people, including FReepers, say all these lazy people need to get off their butts and find a job. Our country is in big trouble.Well written.
Thank you, we agree!
I just had that exact conversation with someone today.
We killed our manufacturing sector with taxes that are too high, regulations that are too restrictive and too many frivolous lawsuits. Obamacare is yet another kick in the stomach to businesses. Who can blame them for going overseas??
There is a reason that CA and TX are in such opposite situations. CA did what I listed above, TX did not.
Now, even if someone wants to work, there isn’t a job here for them.
And the problem is only going to get worse with the proposed legislation that is coming down the pike. You want to talk job-killer? Cap n Trade and the new EPA regulations will be the two biggest American job killers ever.
It’s tragic.
This crisis is so much bigger than subprime it is not even funny. Subprime was simply the first link to break in a horrendously over-stretched chain of debt.
To describe this crisis as something that was caused by, started by, or limited to subprime is to completely misrepresent and/or misunderstand the scope of the problem.
There are trillions of dollars in other types of loans that are defaulting at just as high or possibly an even higher rate than subprime.
75% of the 5 - 7 million mortgages that are 6 months delinquent right now were originally packaged as “traditional prime”.
By the early 2000’s, the average “prime” loan DID NOT fit the traditional definition of a prime mortgage: 20% down payment, fully documented income, fixed rate, low debt-ratio.
Back then, a down payment was not called an “investment”, it was “an obstacle to home ownership”. Practically nobody wanted to put 20% down. Instead, they wanted to “invest” that money in the stock market and borrow as much as possible on their mortgage so that they could maximize their mortgage interest deduction on their tax returns.
A 2008 study of 4 million foreclosures found that “low or no down payment” is the #1 common denominator in foreclosed mortgages... 51% of the 4 million foreclosures in that 2008 study were originally packaged as “prime” loans.
We have almost 12 TRILLION dollars in outstanding residential mortgage debt (that does not include apartments or commercial, 12 trillion is just 1 - 4 family residential mortgages). Half of that 12 trillion was originated in 8 short years from 2000 - 2008.
(To put that in some sort of perspective, 1 Trillion, just ONE, is $1 per second for 32,000 years, without interest!)
When a person can grasp the fact that the vast majority of 6 Trillion dollars in mortgages that were done during that 8 year period when the market was OVER-PRICED were technically non-prime loans (and they were “under water” from day one), then they will understand the scope of this problem.
That does not even begin to take into account all of the commercial real estate debt, corporate debt, municipal debt, state debt and federal debt.
Then throw in hundreds of billions of dollars in underfunded pensions and 100 trillion dollars in unfunded entitlement programs...
In short, subprime is a small piece of an overall amount of debt that is simply incomprehensible.
Add to that, the fact that millions of jobs existed only because of the boom that was fueled by all of that debt. Those jobs are not coming back any time soon and we have completely destroyed our manufacturing sector with over-taxation,over-regulation and frivolous lawsuits.
Rush asked the other day when he was talking about the $500 billion pension shortfall in CA, “was it all just a house of cards?!?!”
The answer is yes. Yes to all of the above.
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