Gerald Warner: Capitalism didn't kill the banks - socialism did (read and bookmark)

The Scotsman ^ | Nov. 23, 2008 | Gerald Warner

[ChowChowFace]

Bump

[Oldexpat]

I’m talking with realestate agents handling foreclosurers in SoCal and I can confirm that a vast majority of these deals were people who managed to get loans because of CRA and that prices were pushed up by CRA loans. You have plenty of illegals with 400k mortgages..going into foreclosurer.

[freedom_forge]

Now read this real slow, the CRA legislation never applied to the mortgage markets. It only applied to banks. Then ask yourself has clintoon been in office for the past eight years?? And did we not have a republican congress for most of the clintoons years and the jorge years.

This makes sense only if you are completely and purposely ignorant of the details. For what it's worth, not only were Democrats able to block or filibuster any reform legislation but they threatened Republicans with the race card if any attempted to reform the CRA, Fannie or Freddy. So even though reform was attempted, double digit attemmts in fact, nothing came of it.

[GVnana]

As one who worked in the mortgage industry during this entire fiasco I can tell you that Fannie/Freddie policy, steared by CONGRESS, was the major culprit.

Remember the "refi boom" 2001-2002? Instead of a return to "normalcy" in the mortgage markets when the boom ended, Fannie/Freddie launched an increasingly aggressive series of subprime mortgage products. That lead to inflation in housing prices, and the eventual crash of the housing market due to non-performing loans.

I don't know how you can say CRA applied to banks and not mortgages when CRA dictated the number and kind of mortgages banks were required to issue.

There's a very good video called "Burning Down the House" that provides a summary of these events:

http://www.youtube.com/watch?v=1RZVw3no2A4

[SuziQ]

Bump for later Sunday reading

[Lakeshark]

I seriously doubt he even knows what derivatives are and what they do. You might want him to explain what they are, and how they actually caused the crisis.

He might melt before our very eyes.

[Deb]

bump to you

[Bellflower]

And America rewarded them by electing Democrats in by the drove. Go figure!

[American in Israel]

It was not that the Banks had greed, they were forced into these loans by the Goobermint. Saying the Banks had greed to excuse the government is like saying a woman that was raped might have enjoyed it so the rapist is innocent.

Pure Pelosi.

[org.whodat]

http://freerepublic.com/focus/f-news/2133189/posts

[org.whodat]

http://www.numa.com/ref/faq.htm

[org.whodat]

University of Michigan Law Professor Michael Barr, a specialist in banking and finance law, flatly rejected claims that the CRA was "a significant factor in the current crisis. CRA was enacted more than 30 years ago. It would be quite odd if this 30-year old law suddenly caused an explosion in bad subprime loans from 2002-2007....Subprime mortgages were mostly made by mortgage brokers and lenders and securitized by investment banks -- institutions not covered by CRA," he told the Huffington Post, adding, "CRA only covers banks and thrifts, and these institutions mostly have not suffered to the same extent or kind from bad lending as the non-CRA-covered institutions at the core of the current crisis. The problem here is not CRA. It is what the late former Fed Governor Ned Gramlich called 'the giant hole in the supervisory safety net' -- bad lending by firms outside the banking sector's rules for prudential supervision, capital requirements, consumer protection and yes, the CRA."

If you don't know the topic you can always BS, applies to you sir.

[org.whodat]

The name is Marc Rich and he was a commodities trader, his attorney was Scooter Libby, and I think his charges were on income tax and trading oil with Iran.

It was way before a derivative was invented, but if you have a link I would be happy to read it.

[org.whodat]

What BS, I only tell it as it happened, both sides, democrat and republican are at fault here, just look at who was receiving money and contributions from Eddie and Fannie, and what people were working as lobbyist for them to prevent regulation. Not to mention the Builders association and Realtors. The truth of what happened is important.

If you can prove otherwise post it if not stop the childish personal attacks.

[org.whodat]

I seriuously doubt you know jack, but you may try reading this.

http://www.numa.com/ref/faq.htm

[org.whodat]

Childish!

[org.whodat]

http://www.freerepublic.com/focus/f-news/2136880/posts

[GVnana]

And?

[rockinqsranch]

“University of Michigan Law Professor Michael Barr...”

A Leftist whom was under Ruben in the Clinton Administration at the time of the assault on the Mortgage Industry.

“...he told the Huffington Post,...”

You cite the Huffington Post, and a Leftist Clintonite in defense of your ignorance!? This ends the discussion as far as I am concerned.

“It would be quite odd if this 30-year old law suddenly caused an explosion in bad subprime loans from 2002-2007....Subprime mortgages were mostly made by mortgage brokers and lenders and securitized by investment banks — institutions not covered by CRA,...”

Your source is lying to you by omission of facts, and you are ignorant enough of the facts to actually not be aware. Something the Left relies heavily upon is ignorance and you apparently fall within the category they covet so dearly of the ignorant masses.

“FocusNexus” is correct beyond a doubt. You are a sleeper Troll.

I won’t respond to any further of your ignorant prattlings. A waste of my time.

[org.whodat]

The total amount of derivatives is now estimated (2006 mid-year market survey), by the International Swaps and Derivatives Association (ISDA), to be over $283 trillion. That number is about 7 times the economic output of the entire world, at about $40 trillion.

Stupid is as stupid posts!, But then I guess you just don't see the problem here!!