Posted on 03/04/2009 1:40:03 PM PST by Feline_AIDS
How did we get here?
I want to know because I'm not an economist, and although I've tried to put it all together, it doesn't make sense.
Here's what I think has happened, but it feels incomplete:
Banks loaned money to people who didn't qualify for those loans because of Carter's Community Reinvestment Act. This was stupid, but people (who?) were making money off it, so they didn't stop.
Barney Frank defended against regulation of Fannie and Freddie proposed by GWB because he received money from both.
The people couldn't pay their loans, so the banks needed to get that money back and foreclosed on the house, then tried to sell it.
This burst the "housing bubble" (what is that?) and caused the banks to need a bailout. (Why? Why would the government do that in the first place?)
Then other industries besides banking needed money, because they had spread themselves too thin. (right?)
Uncle Sam says that no big industry can fail, so it gives away imaginary money to, as I see it, paint the sides of a sinking ship.
Is that what happened? Why did the housing bubble not burst long ago if these people never could repay their loans?
Before you ask, yes, I went to public school and am just emerging from the web of lies I've been tangled in for 15 years.
You left out that Frank was having a homosexual affair with an executive at Fannie.
If he was a (R), does anyone think this would not be endlessly joked about by the late night comics?
Franklin Raines (Onazi’s campaign finance director and former head of Fannie) bundled the bad mortgages into investment vehicles, then lied about the nature/health of those vehicles to sell more of them and drive up the profitability of Fannie. That helped the crisis spread to the banks, Europe, and your 401(K).
http://www.freerepublic.com/focus/f-news/2198896/posts
It’s no coincidence that all this crisis stuff happened in October, 2008.
This was manufactured, and they bit off more than they can chew.
Banks WERE FORCED TO loan money to people who didn’t qualify for those loans because of Carter’s Community Reinvestment Act.
There fixed it.................
Another FReeper suggested these videos. They help break it down pretty well, at least how the credit crisis developed.
http://www.youtube.com/watch?v=Q0zEXdDO5JU
http://www.youtube.com/watch?v=iYhDkZjKBEw
Was he really? I thought he’d quit after the prostitution ring...
Like cracks in a dam, a little pressure applied a little at a time and suddenly the dam bursts........................
Well, it really started with FDR but....
If I remember correctly Freddie Mac and Fannie Mae received help in the savings and loans debacle which was created in the Carter era and came to a head in the 1st Bush administration.
The beginning stages of Socialism brought us here, the Demonrat congress just added more fuel to the fire.
Getting a divorce, eh?.............
One word: Government.
Thanks
Awesome—thanks
(Oh, wait, that's a different cautionary tale...)
We got here because banks found a way to evade Basel II collateral requirements for loans by creating credit default swaps. Normally in a recession, the failures only decrease the available amount of credit by 10 or so (the leverage ratio of the banks), but many banks were overleveraged by 50 or more.
Freepers have filed many reports on this.
George Soros and Jimmy Buffett took all of their money out of the bank on Sept 11th 2008, it was 550 billion and it burst the housing bubble.
Then Barney Frank and his gay lover sold mortgages to reps and sentators, and they werent good for it.
Now there is billions in securities that wont sell because the houses are owned by these villans, and illegals.
Sarah Palin is trying to help but the MSM is socialist.
They also willing leveraged up to make a ton of $$$.
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