Posted on 10/16/2010 2:57:25 AM PDT by Mr. K
CUOMO: To take a greater risk on these mortgages, yes. To give families mortgages that they would not have given otherwise, yes. Q: [unintellible] … that they would not have given the loans at all? CUOMO: They would not have qualified but for this affirmative action on the part of the bank, yes. Q: Are minorities represented in that low and moderate income group? CUOMO: It is by income, and is it also by minorities? Yes. CUOMO: With the 2.1 billion, lending that amount in mortgages — which will be a higher risk, and I’m sure there will be a higher default rate on those mortgages than on the rest of the portfolio …
Lootie...
I understand. However, we are on the heels of a depression because of this. I don’t care if he’s running for dog catcher or has taken a job as a dishwasher, he should fry for this anyway.
The root of the housing melt down was the Federal Reserve, period.
Not a one of them, Democrat or Republican could have done any of it without being enabled by the central bank.
And banks are like sharks, if they aren't loaning they'll drown. You have to remember that the bank is paying interest out on all the money they hold, so they can't hold it long. They need to get it loaned fast and make that spread, otherwise they sink to the bottom quick. It's just the way a central bank/fractional reserve system works. It's a structural issue and has no political party.
I hope every FReeper is downloading that video and putting it on You Tube and all over the internet. This needs to go viral.... NOW! Election day isn’t far away.
The people who are on this board making this a partisan issue are really one of the big problems in this country. They don't understand the system. They hear terms like derivative, and collateralized debt obligation, and then they go on to use them wrongly because they don't really know what they are or how they work.
They're angry and ignorant and then they hear Rush or Hannity run these words (that they also don't understand) through the "Republicans good, Democrats bad" filter, and that is all they can grasp so they cling to it as gospel. And that's just what Wall Street, DC, and the politicians want them to do. They want them ignorant and flailing at strawman targets so they can keep the fleecing going.
This time the problem is structural and not cyclical though and no amount of "animal spirits" boosterism is going to mask the rot and and keep it going.
bookmarked
Exactly right. He wants to make the election about gay marriage. Paladino needs to make it about Freddie, Fannie and Cuomo... and fast! Time is running out. He needs to hang the mortgage crisis around Cuomo and he needs to run some commercials ASAP.
“but the Repubs were enablers at the least.”
Not quite true....
They only “enabled” to the extent that they let it happen, because every Repub that tried actually DOING SOMETHING to stop it, and stop the huge flow of money to DEMOCRATS and Democrat Orgs like ACORN, was pilloried in the media as a RACIST, and a hater of poor people.
That is an idea. New Yorkers should be informed. Even the Village Voice thinks Cuomo is a Dog!
Thanks for posting!
Now, else we forget and repeat history next election ....
President Hosts Conference on Minority Homeownership
http://georgewbush-whitehouse.archives.gov/news/releases/2002/10/20021015-7.html
“Huge Federal Government is a core tenet of RATS though. Yes Pubbies have contributed, but philosophically Conservatives and most Republicans stand against this kind of market intervention that has led to this debacle.”
Who said this....
“And, of course, one of the larger obstacles to minority homeownership is financing, is the ability to have their dream financed. Right now, we have a program that all of you are familiar with, maybe our fellow Americans are, and that’s what they call a Section 8 housing program, that provides billions of dollars in vouchers to help low-income Americans with their rent. It encourages leasing. We think it’s important that we use those vouchers, that federal money to help low-income Americans go from being somebody who leases to somebody who owns; that we use the Section 8 program to not only help with down payment, but to help with continuing monthly mortgage payments after they’re into their new home. It is a — it is a way to help us meet this dream of 5.5 million additional families owning their home.
I’m also going to encourage the lending industry to develop a mortgage market so that this script, these vouchers, can regularly be used as a source of payment to provide more capital to lenders, who can then help more families move from rental housing into houses of their own. “
http://georgewbush-whitehouse.archives.gov/news/releases/2002/10/20021015-7.html
I find it very interesting that, when it comes to all discussions about the housing crisis, Bush’s “Ownership Society” rarely, if ever, gets mentioned. DemocRATS can’t exactly point the finger over this fine progressive agenda, and Republicans, although this agenda was received by them with applause, don’t want to be reminded of the role Bush played.
Am I the only one who thinks it ABSOLUTELY INSANE to give mortgages to unemployed and illegals being housed with a Section 8 housing voucher!!
You are 100% correct- but it was Cuomo who sued them and won the biggest settlement ever for $2.1 bilion (a lot of money at the time) and sent the signal to the rest of them
This, while at the same time FANNIE and FREDDIE moved to guarantee them agaist lost- you had a double whammy.
Banks knew it was bad loans but they were force to do it under threat of lawsuit. And they were guaranteed not to lose money, so.. whammo. Housing price roase and rose while they loaned and loaned, and everyone pocketed money all around- Especially the thieves Harold Raimes and AIG and Goldman Sachs.
“DemocRATS can’t exactly point the finger over this fine progressive agenda, and Republicans, although this agenda was received by them with applause, don’t want to be reminded of the role Bush played.”
It’s one thing to talk about a government incentivized home ownership program within Section 8 (for maybe for a small group of people meeting a clear set of criteria), it’s a whole other thing to have opened up the floodgates to some grandiose dream of increasing minority home ownership by 5.5 million families. That said, Pres. Bush mentioned “good policies out of Washington” and “a strong commitment from those of you involved in the housing industry.”
+++++++++++++++++++++
Whatever vision Bush and team had in 2002, it’s clear looking back that their version of minority home ownership failed along with Barney Franks and Chris Dodd’s and every other RATs even more grandiose schemes.
Don’t forget when the Bush admin tried to pull back the excesses of Fannie and Freddie they were opposed on every count.
Who’s to blame? I say trusting bankers too much to do the right thing (complete repeal of Glass-Steagall w/o adequate controls to replace/reform it), the RATS socialism, Bush’s tendency to be liked as a compassionate Conservative without pushing back against lame brained grandiose schemes, and then the RATs refusal to help Bush reign in the mess 2005 - 2007. There weren’t a lot of heroes.
I maintain that philosophically Republicans and Conservatives are (or should be) against this kind of massive market intervention and disruption.
The free market, and free people, can do way more good for the poor than any government program ever could. World Vision, Food for the Hungry, Compassion International, and even Habitat for Humanity prove that - all have innovative programs to help the poor. Probably Habitat is more inclined to be liberal and look for government help, but they still have innovative private programs to help the poor into home ownership.
wow- I am home saturday night to blog this...
what a geek I am
I wish Paladino would talk about Cuomo’s HUD more.
“Capture it and email the link to Drudge and then Paladino.”
Good idea. Maybe you could do it, or maybe you know someone who can.
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