The Rush Limbaugh LIVE Radio Show - Tuesday, June 14, 2011

The EIB Net ^ | 06/14/2011 | Rush Limbaugh

[IMissPresidentReagan]

AND NOW . . . amidst billowing clouds of fragrant, aromatic first- and second-hand premium cigar smoke. . . it is time for . . . that harmless, lovable little fuzz ball, the highly-trained broadcast specialist, having more fun than a human being should be allowed to have, from behind the golden EIB microphone, firmly ensconced in the prestigious Attila-the-Hun chair at the Limbaugh Institute of Advanced Conservative Studies, serving humanity simply by showing up, and he’s not retiring until every American agrees with him, do NOT doubt him, with shrieks of joy at the mere mention of his name (that’s Rush, for those in Rio Linda),the Mandarin of Talk Radio, with talent on loan from G-d, at the cutting-edge of societal evolution, with half his brain tied behind his back — just to make it fair, the all-knowing, all-caring, all-sensing, all-feeling, all-concerned Maha-Rushie! America’s anchorman, truth detector, and doctor of democracy. A Real Man, a living legend, a way of life. Commander in Chief of U.S. Operation Chaos. Chief Waga-Waga El Rushbo of the El Conservo Tribe. Chief of the Patriotism Police. Leader of the Conservative Movement. A Weapon of Mass Instruction. El Rushbo (a little Spanish lingo, there). He is the man who is running America (you know it and I know it). He knows the Democrats like every square inch of his glorious naked body. He is ready to do what he was born to do—that’s host. Get ready to what you were born to do—that’s listen (and post your comments on the Rush Limbaugh LIVE Radio Thread).

[Pelham]

“The banks that were originally doing to subprimes couldn’t keep up with demand and mortgage shops were created out of thin air to fill the void.”

IIRC the mortgage shops developed out of Wall Street’s entry into the field. Unlike local banks WS didn’t have its own loan writers. A lot of shops were created by former employees of Ameriquest, Argent, and other firms that developed the subprime industry.

“but wouldn’t have mattered much without the creation of the environment by the CRA. “

Disagree. Wall Street was looking for a way to develop a large subprime mortgage market for investment purposes and the CRA didn’t cover them. CRA is small potatoes compared to what the gutting of Glass Steagall unleashed. The CRA had no regulatory power over the Wall Street firms that were not deposit takers, and Wall Street is where the huge money driving the subprime market came from.

“Rush is wrong that this wasn’t a very severe crisis. If the fed and Treasury did not step in with TARP and capital injections, the system would have melted down and massive bank runs would have created a financial catastrophe.”

Agree. Most people, Rush included, have no reason to be familiar with the capital markets. When the money markets began to break the buck the country, and the world for that matter, came to the brink of something far worse than what we have experienced to this point.

The big mistake with regards to TARP and the bailouts was not putting tight controls on how they can be used.

[sloop]

bingo!

the lady has a nose on her

sniffed it out

[Pelham]

“housing did not invent the derivative - it has been around longer than this crisis “

Which is what I said. Gillian Tett wrote the best account of the development of the derivatives industry that I know of.

[Pelham]

“Well sure they wanted in. The Government was backing up the huge risk!! “

IBs, hedge funds, and pure mortgage lenders had no government backstop. You are conflating them with retail banks, S&Ls, and other deposit takers.

[Eagle of Liberty]

The only reforms I’m aware of were the ones to investigate the way that Fanny and Freddy were issuing bonuses to their executives.

Is this the same thing as you mentioned? I think it is different:

New Agency Proposed to Oversee Freddie Mac and Fannie Mae

The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.

Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.

The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.

The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac -- which together have issued more than $1.5 trillion in outstanding debt -- is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.

read more at the link

Barney Frank's response:

”These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ”The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”

[IMissPresidentReagan]

Saw the Paulster’s name and had to ask - did he have an accident shaving his eyebrows or something? One of his eyebrows looks half shave and we were debating whether it was intentional or he lost it in a bet or what.

[sloop]

until you fill in the blanks, i reject your theory

[ejdrapes]

Where is this thinking coming from besides FR and/or C4Palin?

[Wyatt's Torch]

“but wouldn’t have mattered much without the creation of the environment by the CRA. “

Disagree. Wall Street was looking for a way to develop a large subprime mortgage market for investment purposes and the CRA didn’t cover them. CRA is small potatoes compared to what the gutting of Glass Steagall unleashed. The CRA had no regulatory power over the Wall Street firms that were not deposit takers, and Wall Street is where the huge money driving the subprime market came from.

What I am trying to say here is that the subprime market that the Wall Street firms were so interested in would not have existed without the CRA. The push of the CRA and the "ownership society" and "everyone should own a home" frrm Washington was the catalyst that created these new class of loans. Without that market intervention from the morons in DC, the housing crisis never comes about.

[sloop]

the eyebrows serve two functions - no one can hear a thing he says because they distract - and they pick up signals from his space aliens

don’t even ask the functions his freakishly large nipples provide

[Wyatt's Torch]

IBs, hedge funds, and pure mortgage lenders had no government backstop. You are conflating them with retail banks, S&Ls, and other deposit takers.

Right. This is why the Fed and TARP were necessary in order to provide the same backstop retail banks and S&L's.

[Eagle of Liberty]

The Gramm–Leach–Bliley Act (GLB), also known as the Financial Services Modernization Act of 1999, (Pub.L. 106-102, 113 Stat. 1338, enacted November 12, 1999) is an act of the 106th United States Congress (1999–2001). It was signed into law by President Bill Clinton and it repealed part of the Glass–Steagall Act of 1933, opening up the market among banking companies, securities companies and insurance companies. The Glass–Steagall Act prohibited any one institution from acting as any combination of an investment bank, a commercial bank, and an insurance company.

The Gramm–Leach–Bliley Act allowed commercial banks, investment banks, securities firms, and insurance companies to consolidate. For example, Citicorp (a commercial bank holding company) merged with Travelers Group (an insurance company) in 1998 to form the conglomerate Citigroup, a corporation combining banking, securities and insurance services under a house of brands that included Citibank, Smith Barney, Primerica, and Travelers. This combination, announced in 1998, would have violated the Glass–Steagall Act and the Bank Holding Company Act of 1956 by combining securities, insurance, and banking, if not for a temporary waiver process.[1] The law was passed to legalize these mergers on a permanent basis. GLB also repealed Glass–Steagall's conflict of interest prohibitions "against simultaneous service by any officer, director, or employee of a securities firm as an officer, director, or employee of any member bank."[2]

Looks like this was even bigger than the Glass-Steagall Act.

[Eagle of Liberty]

That was a good answer by Newt.

[advertising guy]

crap that’s funny

[ejdrapes]

Any rumors out their about what this announcement will be?

[Political Junkie Too]

I know what I wrote a few weeks ago regarding Limbaugh endorsing a primary candidate.

I feel that it is too early for anyone to endorse a candidate.

I would not endorse endorsing a candidate until the eve of the first primary elections.

It's only June 2011, and yet the MSM is already acting like it's June 2012. Don't fall into the MSM trap of rushing to close doors on candidates this early in the process.

-PJ

[all_mighty_dollar]

“you are just outright WRONG”

I’d have to agree after lots of review over the last years. Reckless Endangerment organizes it a bit but still points to CRA and James A. Johnson.

Perhaps, like the blind guy, you were holding the elephant tail & thinking that’s covers the description.

[IMissPresidentReagan]

Oh dear me! LOL.

[sloop]

sloop’z so not right

sigh

[Girlene]

Any rumors out their about what this announcement will be?

It's not anything we're guessing, according to Rush, not even close. Hmmmmm.