Posted on 06/14/2011 8:15:28 AM PDT by 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).
True. Problem is that this is only half the story. The CRA and the push by the Clinton Justice Department was the causation for new types on loans of which subprime was one. 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.
Agree with you on derivative regulation and Glass-Stegall. those were bad mistakes but wouldn't have mattered much without the creation of the environment by the CRA. That was the underlying disease and the symptoms were flimsy mortgages, rating agencies, CDO's, credit default swaps, AIG insurance on these instruments, overnight intra-bank lending on these assets, LTCM, Bear Stearns High-Grade Structured Credit Fund, Lehman, etc.
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.
I did not watch a second of the debate and bet I could write the answers near exact
... my horse in the race was tannin a moose hide
that is a guess
“So when Clinton told Franklin Raines in ‘98 to loosen eligibility for minorities on loan had nothing to do with the CRA and the collapse of mortgage backed derivatives?”
The CRA only affected depository institutions, which means banks and S&Ls as you normally think of them. It had zero impact on Wall Street investment banks, hedge funds, and pure mortgage lenders, none of which take deposits. They get their funding from investors.
The IBs, hedgies, and pure mortgage lenders were eager to get into the subprime market entirely on their own, and in fact were lobbying Washington to make it easier for them to get into the business. They had convinced themselves that it was an untapped market offering high returns.
Wall Street developed its own CDO mortgage backed securities to compete directly with those offered by Fannie and Freddie. F&F dealt in ‘conforming paper’ which was stodgy and low-yield. The CDOs of Wall Street were much higher yield, paid huge fees to those writing the paper, and during the bubble took huge market share away from Fanny and Freddy.
Wall Street used its subprime loans as the base for its derivatives. I’m not aware of any derivatives based upon Fannie and Freddy. The derivatives market had developed in London and had no connection with the American mortgage market until Wall Street began writing derivatives on CDOs as a new source of revenue.
But to get back to your original question, Clinton’s order to Raines was headed in the same direction as the other ‘innovations’ that led to the subprime crisis. But if every mortgage written as a result of that order had gone bad you couldn’t have had the subprime crisis simply because the number of mortgages involved isn’t large enough. It took the financial firepower of Wall Street to turn the subprime industry and its related derivatives into a trillion dollar industry whose collapse could take down the world’s economy.
I remember Dobbs actually begging Warren Buffet to come on his show to defend TARP to his viewers. TARP was simply throwing money at the problem, rewarding bad behavior. Talk about good money after bad. The only good thing to come from all this was Rick Santelli and the Tea Party Movement.
they bought the bad loans caused by the cra
bingo
post reply of the day
( except for my funny stuff of course)
p.s.
glad you are on our side...you good !
where did the loans come from?
I see most of the glowing reports coming from.conservative media. Regardless I think Bachmann had a good night. It seems even the MSM could see that. Doesn’t mean they’re pushing her over anyone else.
“talk to someone else..........I have more respect for the brown stuff on toilet paper
you have a deceivin agenda and can tweet Weiner for all I care”
Yeah, I have an agenda of trying to know what goes on around me without altering it to fit an ideology. Now go say hi to Weiner and give your respects to your brown stuff.
housing did not invent the derivative - it has been around longer than this crisis
ole sayin from the old southwest
” if three people tell ya you are shot, lay down “
so far I count 16 holes in you
Weiner only had 8 holes, you win.
True. But an educated one. After Lehman, Merrill was getting ready to fall, then Goldman, then AIG. You lose two more investment banks, the worlds largest insurer and trillions more of wealth and there would have been panic. And that doesn't take into account all the hundreds of other smaller banks that would have been impacted by the big boy contagion. TARP and the capital injections showed the world that there was a solid backstop and it stopped the panic.
Hey, vote for me. I fostered 23 children and introduced a bill. Give me a flipping break. She had not demonstrated any ability to lead and produce results in an executive setting. All the regurgitated shallow sound bites in the world will not change that fact.
If by some cruel, twist of fate she would happen to be the last person standing, I would hold my nose and vote for her; with the expectation that her presidency will be an unmitigated disaster.
She has her place in this process but it isn't in either of the top two slots.
omg just too good thanks!!
i just flat out don't believe that
I think this is geithner/bernanke logic.
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