Private sector loans, not Fannie or Freddie, triggered crisis
WASHINGTON — As the economy worsens and Election Day approaches, a conservative campaign that blames the global financial crisis on a government push to make housing more affordable to lower-class Americans has taken off on talk radio and e-mail.
Commentators say that's what triggered the stock market meltdown and the freeze on credit. They've specifically targeted the mortgage finance giants Fannie Mae and Freddie Mac, which the federal government seized on Sept. 6, contending that lending to poor and minority Americans caused Fannie's and Freddie's financial problems.
Federal housing data reveal that the charges aren't true, and that the private sector, not the government or government-backed companies, was behind the soaring subprime lending at the core of the crisis.
Subprime lending offered high-cost loans to the weakest borrowers during the housing boom that lasted from 2001 to 2007. Subprime lending was at its height from 2004 to 2006.
Federal Reserve Board data show that:
Read more here: http://www.mcclatchydc.com/2008/10/1...#storylink=cpy
The root of the problem lay in the fact that millions of people who could not reasonably afford these mortgages were receiving them. The government undeniably owes some responsibility to this, given Congressional programs to push through mortgages to high-risk lendees. Both parties applauded these programs at the time, and will foolishly continue to do so. No politician wants to be seen as "hurting poor folks." The irony of such a statement is rich, given it's apparent outcome today.
P.S. are you defending fannie and freddie? Who do you think was writing all these bogus mortgages!?
Sorry comrade. Stop pushing lies
Second-quarter U.S. GDP revised down to 1.3% - MarketWatch
WASHINGTON (MarketWatch) - The government cut its calculation of U.S. growth in the second quarter to 1.3% from 1.7% in its third and final review, citing less consumer spending and business investment than previously estimated. Consumer spending rose 1.5% in the previous quarter instead of 1.7% as initially forecast. And business investment, excluding residential housing, was revised down to a 3.6% increase from 4.2%. The government also said corporate profits climbed $21.8 billion in the second quarter, compared to a $53.0 billion decline in the first quarter. The economy grew at a 2.0% pace in the first three months of the year.
Federal Reserve Board data show that:
More than 84 percent of the subprime mortgages in 2006 were issued by private lending institutions.
Private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year.
Only one of the top 25 subprime lenders in 2006 was directly subject to the housing law that's being lambasted by conservative critics.
Last quarter was 3rd quarter. 3.1% growth. Your link is citing 2nd quarter. As it says right there in your link's headline..Originally Posted by Bronson
Second-quarter U.S. GDP revised down to 1.3%
No one is lying. Not even you. You are just wildly wrong again... Comrade.
[QUOTE=poweRob;1061326965]More name calling rantings with no links. You are becoming a broken record.[/
Ive posted a detailed explanation of the sub-prime collapse going back to its inception in the early 90s before that not one of you guys could rebut.
Some lib even tried to rip off a ridiculous Paul Krugman article on the subject.
I studdied it, read books and read the report released by the Govt.
You guys dont typically possess the character or the integrity to own up to your exponentially growing failures so why exactly do you need a link ?
And if a link alone proves the ridiculous assertion that it all started under Bush.
Just to come on here trying to push these lies speaks volumes about your party's ideology and its not good as every aspect of our Country has gotten worse under your parties ideological leader.
But yes, blame Bush, thats all you have. Well that and "links" to subjective fools like Krugman and other liberal news sights.
Last edited by Fenton; 01-06-13 at 09:41 PM.
Denial won't get you out of this pickle you got yourself into the past couple of pages.