Without the seciritization of these sub prime loans which Clinton initiated there would have not been a sub prime collapse.
Ask a liberal about the sub prime collapse and he'll blame Bush and the banks.
Ask a Conservative and he'll explain how NOT to have another one.
Last edited by Napoleon; 02-08-13 at 09:17 PM.
Rocketman: "It is true, CRA forced many bankers to lend money to people that normally would have been turned away."
Fenton: "The CRA was given regulatory power in the early 90s to stop "redlining".
Redling is actually what banks have been doing for the last 100 years or so to guarantee they don't crash and burn lending bums money.
Its making sure the loan recipient had collateral, credit and a down payment.
Discrimination" was checking to see if you had a down payment, good credit, good work history as everyone of those long held standards that the banks had been using for over a hundred years were tossed to the wayside during the sub-prime debacle.
The people that cried discrimination called those standards "redlining". So liberal politicians forced banks and the GSE's to lower their standards, credit was free and easy and what happens when you lend money to someone with bad credit, a poor work history or low income happened,
CRA in conjunction with HUD regulations that mandated quotas on the GSEs are actually the primary cause of the sub-prime debacle."
Fenton again (later): "CRA loans aren't the issue really."
Gathomas88: "They [CRA or HUD]enforced risky lending among the major players until it became a profitable trend and then encouraged everyone else to get in on the action afterwords in order to try and inflate the housing and credit bubbles."
All these claims that the CRA caused the mortgage crisis by forcing banks to give loans to unqualified borrowers, but no one can point to the particular language in the legislation or regulations that says that banks must give loans to unqualified borrowers. No one has even cited a case where the law forced a bank to give a loan to an unqualified borrower. I say its bull**** motivated by racism and/or hatred of regulation, especially towards anti-discrimination laws.
How ridiculous. No private entity on gods green earth would have taken on over a trillion dollars in bad debt. No group of private entities would have taken on that massive amount of debt.
Only a Govt institution under mandate with access to trillions in tax payer funds could do something that stupid. Some one holding the bag ? Thats hillarious. Your'e Mr "Finacial" but you have to rely on make believe could have beens, would have beens to make your point.
I'm talking about things that actually transpired. Do try to keep up.
As for the mandates who pushed for those quotas ? Was it a Conservative ? A group of Conservatives ? Was that Politician allowed to exit Congress by writing a bill to reinforce his complete and total lack of integrity by blaming the banks with new regulations ? AKA Frank Dodd new banking regulations
Quotas signed by any President to force the GSEs into more sub-prime debt is a bad deal but someone doubled down on that stupidity, increased those quotas.
Under what administration were those quotas upped from 30% to 40 ? And 50 %
Under who's administration were the securitization of that bad debt allowed ?
Yea Clinton enabled the collapse big time, institutionalized it even.
So enough with your Bush bashing who in fact in 2003 tried to reign in the GSEs.
Keep your race baiting to your self ok. No one mentioned the color of your skin, made derogatory racist statements towards you or anyone else.
Accusations of redlining initiated the policies and the regulatory control that caused the lowering of standards.
Don't blame the messenger, blame the politicians that took advantage of those regulations and used those standards to nearly collapse the economy.
Lending institutions prior to the nonsense made loans for almost a hundred years without tanking our economy.
They did that by sticking to standards.
Last edited by Napoleon; 02-08-13 at 09:55 PM.
More mitigation and selective ignorance form you. Yea G and S wanted to bankrupt themselves.
Investment banks TRADE securities. Throughput as they make commisions on trades win or lose.
The trading of MBSs, Govt backed MBS, bundled with good loans and bad loans so their value could never be assesed finanaced the secondary market.
What private investment bank had the abillity to bundle Govt backed securities anyway ?
The GSEs bundled billions in MBS to sell off into the market and Investment banks were the one caught holding the worthless securities.
Hell, the GSEs created the MBS. But you ignore that ok. Because it counters your nonsense.
I'm fairly neutral on this act, because it does absolutely nothing to address the real problem.
One who makes himself a worm cannot complain when tread upon.