I don't know why Adagio is giving you a like. Your rebut was irrelevant and completely missed the point and wrong. Oh wait.....now I know why he gave you a like....lol....Wow.
And before either of you two go into your pathetic generic Bush Blame let me add the following..
2001 April: The Administration’s FY02 budget declares that the size of Fannie Mae and Freddie Mac is “a potential problem,” because “financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity.”
2002 May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac.
January: 2003 Freddie Mac announces it has to restate financial results for the previous three years.
February: 20030The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that “although investors perceive an implicit Federal guarantee of [GSE] obligations,” “the government has provided no explicit legal backing for them.” As a consequence, unexpected problems at a GSE could immediately spread into financial sectors beyond the housing market.
September: Fannie Mae discloses SEC investigation and acknowledges OFHEO’s review found earnings manipulations.
September: Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact “legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises” and set prudent and appropriate minimum capital adequacy requirements.
November: 20030Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any “legislation to reform GSE regulation should empower the new regulator with sufficient strength and credibility to reduce systemic risk.” To reduce the potential for systemic instability, the regulator would have “broad authority to set both risk-based and minimum capital standards” and “receivership powers necessary to wind down the affairs of a troubled GSE.”
February: 2004 The President’s FY05 Budget again highlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: “The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore…should be replaced with a new strengthened regulator
February: CEA Chairman Mankiw cautions Congress to “not take [the financial market's] strength for granted.” Again, the call from the Administration was to reduce this risk by “ensuring that the housing GSEs are overseen by an effective regulator.”
April: 2005 Treasury Secretary John Snow repeats his call for GSE reform, saying “Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-measures will only exacerbate the risks to our financial system.”
February: Assistant Secretary David Nason reiterates the urgency of reforms, says “A new regulatory structure for the housing GSEs is essential if these entities perform their public mission successfully.”
......and on and on. The documented evidence of the Bush administration trying to get the GSEs under control is extensive so enough with the retarded Bush Blame. I can post more if you need me too.
And exactly why Child would a bank lower their lending Standards on their own with out being forced to by a corrupt Clinton administration ? What's in it for them ? Bankruptcy ? Because prior to the HUD mandates the GSE's wouldn't touch that kind of loan with a 10 foot pole.
Next, from 1993 to 1998 Clinton replaced the GSEs CEO's, and their second in charge and over half of their board of directors..Franklin Raines anyone ? Oh he made millions.
1995 President Clinton introduced his National Homeownership Strategy, which included the expansion of Credit Default Swaps (CDSs) and changed CRA compliance from a "process" oriented law to a law that focused on results.....for you two that means they HAD TO MAKE LOANS to comply to expanded and enforced CRA regulations.
Oh wait, a Fantastic quote from Clinton...“Our home ownership strategy will not cost the taxpayers one extra cent. It will not require legislation" LOL !!! One extra cent huh ? He was off a few trillion wasn't he ?
Two more since I'm posting actual quotes....documented History unrevised by corrupt Liberals.
“I think that the responsibility that the Democrats had may rest more in resisting any efforts by Republicans in the Congress, or by me when I was President, to put some standards and tighten up a little on Fannie Mae and Freddie Mac.” – Former President Bill Clinton (D-AR), September 25, 2008
“Like a lot of my Democratic colleagues I was too slow to appreciate the recklessness of Fannie and Freddie. I defended their efforts to encourage affordable homeownership when in retrospect I should have heeded the concerns raised by their regulator in 2004. Frankly, I wish my Democratic colleagues would admit when it comes to Fannie and Freddie, we were wrong.” – Congressman Artur Davis (D-AL), September 30, 2008
In 1989, only 1 in 230 homebuyers made a down payment of 3 percent or less by 2007, it was 1 in 3. By 2008 74% of sub-prime and low quality loans were on the books of Govt backed or regulated government agencies. That's the GSE's, FHA etc.
The regulations that forced the GSEs to buy up trillions in bad debt were in Title XIII of the Housing and Community Development Act of 1992 (the “GSE Act”). Under Clinton.
The quotas spelled out that INITIALLY 30 percent of the GSEs’ mortgage purchases had to be loans that were made to low- and moderate-income (LMI) borrowers. During the Clinton administration, HUD increased this quota to 42 percent in 1995 and 50 percent in 2000. HUD mandated quotas increased to 55% under Bush with sub quotas added that mandated the buying of mortgages from borrowers who were at or below the median income by 80%, Andrew Cuomo was the HUD secretary when he committed and extra 2 trillion to the buying up of "affordable housing" debt.
Here you two, learn something...This is a HUD dispatch from 2000
"Because the GSEs have a funding advantage over other market participants, they have the ability to under price their competitors and increase their market share. This advantage, as has been the case in the prime market, could allow the GSEs to eventually play a significant role in the subprime market. As the GSEs become more comfortable with subprime lending, the line between what today is considered a subprime loan versus a prime loan will likely deteriorate, making expansion by the GSEs look more like an increase in the prime market."....ouch.
One of CRA's decrees was that banks had a "affirmative obligation" to make loans to the people in its community. Groups like ACORN and other radical inner cities activist argued for an expansion of CRA mandates and Clinton was all too happy to comply. " Affirmative Obligations "????
ACORN Housing had a $760 million commitment from the Bank of New York. Boston-based Neighborhood Assistance Corporation of America had a $3-billion agreement with the Bank of America. The New Jersey Citizen Action had a five-year, $13-billion agreement with First Union Corporation. Tom Callahan, executive director of the Massachusetts Affordable Housing Alliance" "CRA is the backbone of everything we do "
After Clintons 1995 EXECUTIVE ORDER that basically put CRA on steroids he moved to force those mandated lax ending standards on the GSE's. From the NYT..
“In moving, even tentatively, into this new area of [subprime] lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.”
Its actually right on the money isn't it. For the NYT that's unusual. Usually they just unleash Paul Krugman, the old fat cat lady trapped in a frumpy bearded mans body.
Clinton with the Community Development Act of 1992 shifted the moral hazard to the tax payer of ALL low quality, sub-prime, alt-a loans, etc. From that day, anybody could originate a crap loan and pawn it off to a all to willing Government Service Enterprise and use the "loose under writing standards " mandated and enforced by Clinton to qualify any borrower.
The 1994 HUD ACT called for "“financing strategies, fueled by the creativity and resources of the private and public sectors, to help homeowners that lack cash to buy a home or to make the payments.”
"A 1997 Urban Institute report found that local and regional lenders seemed more willing than the GSEs to serve creditworthy low- to moderate-income and minority applicants. After this, Fannie and Freddie modified their automated underwriting systems to accept loans with characteristics that they had previously rejected. This opened the way for large numbers of nontraditional and sub-prime mortgages. These did not necessarily come from traditional banks, lending under the CRA, but from lenders like Countrywide Financial, the nation’s largest sub-prime and nontraditional mortgage lender and a firm that would become infamous for consistently pushing the envelope on acceptable underwriting standards."
The Banks that wouldn't play ball like Wells FARGO were extorted by the DOJ's eric holder.
So it's clear now to the both of you. That the 2008 Sub-Prime collapse was the brain child of your dear President CLINTON and his cronies that he put into place as the CEO's of the GSEs from 1993 to 1998. Those Cronies ? Got millions in bonus's by running our Country into the ground. Democrats, Liberals....as corrupt as they come. But you guys......blame the banks.
And Child if your going to attempt to rebut ANY of my post, have the decency to at least be prepared with relevant points and honest data. Now slink away defeated and marginalized and go blame the banks and Bush where you can get away with it. Like at the Democrat Under Ground or the Disney Channel's WebSite.