Fannie Mae is not the democrats!
You are making tons of qualitative statements that lack support. MBS's are not toxic in nature, and simply reflection innovation in the financial industry. It's when companies use fraudulent practices to both roll mortgages out the door and securitize them that creates a problem. The industry requires regulation!
Please don't make it out like corruption is solely a Democrat phenomenon. Corruption is not party specific.
Sweet-heart loans were a byproduct of crony-capitalism. Again, it is not political party specific. It is a stretch to link GSE's to Countrywide activities.
That is cowboy capitalism at work.
Nobody was forced to create anything. They created them because it was profitable. Revisionist nonsense might cut it with the anti-Obama crowd; not with me.
What does this even mean?
Acquisitions funded by FDIC institutions occurred in the fallout. Moral hazard was a byproduct of private securitization market.
Your definition of toxic must be rather.... liberal!
CRA is not about lowering lending standards. You know this already.
It is simply a matter of fact.
Fannie Mae is where Democrats for the last 20 years have run off to get rich, not too mention it was stacked with Politicians by Clinton from 1993 to 1998.
I find it a bit hypocritical to hear those on the left demand justice for the people who ran the Investment Banks but Franklin Raines ? Nah, he's cool.
Hell he even helped out Obama in 2003.
And I HAVE, multiple times provided data, resources, quotes, video's, links etc to back up my argument.
And it's usually followed with a response somewhere along the lines of..." Nuh- Uuuu, Bush did it. ". I get sick of posting page after page of evidence if it's in the end going to be ignored .
And yes, MBS aren't inherently toxic and prior to Fannie Mae buying and bundling crap with Good they were a safe bet for any portfolio due to THE HIGH STANDARDS THE LOANS WERE PURCHASED UNDER. I think Fannie created the first one in the 80s.
My definition of toxic I thought by now was clear. MBSs backed by sub-prime mprtgages or mixed with Sub-Prime Mortgages.
And you can sit their and say the private securities market did this till you turn blue, the point is with out the mandates and REGULATIONS put in place by Clinton there would have been no market for mixed bags of AAA rated toxic securities.
And stop pretending Franklin Raines and his Ilk and the entire " affordable lending " industry wasn't absolutely dependent on the value of their crap AAA rated securities.
I mean their value was so critical by 2004 Fannie bought up hundreds of billions of private toxic MBSs.
And yes CRA WAS a substandard loan. Banks complied to CRA standards by making loans available to people who were at or below 80% of the mean income level for the community that bank serviced. And again, I can't get an answer for a very simple question.
Why did standards have to be lowered to combat " discrimination " ?
But since CRA loans only comprised of about 2 Trillion of Fannies junk , in order for the massive unprecedented scam to continue, standards for purchasing and lending needed to be continually lowered.
In 2004 when Fannie's regulator was warning the Democrats , Politicians like Barney Frank, Maxine Waters, Chuck Schumer and Artur Davis ( Democrats ) were sitting in front of Republican chaired Comittee's lying about the fiscal health of the GSE's.
So yes Kush, there has always been a political component to this story, Obama being number 3 on the list of Politicians who recieved the highest campaign Contributions from Fannie e not too mention the whole friken sub-prime agenda was a mismanaged attempt by the Democrats to vend out socia and economic " justice" under false pretenses.
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