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Thread: Greenspan says Government Activism Hurting Recovery

  1. #31
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    Re: Greenspan says Government Activism Hurting Recovery

    Quote Originally Posted by ARealConservative View Post
    I’m not rejecting the comparison from the 60’s to the 80’s as being artificial. Spending in the 80’s under Reagan was absolutely ridiculous and the love he receives sickens me to this day.

    What I reject is the relationship of gdp to debt as a meaningful study of a healthy economy. Massive spending will allow gdp to increase massively. If you are spending and borrowing, the comparison of debt to gdp will stay relatively stable because they are so closely related
    Ok I understand

    I will provide a link however that shows a massive increase in debt to GDP (total debt)

    http://theeconomiccollapseblog.com/w...age-Of-GDP.jpg

    I think that graph will show why the 80s felt good, and so did the 2000s. It does not reflect the bubble of the 90s though. It is purely part of the information required to view and economy not the entire picture
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  2. #32
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    Re: Greenspan says Government Activism Hurting Recovery

    A great deal of the housing crisis was caused by The Community Reinvestment Act it is a federal law designed to encourage commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods.

    By following these rules loans were made to people who otherwise would never qualify and it bit us in the ass.

    We also have to blame Unions, over spending on projects that were not needed and produced nothing but debt.

    We now can blame a great deal of the failure to recover on the waste of nearly all the stimulus money on projects that yielded little or no positive results.

    Best example is the Cash for Clunkers nonsense that sold mostly Toyota cars and not the ones that were needed to sold. Killed the used car market, and cost over $28.000 per car sold.

    This in only a small list of mistakes problems and I don't think Greenspan came up with any of them.

  3. #33
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    Re: Greenspan says Government Activism Hurting Recovery

    Quote Originally Posted by Councilman View Post
    A great deal of the housing crisis was caused by The Community Reinvestment Act it is a federal law designed to encourage commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods.

    By following these rules loans were made to people who otherwise would never qualify and it bit us in the ass.

    We also have to blame Unions, over spending on projects that were not needed and produced nothing but debt.

    We now can blame a great deal of the failure to recover on the waste of nearly all the stimulus money on projects that yielded little or no positive results.

    Best example is the Cash for Clunkers nonsense that sold mostly Toyota cars and not the ones that were needed to sold. Killed the used car market, and cost over $28.000 per car sold.

    This in only a small list of mistakes problems and I don't think Greenspan came up with any of them.
    That's a bunch of baloney. Only 6% of the risky loans were CRA. It had nothing to do with the bubble or it's bursting. Do some research instead of depending on tired, old, debunked partisan talking points.
    It's really getting pathetic.
    The Community Reinvestment Act of 1977 seeks to address discrimination in loans made to individuals and businesses from low and moderate-income neighborhoods.[7] The Act mandates that all banking institutions that receive FDIC insurance be evaluated by Federal banking agencies to determine if the bank offers credit (in a manner consistent with safe and sound operation as per Section 802(b) and Section 804(1)) in all communities in which they are chartered to do business.[3] The law does not list specific criteria for evaluating the performance of financial institutions. Rather, it directs that the evaluation process should accommodate the situation and context of each individual institution. Federal regulations dictate agency conduct in evaluating a bank's compliance in five performance areas, comprising twelve assessment factors. This examination culminates in a rating and a written report that becomes part of the supervisory record for that bank.[8]

    The law, however, emphasizes that an institution's CRA activities should be undertaken in a safe and sound manner, and does not require institutions to make high-risk loans that may bring losses to the institution.[3][4] An institution's CRA compliance record is taken into account by the banking regulatory agencies when the institution seeks to expand through merger, acquisition or branching. The law does not mandate any other penalties for non-compliance with the CRA.[6][9]
    Last edited by USA_1; 03-06-11 at 11:39 AM.
    "This Administration will constantly strive to promote an ownership society in America. We want more people owning their own home. It is in our national interest that more people own their own home. After all, if you own your own home, you have a vital stake in the future of our country."" GWB

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