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Thread: Former SEIU Official Reveals Secret Plan To Destroy JP Morgan & Crash Stock Market

  1. #261
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    upsideguy's Avatar
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    Re: Former SEIU Official Reveals Secret Plan To Destroy JP Morgan & Crash Stock Marke

    Quote Originally Posted by MaggieD View Post
    The CRA was used to club lenders over the head to loosen credit requirements. Fiscal responsibility was thrown out the window in favor of, "Every American should be able to buy a house." Result? Our real estate crash -- as people who couldn't afford to buy lunch were loaned money to buy homes.
    Sorry, this is a gross oversimplification... in fact, its so gross and so simplified, it isn't true. The problem is far, far more sophisticated than to have been suddenly caused by a 30+ year old piece of legislation. If you believe this is its route, you have a ton more research to do.

  2. #262
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    Re: Former SEIU Official Reveals Secret Plan To Destroy JP Morgan & Crash Stock Marke

    Quote Originally Posted by pbrauer View Post
    Come on, what about President bush??? Have you aready forgotten his pushing the owership society back in 2004?
    nope, and he deserves full ownership of that, just as Greenspan deserves full ownership of his easy money policy, and the ratings agencies deserve full ownership of their inability to accurately score debt instruments based off of mortgages. ACORN and other like "community" organizations deserve ownership of the pressure they brought to bearon banks, Congresscritters deserve ownership of their attempts to grandstand/mantain political support by helping them do so (hint:that's where the CRA comes in and plays its' role, and whole generations of politicians deserve ownership for it). Fannie and Freddie deserve full ownershp of their subsidization of and lobbying to expand the subprime market. Bankers deserve full ownership of their assumption that housing prices would never fall, and homebuyers deserve full ownership of their belief that they could A) turn their homes into never-ending money machines and B) should move into the largest, most luxurious house that they could afford a no-money-downpayment and a teaser rate on.

    there were some Republicans who argued that fannie / freddie and the sub-prime housing market were going to create trouble, and Bush later changed his mind; but didn't have the political capital (or the will) to get anything done against a (then) Democratic Congress). Those republicans who did speak out never a significant enough percentage of the party; they were slammed by democrats and abandoned by their fellows.
    Last edited by cpwill; 03-27-11 at 07:18 PM.

  3. #263
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    Re: Former SEIU Official Reveals Secret Plan To Destroy JP Morgan & Crash Stock Marke

    Quote Originally Posted by upsideguy View Post
    Sorry, this is a gross oversimplification... in fact, its so gross and so simplified, it isn't true. The problem is far, far more sophisticated than to have been suddenly caused by a 30+ year old piece of legislation. If you believe this is its route, you have a ton more research to do.
    It wasn't used as a club? On that point, we differ. I've done tons of research. Real estate is my business. I see it/saw it in the trenches every day. I counselled buyers to take 30-year-fixed's when their lenders wanted to sell them 3-year ARM's with prepayment penalties. Encouraged them to not have their mortgage payment more than 30% of their income....when lenders were letting them do 40. I saw FHA loosen credit standards, set up mortgage products so trickey-dickey they were absolutely absurd. Saw minority buyers taken advantage of by their brethren in the mortgage industry. There's plenty of blame to go around. To say that the CRA didn't play a part shows that you yourself need to do more reading, in my opinion.

    CPWill's got it righter.

    Since the CRA's enactment, the implementing regulations have been substantially amended three times--in 1989, 1995, and 2005. In each case, changes to the regulations reflected both experience gained in the implementation of the law as well as ongoing developments in financial markets and the economy... In the view of many, urban decay was partly a consequence of limited credit availability, which encouraged urban flight and inhibited the rehabilitation of declining neighborhoods...Thirty years ago, the secondary market for mortgages was rudimentary at best, which limited local loan originators' access to capital and reduced their ability to diversify credit risks geographically.3 Informational problems also inhibited lending in some urban areas...Also, interest rate ceilings on mortgages in some locations effectively blocked lending to potential borrowers judged to pose higher risks, and interest rate ceilings on deposits (notably, the infamous Regulation Q) led to periodic episodes of disintermediation and reduced availability of mortgage credit ...The CRA reaffirmed the long-standing principle that financial institutions must serve "the convenience and needs," including credit needs, of the communities in which they are chartered. The obligation of financial institutions to serve their communities was seen as a quid pro quo for privileges such as the protection afforded by federal deposit insurance...The CRA was only one of a series of laws passed during the 1970s intended to reduce credit-related discrimination, expand access to credit, and shed light on lending patterns. The CRA itself focused on the provision of credit to low- and moderate-income communities...
    Evolution of the CRA -- Bernanke: FRB: Speech, Bernanke--The Community Reinvestment Act: Its Evolution and New Challenges-March 30, 2007
    The devil whispered in my ear, "You cannot withstand the storm." I whispered back, "I am ​the storm."

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