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How do conservative explain the failure of the housing market & banking system during Bush presidency?
Is this the type of smaller government that they envision? It just surprises me how the usually conservative banking system would something as give so many bad loans.
Well…let’s see. Clinton, Barney, Fannie Mae and Obama were sad that minorities could not buy houses on food stamps.
So bozo filed lawsuits on behalf of ACORN to force the banks to accept foodstamps as incomes and to allow people to buy homes WAY beyond their means dispite the republicans and Bush trying to reign them in.
My granddaughter was trying to buy a house and they wanted to give her a loan for a 250,000 dollar home. She had enough sense to tell them…No..I cannot afford those payments. THEY told her….oh that is ok….we will work something out. YOU QUALIFY under the new laws to get 250,000 dollar loan.
She went with the 125,000 that she could afford..and you know what? SHE STILL HAS HER HOUSE!
LOOK AT FACTS..not just what other dems write about.
WOW…the most irresponsible group in the world is the democrats today….they just spend spend spend and give me give me give me…and just whine whine whine they can’t have everything for free. Then when they get it..and can’t hold onto it…they blame someone else for not stopping them!
September 25th, 2009
They will blame Clinton and The Democrats in congress…It’s old…
I am a psychic!!!
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September 25th, 2009
If you remember right, from 2006, the DEMS were in control of Congress
Fact is, BOTH PARTIES were at fault, not just Bush. Barney Frank, less than 6 months before the Fannie and Freddie fiasco, claimed they were doing GREAT.
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September 25th, 2009
Didn’t you listen to Bush? We were only experiencing "an adjustment" of our economy.
According the conservatives if the free market drives the country (and the world) into depression then it’s ok.
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September 25th, 2009
They oppose President Obama because he is Democrat, not because his ideas are bad or irrational. It’s all about Politics for them.
Bush was the worst president ever, but they went along with everything he did—regardless of how evil or insane—because he was Republican.
The result? Our economy in shambles, and thousands of Americans dead as a result of both the Iraq war and 9/11.
Consider these facts regarding the Bush administration and 9/11:
George W. Bush repeatedly ignored warnings and reports that terrorists were "planning to do something big inside the USA involving airplanes"! He let over 3000 Americans be murdered and the WTC destroyed in order to have an excuse to make his little war of revenge against Iraq. Even so, when the American people were not 100% for the war, he–and Dick–came up with all the WMD’s fabrications and lies.
Reps want to give Shrub credit for "keeping us safe" after 9/11; however, what they don’t want to mention is that GWB seemed to be more concerned about the safety of the Bin Laden family (That’s right! the relatives of OSAMA BIN LADEN) because every single one of them was escorted out of the country in jet planes, at the same time that Americans were stranded all over the US airports unable to get to their destinations.
"…..after all, this is the guy who tried to kill my daddy at one time." The "war" president of Saddam Hussein.
"…I don’t know where he is. To tell you the truth I don’t spend a lot of time thinking about it." GWB on Osama Bin Laden.
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September 25th, 2009
It can’t be explained in a few sentences. Read "Meltdown" by Thomas E. Woods. It explains it in about 160 pages
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September 25th, 2009
REID PELOSI AND MURTHA….last and foremost …FRANKS
They used laws CLINTON pushed thru to threaten banks to make loans or face fines…..if you look at REALITY…there were no problems until the DEMOCRATS took over in 2007…with this market….so much for your assertion…proving libs wrong is SOOOOOOOO easy…we just use FACTS….liberals are allergic to them…it shows REALITY which is something they can not handle
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September 25th, 2009
What about Lehman Bros. and Enron? Lehman was one year ago.
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September 25th, 2009
Well…let’s see. Clinton, Barney, Fannie Mae and Obama were sad that minorities could not buy houses on food stamps.
So bozo filed lawsuits on behalf of ACORN to force the banks to accept foodstamps as incomes and to allow people to buy homes WAY beyond their means dispite the republicans and Bush trying to reign them in.
My granddaughter was trying to buy a house and they wanted to give her a loan for a 250,000 dollar home. She had enough sense to tell them…No..I cannot afford those payments. THEY told her….oh that is ok….we will work something out. YOU QUALIFY under the new laws to get 250,000 dollar loan.
She went with the 125,000 that she could afford..and you know what? SHE STILL HAS HER HOUSE!
LOOK AT FACTS..not just what other dems write about.
WOW…the most irresponsible group in the world is the democrats today….they just spend spend spend and give me give me give me…and just whine whine whine they can’t have everything for free. Then when they get it..and can’t hold onto it…they blame someone else for not stopping them!
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September 25th, 2009
The Repeal of the Glass Steagall Act during the Clinton administration led to all the fiascos that led to this recession. Both parties voted for it. The republicans wanted it for more risk taking and the democrats wanted it for getting housing for the poor and minorities. It just took that long before the price of housing went too high and there were no more sub prime mortgages to sell. No more capital to loan. The insured toxic swaps broke AIG which didn’t have enough to cover the claims. It may have happened on Bush’s watch but he had nothing to do with it. He warned Congress they better do something about it but they ignored him saying "everything was fine".
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September 25th, 2009
From 2006 to 2008 the Democrats had a small majority of 2 or 3 people in Congress so naturally they will say it is their fault. Never mind that Bush vetoed 10 bills during that time. From 2001-2005 while the Republicans controlled Congress he vetoed once only. If it were just the housing market that would be one thing. But there were so many other things Bush did. The War in Iraq for one.
foxnews.com: http://www.foxnews.com/story/0,2933,129489,00.html
Buffett Says Bush Tax Cuts Favor Wealthy
http://www.nytimes.com/2007/04/09/business/09tax.html?_r=1&oref=slogin
Bush quietly signs corporate tax-cut bill
$136 billion measure assailed for catering to special interests
URL: http://www.msnbc.msn.com/id/6307293/
Center On Budget and Policy Priorities
Friday, February 27, 2004
DEEP, WIDESPREAD CUTS IN DOMESTIC PROGRAMS OVER
NEXT FIVE YEARS UNDER ADMINISTRATION BUDGET
Under the Administrations budget, overall funding would be cut over the next five years in nearly every broad area of the federal budget related to domestic non-entitlement programs, according to a new analysis from the Center on Budget and Policy Priorities. Funding would be significantly lower in 2009 than 2004 (in inflation-adjusted terms) for non-entitlement programs in every area except defense, international affairs, and science and space.
By 2009, funding for non-entitlement programs in areas such as national resources and the environment, veterans health benefits, health, and agriculture would be 10 percent to 20 percent below the 2004 funding levels, adjusted for inflation. Transportation programs, as well as education, training, and social services programs, would be cut by 7 to 8 percent over this period.
The proposed cuts are so large, an accompanying Center report shows, that by 2009, total funding for domestic non-entitlement programs outside homeland security would fall to its lowest level, measured as a share of the economy, since 1963.
Spending Cuts Would Help Finance Tax Cuts, Not Shrink Deficit
TARP Bill
http://www.youtube.com/watch?v=p6KRXnYgu5I
The Oil Reserve
*This article can also be accessed if you copy and paste the entire address below into your web browser.
http://www.cnn.com/2008/POLITICS/05/13/congress.oil/index.html
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September 25th, 2009
Community Reinvestment Act
http://en.wikipedia.org/wiki/Community_Reinvestment_Act
This is the program, started by and championed by democrats to this day (although GW Bush had no problem hanging his hat on the fact that home ownership was at an all time high during his tenure.)
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September 25th, 2009
Not Clinto himself but the policies of the Community Reinvestment Act which created and incentive and punishment agenda for banks and mortgage companies.
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My husband has been in the mortgage industry for ten years and yes he saw this coming.
September 25th, 2009
Bush and McCain warned of what was to come, but Barney said the system was sound, so nothing was done by the, then in control democrats!
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September 26th, 2009
Clinton signed the Community Reinvestment Act of 1995 that forced lenders to offer loans to more minorities. In order to meet quotas, they had to get creative with their financing. The Bush administration tried to warn of problems with Fannie & Freddie and tried to push for reigning them in beginning in 2001. Barney Frank said the idea was ludicrous and that both companies, and the real estate/banking industries, were fundamentally strong. Here’s a report that shows the timeline on that:
http://www.youtube.com/watch?v=cMnSp4qEXNM&feature=PlayList&p=2AD07D7EB5123C48&playnext=1&playnext_from=PL&index=57
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September 26th, 2009
They can’t. The push for deregulation missed a crucial point: Greed. The bailout unfortunately sends a signal they can do it again. Hopefully laws will be passed so the next time a Wall Street firm pulls a scam THEY will go down.
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September 26th, 2009
Red lining used to be an issue until carter implemented the community reinvestment act, which at this point just required lenders to not to be blatantly discriminatory against who they deemed wouldn’t pay back, Clinton edited to bill to not account for history, or anything else except for fiscal status, with unemployment, and welfare counting for income. To ensure this, the money was separated from company who owned it, and other organizations were created to lend out the money for them.
Thus you have a disconnection for those giving out money, as it is not their own.
Ca’s credit rates were the worst in the nation, the housing bubble was created due to the easy standards for getting loans, standards which were set and enforced by the government, people would buy a house by taking loans out, then selling it, as long as the prices go up it did not hurt you.
Once the prices went down, those who bought the houses with loans could not make money selling it and were not stuck with the loans.
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September 26th, 2009
Well the first 6 years of Bush,everything went fairly smooth, then in 2 short years, the Democrats destroyed the American economic system, worked with oil producing countries in the Middle East to raise oil prices just so they could get a Democrat in the White House, that’s right you lost your job and 401K’s for political purposes*********************
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September 26th, 2009
Ask Barnie Frank.
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September 26th, 2009
Easy money. They think greed is a virtue.
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September 26th, 2009
The Dems were in control of COngress since 2005/06!!
And WIth people like Barbey Frank, Charles Rangle, Harry Reid and Chris Dodd and their weak "regulations" is what ruined the housing/banking industries. In the name of "People have a Right to own a home" Jimmy Carter Community Reinvestment Act!
Look it up your self.
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September 26th, 2009
Both Bush and Clinton before him warned the Congress to stop promoting and pushing the subprime loan program. Many senators and representatives insisted the FDIC, Fannie Mae and Freddy Mac continue to force banks to make the loans to people who couldn’t afford them and to guarantee those loans so the banks would feel at less risk making them against their better judgement. When all the bad loans came due and people couldn’t afford to pay them, the bottom fell out of the market and caused our terrible current economy.
This all started more than a decade ago with the Community Reinvestment Act and can’t be blamed on Bush or Clinton, but on the liberal, socialist leaning members of Congress who enacted it. Here is a referrence:
From Wikipedia, the free encyclopedia
The Community Reinvestment Act (or CRA, Pub.L. 95-128, title VIII, 91 Stat. 1147, 12 U.S.C. ยง 2901 et seq.) is a United States federal law designed to encourage commercial banks and savings associations to meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods.[1][2][3] Congress passed the Act in 1977 to reduce discriminatory credit practices against low-income neighborhoods, a practice known as redlining.[4][5]
Sometimes "fairness" is not a good thing, especially when it’s forced on us and on business. It’s ruined the entire economy this time, harming many individuals, families and businesses. Giving mortgages to people who can’t afford to pay them back, just to be "fair", is what has caused the current economic crisis.
Those Senators that were paid kickbacks and given great favors and gifts to keep the subprime loan program going despite the warnings that it would eventually ruin the economy are more to blame than others. The top three Senator recipients of the most pay offs are Barney Frank, Chris Dodd, and Barack Obama.
So think twice when you hear the White House say they "inherited" this economic crisis. The current administration actually help to cause it.
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http://en.wikipedia.org/wiki/Community_Reinvestment_Act
September 26th, 2009
They weren’t a failure of the free market, because they were caused by conditions created by government that distorted the market.
It started with the Community Reinvestment Act of 1993, which gave the government the power to punish banks that did not meet their goals of loans to minorities. To meet these goals, banks were forced to issue higher risk loans than they had previously deemed wise.
Then, to offset that risk, the derivative investment devices were created. But since the risk was inherently unknown (government had never forced high risk loans to be made before), those investments themselves were risky.
But the government (pushed by Democrat political operatives running Fannie Mae and Freddie Mac) also opened those government-sponsored entities (they keep profits, but the US taxpayer takes the risks) to purchase a bunch of these risky papers.
In the course of having created these derivatives for the government-mandated risky lending, financial firms found that it could be lucrative to offer similar risky loans and play in the derivatives market with non-poor people. And with Fannie and Freddie buying paper to the tune of trillions, the money flow kept on going.
As time went, real estate prices soared, and with the Fed loaning money out at low interest rates (supported by Bush and his "ownership society" policy), that created a real estate pricing bubble.
And when people started noticing this was a bad thing, it was Democrats who were able to prevent the GOP from making changes, because the GOP only had a small majority in the Senate, and a slightly larger majority in the House. And Democrats like Dodd and Frank, who had very cosy relationships with the banking industry, prevented any action that could have tempered the coming realignment by addressing it sooner.
So, it is pure, unfettered ignorance to simply blame it on Bush, or even wholly on the Democrats.
The problem was caused by government intervention into the market, which caused a significant distortion of risk, and fueled by bad Fed policy caused an unstable bubble that when it popped, ravaged the financial sector of the economy. And that had a very large ripple effect over the rest of the economy.
So, this is the type of occurrence we refer to when we conservatives say that government is the problem, not the answer.
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September 26th, 2009
It would be unreasonable to blame the housing crash on one person, or even one administration. The housing crash was a chain reaction. People defaulted on their mortgages, which drove down the value of other homes to the point that their mortgage was for more than the value of their home. They defaulted, driving the value down even further, which caused more people to default. Banks were being pressured to provide mortgages to low income families, and they were approved for more than they should have been. Interest rates were too low, the Fed should have been raising interest rates to slow things down, but they didn’t. Everyone in key decision making positions fell asleep at the helm, and didn’t notice that the ship was headed straight into the rocks.
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