13 Oct 08
Originally posted by der schwarze RitterHe says that because it was on his watch that this happened and he warned no one. I blame him almost as much as fannie mae.
Rep. Barney Frank says that criticism of Fannie Mae and Freddie Mac in the sub-prime lending meltdown is driven by racism. Did you know Fannie was black and Freddie was Hispanic? Neither did I.
http://www.worldnetdaily.com/index.php?pageId=77506
13 Oct 08
1 edit
DSR. Say it with me, mtg. backed securities are the heart of the financial crisis. The subprime defaults (in and of themselves) are only a small part of that.
On top of that, whose responsibility is it to back the loan? If the creditor defaults, then it is the lender suffers that RISK that he incurred in the transaction.
You guys still insist on trying to blame this on the people that borrowed the money???
Republican sponsored de-regulation allowed these credit default swaps and spread it to the far corners of the universe.
Frank's comments were a very clumsy way of saying that you guys are purposefully blaming the down trodden middle class.
13 Oct 08
Originally posted by MrHandHello...many democrats were in favor of deregulation as was bill clinton who signed bills for such. There is plenty of blame for both sides, but the fact remains our leaders up to Bush but including Frank, Cox, etc all should of warned the public this was coming and none of them did.
DSR. Say it with me, mtg. backed securities are the heart of the financial crisis. The subprime defaults are only a small part of that.
On top of that, whose responsibility is it to back the loan? If the creditor defaults, then it is the lender suffers that RISK that he incurred in the transaction.
You guys still insist on trying to blame this on t ...[text shortened]... very clumsy way of saying that you guys are purposefully blaming the down trodden middle class.
14 Oct 08
Originally posted by NimzovichLarsenActually they were trying to warn everyone 4 years ago. Look at the politicians who said there wasn't a problem and got upset because they thought it was a racist attempt to deny loans to "their" people:
Hello...many democrats were in favor of deregulation as was bill clinton who signed bills for such. There is plenty of blame for both sides, but the fact remains our leaders up to Bush but including Frank, Cox, etc all should of warned the public this was coming and none of them did.
14 Oct 08
Originally posted by MrHandIt wouldn't have gotten out of hand if private banks couldn't have unloaded subprime loans on F&F.
DSR. Say it with me, mtg. backed securities are the heart of the financial crisis. The subprime defaults (in and of themselves) are only a small part of that.
On top of that, whose responsibility is it to back the loan? If the creditor defaults, then it is the lender suffers that RISK that he incurred in the transaction.
You guys still insist on tr ...[text shortened]... very clumsy way of saying that you guys are purposefully blaming the down trodden middle class.
14 Oct 08
Originally posted by MerkThis is correct, it would not have gotten out of hand if the mortgage backed securities would have been outlawed (unstead of allowed/created under de-regulation). If it was only FF & FM, then the solution would have been simple in comparison to the current situation with these "securities" spread like the common cold.
It wouldn't have gotten out of hand if private banks couldn't have unloaded subprime loans on F&F.
They didn't just "unload" them. They created sundry financial products based on the interest paid out on these instruments. They mixed, diced, blended, etc.
14 Oct 08
Originally posted by MrHandIf Fannie didn't change it's lending requirements, there would have been a ton less MBS'. The MBS debacle wouldn't have been nearly as bad.
This is correct, it would not have gotten out of hand if the mortgage backed securities would have been outlawed (unstead of allowed/created under de-regulation). If it was only FF & FM, then the solution would have been simple in comparison to the current situation with these "securities" spread like the common cold.
They didn't just "unload" them. The ...[text shortened]... cts based on the interest paid out on these instruments. They mixed, diced, blended, etc.
Or we could stop focusing on ancillaries and talk about the real reason for the housing bubble that caused the all the problems.
14 Oct 08
Originally posted by MerkI see it as two problems. Lack of regulation that allowed irresponsible lending (this exacerbated the housing bubble in an extraordinary way). Bubbles are natural, but the subprime loans (no money down, etc.) definitely made it a HUGE bubble.
If Fannie didn't change it's lending requirements, there would have been a ton less MBS'. The MBS debacle wouldn't have been nearly as bad.
Or we could stop focusing on ancillaries and talk about the real reason for the housing bubble that caused the all the problems.
The other problem was the lack of regulation (de-regulation) that allowed these ridiculous credit swap securities. This is the real stinker.
14 Oct 08
Originally posted by der schwarze Ritterso do you blame this financial situration we are in on fannie mae's skin colour?
Rep. Barney Frank says that criticism of Fannie Mae and Freddie Mac in the sub-prime lending meltdown is driven by racism. Did you know Fannie was black and Freddie was Hispanic? Neither did I.
http://www.worldnetdaily.com/index.php?pageId=77506
14 Oct 08
Originally posted by MrHandActually, it was regulation that pressured banks to to start making more subprime loans, then Fannie changed it's credit requirements which allowed banks to go berserk and make tons of subprime loans because they had a home for them. All these banks played heavily in MBS based on the moronic assumption that they could get out of them before the bottom dropped out.
I see it as two problems. Lack of regulation that allowed irresponsible lending (this exacerbated the housing bubble in an extraordinary way). Bubbles are natural, but the subprime loans (no money down, etc.) definitely made it a HUGE bubble.
The other problem was the lack of regulation (de-regulation) that allowed these ridiculous credit swap securities. This is the real stinker.
All of which was triggered by too much liquidity from cheap rates. Cheap rates lead to too much liquidity, which lead to an overcapacity in banking and it all steamrolled to what we have today. Now we get to unwind a lot of the MBS', a lot of subprime loans and lose a lot of banks so we can get properly prepared for the future.
Without the huge housing bubble, MBS aren't a problem. Blaming MBS is putting the cart before the horse.
14 Oct 08
Originally posted by MerkIf it was just the sub prime without the MBS, then the solution would be simple...buy up the well contained debt.
Actually, it was regulation that pressured banks to to start making more subprime loans, then Fannie changed it's credit requirements which allowed banks to go berserk and make tons of subprime loans because they had a home for them. All these banks played heavily in MBS based on the moronic assumption that they could get out of them before the bottom dropped o ...[text shortened]... huge housing bubble, MBS aren't a problem. Blaming MBS is putting the cart before the horse.
Banks were "pressured" only by greed to get in on the action. No lack of regulation made them offer these loans.
14 Oct 08
Originally posted by MrHandCredit Default Swaps themselves haven't been a major problem, though with them being $62 trillion market they certainly could become one in short order.
I see it as two problems. Lack of regulation that allowed irresponsible lending (this exacerbated the housing bubble in an extraordinary way). Bubbles are natural, but the subprime loans (no money down, etc.) definitely made it a HUGE bubble.
The other problem was the lack of regulation (de-regulation) that allowed these ridiculous credit swap securities. This is the real stinker.
14 Oct 08
Originally posted by MrHandActually, the CR Act and groups like ACORN put a lot of pressure on these banks, but it wasn't until Fannie felt the pressure to lower it's credit requirements that subprime loans became profitable for private banks. Then the profit motive came into play and that was the runaway point.
If it was just the sub prime without the MBS, then the solution would be simple...buy up the well contained debt.
Banks were "pressured" only by greed to get in on the action. No lack of regulation made them offer these loans.