garage mahal said...
But the left, in the guise of "mortgages for everyone!", was the cause of the collapse.
Nope nope nope. Not even honest conservative economists, such as they exist, are still pushing this horseshit.
7/22/14, 12:57 PM
Sorry you are the one pushing the horseshit. Try again...
Clinton, however, sowed the seeds of the Great Recession by helping to inflate the housing bubble, a key part of the financial debacle of 2007.
Then why is Clinton culpable? Because his secretary of housing and urban development, Andrew Cuomo, current governor of New York and a likely 2016 presidential aspirant, accelerated easy-housing policies and inflated the housing bubble, setting the stage for its collapse.
http://reason.com/archives/2012/10/14/clintons-legacy-the-financial-and-housin
"Washington failed to rein in" the two government-sponsored entities, the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac"), both of which ran into trouble by underwriting too many risky home mortgages to buyers who have been unable to repay them.
It’s true that key Democrats opposed the Federal Housing Enterprise Regulatory Reform Act of 2005, which would have established a single, independent regulatory body with jurisdiction over Fannie and Freddie – a move that the Government Accountability Office had recommended in a 2004 report. Current House Banking Committee chairman Rep. Barney Frank opposed legislation to reorganize oversight in 2000 (when Clinton was still president), 2003 and 2004, saying of the 2000 legislation that concern about Fannie and Freddie was "overblown." Just last summer, Senate Banking Committee chairman Chris Dodd called a Bush proposal for an independent agency to regulate the two entities "ill-advised."
http://www.factcheck.org/2008/10/who-caused-the-economic-crisis/
Effective in January 1993, the 1992 housing bill required Fannie and Freddie to make 30% of their mortgage purchases affordable-housing loans. The quota was raised to 40% in 1996, 42% in 1997, and in 2000 the Department of Housing and Urban Development ordered the quota raised to 50%. The Bush administration continued to raise the affordable-housing goals. Freddie and Fannie dutifully met those goals each and every year until the subprime crisis erupted. By 2008, when both government-sponsored enterprises collapsed, the quota had reached 56%. An internal Fannie document made public after the financial crisis ("HUD Housing Goals," March 2003) clearly shows that by 2002 Fannie officials knew perfectly well that these quotas were promoting irresponsible policy: "The challenge freaked out the business side of the house [Fannie] . . . the tenseness around meeting the goals meant that we . . . did deals at risks and prices we would not have otherwise done."
The American Enterprise Institute found that in 1990 80% of the residential mortgage loans acquired by Fannie and Freddie were solid prime loans with healthy down payments. By 1999 only 45% of their acquisitions met this standard. That number fell to 15% by 2007. By 2008, roughly half of all outstanding mortgages in America were high-risk loans.
http://online.wsj.com/news/articles/SB10001424127887323477604579000571334113350
You can lay this at the feet of Dems. Clinton, Dodd, and Frank own the biggest share of this but Dems across the board played a part. Community activists (like the big O, Jessie and others) pushed from the streets and the politicians pushed from the gov to get banks to "lighten up" and make more loans. Were some in the financial market greedy? Sure but the government dragged the house to the river and then later squawked when the horse drank.
To stand there and say this was not the fault of the dems is to ignore the facts. Bush pushed (not hard enough) for more oversight and Dodd and other dems fought it because it would have shut off their money.
But the left, in the guise of "mortgages for everyone!", was the cause of the collapse.
Nope nope nope. Not even honest conservative economists, such as they exist, are still pushing this horseshit.
7/22/14, 12:57 PM
Sorry you are the one pushing the horseshit. Try again...
Clinton, however, sowed the seeds of the Great Recession by helping to inflate the housing bubble, a key part of the financial debacle of 2007.
Then why is Clinton culpable? Because his secretary of housing and urban development, Andrew Cuomo, current governor of New York and a likely 2016 presidential aspirant, accelerated easy-housing policies and inflated the housing bubble, setting the stage for its collapse.
http://reason.com/archives/2012/10/14/clintons-legacy-the-financial-and-housin
"Washington failed to rein in" the two government-sponsored entities, the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac"), both of which ran into trouble by underwriting too many risky home mortgages to buyers who have been unable to repay them.
It’s true that key Democrats opposed the Federal Housing Enterprise Regulatory Reform Act of 2005, which would have established a single, independent regulatory body with jurisdiction over Fannie and Freddie – a move that the Government Accountability Office had recommended in a 2004 report. Current House Banking Committee chairman Rep. Barney Frank opposed legislation to reorganize oversight in 2000 (when Clinton was still president), 2003 and 2004, saying of the 2000 legislation that concern about Fannie and Freddie was "overblown." Just last summer, Senate Banking Committee chairman Chris Dodd called a Bush proposal for an independent agency to regulate the two entities "ill-advised."
http://www.factcheck.org/2008/10/who-caused-the-economic-crisis/
Effective in January 1993, the 1992 housing bill required Fannie and Freddie to make 30% of their mortgage purchases affordable-housing loans. The quota was raised to 40% in 1996, 42% in 1997, and in 2000 the Department of Housing and Urban Development ordered the quota raised to 50%. The Bush administration continued to raise the affordable-housing goals. Freddie and Fannie dutifully met those goals each and every year until the subprime crisis erupted. By 2008, when both government-sponsored enterprises collapsed, the quota had reached 56%. An internal Fannie document made public after the financial crisis ("HUD Housing Goals," March 2003) clearly shows that by 2002 Fannie officials knew perfectly well that these quotas were promoting irresponsible policy: "The challenge freaked out the business side of the house [Fannie] . . . the tenseness around meeting the goals meant that we . . . did deals at risks and prices we would not have otherwise done."
The American Enterprise Institute found that in 1990 80% of the residential mortgage loans acquired by Fannie and Freddie were solid prime loans with healthy down payments. By 1999 only 45% of their acquisitions met this standard. That number fell to 15% by 2007. By 2008, roughly half of all outstanding mortgages in America were high-risk loans.
http://online.wsj.com/news/articles/SB10001424127887323477604579000571334113350
You can lay this at the feet of Dems. Clinton, Dodd, and Frank own the biggest share of this but Dems across the board played a part. Community activists (like the big O, Jessie and others) pushed from the streets and the politicians pushed from the gov to get banks to "lighten up" and make more loans. Were some in the financial market greedy? Sure but the government dragged the house to the river and then later squawked when the horse drank.
To stand there and say this was not the fault of the dems is to ignore the facts. Bush pushed (not hard enough) for more oversight and Dodd and other dems fought it because it would have shut off their money.
It had been some time since I thought about Cloward-Piven but John and Adam were just discussing it the other day. And now Krumhorn brings it up here.
John and Adam were discussing the traditional C-P model but then my fevered mind got to work on it.
I have been saying for 6-7 years now that Obama et al are bring about a liberal revolution. I have generally assumed that they are doing it out of incompetence but have always admitted the possibility that it could be some sort of stealth plan to do so on purpose.
If they are, it is almost exactly Cloward-Piven in methods, if not in goals. Obie, as a community organizer is certainly familiar with C-P. He is said (with no evidence) to be genius level smart. Is it possible he is a closet liberal using C-P to achieve liberal rather than socialist ends?
In the end, it is the result rather than his motives that matter. Whether he is doing it on purpose or by accident hardly matters. He is "gittin' her done" and I am very happy with that.
I wish it were a bit less painful but it took us 80 years to get here, you can't turn this ship on a dime.
Crank it on up, Obie. Don't stop at 11. Let's go to 12 or even 13.
John Henry
John and Adam were discussing the traditional C-P model but then my fevered mind got to work on it.
I have been saying for 6-7 years now that Obama et al are bring about a liberal revolution. I have generally assumed that they are doing it out of incompetence but have always admitted the possibility that it could be some sort of stealth plan to do so on purpose.
If they are, it is almost exactly Cloward-Piven in methods, if not in goals. Obie, as a community organizer is certainly familiar with C-P. He is said (with no evidence) to be genius level smart. Is it possible he is a closet liberal using C-P to achieve liberal rather than socialist ends?
In the end, it is the result rather than his motives that matter. Whether he is doing it on purpose or by accident hardly matters. He is "gittin' her done" and I am very happy with that.
I wish it were a bit less painful but it took us 80 years to get here, you can't turn this ship on a dime.
Crank it on up, Obie. Don't stop at 11. Let's go to 12 or even 13.
John Henry
"Not even honest conservative economists, such as they exist, are still pushing this horseshit."
I don't know what you're talking about, garage.
I don't know what you're talking about, garage.
Ah, the bankers. But which ones? The ones who loaned the money to the women who bought the houses they could not afford? The ones who sold the crappy paper to the greedy bankers who bought the crappy paper? The greedy bankers who bought the crappy paper made possible by the women who bought the houses they could not possibly afford? The greedy bankers who chopped up the crappy loans into tranches of crappy attractive yields? The greedy bankers who created synthetic markets of crappy paper to mirror the actual crappy paper based on loans to nice people who could not possibly repay their loans, much less make the monthly payments?
Suffice it to say that had the nice woman paid the debt she agreed to pay the world would not have gone into the financial ditch it went into. Axiomatic actually.
Send in the pitchforks!! Because Goldman Sachs. Because AIG. Because greed. Borrowers, builders, lenders, bankers, and a government machine still very much in the business of buying, stimulating the creation, of crappy paper.
Suffice it to say that had the nice woman paid the debt she agreed to pay the world would not have gone into the financial ditch it went into. Axiomatic actually.
Send in the pitchforks!! Because Goldman Sachs. Because AIG. Because greed. Borrowers, builders, lenders, bankers, and a government machine still very much in the business of buying, stimulating the creation, of crappy paper.
The United States has been, historically, a center right country.
I actually have to dispute this. The issue is not the US is center-right. It is that the US and European political spectra are incommensurable. The US right is completely unlike the European right, and the US popular left (as opposed to the transnational university-educated froth) is completely unlike the European left.
Which is why Marxism, even in the attenuated Labour/social democratic forms, never got any serious ground in the US, whether at the height of the Populist-Progressive alliance or in the early part of the FDR administration. Marxism claimed to be universal truth (and thus Stalin denounced "American exceptionalism" as the heresy it was), but it was a European weed sdependent on European soil.
Drum misanalyzes the failure of the American left here as a failure of the vanguard of the proletariat to properly propagandize the revolution. But the truth is, the failure is that he and members of his froth are alienated from the American masses entirely, living in a Europeanized intellectual bubble. They can propagandize all they want; the Tea Party, which has all the pitchforks, is never going to buy what they're selling.
I actually have to dispute this. The issue is not the US is center-right. It is that the US and European political spectra are incommensurable. The US right is completely unlike the European right, and the US popular left (as opposed to the transnational university-educated froth) is completely unlike the European left.
Which is why Marxism, even in the attenuated Labour/social democratic forms, never got any serious ground in the US, whether at the height of the Populist-Progressive alliance or in the early part of the FDR administration. Marxism claimed to be universal truth (and thus Stalin denounced "American exceptionalism" as the heresy it was), but it was a European weed sdependent on European soil.
Drum misanalyzes the failure of the American left here as a failure of the vanguard of the proletariat to properly propagandize the revolution. But the truth is, the failure is that he and members of his froth are alienated from the American masses entirely, living in a Europeanized intellectual bubble. They can propagandize all they want; the Tea Party, which has all the pitchforks, is never going to buy what they're selling.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.