ping
And the next question is, “Can any of the perps (in goverment) be outed and prosecuted for this catastrophe?”
Your summary is basically the same as I see it, except for one thing:
The few honest mortgage brokers out there have been persecuted, and even prosecuted for NOT making bad loans to unworthy clients.
That pretty well sums it up.
McCain is making a strategical mistake by playing the populist and trying to show that he “feels people’s pain” rather than showing off his deep understanding and knowledge of the current crisis, through his attempted reform measures of Fanny Mae and Freddie Mac over the last several years.
He’s running as a maverick who will reform Washington, and yet he has so far punted a perfect opportunity to demonstrate that by calling out all of his Washington friends who have paved the way for the collapse today. He says he’ll make pork-barrelers ‘famous’ so why isn’t he making Chris Dodd, Franklin Raines, and Robert Rubin famous right now?
McCain needs to get back on track and go back to focusing on Washington instead of Wall Street.
I’ve been waiting for somebody to come along and put it *ALL* in perspective...
And lo and behold - JR steps up!
You nailed it, every word.
The Gramm-Leach-Bliley Act, also known as the Gramm-Leach-Bliley Financial Services Modernization Act, Pub. L. No. 106-102, 113 Stat. 1338 (November 12, 1999), is an Act of the United States Congress which repealed the Glass-Steagall Act...The interesting element, that many fail to mention, is this:
The bills comprising the act were introduced in the Senate by Phil Gramm (R-TX) and in the House of Representatives by James Leach (R-IA). The bills were passed by a 54-44 vote along party lines with Republican support in the Senate and by a 343-86 vote with bipartisan support in the House of Representatives. Nov 4, 1999: After passing both the Senate and House the bill was moved to a conference committee to work out the differences between the Senate and House versions. The final bill resolving the differences was passed in the Senate 90-8-1 and in the House: 362-57-15. It was signed into law by President Bill Clintonon November 12, 1999.
Maybe we could organize and send this out so that massive numbers of people all get it and pass it on. We have to break out of the "blogosphere" and into the collective conscious.
These programs actually worked pretty well, until JEsse Jackson+ Rainbow Push started on thier “RACIST MORTGAGE BANKS!!” screed in the early 90’s...
And let’s not even go in to how CITI bought and paid for Clinton and all of his cronies, setting up the Taxpayer disaster we have to deal with today.
He'd Ummmmmmmm, just gotten a promotion from community organization/State Senator (mostly in absence) into um a job that was above his uh pay grade. And he couldn't really vote on uh Federal controls without first reaping uh the benefits of the existing um situation. How can you change something you don't um understand?
Eric Canter was just on Chrissy Tingle Leg’s show and Chrissy was blaming Bush and the Republicans for the entire mess. Canter did not refute any of that insane dribble! It made me so incredibly mad. McCain, Bush, THE RNC, etc., etc. need to beat the donkeys like drums over this mess.
You summarized in detail what I always suspected. But I’ll go beyond the mere suspicion of social engineering. Was this a deliberate and clever attempt by some Socialists to crash our economy? Are they really that smart?
Housing: Who Got Rich? Who's to Blame?
Who do we blame for today's housing crisis, subprime loans and the Fannie Mae and Freddie Mac debacle? Who got rich?
The Democrats are blaming it on the Republicans and G.W. Bush, but that's not the answer.
We can accurately blame it on the Clinton administration, and the Democrats. The irresponsible actions of some very powerful people got this cauldron brewing many years ago - and then, there was no stopping it.
My wife works for a bank, in one word CRA (Community Reinvestment Act)
In honor of your post - please move me to the dollar a day donor. You’re the best.
Greenspan, hands down, was the proximate cause. The Greenspan Fed spurred the housing boom via lower interest rates as a recession antidote to 9/11 and the Internet bubble. And it worked.
But he kept rates artificially low for 2 years longer than he should have. And there you go. That’s it.
-The Gramm-Leach-Bliley Act signed into law by Bill Clinton November 12, 1999.
-The untold story in this whole national crisis is that President Clinton put on steroids the Community Redevelopment Act.
But the seed was planted in the ’90s by Clinton and his social engineers. They were the political catalyst behind this slow-motion financial train wreck.
And it was the Clinton administration that mismanaged the quasi-governmental agencies that over the decades have come to manage the real estate market in America.
IBD
- Alan Greenspan was nicknamed “ Mr.bubble “ even by the radical left-wing NY Times. His `87 S&L crash,stock bubble and now the mortgage bubble.
Amazingly in a 2004 speech he suggested that MORE borrowers would benefit from adjustable-rate mortgages!!! Greenspan`s positive comments about adjustable rate loans and subprime lending gave the green light to speculators who respected the Chairman’s opinion.
And then his Fed did not lift a finger to insist for stiffer rules for underwriting mortgages to people who ultimately couldn’t afford them.
“We’re not about to go into a situation where (real estate) prices will go down. There is no evidence home prices are going to collapse.” Alan Greenspan, May 21, 2006
