Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Santorum blames 2008 mortgage crisis on $4-per-gallon gas
thehill.com ^ | 02/27/12 | Daniel Strauss

Posted on 02/27/2012 2:32:03 PM PST by VU4G10

Rick Santorum on Monday blamed the housing crisis on high gas prices.

During a campaign appearance in Michigan, Santorum said the housing bubble burst in 2008 because people could no longer afford to pay their mortgages because of high gas prices.

"We went into a recession in 2008 because of gasoline prices," Santorum said in Michigan according to Buzzfeed. "The bubble burst in housing because people couldn’t pay their mortgages because of $4 a gallon gasoline."

(Excerpt) Read more at thehill.com ...


TOPICS: Extended News; Politics/Elections
KEYWORDS: elections; gasprices; housingbubble; obama; santorum; santorumgaffes
Navigation: use the links below to view more comments.
first 1-5051-60 next last

1 posted on 02/27/2012 2:32:09 PM PST by VU4G10
[ Post Reply | Private Reply | View Replies]

To: 21twelve; Absolutely Nobama; AFPhys; afraidfortherepublic; AmericanInTokyo; ...
Santorum for President Ping List.

FReepmail “Antoninus” to be added or removed.

2 posted on 02/27/2012 2:35:43 PM PST by Lazlo in PA (Now living in a newly minted Red State.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: VU4G10

The guy needs help from his staff to prevent popping off and making loony statements.


3 posted on 02/27/2012 2:36:33 PM PST by wildbill (You're just jealous because the Voices talk only to me.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: VU4G10
I was at that speech. He's partially right.

People were struggling to pay the bills. Gas prices were up to $4+. That increases costs of not just gasoline, but shipping and other goods. Luxuries were not being bought, and credit cards were being maxed to pay for the essentials. Eventually, foreclosures kicked in with missed payments.

4 posted on 02/27/2012 2:37:12 PM PST by Darren McCarty (Stop Romney - Rick Santorum in the Michigan primary)
[ Post Reply | Private Reply | To 1 | View Replies]

To: VU4G10

It didn’t help. The Fed cranking up interest rates to cool down the economy was probably a bigger factor.

http://confoundedinterest.wordpress.com/2012/02/23/fhfa-home-price-index-up-0-7-in-december-oil-prices-triple-since-january-2009/


5 posted on 02/27/2012 2:37:17 PM PST by whitedog57
[ Post Reply | Private Reply | To 1 | View Replies]

To: VU4G10

Fannie Mae/Freddie Mac Hearings 2004

http://www.youtube.com/watch?v=Yga7TlsA-1A

Dim leadership at its best!


6 posted on 02/27/2012 2:37:24 PM PST by LucianOfSamasota (Tanstaafl - its not just for breakfast anymore...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: VU4G10

It think he is right but $4 gas was only the pin that pricked the bubble. If it wasn’t that it would have been something else.


7 posted on 02/27/2012 2:38:17 PM PST by Drill Thrawl (Brass, copper, lead. The new precious metals.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: VU4G10
I was at that speech. He's partially right.

People were struggling to pay the bills. Gas prices were up to $4+. That increases costs of not just gasoline, but shipping and other goods. Luxuries were not being bought, and credit cards were being maxed to pay for the essentials. Eventually, foreclosures kicked in with missed payments.

8 posted on 02/27/2012 2:38:37 PM PST by Darren McCarty (Stop Romney - Rick Santorum in the Michigan primary)
[ Post Reply | Private Reply | To 1 | View Replies]

To: VU4G10

Seriously?

Sigh...


9 posted on 02/27/2012 2:39:48 PM PST by Psycho_Bunny (Burning the Quran is a waste of perfectly good fire.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: wildbill

What’s looney about it. The gas prices going through the roof out of the blue really hurt a lot of people, especially those who were struggling to pay for home loans they shouldn’t have had in the first place. Many factors were involved but this one is always overlooked.


10 posted on 02/27/2012 2:40:57 PM PST by Lazlo in PA (Now living in a newly minted Red State.)
[ Post Reply | Private Reply | To 3 | View Replies]

To: VU4G10

ungh......oh no.


11 posted on 02/27/2012 2:41:49 PM PST by muleskinner
[ Post Reply | Private Reply | To 1 | View Replies]

To: VU4G10
Why does it feel like I'm trying to cheer at a turtle race?
Come ON Rick! At least crawl in the right direction!

12 posted on 02/27/2012 2:42:05 PM PST by BitWielder1 (Corporate Profits are better than Government Waste)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Drill Thrawl
If it wasn’t that it would have been something else.

Was bound to happen sooner or later.

Sort of the equivalent of "Some damn-fool thing in the Balkans.", pre-1914.

13 posted on 02/27/2012 2:42:16 PM PST by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Darren McCarty

2008 was the year the GOP was screaming for the democrats to do vote on energy policy and Nancy took her minions and went on vacation. Our congressman was one of those who stayed in DC calling for the democrat return.

And yes, gas prices were in the $4 range. It was the biggest expense of my trip to the UP that year.


14 posted on 02/27/2012 2:47:31 PM PST by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Drill Thrawl

You are right. SOMETHING would have burst the bubble of millions of unsustainable mortgages.


15 posted on 02/27/2012 2:52:09 PM PST by alstewartfan (27 of 36 of Romney's judicial appointments were DEMOCRATS!!!!!)
[ Post Reply | Private Reply | To 7 | View Replies]

To: VU4G10

There are a lot of people out there struggling to pay their mortgages.

High gas prices lead to higher prices for goods, such as food, and services.

No matter what, inflation hurts the economy even though the government pretends it doesn’t and pretends that food and services don’t fit into inflation.

Santorum is right here in a roundabout way. We are in deep doo doo again because of high gas prices. Food prices are rising fast.

If you are a person living on a fixed type income, you are feeling a lot of pain.


16 posted on 02/27/2012 2:52:09 PM PST by dforest
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lazlo in PA

I totally agree. (on the $4 per gal gas kicking off the mortgage crisis) When you are filling two, or more, cars per week at $4 per gal. it really adds up. Suddenly there is no wiggle room in the budget. Then somebody loses a job and it’s crisis time.


17 posted on 02/27/2012 2:57:36 PM PST by afraidfortherepublic
[ Post Reply | Private Reply | To 2 | View Replies]

To: wildbill

Good grief! Pass the vodka. How does he get there?

Fannie and Freddie were fueled up for a crash under the Clintons, when Janet Reno with the force of law under her bosom, cheerfully and self-rightously forced banks and lending houses to lend to minorities and low income, or no income, and unfit for the deal they made at the desk of the lender.

Sheesh. Gaffe surge.


18 posted on 02/27/2012 2:57:36 PM PST by RitaOK (LET 'ER RIP, NEWT. Newt knows where all the bodies are buried, because he buried them.)
[ Post Reply | Private Reply | To 3 | View Replies]

To: VU4G10
He should be bringing up the fact that American auto makers probably tanked around then because of gas prices. They. were and are once again dependent on selling big vehicles. Besides the flaky credit they've been using to move vehicles lately and pent up demand, they'll be right back int that box again soon. That might score some points with auto workers. Maybe Santorum has mentioned it.
19 posted on 02/27/2012 3:04:12 PM PST by throwback ( The object of opening the mind, as of opening the mouth, is to shut it again on something solid.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: RitaOK

Seems like Santorum tends to over-reach on this stuff, although I am always on guard for the MSM trying to torpedo all Republicans.

Certainly gas prices didn’t help with the mortgage crisis, but to say we had the crisis “because” of gas prices rather than the CRA, Fannie/Freddie, low credit standards, etc., etc. is a reach. The housing bubble inflated home values by six figures in many cases - the net present value of the gas price increase was a rounding error next to that.


20 posted on 02/27/2012 3:05:52 PM PST by rockvillem
[ Post Reply | Private Reply | To 18 | View Replies]

To: VU4G10

He may not be so wrong, a lot of people I know drive 1-2 hrs to and 1-2 hours from work. I live in a rural area, and fortunately don’t have to do that. I also have relatives 15 miles outside NY that work in the city and it can take them up to two hours to get to work. You add in family travel and other activities, gas really takes a bite out of the budget.


21 posted on 02/27/2012 3:06:59 PM PST by MacMattico
[ Post Reply | Private Reply | To 1 | View Replies]

To: VU4G10

What a total idiot!!!

He isn’t smart enough to flip burgers!


22 posted on 02/27/2012 3:07:40 PM PST by dalereed
[ Post Reply | Private Reply | To 1 | View Replies]

To: VU4G10

The housing Crisis has been cause primarily by building 10 years worth more homes than we have families, and similarly overbuilding commercial sites.

You had to be pretty damned stupid to not know it was coming.


23 posted on 02/27/2012 3:09:50 PM PST by MrEdd (Heck? Geewhiz Cripes, thats the place where people who don't believe in Gosh think they aint going.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: VU4G10

If I may........the housing crisis was looming way before 2008. People were being given 1st mortgage loans they could barely qualify for and were also financing their down payments. If this wasn’t bad enough, they would then get second or even third mortgages for vacations, new furniture, decks, blah, blah, blah, the lenders were giving up to 120% value on these loans. These people were way over their head, before they made their first payment. Most of them were adjustable rate mortgages, taxes were not quoted correctly, they were lying about income and by the time all these expenses rolled out accurately, there is nt way they could afford the home, so turn key, walk out. Hell, they were so buried in housing expenses, they couldn’t afford anything, groceries, utilities, docotr, dentist, , gas, nothing. For Santorum to assert this is ridiculous.


24 posted on 02/27/2012 3:13:51 PM PST by Toespi
[ Post Reply | Private Reply | To 1 | View Replies]

To: RitaOK

Precisely. The home loans to people who were unqualified was predictable. People who otherwise saved, paid their bills and budgeted conscientiously kept their homes which have lost value because of the high foreclosure rate.

High gas prices affect all consumer goods. The direct gas prices have affected those who have long commutes to and from the workplace and if they drive premium gas guzzlers.

One blessed group are the DC Government employees who use public transport. They have probably not even noticed the $4.00 gallon price.


25 posted on 02/27/2012 3:14:09 PM PST by sodpoodle ( Newt - God has tested him for a reason...... to bring America back from the brink.)
[ Post Reply | Private Reply | To 18 | View Replies]

To: VU4G10

When you have all the feathers you can carry can you carry one more. The fuel price was the feather that broke the camels back, so to speak.


26 posted on 02/27/2012 3:15:47 PM PST by org.whodat
[ Post Reply | Private Reply | To 1 | View Replies]

To: VU4G10

Finally a DC politition who gets it. The high price of oil was manipulated, it was the trigger that led to the meltdown. When one builds a house of cards, it just takes a breath to bring it down.


27 posted on 02/27/2012 3:17:49 PM PST by maddogtiger
[ Post Reply | Private Reply | To 1 | View Replies]

To: VU4G10

Finally a DC politition who gets it. The high price of oil was manipulated, it was the trigger that led to the meltdown. When one builds a house of cards, it just takes a breath to bring it down.


28 posted on 02/27/2012 3:18:00 PM PST by maddogtiger
[ Post Reply | Private Reply | To 1 | View Replies]

To: VU4G10

I’d like to know who we’re going to blame for Santorum?


29 posted on 02/27/2012 3:18:22 PM PST by Revolting cat! (Let us prey!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: sodpoodle

This is also precicely why we are so screwed if Santorum gets the nomination. The guy is a moron. Please Newt, why do we have to suffer this fate!


30 posted on 02/27/2012 3:20:06 PM PST by PSYCHO-FREEP (If you come to a fork in the road, take it........)
[ Post Reply | Private Reply | To 25 | View Replies]

To: org.whodat

Many people around here don’t know a damn thing about how to win elections.

Using the fact that high gas prices fuel many of our problems is how you appeal to voters who are not going to pay attention to how the democrats created the mortgage crisis.

Those people only know kitchen table politics. This is a way to use the current crisis to make a point.

Dems are good at it. Most republicans are not.

Santorum was making a point that people understand. They know these skyrocketing prices are starting to cause great pain and making it harder to pay their bills..


31 posted on 02/27/2012 3:21:21 PM PST by dforest
[ Post Reply | Private Reply | To 26 | View Replies]

To: org.whodat

Many people around here don’t know a damn thing about how to win elections.

Using the fact that high gas prices fuel many of our problems is how you appeal to voters who are not going to pay attention to how the democrats created the mortgage crisis.

Those people only know kitchen table politics. This is a way to use the current crisis to make a point.

Dems are good at it. Most republicans are not.

Santorum was making a point that people understand. They know these skyrocketing prices are starting to cause great pain and making it harder to pay their bills..


32 posted on 02/27/2012 3:21:55 PM PST by dforest
[ Post Reply | Private Reply | To 26 | View Replies]

To: Darren McCarty

He’s partially right.


When you are not correct and running for President, it is best to shut up.

The housing market crashed from Clinton’s race quota loan demands which nullified bank qualification standards for loans.

Rick is, as usual, is out to lunch when to comes to understanding and explaining complex issues.


33 posted on 02/27/2012 3:26:25 PM PST by SaraJohnson
[ Post Reply | Private Reply | To 8 | View Replies]

To: dalereed

Can you say the Rickster is slllloooowwww real slowly? ;)

This is pitiful.


34 posted on 02/27/2012 3:29:13 PM PST by SaraJohnson
[ Post Reply | Private Reply | To 22 | View Replies]

To: VU4G10
OMG! Is this his thinking, what a lame statement (excuse me)

What about the variable interest rates. People working at McDonalds etc., while getting loans approved for $500,000 homes. Barney Franks and Chris Dodds taking measures to give people montages in which they did not have the credit or money to secure those loans.

35 posted on 02/27/2012 3:30:58 PM PST by Christie at the beach (I like Newt and would love to see political dead bodies on the floor.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: VU4G10

I thought the mortgage crisis - foreclosure rates, subprime bubble, less liquidity at the banks - was already a fact before $4.00 gasoline; and sorry, but as much as it is a jump in prices, adjustments for it are/were much easier (drive less so mortgage payment money not drained) and widespread than I think you give people credit.

I think in the essentials, Santorum is wrong and possibly just playing to populist sentiments of the moment over gasoline prices.


36 posted on 02/27/2012 3:30:58 PM PST by Wuli
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lazlo in PA; All
I live within a mile of a housing development near an interstate highway which should be the poster child for the 2008 housing bubble.

The development was pitched exclusively to Marylanders, who thought that the $250 - $350K McMansions on quarter acre lots were a bargain even though they were at least $100K overpriced by Pennsylvania standards.

They could handle their interest-only mortgages AND their 80 to 120 mile daily commute UNTIL the gas price spiked. Then we started seeing a full newspaper page of just these properties being Sheriffed.

37 posted on 02/27/2012 3:33:46 PM PST by lightman (Adjutorium nostrum (+) in nomine Domini--nevertheless, Vote Santorum!)
[ Post Reply | Private Reply | To 2 | View Replies]

To: dforest
No, Santorum said what he said, as plain as day, that the crash of the 2008 housing market was caused by $4.00 gas prices. Which is simply WRONG.

You can spin it, twirl it, apologize for it, interpret it, and translate it into something you would like us to believe, but it won't change a thing. It is what it is. He said what he said and looks rather stupid for doing so.

38 posted on 02/27/2012 3:34:24 PM PST by PSYCHO-FREEP (If you come to a fork in the road, take it........)
[ Post Reply | Private Reply | To 32 | View Replies]

To: All


THE CLICK WORKS! PLEASE USE!

39 posted on 02/27/2012 3:35:25 PM PST by onyx (SUPPORT FREE REPUBLIC, DONATE MONTHLY. If you want on Sarah Palin's Ping List, let me know.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: afraidfortherepublic
When you are filling two, or more, cars per week at $4 per gal. it really adds up.

When your Interest-only Option ARM transitions from the interest-only phase to the fully-amortizing phase and your payment goes up $1000 per month, it doesn't matter if gasoline is free; you're in a world of hurt.

40 posted on 02/27/2012 3:36:35 PM PST by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
[ Post Reply | Private Reply | To 17 | View Replies]

To: VU4G10

It wasn’t the cause; it was the trigger.


41 posted on 02/27/2012 3:36:35 PM PST by Carry_Okie (The RNC would prefer Obama to a conservative nominee.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: onyx

SWEEEeeeeet! (The “Cheerful” one)


42 posted on 02/27/2012 3:41:54 PM PST by PSYCHO-FREEP (If you come to a fork in the road, take it........)
[ Post Reply | Private Reply | To 39 | View Replies]

To: Revolting cat!; RitaOK; Gator113; PSYCHO-FREEP
I’d like to know who we’re going to blame for Santorum?

Start with Romney & Paul in Iowa their vicious attack ads on Newt Gingrich when Newt was running away with the nomination, and Santorum came out of nowhere.

Then Newt rebounded in South Carolina and Romney went scorched earth again in Florida. Santorum cleverly won two beauty contests in Missouri and Minnesota, but beat Romney and Gingrich in Colorado, so blame the polls now, because voters "follow polls" and also blame the lack of debates and the media which is shutting out Gingrich!

Santorum has been the "severely" lucky beneficiary of Romney's scorched earch, up until now, but the Romney damage to Newt has been done and without media presence, Newt Gingrich's chances have been dimmed and the media are delighted to shut out Newt Gingrich, espeially Faux!!

The establishment all fear Newt Gingrich! The only agent of radical change!

Remove Romney and Newt Gingrich wins!

43 posted on 02/27/2012 3:49:53 PM PST by onyx (SUPPORT FREE REPUBLIC, DONATE MONTHLY. If you want on Sarah Palin's Ping List, let me know.)
[ Post Reply | Private Reply | To 29 | View Replies]

To: RitaOK

And you think Newt would disagree that gas prices didn’t help bring down the U.S. economy? He was out there with his Drill and Save Money bumper sticker. I changed it on my bumper to Drill and Save Jobs. I watched it all happen in CA and gas prices were the tipping point, or straw that broke the camel’s back or what ever cliche you want to use. Most I know people who were house poor who could have continued paying the mortgage if gas had stayed reasonably priced. I put full blame on the Democrat Congress that came into power in January 2007.


44 posted on 02/27/2012 3:51:24 PM PST by pacpam (action=consequence and applies in all cases - friend of victory)
[ Post Reply | Private Reply | To 18 | View Replies]

To: lightman

I remember the first couple weeks when the gas price was the highest. I live on a busy road where you could have an average of 40 to 50 cars an hour. One Saturday night the wife and I noticed we were not hearing cars anymore. When you are used to hearing them for years, the absence was deafening. We timed the interval to almost an hour between cars. No one was driving down town to get liquored up because the price shock to the system was that bad. That really hit people hard. We forget that now because of all the other bad things that occurred after that i.e.; the meltdown.


45 posted on 02/27/2012 4:00:04 PM PST by Lazlo in PA (Now living in a newly minted Red State.)
[ Post Reply | Private Reply | To 37 | View Replies]

To: VU4G10

This is our problem:

1. Ron Paul - fiscal conservative but scary as hell on foreign policy.
2. Mitt Romney - looks good, but is a jerk and has only one reason for running: he wants to be President.
3. Rick Santorum - not ready for prime time, a possible disaster.
4. Newt Gingrich - a very good communicator with great political instincts with high negatives and self inflected wounds in his personal life.

What to do? I have no clue anymore. I like Newt, but if he can’t win the nomination what is plan B. That is what I keep asking myself. And so far here is my solution.

Support Rick Santorum and go down fighting. But we surely will go down, maybe by alot. God help us.


46 posted on 02/27/2012 4:02:41 PM PST by dt57 (illerate, noobie....)
[ Post Reply | Private Reply | To 1 | View Replies]

To: VU4G10; wildbill; Psycho_Bunny; BitWielder1; RitaOK; dalereed; Revolting cat!; PSYCHO-FREEP; ...
To those who chose to laugh: If you can read a graph, you can stop now!

Read more: Rick Santorum Is Right: Gas Prices Caused the Great Recession (theatlantic.com)

As the more thoughtful poster stated, it may have not been the gas can, but it certainly was the match!

47 posted on 02/27/2012 4:09:33 PM PST by drpix
[ Post Reply | Private Reply | To 1 | View Replies]

To: VU4G10
Happened to me, with some extenuating circumstance though. But gasoline was certainly the straw that broke the camel's back in my case.
48 posted on 02/27/2012 4:13:25 PM PST by jacknhoo (Luke 12:51. Think ye, that I am come to give peace on earth? I tell you, no; but separation.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Darren McCarty

also because of the high gas prices, overnight practically, all the trades people had to jack up their prices to cover the cost and people stopped doing home repairs and building.....unemployment!


49 posted on 02/27/2012 4:16:50 PM PST by annelizly
[ Post Reply | Private Reply | To 4 | View Replies]

To: Darren McCarty

also because of the high gas prices, overnight practically, all the trades people had to jack up their prices to cover the cost and people stopped doing home repairs and building.....unemployment!


50 posted on 02/27/2012 4:17:09 PM PST by annelizly
[ Post Reply | Private Reply | To 4 | View Replies]


Navigation: use the links below to view more comments.
first 1-5051-60 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson