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There is the crux of the truth in a not shell. Still, I urge verybody to read the article at the source. This was a multi-level fraud from the get go and nobody wants to point the finger of blame squarely where it belongs. The too big to fail boys got rich and some got filthy rich through this massive fraud -- and nobody is going to go to prison. Nada. Nope. Duh !
1 posted on 11/23/2012 2:28:10 PM PST by ex-Texan
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To: Tailgunner Joe; Beave Meister; American Constitutionalist; SoftwareEngineer; stephenjohnbanker; ...

*Ping* !


2 posted on 11/23/2012 2:32:53 PM PST by ex-Texan (The Time to "Wake Up" is Over !)
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To: ex-Texan

unregulated?

The mortgage and banking businesses are some of the most regulated things in the world.


3 posted on 11/23/2012 2:49:22 PM PST by GeronL (http://asspos.blogspot.com)
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To: ex-Texan

Recovering, my patoot.


4 posted on 11/23/2012 2:54:00 PM PST by BlessedBeGod
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To: ex-Texan

What about the Feds going after the banks for not loaning money to minorities so that they could by a house? The heck with the traditional 20% down. That is discrimination so say the dimoKKKRATS.


5 posted on 11/23/2012 2:55:10 PM PST by Parley Baer
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To: ex-Texan

BS. No one forced anyone to get a mortgage, or max out their home equity. It was not deregulation or derivatives that killed the golden goose. It was the government encouraging banks to lend to people with no income, jobs or assets (NINJAs) coupled with Freddie and Fannie’s guarantee on the bank loans, the Fed’s loose monetary policy and the fantasy of ever rising property values.


6 posted on 11/23/2012 2:55:55 PM PST by ffusco (The President will return this country to what it once was...An arctic wasteland covered in ice.)
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To: ex-Texan
Sarbanes-Oxley, imposed upon businesses after the Enron collapse, requires that companies carry assets at actual value, or "mark-to-market."

The Federal Reserve forbids banks from using mark-to-market.

Go figure.

8 posted on 11/23/2012 3:02:54 PM PST by E. Pluribus Unum (Labor unions are the Communist Party of the USA.)
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To: ex-Texan

Congressman Barney Frank is the primary person responsible for Poor Risk borrowers getting home loans from banks.


9 posted on 11/23/2012 3:06:00 PM PST by OldNavyVet
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To: ex-Texan
B.S. I'll give it to you in a nutshell:
Government: We want you banks to give loans to people that shouldn't get loans.

Banks: What?

Gov: Let's put it this way. You WILL give loans to people that shouldn’t get loans, or forget about your plans for expansion.

Banks: We'll go out of business doing that.

Gov: You know, if you bundle and securitize the mortgages you can sell those securities.

Banks: What? You will let us do that? You never let us do that sort of thing before. Heck, that's not even IN the tens of thousands of pages of regulations.

Gov: You are right, but it's OK. Freddie Mac and Fannie Mae are cool with it to.

Banks: Wow...cool.

Time goes by and these new mortgage backed securities are found to be money machines when they are sold, sometimes in bits and pieces. Like all financial instruments increasingly clever ways are found to turn a profit, especially when there is little to no regulation involved for that type of new investment.

More time passes, and people that should not get mortgages act like people that should not get mortgages.

Banks: Government, please save us!

Government: OK, but this all happened because you were so greedy.

Banks: WHAT!?!?!?!?

10 posted on 11/23/2012 3:11:01 PM PST by jdsteel (Give me freedom, not more government.)
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To: ex-Texan

Federal government caused this mess and then blamed their tools for it.


11 posted on 11/23/2012 3:13:32 PM PST by elkfersupper ( Member of the Original Defiant Class)
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To: ex-Texan

Ping!

Hello there old Friend!


13 posted on 11/23/2012 3:27:03 PM PST by JDoutrider
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To: ex-Texan; mickie
There are many perps in government and in Wall Street that breathed a sigh of relief when the Conman-in-Chief won the presidency.

Nothing will now be done to investigate ANYTHING or ANYBODY. The perps will skate.

The raping of the makers will continue apace. The takers will have big trouble getting mortgages now, but other deviously-clever ways will be found to ensconce them in their own little dream homes.

Oh, well, just another day, another shrunken dollar in our pockets.

Leni

14 posted on 11/23/2012 3:27:03 PM PST by MinuteGal (Please Restore Former Format on FR "Latest Posts" Page ASAP !)
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To: ex-Texan
I've posted this before and if you want the REAL TRUTH it will take 2 hours and 25 minutes of your time.

Believe me when I say, "this is well WORTH WATCHING." Miss Barnhardt is NOT a fan of either Democrats or Republicans, as you will hear.

There's stuff sprinkled throughout these videos that I'm guessing you've NOT heard before! And the last 4 parts will probably somewhat blow your mind. Some very candid talk from her.
 
I've watched it TWICE now and it's very illuminating. It's some pretty powerful stuff, especially parts 5, 6, 7, and 8,
It's my calculated guess that we have 1 to 2 years before the house of cards comes down. It could happen sooner as a result of an unexpected acceleration of some of the scenarios put forth by Miss Barnhardt.
 
This video is in 8 parts on YouTube. Each part is approximately 20 minutes. It's delivered by Ann Barnhardt.
It was posted 2 weeks ago on YouTube, Nov 8th, 2 days after the election. It was actually recorded on Nov 2nd.
 
The Economy Is Going To Implode - Pt.1 of 8
http://www.youtube.com/watch?v=7dFVFJ0iRRA&feature=relmfu
 
If you're wondering who is Ann Barnhardt?

On November 17th, A.D. 2011, Ann Barnhardt–the president of Barnhardt Capital Management–wrote a letter announcing her decision to close her investment company and explained her reasons for doing so.

She’s closing in reaction to the recent collapse of MF Global–which she attributes to the criminal acts of  MFG president Jon Corzine and the increasingly corrupt nation of American markets.

http://adask.wordpress.com/2011/11/21/barnhardt-capital-management-closes/

15 posted on 11/23/2012 3:44:39 PM PST by VideoDoctor
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To: ex-Texan
The too big to fail boys got rich and some got filthy rich through this massive fraud -- and nobody is going to go to prison. Nada.

I am offended by bankers and I was a banker for nearly 40 years.

Having said that, I am more offended by folks who clearly have no knowledge of the real perpetrators of this mess chiming in and insinuating that the folks who caused it failed to "regulate" it.

It was these dumbasses' "regulations" in response to misplaced populism on the part of politicians that created the mess in the first place.

Geez!

18 posted on 11/23/2012 3:51:25 PM PST by elkfersupper ( Member of the Original Defiant Class)
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To: ex-Texan

Can you say sub-prime?


20 posted on 11/23/2012 3:58:14 PM PST by maddogtiger
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To: ex-Texan
The too big to fail boys got rich and some got filthy rich through this massive fraud -- and nobody is going to go to prison. Nada. Nope. Duh !

The central bank and Congressional policies created the mess. Blame business if you will [all too many supposedly conservative FReepers do] but you're missing the point. Business adapted to the atmosphere created by Congress.

I'm no fan of the banks and they are protected by the government but they'd have no power if they were treated like other businesses. They're not.

Ask youself why. And why aren't Barney Frank, Frank Dodd, et. al. going to prison?

24 posted on 11/23/2012 4:04:05 PM PST by BfloGuy (Workers and consumers are, of course, identical.)
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To: ex-Texan
“Greed,” always undefined, is always there; so it explains nothing. Consider someone saying “they raised prices because of greed.” Or, “they lowered prices because of greed, to get a greater share of the market.” So what happens next if a tsunami of greed hits? Higher or lower prices?

It was government policy that banks provide more mortgages. More than what? More than banks wanted to provide. Banks were regulated into providing more mortgages. The government used carrot and stick to get banks to do its bidding. An example of a stick was the law that allowed community organizer Barack Obama to sue CitiBank to force them to provide more mortgages. A carrot was Fannie Mae providing free (government provided) insurance for mortgages.

People make mistakes. This applies all over: individuals, churches, business, schools, government. Generally, people will rectify their mistakes. For example, few are willing to repeatedly waste their money. However, it's different with government. People in government waste other people's money. They can do that year after year, even decade after decade. That is just one reason why socialism works poorly.

This recession was caused by government, as was the great depression. Socialists are always there to tell you otherwise.

25 posted on 11/23/2012 4:07:34 PM PST by ChessExpert (The unemployment rate was 4.5% when Democrats took control of Congress in 2006. What is it today?)
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To: ex-Texan
"Bad mortgage loans, obscured through complex and unregulated investment instruments forced on lending institutions by the federal government, cost taxpayers billions "

Impeach the kenyan or secession.


28 posted on 11/23/2012 4:10:57 PM PST by ex91B10 (We've tried the Soap Box,the Ballot Box and the Jury Box; ONE BOX LEFT!)
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To: ex-Texan

Greed: Welfare. That’s greed. Taking something that doesn’t belong to you and making the government take it for you using the force of a gun.


29 posted on 11/23/2012 4:12:54 PM PST by CodeToad (Liberals are bloodsucking ticks. We need to light the matchstick to burn them off.)
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To: ex-Texan
Bad mortgage loans, obscured through complex and unregulated investment instruments, cost taxpayers billions...wow - he must have read Morgemson and Rosner's "Reckless Endangerment" from early 2011 - only a year and a half behind the curve - not bad for an academic......
34 posted on 11/23/2012 4:26:28 PM PST by Intolerant in NJ
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To: ex-Texan

NOPE

Natural market forces do not have the ability to create these artificial economic bubbles and there is enough proof going all the way back to the Tulip Bubble.

Only Govt. can create these massive bubbles. Natural business cycles self correct :

NOTICE WHO,WHERE AND WHEN IT BEGAN

Timeline of the United States housing bubble

1930s

1933-1939 The New Deal is a group of new laws created to fix problems in the Great Depression economy, including methods to increase home ownership.
1934 The National Housing Act of 1934, part of the New Deal, makes more affordable housing and home mortgages. It creates the Federal Housing Administration (FHA) (later United States Department of Housing and Urban Development, HUD) and the Federal Savings and Loan Insurance Corporation.
1938 Fannie Mae is founded by the government under the New Deal. It is a stockholder-owned corporation that purchases and securitizes mortgages in order to ensure that funds are consistently available to the institutions that lend money to home buyers.

1968 - 1991

1968: As part of the Housing and Urban Development Act of 1968, the Government mortgage-related agency, Federal National Mortgage Association (Fannie Mae) is converted from a federal government entity to a stand-alone government sponsored enterprise (GSE) which purchases and securitizes mortgages to facilitate liquidity in the primary mortgage market. The move takes the debt of Fannie Mae off of the books of the government.
1970 Federal Home Loan Mortgage Corporation (Freddie Mac) is chartered by an act of Congress, as a GSE, to buy mortgages on the secondary market, pool them, and sell them as mortgage-backed securities to investors on the open market. The average cost of a new home in 1970 is $26,600 [2] ($140,582 in 2007 dollars). From 1960 to 1970, inflation rose from 1.4% to 6.5% (a 5.1% increase), while the consumer price index (CPI) rose from about 85 points in 1960 to about 120 points in 1970, but the median price of a house nearly doubled from $16,500 in 1960 to $26,600 in 1970.
1974: Equal Credit Opportunity Act imposes heavy sanctions for financial institutions found guilty of discrimination on the basis of race, color, religion, national origin, sex, marital status, or age.
1977: Community Reinvestment Act passed to encourage banks and savings and loan associations to offer credit to minority groups on lower incomes or owning small businesses 12 U.S.C. § 2901 et seq.).[3][4] Beforehand, the companies had been engaging in a practice known as redlining.
July, 1978: Section 121 allowed for a $100,000 one-time exclusion in capital gain for sellers 55 years or older at the time of sale.[5]
1980: The Depository Institutions Deregulation and Monetary Control Act of 1980 granted all thrifts, including savings and loan associations, the power to make consumer and commercial loans and to issue transaction accounts, but with little regulatory oversight of competing banks; also exempted federally chartered savings banks, installment plan sellers and chartered loan companies from state usury limits.[6] The cost of a new home in 1980 is $76,400 [7] ($189,918 in 2007 dollars).
1981: The Section 121 exclusion, allowing for a one-time exclusion in capital gain for sellers 55 years or older at the time of sale, was increased from $100,000 to $125,000.[5]
1981: Each Federal Reserve bank establishes a Community Affairs Office to ensure compliance with Community Reinvestment Act.[8][9]
1985–1991: Savings and Loan Crisis caused by rising interest rates and over development in the commercial real estate sector, and exacerbated by deregulation of savings and loan lending standards and a reduction in capital reserve requirements from 5% to 3%.[citation needed]
1986: The Tax Reform Act of 1986 eliminated the tax deduction for interest paid on credit cards, encouraging the use of home equity through refinancing, second mortgages and home equity lines of credit (HELOC) by consumers.[10]
1986–1991: New homes constructed dropped from 1.8 to 1 million, the lowest rated since World War II.[11]
1989: One-month drop in sales of previously owned homes of 12.6 percent.;[12] Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) enacted which established the Resolution Trust Corporation (RTC), closing hundreds of insolvent thrifts and moved regulatory authority to the Office of Thrift Supervision (OTS); required federal agencies to issue Community Reinvestment Act ratings publicly.[13]
1990: The average cost of a new home in 1990 is $149,800 [14] ($234,841 in 2007 dollars).
1991–1997: Flat Housing prices.
1991: US recession, new construction prices fall, but above inflationary growth allows them to return by 1997 in real terms.
[edit]1992 - 2000

1992:Federal Housing Enterprises Financial Safety and Soundness Act of 1992 required Fannie Mae and Freddie Mac to devote a percentage of their lending to support affordable housing increasing their pooling and selling of such loans as securities; Office of Federal Housing Enterprise Oversight (OFHEO) created to oversee them.[15][16]
1994: Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (IBBEA) repeals the interstate provisions of the Bank Holding Company Act of 1956 that regulated the actions of bank holding companies.

.
1995: New Community Reinvestment Act regulations break down home-loan data by neighborhood, income, and race; encourage community groups to complain to banks and regulators by allowing community groups that marketed loans to collect a brokers fee;[17] Fannie Mae allowed to receive affordable housing credit for buying subprime securities.[16]

CONT`D...

http://en.wikipedia.org/wiki/Timeline_of_the_United_States_housing_bubble


44 posted on 11/23/2012 4:46:21 PM PST by Para-Ord.45
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