Posted on 09/28/2016 5:12:01 AM PDT by detective
On the debate stage Monday night, Hillary Clinton smugly repeated the big lie that Democrats have been telling with something close to impunity since 2008.
“We had the worst financial crisis, the Great Recession, the worst since the 1930s,” said Hillary. “That was in large part because of tax policies that slashed taxes on the wealthy, failed to invest in the middle class, took their eyes off of Wall Street, and created a perfect storm.”
(Excerpt) Read more at americanthinker.com ...
Well the Shrub administration gets a super large assist. they did nothing to enforce the laws.
The only mortgages I ever applied for (the most recent being in the early 80's) required 20% down and confirmation of income from a W2.
Interesting what a hindsight of ten years can do.
Lenders got the message.And then,although it took a while,the house of cards came tumbling down when it was realized that the bonds backed by these liar loans weren't worth half of what was claimed.
The housing meltdown, and corresponding global financial crisis, was started by who is now the SECOND worst president ever, Jimmuh Carter.
Carter signed the “fair housing act”, which languished for years and years until the mediocre president Bill Clinton pushed the issuse.
Clinton had Andrew Cuomo sue banks for failing to make bad loans, a process they called ‘redlining’ (Democrats can make any good thing sound bad- like ‘profiling’- with their willing media propagandists)
Cuomo won what was at the time the biggest judgment in history.
The rest of the banks then fell in line. They realized that they would get sued if they didn't make bad loans, and the government would guarantee the loans if they did, so they were between a rock and a hard place.
So they made the bad loans. Millions of them. And they were allowed to use welfare checks as income. And imaginary income. And your second cousins uncle's promise that he had money for you in his other pants pocket... Etc.
Then, and here is where the real magic happened... These bundles of bad loans were packaged up into ‘derivatives’.
They were magical in the sense that they turned billions of dollars of bad loans into good securities.
And people flipped houses back and forth between each other. I buy your house for $100K, you buy it back from me for $200K, I buy it again for $300K, and so on, until we finally 'prove' it has a market value of $500K because that is what 'someone' was willing to pay for it. So the whole neigborhood of formerly $100K houses must be similar, and you happen to own all of them too... So you mortgage them all to some bank for several million dollars, and walk away... The bank bundles them into a 'derivative' and it walks away. When the crap finally hit the fan, taxpayers bailed everyone out, while the people who managed this decades long scam pocketed $Trillions.
Then the government started even more magic: Quantitative Easing. Which literally means creating money out of thin air. You put a $100 bill on a copy machine and let it run and run and run, and call the copies money too.
We are STILL not seeing the full effect of that disaster but it is looming.
We do see food and grocery bills being over double what they were when Odumbass became president (who took over the title as THE worst president ever), but there is no daily reporting of the ‘consumer price index’ as there usually is when a Republican is President and things are going really bad.
Bawny said something like, "I don't see any problem other than Republicans now trying to keep people from owning homes"
The culprit was the Community Reinvestment Act which forced lending institutions to abandon their otherwise government regulations regarding the guidelines of lending. It was a typical example of schizophrenic bureaucracy legalisms.
In other words, use our guidelines when lending except when the applicant has brown skin and curly hair - then be sure to have a portfolio with the perfect % of minority borrowers, and forget whether they can ever repay the loans.
People weren't boycotting your threads. They were boycotting you. Your screen name is very appropriate.
I remember the last year of Clinton’s mis- administration.
The economy was doing great due to the policy carryover of George Bush and Clinton took the credit.
Then March or April 2000, the stock market went into free fall and Clinton ignored it. The economy struggled to recover and was on an upswing when 9-11 sent it into another tumble.
That was triggered by the lawsuit filed against Microsoft by the federal government ... to the day .... check the historical charts for confirmation.
Also, everybody forgets that the Democrats took over Congress in 2006 and accelerated the process of running the economy into the ground.
Wrong...
Go back and check the data: At the very beginning of July 2008 oil prices per barrel were nearing $150 and the exchange rate of the euro to the dollar was nearing 150. During the first week of July both concurrently began to drop sharply. When oil suddenly goes from the 150’s down to the 30’s that’s a huge drop in value. If a bank is holding a lot of oil and euro as assets and both take a hit simultaneously than billions can turn into millions.
“That” is what triggered the banking crisis. Now the question remains: what caused oil and the euro to bubble and burst? Some say micro-economic turbulence caused by the disparity between the dollar and the yuan...
Hillary (and the Democrats) try to ascribe the financial crisis that happened in 2007-8 to Republican economic policies, but at best, the events that led up to the meltdown were shared. At worst, you could say that Democrats were primarily responsible for policies that led to bad loans.
Some Democrats say that one reason the financial crisis happened was because there wasn't enough regulation. I disagree. The rating agencies Moody's and Standard & Poor's--neither of them really knew what was happening. They counted on the financial institutions to properly vet their borrowers. A legislative solution, even a regulatory one, certainly would not and could not have helped.
Great read. Thanks.
This is all factual.
Well, that would explain why people didn’t hear of the looming sub-prime crisis.
I remember GWB wrote to Bawney Franks - Chair of the house Financial Services Committee - about his concern over subprime mortgages.
Bawney poo-pooed it and subsequently, of course, tried to blame Bush for something Bubba and that former SA mayor who was running HUD, Cisneros?, had cobbled together originally.
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.