The Fed may have triggered the '08 crash by accident

The Hill ^ | 09/15/18 | DOUG CARR

[Flick Lives]

Wait till the school debt crisis hits. At least with real estate there was a building left to sell.

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Indentured servitude makes a return.

[Theoria]

The states that were hardest hit concerning real estate were the normal speculation states. Arizona, NV, and Florida. That wasn't community housing. Just as now Los Vegas is booming. Not sure if that is good or bad. Everything comes in cycles, except .gov spending and debt which is nonstop.

Rising interest rates will come. That will burn alot of people, but there has to be a end to free money at some point.

[boycott]

All good videos. Thanks.

[libertylover]

Yeah, then maybe they triggered it on purpose.

[dragnet2]

“”Think Bush was still President in 2008.””

___________________________________________

Are you suggesting Bush was an innocent bystander in that epic crash?

If so, here is audio of a Bush speech just a couple short years prior to the epic housing crash. On the audio, Bush is clearly heard demanding home-loans for millions of totally unqualified minorities.

https://www.youtube.com/watch?v=GkAtUq0OJ68

[originalbuckeye]

I looked it up and remembered his name. It was Paul Kanjorski. He left office in 2011.

[dragnet2]

“”Democrats, Democrat policies, Democrat inaction, and Democrats
__________________________________________

Here is audio of Republican Bush giving a speech just a couple short years prior to the epic housing crash. On the audio, Bush is clearly heard demanding home-loans for millions of totally unqualified minorities.

https://www.youtube.com/watch?v=GkAtUq0OJ68

[Nifster]

Whatever the fed did it was no accident

[TruthWillWin]

The 08 crash was created by the Dems attempt to make home ownership an entitlement. They ignored good lending practices, fraudulently approved loans, and created the house of cards unsustainable housing boom.

[deadrock]

Lets not forget that it was W who started the ‘too big to fail’ craze. He was all ‘compassion’ and no ‘conservatism.’

[DJ MacWoW]

I looked it up and remembered his name. It was Paul Kanjorski. He left office in 2011.

Yes! Thank you!

Rep Paul Kanjorski: 11 Sep 2008 Electronic Run On the Banks Video

[DJ MacWoW]

Longer video.

Rep. Paul Kanjorski: America's economy was attacked 'by somebody' on September 11, 2008 Video

[Pearls Before Swine]

I agree with you that certain areas that had seen the most speculation crashed the most, as is usually the case.

The Community Reinvestment Act was not the major factor, but it was a contributing factor, perhaps indirectly. It encouraged... actually mandated.... that banks lend to many more people with low financial ratings. That contributed to, although it didn’t cause, the laxity that permeated loan qualification (e.g., no-doc loans). It also encouraged banks to get as many of these off the books by securitizing them into CMOs and what not.

And yes, cycles will continue. The 2009 one was deeper than most, because the buildup was bigger than most.

[Cowboy Bob]

Pelosinwas in charge of the House. They were trying to undo all that Bush had achieved.

[null and void]

Ya THINK???

[x]

This is deceptive. The cause of the 08 crash was the sub-prime mortgage bubble popping. The cause of the sub-prime mortgage bubble popping, was the US Government pumping up the sub-prime mortgage bubble untill it popped. The cause of the bubble popping at that particular time may well have been the Fed’s effect on the liquidity of the banking system; that is not so easy to tell. But when you inflate a bubble like that, you make the crash inevitable. Only the timing can yet be influenced.

All true. The fact that the big investment houses we all too willing to package and sell all that bad debt didn't help things any though.

I really doubt Bush or Bernanke or anybody else engineered the collapse to put Obama in the White House. Would Bush have been unhappier with McCain as a successor than with Obama? Would Bernanke? Democrats could prevent housecleaning at Fannie and Freddy, but could they really have triggered a precisely-timed collapse? No, some kind of crash-landing was probably inevitable at some point.

[VTenigma]

The Fed may have triggered the ‘08 crash by accident

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Yeah that’s the ticket, it was an ummm accident, an accident yeah.

[oblomov]

https://www.washingtontimes.com/news/2011/feb/28/financial-terrorism-suspected-in-08-economic-crash/

[Darksheare]

Thanks.

[DJ MacWoW]

It took them until 2011 to realize what FReepers knew immediately. *sigh*

Thank you for finding the article. The draw down is what precipitated the mortgage crisis.