doublegunshop.com - home Forums General Discussion DoubleGun BBS @ doublegunshop.com Per Obama: A Failed Presidency

It wasn't all federal pressure that caused the unqualified lending to take place. Bankers, developers,and realtors got behind it for the profit involved.

I saw secondary market lending specialists in local banks making more money from commissions than the bank presidents. Developers moved property and the smart ones banked their profits. Realtors got their commissions for finding borrowers who were perfectly willing to live the good life for a while completely understanding they could not afford it and would be foreclosed.

The only limit was how deep the federal pocket was on loan guaranties. At that point the Wall Street bonus boys figured out a way to legally use these bum securities as an investment product. That's when the bubble finally burst...Geo

Weird how that works. If you don't have much luck with the scope rings, maybe inquire at texas-mac dot etc. It's not quite his thing, but he may have ideas.

Craig, I don't know much about politics, but I do appreciate the tip regarding my scope problem...Geo

Geo Newberm:
The additional information you provided above was correct and let me add that the abuse on the consumer side was equally bad. Point: A bunch of "people" would get together and one of them would buy a new house $300K no doc - no money down. They'd all move in and kick in enough to cover the teaser rate monthly payment. The house would appreciate to, for example, $350K and they'd take out a 2nd mortgage for $50K and buy a brand new SUV for cash.
When the bubble broke and real interest rates kicked in they'd pile into their paid for SUV and drive away.
This happened countless times here in Arizona.
Regardless this whole mess was initiated by the socialist "democrats" and my hope is we NEVER see the likes of them in power again.
Jim

Jim, I've served on a bank board for many years and watched the Community Reinvestment Act play out for as long as it has existed. Yes back to the Carter years.

There was some federal pressure to extend loans in blighted areas which did not no make economic sense, but none to make the stupid loans which wound up in the federal guarantee pools which precipitated the real estate bubble.

That was just good old American greed, and it is disingenuous to blame it on the CRA or the democrats...Geo

Geo:
I agree with you up to a point. But I don't for one minute doubt that the CRA was the catalyst that initiated the junk mortgage flood. Greed all the way around, business, bank and consumer, eventually took over and spread it until we all nearly drowned.
I too saw what was happening first hand but like everyone else was powerless to stop it.
Jim

I don't where you go the notion that I apparently agree that Reid lied on the floor of Congress or anywhere else. I don't know what you are referring to. Even if he did it's standard practise. The UK is the only place I know of that resignation was expected for lying to the House---although not so much lately. What you say in Congress or Parliament is usually privileged anyway.

For all my years in press galleries and press clubs, including Washington's, I never heard reporters and columnists arguing one side---party, if you like---was more moral and ethical or progressive than the other. Smarter in making policy stick or introduced, charismatic to bewilderment, but never that one or the other was more ethical or decorous at slurping in the trough.

A woman magazine writer and television news documentary maker explained it this way while we covering the India-Pakistan war in the early 70s: It's just like splitting a block of wood. One side is the same as the other. Notions of a brave new world being expressed here are as silly as those anticipations of a Camelot with Kennedy.

Geo,

Isn't it valid to say that the policies instituted by FannieMae and FreddieMac as far as dropping eligibility requirements for purchase of those obviously shakey loans, provided the incentive for making them in the first place? Sure, salesmen took advantage of it, but it would not have happened if the political agenda of "Affordable Housing" had not been instituted. This was a political act by the Democrats, facilitated by Gorelick and Raines, both who had worked in the Clinton administration.

It's not like the collaspe was a surprise. The Bush administration warned about it for years, McCain spearheaded a 200 Billion injection in (as I remember) 2005. Nothing really was done, Dodd threatened filibuster in the Senate, and Frank accused Republicans of Racism in the House.

By your reckoning, people wouldn't get sick if there were no hospitals. All modern countries employ affordable housing in some form of their social infrastructure.

Both nonsensical and irrelevant. Do you really consider that a response as to what caused the Housing Crisis, and consequently the "Great Recession" you're always referring to? It's clearly past your bedtime.