[quote]because with it they can create jobs and the like[/quote] They could have, but many of them used it within the past few years to hedge up the price of oil and food and hedge down the value of corporations. Funny thing is each time they finish they talk up their hedge fund while they are exiting their own positions and put all the downside on the average Joe.
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[quote]When?[/quote] H.R. 3221: Housing and Economic Recovery Act of 2008
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[quote]So much for cleaning up the earmark process.[/quote] It is pretty sad......And they broadcast it throughout every media outlet for 2 weeks. Look at who changed their votes from nay to yea and you'll see quite a few who delayed the bill for earmarks. There were 4 rediculous ones that i saw being outed on CSpan, and a couple more from comittee members. Ill have to check the bill to see if they floated them thru. Some aren't earmarks just stuff that should be proposed in a d
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[quote]Freddy or Fanny and the GSA are forbidden to own or hold any private property longer than 180 days without putting it up for auction.[/quote] Fredie and Fannie sell foreclosed properties via real estate brokers. They do not auction them but in fact have the right to counter offers made by prospective buyers. The GSA auctions off seized properties that have been seized by govt entities such as the FBI. [quote]The President was going to get rid of them as fast as
[quote]"Federal Housing Enterprise Regulatory Reform Act." [/quote] It was never brought to the floor. The republicans killed it.
[quote]The collapse ultimately starts with people not paying their debts.[/quote] Not really. The collapse starts with an oversupply of homes. Either from overbuilding or loss of jobs or maybe even simply decreasing wages.
[quote]You misunderstood the question. We were discussing WHO was defaulting[/quote] No this was your question. [quote]If not, then what is the difference between then and now? Why is this a crises, yet the foreclosures in 1999 was not?[/quote] However its in the opencrs report from a prior post as is an extremely good explantion of the whole situation.
[quote]Most folks don't know that the market came extremely close to collapse in August of 2007.[/quote] http://opencrs.com/document/RL34182 Make sure you read the Open CRS and not just the summary. Who needs a "Trusty" banker with ties to Wall St. to come for a chat when you can get the information before some "Trusty" Banker or politician puts a spin on it.
[quote]But I am aware of the case and the particulars.[/quote] Which was settled out of court without the bank ever having to cough up records of loan applications that might have proven things one way or another.
[quote]First there are no GSA’s there is only one GSA[/quote] GSE's
[quote]No,that only proves the excuse used to bring the case. But if you believe everything you are spoon fed, that does make life simpler. Critical thinking is not easy.[/quote] I dont believe or assume anything in this particualr case and was only disproving what you and another were ass uming.
[quote]If not, then what is the difference between then and now?[/quote] The amount of derivatives being used. The fact that Wall St. wrapped what is considered C paper into derivatives and got them Rated as AAA. The fact that more than 66% of the subprime loans made in 2006 went to people who actually had credit scores that qualify them for prime rate conventional loans. The relaxation of usury laws. Increased federal preemption of local and state predatory lending laws. etc. <p
[quote]But we can find a lot of reason why this crisis is happening:[/quote] Just take a look at Japans economic crisis. We basically took the same road as they did. The only difference is that they had higher savings rates. Shame on the U.S. because now we are starting off even worse than they did, however they did have a bigger real estate bubble bursting heading into their crisis. Ours is probably only a little past half way down. I suspect we will ultimately end up with an average
[quote]I don't expect left-wingers to understand basic economics but I'll try anyway:[/quote] Because your explanation of basic economics does not even scratch the surface of what is happening right now. If it was we would be able to pull off another Resolution Trust Corporation and be done with it. Unfortunately the mbs's that foreign investors started throwing back at us several months ago are becoming a huge problem. When a country like ours has a huge trade deficit and relies on f
[quote]Smoothseas, if you want to call me ignorant[/quote] Then I guess Ill go with my initial instinct instead of taking your for your word. Thats makes you dishonest since most of what you do is simply repeat political rhetoric. You stated: [quote]The collapse occurred because of dead beat poor people who took out mortgages they couldn't afford[/quote] And you have through several posts consistantly stated that it is the poor. Take a look at forclosure listin
[quote]Thats not flipping that is speculation[/quote] Flipping is a term used primarily in the United States to describe practice of buying an asset and quickly reselling (or "flipping") it for profit. Though flipping can apply to any asset, the term is most often applied to real estate and <a title="Initial public o
[quote]Home buyers, who took advantage of easy credit to bid up the prices of homes excessively. That is a stretch.[/quote] Its called flipping. You buy a home in anticipation that the value will rise either before your teaser rate expires, an ARM resets and so on and so forth. There were a lot of people doing this in the second home and condo markets.
[quote]LOL Artysim, you picked the worse case scenario and basically applied it to every American currently in foreclosure[/quote] Actually Artisym was responding to Brad stating: [quote]The collapse occurred because of dead beat poor people who took out mortgages they couldn't afford[/quote] Pretty sad when you hear this from a business owner. Makes me wonder if he is just playing the dishonest political rhetoric game or whether he is that ignorant of the situat
[quote]Not false. As we see, it was all too true. In real estate, the 3 most important factors have nothing to do with race. They are: Location, Location, Location.[/quote] However the discusssion was about someone claiming that the lawsuit did not account for: "Whether or not they could afford the loan didn't seem to be important." So once again THE SUMMARY OF THE CASE PROVES THAT CLAIM TO BE FALSE. Unfortunately we will never know if the ban
[quote]Do you know that most of this 700 billion bailout won't even go into your own economy? Most of it will go to foreign banks and funds that have ALREADY bailed out the banks months ago and are threatening to stop the purchase of U.S debt if their investment isn't protected. So, you're going to spend hundreds of billions that you don't have[/quote] Thats it in a nutshell. Unfortunatly its hard to explain that to people who haven't the slightest idea of what has been going on
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[quote]Now prove it.[/quote] Why don't you do some research on what was happening to AIG before they were bailed out. Not only will you answer your own question but you just might start to understand what the current bailout plan is all about
[quote]One for the bailout, but then that would just help the rich by your standards.[/quote] No it keeps the credit market liquid which effects everybody. Where have I ever said it would only help the rich? Nowhere. It seems that this is your standard because you do not understand what the bailout is about. [quote]And then argue that it is all a big smoke screen that is all about the rich.[/quote] What you need to realize is that the core of the bailout is meant to de
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[quote]Both were kept solvent not through a bail out, but by what amounts to a bunch of junk bonds[/quote] Bailout in economics and finance is a term used to describe a situation where a bankrupt or nearly bankrupt entity, such as a corporation or a bank, is given a fresh injection of liquidity<
[quote]free market Republicans[/quote] Its not a matter of ideology. Free market thinking is not bad. But one of the basic functions of government in a free market is to minimize corruption. Instead they turned a blind eye and didnt even enforce the laws that were already on the books. HUD is worked just like Congress works appropriations bills to bring the bacon home. They also use the system to in effect buy pieces of the electoral map.
Its impossible to pin down a single person or party as being responsible but i bet Mel Martinez has a lot to do with one of the worst area affected by the problem Southern Florida: http://www.whitehouse.gov/government/martinez-bio.html Under the leadership of Secretary Martinez, HUD is expanding homeownership opportunities to more Americans, particularly minority and low-income families, through innovat