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Wed Feb 13, 2013, 12:21 PM

Let’s get This fucking Straight..Right now.!

According to Rubio, The govt. was responsible for the housing crisis......
Lets stop this lie immediately.
According to this same source Fannie and Freddie were responsible for about 15% of the total port folio
of Subprime paper...



http://www.publicintegrity.org/2009/05/06/5554/subprime-25

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Response to busterbrown (Original post)

Wed Feb 13, 2013, 12:27 PM

1. He's just carrying water for Wall Street.

nt

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Response to busterbrown (Original post)

Wed Feb 13, 2013, 12:34 PM

2. Corporate Persons = a very practiced & strategically selective "learned helplessness" = a clearly

pathological borderline personality.

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Response to busterbrown (Original post)

Wed Feb 13, 2013, 01:33 PM

3. I'm pretty sure

Fannie and Freddie were not government agencies before the housing bust BUT they projected the aura that the fed had their back if something would go wrong. They did and we had to bail them and the other weasles out.

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Response to busterbrown (Original post)

Wed Feb 13, 2013, 01:41 PM

4. Krugman:Marc Rubio has learned nothing (debunks Rubio)

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Response to busterbrown (Original post)

Wed Feb 13, 2013, 01:42 PM

5. BULLSHIT. Wall Street was responsible.

I'm so SICK of Teabillies blaming gov't for all ills when CORPORATE CONTROL of government is the real problem. If it's not, then WHY has not one single bankster been slammed in the clink with criminal charges against him? Not. ONE.

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Response to busterbrown (Original post)

Wed Feb 13, 2013, 02:46 PM

6. Actually, the Bush administration was very much responsible for the housing bubble.

In on of his state of the union addresses, Bush promised that even poor people could own houses and took credit for the plan to lower the requirements for housing mortgage qualifications. And then, Bush appointees refused to enforce regulations that existed in the banking and mortgage and Wall Street sectors. So, yes, since Bush was in charge of the government in the seven years prior to the crash, it is clear that the Bush administration was responsible for the crash and the housing bubble and our job losses.

How well government works depends on who is managing it. Same as anything else.

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Response to JDPriestly (Reply #6)

Wed Feb 13, 2013, 03:17 PM

9. Correct!-but ultimately the banksters/mortgage lobbyists were "twisting" his arms.

Hey Mayor Bloomberg! No, the GSEs Did Not Cause the Financial Meltdown (but thats just according to the data)
Posted By Guest Author On November 5, 2011

Sigh.

Mayor Bloomberg :

“It was not the banks that created the mortgage crisis. It was, plain and simple, Congress, who forced everybody to go and give mortgages to people who were on the cusp… But they were the ones who pushed Fannie and Freddie to make a bunch of loans that were imprudent, if you will. They were the ones that pushed the banks to loan to everybody.”

It seems there are people who can’t accept that some markets, particularly financial ones, are disastrous when completely unregulated — and thus find any far-fetched excuse to blame the government instead. Since this line of argument continues to pop up, how should one respond to the idea that Congress and Fannie Mae/Freddie Mac caused the housing crisis? Here are six facts to back you up:

1. Private markets caused the shady mortgage boom: The first thing to point out is that the both the subprime mortgage boom and the subsequent crash are very much concentrated in the private market, especially the private label securitization channel (PLS) market. The Government-Sponsored Entities (GSEs, or Fannie and Freddie) were not behind them. The fly-by-night lending boom, slicing and dicing mortgage bonds, derivatives and CDOs, and all the other shadiness of the mortgage market in the 2000s were Wall Street creations, and they drove all those risky mortgages.
................................

2. The government’s affordability mission didn’t cause the crisis: The next thing to mention is that the “affordability goals” of the GSEs, as well as the Community Reinvestment Act (CRA), didn’t cause the problems. Randy Krozner summarized one of the better studies on this so far, finding that “the very small share of all higher-priced loan originations that can reasonably be attributed to the CRA makes it hard to imagine how this law could have contributed in any meaningful way to the current subprime crisis.” The CRA wasn’t nearly big enough to cause these problems.

............................


4. Conservatives sang a different tune before the crash: Conservative think tanks spent the 2000s saying the exact opposite of what they are saying now and the opposite of what Bloomberg said above. They argued that the CRA and the GSEs were getting in the way of getting risky subprime mortgages to risky subprime borrowers.

My personal favorite is Cato’s “Should CRA Stand for ‘Community Redundancy Act ?’” from 2000 (here’s a write-up by James Kwak), which argues a position amplified in its 2003 Handbook for Congress financial deregulation chapter : “by increasing the costs to banks of doing business in distressed communities, the CRA makes banks likely to deny credit to marginal borrowers that would qualify for credit if costs were not so high.” Replace “marginal” with Bloomberg’s “on the cusp” and you get the same idea.

........................................

5. Expanding the subprime loan category to say GSEs had more exposure makes no sense: Some argue that the GSEs had huge subprime exposure if you create a new category that supposedly represents the risks of subprime more accurately. This new “high-risk” category is associated with a consultant to AEI named Ed Pinto, and his analysis deliberately blurs the wording on “high-risk” and subprime in much of his writings. David Min broke down the numbers, and I wrote about it here . Here’s a graphic from Min’s follow-up work , addressing criticism:
http://www.ritholtz.com/blog/2011/11/hey-bloomberg-the-data-shows-gses-did-not-cause-financial-meltdown/print/

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Response to ErikJ (Reply #9)

Wed Feb 13, 2013, 04:01 PM

14. Let's agree that private banking, mortgage companies

and willing bureaucrats and members of the Bush and Clinton administrations colluded to weaken regulatory enforcement.

The fundamental problem is that private corporations own our government -- and that is why the Obama administration failed to prosecute most of the corporate wrongdoing that led to the economic disaster.

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Response to JDPriestly (Reply #14)

Wed Feb 13, 2013, 04:58 PM

15. Correct! And very low top marginal tax rates are the ultimate reason for unbridled greed.

And the low taxes make it more possible to buy off the govt.

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Response to busterbrown (Original post)

Wed Feb 13, 2013, 02:51 PM

7. The government is responsible

because the government didn't enforce the laws that were, um, gutted and changed to allow all those subprime loans. They should have enforced those laws even though those laws were no longer on the books.

Thanks Party of Personal Responsibility!

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Response to adieu (Reply #7)

Wed Feb 13, 2013, 05:07 PM

16. Rubio didn’t mention that part......

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Response to busterbrown (Original post)

Wed Feb 13, 2013, 03:11 PM

8. IIRC, some bad loans were offloaded into FMFM.

But, the IOKIYAR ruled the day.

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Response to busterbrown (Original post)

Wed Feb 13, 2013, 03:20 PM

10. The story from the right-wing is the housing crisis is the fault of the Democrats...

Ya see, we engaged in social engineering by forcing the poor innocent banks to let lowlife minorities invade White Suburbia.

They couldn't keep up the payments and got kicked out and it drove down the value of white folks homes.

Ask around, you will hear that is the way the FOX "News" audience will tell it.

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Response to busterbrown (Original post)

Wed Feb 13, 2013, 03:22 PM

11. Republicans always blame someone else...

...for the havoc they wreak. And they just LOVE to blame "The Government." First, that's so funny, since they have a government job. Second, it was indeed George W. Bush who kicked off this whole sordid bankruptcy of our country when he got up and said everyone should own a home. It may have been a SOTU speech, he may have repeated it in a press conference. I don't remember exactly where he said it, but I remember it. And sure enough, by around 2006-2007, the bubble started to pop. Then, the rest is history. And, after all, Fannie and Freddie were headed by by Republican appointees. Why can't the American electorate see WTF is going on? If you put Republicans in charge of this government, everything goes to hell in a hand basket.

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Response to ReRe (Reply #11)

Wed Feb 13, 2013, 03:38 PM

12. Let's not forget Alan Greenspan recommending ARM's

and recommending that people take out home equity loans for anything and everything. That's how many elderly people and people living in homes or on farms that had been in their families for generations ended up losing them.

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Response to TexasBushwhacker (Reply #12)

Wed Feb 13, 2013, 03:54 PM

13. Absolutely

I forgot about Alan Greenspan. Why would anyone suggest someone get an ARM? Unless, of course the buyer was rolling in dough? Even then, why? I knew Greenspan was a snake in the grass, because he always spoke the doublespeak language of the 1%. Only the filthy rich could understand what the fuck he was saying. Yeah, throw Greenspan into the cauldron too. Thanks for reminding me...

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