They fled in droves - now coming back? Dang! (apartments, condos)

[Tulemutt]

Originally Posted by oldtrader

Read the following, and you will find exactly what I am talking about.

Admission by Barney Frank: Even he has admitted it. In an interview on Larry Kudlow's show in August 2010, he said "I hope by next year we'll have abolished Fannie and Freddie ... it was a great mistake to push lower-income people into housing they couldn't afford and couldn't really handle once they had it."

And note that when George Bush tried to get the crazy lending reigned in, that Frank lead the charge to keep it from happening and as the Democrats controlled both houses of congress, Bush could not take the steps needed to be taken to try to head off the housing crash.

Hey, Barney Frank: The Government Did Cause the Housing Crisis - Peter Wallison - The Atlantic

And note that when George Bush tried to get the crazy lending reigned in, that Frank lead the charge to keep it from happening and as the Democrats controlled both houses of congress, Bush could not take the steps needed to be taken to try to head off the housing crash.

See part (iii)

http://www.uvu.edu/woodbury/jbi/volu...singBubble.pdf

A big cause was sub prime mortgages, which were made to meet the requirement that kept being made higher when up to 50% of all of all mortgage loans had to be made to poor people (law by congress) and others that could not qualify for regular mortgages. The only loans they could possibly get for homes, were sub prime, as they could not qualify for regular mortgages. The mortgages had low interest rates and sometimes even negative interest rates for from 1 to 5 years, with no qualifying and often no down payment. When these short term interest rates expired and the loans had to be renegotiated, there was no money available for them, and or the price of the home had crashed and the home was underwater (worth less than the mortgage) so the home ended up in default.

What Caused the U.S. Housing Bust?

Frank's fingerprints are all over the financial fiasco - The Boston Globe

If the lenders had not been forced to make loans to poor and unqualified people, this problem would never have existed. Speculators bought homes with these non standard sub prime loans and this additional absorption of the supply of homes drove the prices through the roof. Lenders had to go along with the upcoming fiasco, or they would be forced out of business under the laws of that time.

Another problem ahead, leading to the next housing bust in areas with over priced homes such as in California. This is just an easy article to understand written in plain language, of different studies on the problem.

The Great Senior Sell-Off Could Cause the Next Housing Crisis - Emily Badger - The Atlantic Cities

Those of us that were representing legitimate real estate investors, were seeing in different conferences where things were headed, and the troubles ahead for the housing market. Economists spoke to us, and warned us to get our investors out of the problem properties that would crash and hurt them.

Remember even Barney Frank that was the leader in forcing the lenders to make bad loans said, "it was a great mistake to push lower-income people into housing they couldn't afford and couldn't really handle once they had it". Of course he admitted it, after the crash, and finally realized what he had created.

You are talking about the same G.W. Bush (trying to reign in the crazy lending) as the G.W. Bush who gave away the national treasury to the wealthy through tax breaks that wiped out the budget surplus? The only thing he tried to reign in was all the middle class' money.

[nslander]

Perhaps the most suspicious thing about the Warren Commission report is the word "Cuba" appears once and "Castro" not at all.

But that omission is not nearly as conspicuous or egregious as discussing the financial crash without referencing "securitization". I realize conservative types REALLY need this particular myth. But ignorance of fantasy-league finance is simply not acceptable, feigned or otherwise.

Marvin Meadors: Another Conservative Myth Busted -- Did Fannie and Freddie Really Cause the Financial Sector Meltdown?

Subprime lending offered high-cost loans to the weakest borrowers during the housing boom that lasted from 2001 to 2007. Subprime lending was at its height from 2004 to 2006.
Federal Reserve Board data show that:

• More than 84 percent of the subprime mortgages in 2006 were issued by private lending institutions.
• Private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year.
• Only one of the top 25 subprime lenders in 2006 was directly subject to the housing law that's being lambasted by conservative critics.

Private sector loans, not Fannie or Freddie, triggered crisis | McClatchy

Seriously. Just stop.

[Tulemutt]

Originally Posted by nslander

Perhaps the most suspicious thing about the Warren Commission report is the word "Cuba" appears once and "Castro" not at all.

But that omission is not nearly as conspicuous or egregious as discussing the financial crash without referencing "securitization". I realize conservative types REALLY need this particular myth. But ignorance of fantasy-league finance is simply not acceptable, feigned or otherwise.

Marvin Meadors: Another Conservative Myth Busted -- Did Fannie and Freddie Really Cause the Financial Sector Meltdown?

Subprime lending offered high-cost loans to the weakest borrowers during the housing boom that lasted from 2001 to 2007. Subprime lending was at its height from 2004 to 2006.
Federal Reserve Board data show that:

• More than 84 percent of the subprime mortgages in 2006 were issued by private lending institutions.
• Private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year.
• Only one of the top 25 subprime lenders in 2006 was directly subject to the housing law that's being lambasted by conservative critics.

Private sector loans, not Fannie or Freddie, triggered crisis | McClatchy

Seriously. Just stop.

Painful ain't it. The truth. You mean the American Dream is corrupt? Mercy!

[oldtrader]

As was noted above, was that private firms made the majority of sub prime loans. Lenders make loans, and then they sell packages of loans, and Fannie and Freddie are the major loan buyers.

What is being forgotten by some posters, was that to be able to sell loans to Freddie and Fanny, was that they had to follow the path of making loans to the poor people.

The federal regulators, would not allow sub prime loans, until to reach the goal to make loans to poor people the regulations had to be loosened to the point the crazy sub par loans were required to reach the goal.

Lenders either had to go along with making these sub par loans, or they were forced out of business as the mortgage business moved to the ones that were making such loans.

These crazy loans, were also made to middle class people who bought more expensive homes than they could afford due to low beginning payments. When the loans had to be re-done after a set period, people figured with the way prices were rising and demand was hot that they could sell and make big profits if they could not refinance. They looked at homes as a cash cow. When the market crashed and the homes were suddenly underwater, that option was no longer on the table. As the home values were less than the mortgage, they could not refinance.

It all goes back to congress forcing the mortgage industry to make loans to non qualifying people, which forced Fannie and Freddie and some others that buy loans to only buy loans from lenders that were making their quota of non qualifying loans. The only way to meet these quotas, was to come up with crazy loans that would not previously have been allowed, and are not allowed at this time.

Lenders make loans, then they sell them. Mortgage originators, are loan packagers, and sell their loans to have money to loan out for the next batch of loans.

http://tinyurl.com/7jpx3wg

Read the next to last paragraph

Frank's fingerprints are all over the financial fiasco - The Boston Globe

Read last two paragraphs.

Is Barney Frank?: Part II - Thomas Sowell - Page 2

And Obama wants to do it again.

Obama Pushes Risky Home Loans Which Started Current Recession

Is It Time for Banks to Ease Up on Credit Restrictions? - Dacula, GA Patch

[ZhugeLiang]

Originally Posted by Tulemutt

while the guy he is remarking to often posts false information but is allowed to continue misinforming readers.

Note to yourself, just because something debunks your world view in regards to the housing bubble topic, doesn't make it false information. Dude, the whole world knows it was a bipartisan debacle regardless of your personal opinion.

[Tulemutt]

Originally Posted by ZhugeLiang

Note to yourself, just because something debunks your world view in regards to the housing bubble topic, doesn't make it false information. Dude, the whole world knows it was a bipartisan debacle regardless of your personal opinion.

I haven't expressed my world view for you to be able to comment intelligently on it. It was a bipartisan debacle. Driven by money manipulators outside of politics - who steered politics to support. Politicians are a very steerable bunch. But none of that relates to my point about your attempt to belittle a poster who I, and a number of other readers, used to find among the most interesting on this forum. You weren't contributing to the discussion yourself. Just being snide.

[sprint100]

Originally Posted by Tulemutt

I haven't expressed my world view for you to be able to comment intelligently on it. It was a bipartisan debacle. Driven by money manipulators outside of politics - who steered politics to support. Politicians are a very steerable bunch.

^^^^Totally agree!!! This is goes beyond any administration.

[Kafkaesque]

I agree with OT that the politicians were part of it. If they wouldn't of had someone to dump the loans off to, they wouldn't of made them in the first place. Simple risk/reward equation there. I think Highnlite23 is some 23 year old with a cool name, whats the problem with him?

[Tulemutt]

Originally Posted by Kafkaesque

I agree with OT that the politicians were part of it. If they wouldn't of had someone to dump the loans off to, they wouldn't of made them in the first place. Simple risk/reward equation there. I think Highnlite23 is some 23 year old with a cool name, whats the problem with him?

The politicians were / [are] tools. Of money interests. Not the other way around. OT likes to blame liberal politicians for all manner of evil in the world. It doesn't start there. Ever. Money makes all the decisions, all the manipulations, and makes the world go round.

[Kafkaesque]

Yeah, I was just talking about the selling of the loan portfolios to Fannie and Freddy.