Will take another five to six years to recover. Fantastic job Democrats (Iraq, health care)
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Lack of...look at the big picture and not the talking points. Wall Street the reason for the growth and collapse. Without a market for mortgages none of this would have happened.
Who created the market for mortgages? And the types of mortgages? And why would that be? You'd know that if you'd read the article by Fannie Mae's former chief credit officer. Please read it and learn the truth. RealClearMarkets - How Did Paul Krugman Get It So Wrong?
Honestly, folks. The willful ignorance on what caused the housing bubble and subsequent financial crisis is astonishing. Do you just swallow any line you're told without researching?
More info: The article's author's testimony before the U.S. House of Representatives on the FHA's high-risk lending practices (the result of more government interference):
http://www.house.gov/apps/list/hearing/financialsvcs_dem/ed_pinto_testimony_and_attachments.pdf (broken link)
It might help to actually engage the brain to see that the author of the article I linked is Fannie Mae's former chief credit officer. Put your biases aside and learn the truth. Read the article. It cites verifiable info.
I read the article months ago.
No thanks, I prefer non-murdock information.
The S&L crisis started well before Reagan took office.. For example, money supply was restricted in 1979, 1980 Congress and regulators gave S&L's power to invest in corporations. In 1981 a federal ban on ARM's expired, which had nothing to do with Reagan. And in 1980, Congress banned states from imposing an interest rate ceiling..
The most humorous part of you blaming Reagan, is the fact that FSLIC went bankrupt in 1980, again before Reagan was in office..
The bills passed in 1979 and 1980 that had little effect, only allowing banks to raise interest rates and invest in real estate but the problem really took off in 1982 when Regan signed the Garn-St. Germain Depository Institutions Act which removed restrictions on loan-to-value ratios along other questionable items at the same time he was laying off regulators. That is when banks started enourmous investments in questionable real estate deals and businesses (sound familiar). The final loss was almost $200 Billion from failed S&L's.
He ran on a platform of anti-government regulation and held true on his promise. Reagan is not to blame now that's humorous.
The bills passed in 1979 and 1980 that had little effect, only allowing banks to raise interest rates and invest in real estate but the problem really took off in 1982 when Regan signed the Garn-St. Germain Depository Institutions Act which removed restrictions on loan-to-value ratios along other questionable items at the same time he was laying off regulators. That is when banks started enourmous investments in questionable real estate deals and businesses (sound familiar). The final loss was almost $200 Billion from failed S&L's.
He ran on a platform of anti-government regulation and held true on his promise. Reagan is not to blame now that's humorous.
I was one, of the many thoroughly confused people, that voted for Reagan. I did not realize just how wrong the Heritage Foundation was, and still is. I, like Reagan, bought their idiocy hook, line and sinker.
I read the article months ago.
No thanks, I prefer non-murdock information.
How about U.S. House of Representatives information? Same person as the RealClearMarkets article author - Fannie Mae's former chief credit officer:
http://www.house.gov/apps/list/hearing/financialsvcs_dem/pinto_testimony.pdf (broken link)
http://www.house.gov/apps/list/hearing/financialsvcs_dem/ed_pinto_testimony_and_attachments.pdf (broken link)
Hmmm... Krugman was NOT chief credit officer of Fannie Mae, and does NOT have first-hand experience working within the GSEs. Krugman is merely opining on subject matter of which he has limited knowledge. He is wrong.
Last edited by Green Irish Eyes; 07-15-2010 at 02:55 PM..
Reason: Please discuss the topic, not each other.
I get a laugh out of those who think we should have let companies like GM collapse and go away. Where do you think America's military muscle comes from. What do you think might happen 20-30 years from now if we get into a shooting war with China? Will it be "Pretty Please Mr. Chinaman will you sell us some tanks and trucks so we can fight you and by the way will you loan us the money so we can buy them." The Chinese are not that stupid.
Letting GM collapse and taking over 60% of its stock and then firing the CEO don't seem to me to be actions directed at protecting our country 20 - 30 years down the road. It makes a fine excuse but I think the reasoning involved much more than what you say.
Is that the best argument you could come up with to dispute the accuracy of the posting?
When you don't read a link sometimes attacking the messenger has to be the method. At least, it works for me often since I started copying libs methods.
Pssst. The economy was booming under the first 6 years of Bush and the republican controlled congress and its policies. Only went south under Pelosi in 2006 and the Obama admin has put it into free fall.
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The Chinese are not that stupid.
