How did Democrats taking control of Congress in 2006 cause the Great Recession? (Limbaugh, wages)

[steven_h]

Originally Posted by bawac34618

I am seeing this argument more and more from the right; that Democrats taking control of Congress after the 2006 midterm election caused the Great Recession and it wasn't until the GOP took control again in 2010 that things started to improve. To me, this looks like blind partisanship and willful ignorance of reality.

Both sides have abandoned their core premise and oaths to represent and protect the US over the last 30 years.

The true cause of the great recession:

Housing collapse - the Dems pushed no proof of income loans, which caused the housing market to explode into an unsustainable bubble. People that had no business owning homes were getting 100-120% loans only to default.

Market collapse: Clinton repealed Glass Steagall which gave the bankers carte blanche to gamble with assets at a 10-1, 20-1 and then a 40-1 leverage. They then bundled these toxic assets and sold them to investment pools. THAT is where trillions were stolen and not a single banker went to jail. The Republicans and the Dems colluded to facilitate the theft. It was the crime of the century.

[workingclasshero]

Originally Posted by jman0war

Utter nonsense.
Are you referring to the Community Reinvestment Act of 1977?
No banks were forced to give out bad loans.

Banks are creative and they devised unregulated new financial products by which it became profittable to sell mortgages to low income people via Securitization.

the CRA was 'revised' in 1995....bill Clinton had his chief of HUD revise the lending rules, to mak it easier for minorities to own home... by revising the standards and allowing 'no-doc' loans and lower standards on the income to home expense ration (originally no more than 30% of income to housing cost) was the start of the bubble.....completely and utterly Clinton and the liberals fault

[workingclasshero]

Originally Posted by steven_h

Both sides have abandoned their core premise and oaths to represent and protect the US over the last 30 years.

The true cause of the great recession:

Housing collapse - the Dems pushed no proof of income loans, which caused the housing market to explode into an unsustainable bubble. People that had no business owning homes were getting 100-120% loans only to default.

Clinton repealed Glass Steagall which gave the bank carte blanche to gamble with assets at a 10-1, 20-1 and then a 40-1 leverage. They then bundled these toxic assets and sold them to investment pools. THAT is where trillions were stolen and not a single banker went to jail. The Republicans and the Dems colluded to facilitate the theft. It was the crime of the century.

the issue of too big to fail, came BEFORE GS

yes GS was a stupid thing....but it was BEFORE GS...gs had very little to do with the housing crash, gs had very little to due with "too big to fail"

gs was 1999


they(banks) became 'too big to fail' before the repealing of G-S

1987 chemical bank merged into jp morgan
1992 manufacturers hanover and trust into jp morgan
1996 chase Manhattan into jp morgan
1993 Banc one into JPmorgan
1995 first chicago into jpmorgan
1995 NDBancorp into jpmorgan

1988 fleet into norstar... into bank of america
1990 bank of new england into BOA
1990 Citizens into BOA

1998 travelers into citi

1987 first fidelity into wells fargo
1996 Meridian Bancorp into wells fargo
1997 signet into first union into wells fargo
1988 barclays into wells fargo


yes some happened after gs.. but the 'too big to fail' happened before Gs

these BANK mergers all happened BEFORE 2000 and the repealing of glass-stegal (the grammleachy)

the redoing of the mortgage rules....1995 by the HUD chief...henry cisnero's at the direction of clinton

nafta (and all the other 'free'trade agreements )has cost the USA 40 million jobs since 1994.......certainly not part of GS...



GS had nothing to due with the housing bubble...the bubble/bust was GOVERNMENT CAUSED... banks are NOT going to lend to people that cant pay UNLESS they are DIRECTED to from the GOVERNMENT..

[InformedConsent]

Originally Posted by le roi

How many times have I explained this to you already? A dozen?

You've made irrational unsubstantiated excuses that sound like parroted talking points, but you've never actually factually explained anything. /shrug

[InformedConsent]

Originally Posted by workingclasshero

Bill Clinton and his chiefs of HUD, Henry Cisneros and Andrew Cuomo are the idiots to blame on that

Bingo! I posted the link to Cuomo's Clinton-era HUD press release.

[le roi]

Originally Posted by InformedConsent

Bingo! I posted the link to Cuomo's Clinton-era HUD press release.

LOL right, because no one ever exagerrated a press release

There's like mountains upon mountains of analysis and data that you ignore, in favor of a single, vague, inaccurate press release.

[InformedConsent]

Originally Posted by WilliamSmyth

I am following the money. The GSEs in the end needed 180 billion. The $2 trillion was not part of a bailout.

Who got the $2 trillion paid by the Federal Reserve in exchange for GSE MBS? And why is $1.76 trillion of it STILL unpaid? All but a very small amount of Maiden Lane was paid off in 2012, 6 years ago.

[middle-aged mom]

Originally Posted by jman0war

Utter nonsense.
Are you referring to the Community Reinvestment Act of 1977?
No banks were forced to give out bad loans.

Banks are creative and they devised unregulated new financial products by which it became profittable to sell mortgages to low income people via Securitization.

Most mortgages were not directly originated by banks.

Subsidiaries were created to isolate risks and no shortage of ma/pa originators engaged.

You and I could have opened business to originate mortgages. All that was necessary was a simple line of credit for cash flow purposes. And maybe ironically we used the equity in our own homes to secure the line of credit.

We sold whole loan mortgages based on nothing more than an application, to the bigger fish, in the forward market who relied upon our word we had done some semblance of due diligence.

[le roi]

Originally Posted by steven_h

The true cause of the great recession:

Housing collapse - the Dems pushed no proof of income loans, which caused the housing market to explode into an unsustainable bubble.

fake news.

[middle-aged mom]

Originally Posted by workingclasshero

fannie is STILL asking for MORE bailouts


Feb 14, 2018 - Fannie Mae incurred a net loss of $6.5 billion in the final quarter of 2017 and announced Wednesday it is in desperate need of a taxpayer bailout. The Federal National Mortgage Association, a government-sponsored enterprise (GSE) commonly referred to as Fannie Mae, is asking the U.S. Treasury Department for $7.7 billion in taxpayer money


============================

Nov 10, 2011 - Fannie Mae wants $7.8 billion from the federal government to cover loses. Fannie Mae has already received bailout money to the tune of $112.6 billion.


====================================

2014 Fannie Mae wants $50 billion more from the federal government to cover loses






and yet the liberals said fannie/Freddie was PERFECT...nada problemo

Have yet to hear anyone, regardless of ideology, say FNMA/ FHLMC were perfect.