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Funny, my sources tell a somewhat different story. And this is from one of the previous administration's own advisor.
Your faulting George Bush's ownership society and blaming the housing market and financial market collapse on that is way off the mark. First, the ownership society originated with Thomas Jefferson. He understood that property owners were sovereign in the face of government power and it was his goal to make all Americans property owners. That was the rationale behind the Louisiana Purchase. He anticipated that a growing population would need more land if all were to be farmers and property owners.
Secondly, there is no inherent contradiction between the ownership society and responsible lending to further that goal. Bush wanted as many people as possible to own their own homes--but not at the expense of the stability of the financial system. That is why his administration pushed so hard to regulate the GSE's. He wasn't willing to gamble the financial health of the country to achieve his goal. On the other hand, Barney Frank, for example, advised "rolling the dice" a while longer before clamping down on the unsustainable risk the GSE's posed. Unfortunately the dice came up craps and the American public lost. Funny, though, Frank and Schumer and Dodd are still there and doing just fine, thank you.
Bush wanted as many people as possible to own their own homes--but not at the expense of the stability of the financial system. That is why his administration pushed so hard to regulate the GSE's.
Bush (and GOP congress) wanted to regulate GSEs so they can give a free ride to private financial institutions, at the expense of anything that is government run. This is why I don't want to put people in government who want to prove government is bad.
And would you also like to blame FM/FM for relaxing lending leverage to financial institutions (up from 12:1 to 40:1)?
Eat it conservatives.
You're willing to drag the entire country down just to win political points?
Sad------> People like that deserve to be shown the door! Saudi Arabia, I hear, is very conservative and religious!
The collapse of the real estate markets and financial institutions are what caused the recession. Tax cuts are not what brought down the financial markets. Even the source you quoted doesn't suggest that.
Bush wanted as many people as possible to own their own homes--but not at the expense of the stability of the financial system. That is why his administration pushed so hard to regulate the GSE's. He wasn't willing to gamble the financial health of the country to achieve his goal. On the other hand, Barney Frank, for example, advised "rolling the dice" a while longer before clamping down on the unsustainable risk the GSE's posed. Unfortunately the dice came up craps and the American public lost. Funny, though, Frank and Schumer and Dodd are still there and doing just fine, thank you.
When you take this little gem of information from one of the most prestigious economic minds of our time...
The facts remain...
OFHEO states that Freddie had sold $1,381.9 billion in MBS and Fannie $2,118.9 billion. By adding the mortgages retained by Fannie and Freddie (either as loans or MBS) to the MBS that they sold and guarantee to others, OFHEO calculates a total "book of business" for Fannie and Freddie of $4,934.4 billion as of the end of 2007. http://www.fhfa.gov/webfiles/2097/OFHEOReporttoCongress2008.pdf
Nearly $5 trillion in loans, many of which were packaged into MBS's, which include millions of intentionally misrepresented loans, sold throughout the market to investors, banks, etc., that had no idea the loans/MBS's were far more risky than the GSE's claimed. Tell me which Wall Street firm was repackaging and holding/selling $5 Trillion in loans...
Loans defaulted in unprecedented numbers, and the insurance/credit default swaps, etc., were unable to absorb the losses because, as previously noted, the GSE's misrepresentation had set the stage for losses that would be outside all prior experience, unbeknownst to all but those involved in the fraud at Fannie and Freddie. Origins of an American Kleptocracy | zero hedge
That you are in denial. Do you think you have more credibility than what former Bush advisors and Treasury Secretary, Eliot Spitzer and 50 other state attorneys along with The Man:Alan Greenspan themselves say? Are you that delusional? Wait, don't answer that.
That you are in denial. Do you think you have more credibility than what former Bush advisors and Treasury Secretary, Eliot Spitzer and 50 other state attorneys along with The Man:Alan Greenspan themselves say? Are you that delusional? Wait, don't answer that.
Do you want to backup this with ANY data, or should we just take your word for it?
That you are in denial. Do you think you have more credibility than what former Bush advisors and Treasury Secretary, Eliot Spitzer and 50 other state attorneys along with The Man:Alan Greenspan themselves say? Are you that delusional? Wait, don't answer that.
I posted factual data. You posted 'opinion.' Since when do facts not trump unsupported opinion?
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