Financial Meltdown due to Bush-McCain Economic Philosophy (gas price, wages, Pelosi)

[padcrasher]

Originally Posted by renriq02

banks don't get to do that?

have you heard of portfolio loans?

government BAILOUTS aka HANDOUTS has always been on the table when democrats are running congress.

The GOP is just as eager to bail them out as well.

But regardless, given the fact that a bailout was always in the cards (putting aside who's to blame for that for now) who on earth would deregulate their lending practices if it was the taxpayer assuming the risk???


Who??? The GOP that's who!!

[TigerLily24]

Originally Posted by sanrene

Right here;

frontline: the wall street fix: mr. weill goes to washington: the long demise of glass-steagall | PBS

Seems the clinton admin and the banking lobbyists got the ball rolling.

Actually no, according to your source, the Fed started 'reinterpreting' Glass-Steagall in 1986-1987. Who was president then, pray tell?

From your source:
"In the spring of 1987, the Federal Reserve Board votes 3-2 in favor of easing regulations under Glass-Steagall Act, overriding the opposition of Chairman Paul Volcker. The vote comes after the Fed Board hears proposals from Citicorp, J.P. Morgan and Bankers Trust advocating the loosening of Glass-Steagall restrictions to allow banks to handle several underwriting businesses, including commercial paper, municipal revenue bonds, and mortgage-backed securities. Thomas Theobald, then vice chairman of Citicorp, argues that three "outside checks" on corporate misbehavior had emerged since 1933: "a very effective" SEC; knowledgeable investors, and "very sophisticated" rating agencies. Volcker is unconvinced, and expresses his fear that lenders will recklessly lower loan standards in pursuit of lucrative securities offerings and market bad loans to the public. For many critics, it boiled down to the issue of two different cultures - a culture of risk which was the securities business, and a culture of protection of deposits which was the culture of banking."

[One Thousand]

Originally Posted by padcrasher

Well who was stupid enough to let them "choose" loan to value ratios???

Banks don't get to do that with their other loans?? Because they are regulated.

And since a government bailout was ALWAYS in the cards if something went wrong. Why do we both deregulate and at same time assume their risk???


Because that's the way the GOP game is played. Champion conservative talking points like "Deregulation" , and blame others when things go wrong.

As far as I know, they always chose the LTV's. It's impossible for the government to have any real control of that because the industry (via appraisers) just massages the value to meet the LTV.

Further, the LTV is minor compared to the DTI ratios. Did the gov control either... ever?

Please cite source.

[Miborn]

Originally Posted by padcrasher

Well you're finally getting close. But what you fail to offer up is that almost every Dem Senator voted against the repeal as did 25 percent of Dems in the House.

So the only opposition to the bill came from Democrats.

Show me the numbers

[dorado0359]

Pathetic, just a total disgrace. Ignoring 8 years of Bush economic policies, blunders and domestic neglect to regress to the Carter and Clinton administrations to place blame on them for the economic woes of today.

[workingclasshero]

sorry to INFORM you but these problems stem from: 1993, 1995, and 1999 and you can thank the liberals for it, and most of it goes back to the clinton era. why because ECONOMICS run in 10(+/-4) year CYCLES and what we are facing NOW is in DIRECT RELATION to what happened back in the 90's



1993 NAFTA---- passed by the democrat controlled congress, pushed by clinton, signed by clinton---the consequence ...... 60+ million HIGH PAYING jobs have been lost, 2 trillion worth of debt from the lost wages.



1995 clinton (through his chief of HUD (Henry Cisneros)) eased the rules on obtaining mortgages allowing more 'exotic' mortgages and 'no-dov' mortgages-----the consequence ......housing SKYROCKETED causing low inventories causing a 'not normal' increase in home prices, sellers got greedy, buyers got even greedier (looking to PROFIT in a skyrocketing market by flipping) and bought THINKING that prices would still increase and their ADJUSTABLE mortgage would pay it self off in MINIMUMAL years...EVEN THOUGH THESE INCREASES IN HOME VALUES WERE TOTALLY UNHEARD OF, AND MORTGAGE RATES WERE AT 40 YEAR LOWS( what did they think an adjustable mortgage gotten at 40 year lows would do in the term(3 months-3years) when it adjusted...of course it would go up, their CONTRACT even said after the term it would be 6% PLUS PRIME)))



For many potential homebuyers, the lack of cash available to accumulate the required downpayment and closing costs is the major impediment to purchasing a home. Other households do not have sufficient available income to to make the monthly payments on mortgages financed at market interest rates for standard loan terms. Financing strategies, fueled by the creativity and resources of the private and public sectors, should address both of these financial barriers to homeownership."
The above is the start of the mortgage meltdon: Clinton's National Homeownership Strategy...http://www.businessweek.com/the_thread/hotproperty/archives/2008/02/cli (broken link)



1996 clinton signed The Telecommunications Act of 1996 (The Act was claimed to foster competition. Instead, it allowed industry consolidation whose actions reduced the number of major media companies from around 30 in 1993 to 10 in 1996, and reducing the 10 in 1996 to 6 in 2005.)



1998 clinton does not allow drilling for OUR OWN OIL



1999 Clinton DEREGULATES the banking industry



2000 clinton signs the China trade bill



2000 clinton signs the Commodity Futures Modernization Act of 2000..(which paves the way for ENRON)



2006 democrats PROMISE to lower gas prices.....they lied



2006 democrats promise to make a living wage....they lied, what did they pass??? a minimum wage increase that take 2.5 years to fully take effect that would not even equal the inflation rate for those 2.5 years,,and do they include a automatic annual cost of living increase??? NO they make sure they keep it as a VOTING SCAM



2008 the democrats led by pelosi, wont even ALLOW a vote for off shore drilling, because QUEEN PELOSI says no (funny how the democrats take the 'RIGHT of power of the people vote' on a subject.







just FACTS that the democrats don't care about the poor ,,,,just their votes

[georgia dem]

Originally Posted by Alexus

You Conservatives can stick your heads in the sand and pretend this isn't true, but the economic problems we're experiencing are DIRECTLY the result of the Bush and McCain Economic philosophy.

Robert Creamer: Why the Financial Meltdown Reflects the Fundamental Failure of the Bush-McCain Economic Philosophy

HORSE POOP!!
CHECK OUT MCCAIN's RECORD, HE HAS BEEN SOUNDING THE ALARM!!
MCCAIN/PALIN!

[GregW]

The problems really started with Nixon and acellerated under Ronnie Raygun with his borrow and borrow and spend and spend government.

[renriq02]

thank you!

Originally Posted by workingclasshero

sorry to INFORM you but these problems stem from: 1993, 1995, and 1999 and you can thank the liberals for it, and most of it goes back to the clinton era. why because ECONOMICS run in 10(+/-4) year CYCLES and what we are facing NOW is in DIRECT RELATION to what happened back in the 90's



1993 NAFTA---- passed by the democrat controlled congress, pushed by clinton, signed by clinton---the consequence ...... 60+ million HIGH PAYING jobs have been lost, 2 trillion worth of debt from the lost wages.



1995 clinton (through his chief of HUD (Henry Cisneros)) eased the rules on obtaining mortgages allowing more 'exotic' mortgages and 'no-dov' mortgages-----the consequence ......housing SKYROCKETED causing low inventories causing a 'not normal' increase in home prices, sellers got greedy, buyers got even greedier (looking to PROFIT in a skyrocketing market by flipping) and bought THINKING that prices would still increase and their ADJUSTABLE mortgage would pay it self off in MINIMUMAL years...EVEN THOUGH THESE INCREASES IN HOME VALUES WERE TOTALLY UNHEARD OF, AND MORTGAGE RATES WERE AT 40 YEAR LOWS( what did they think an adjustable mortgage gotten at 40 year lows would do in the term(3 months-3years) when it adjusted...of course it would go up, their CONTRACT even said after the term it would be 6% PLUS PRIME)))



For many potential homebuyers, the lack of cash available to accumulate the required downpayment and closing costs is the major impediment to purchasing a home. Other households do not have sufficient available income to to make the monthly payments on mortgages financed at market interest rates for standard loan terms. Financing strategies, fueled by the creativity and resources of the private and public sectors, should address both of these financial barriers to homeownership."
The above is the start of the mortgage meltdon: Clinton's National Homeownership Strategy...http://www.businessweek.com/the_thread/hotproperty/archives/2008/02/cli (broken link)



1996 clinton signed The Telecommunications Act of 1996 (The Act was claimed to foster competition. Instead, it allowed industry consolidation whose actions reduced the number of major media companies from around 30 in 1993 to 10 in 1996, and reducing the 10 in 1996 to 6 in 2005.)



1998 clinton does not allow drilling for OUR OWN OIL



1999 Clinton DEREGULATES the banking industry



2000 clinton signs the China trade bill



2000 clinton signs the Commodity Futures Modernization Act of 2000..(which paves the way for ENRON)



2006 democrats PROMISE to lower gas prices.....they lied



2006 democrats promise to make a living wage....they lied, what did they pass??? a minimum wage increase that take 2.5 years to fully take effect that would not even equal the inflation rate for those 2.5 years,,and do they include a automatic annual cost of living increase??? NO they make sure they keep it as a VOTING SCAM



2008 the democrats led by pelosi, wont even ALLOW a vote for off shore drilling, because QUEEN PELOSI says no (funny how the democrats take the 'RIGHT of power of the people vote' on a subject.







just FACTS that the democrats don't care about the poor ,,,,just their votes

[renriq02]

I don't know what you do for a living, but please stick to topics that actually know something about.

Originally Posted by padcrasher

The GOP is just as eager to bail them out as well.

But regardless, given the fact that a bailout was always in the cards (putting aside who's to blame for that for now) who on earth would deregulate their lending practices if it was the taxpayer assuming the risk???


Who??? The GOP that's who!!