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I remember Greenspan warning constantly for years of the housing bubble and that it would burst.. that the cost of housing had skyrocketed.
I actually look at the full picture. Everyone played a part of the housing crisis. The fed, the president, the democrats.
Now the President and especially the democrats wanted minorities and low income people to be able to become a homeowner. As time went by and there were no more buyers for a home ,you could breath and sign your name and you were eligible. Very risky deals.. Not just Americans bought homes , foreigners, illegals, dirt poor without a job bought a home. 3 million homes that were bought , the buyers never made the first payment. They lived in the house for a few years till the banks moved in with a foreclosure notice.
Some homes were built to flip meaning the original buyer who had the builder build it, would sell it at a higher price and make money . Many of these homes were never sold and the mortgage was never paid..
When the housing bubble burst is because all those homes started to go into foreclosure and it brought the other homes down in value because there was a housing glut. Too many empty homes in some areas made the value plummet.
Now the banks lost the money they loaned which went to the builder. If a home had a mortgage of 250,000 , the bank unloaded it at around 100,000 or less and lost not just the interest on that loan but the principal of 150,000 . The banks are not doing well at all.
Now the banks give no interest on the money people save through IRA's or a savings account. They lost their shirts on home mortgage lending.
The builders also have a part in this.. every time the interest rate was taken down a point by the fed the same house was sold at $50,000 higher. And the buyers kept buying regardless how high the cost of the house was.
Bush tried to reel in through legislation but people like Barney Frank and Maxine Waters said it was fine and would veto whatever Bush tried to put though to stop the open door to the loose mortgage practices going on. Plus the shadow banking made it even worse. They looked for anyone to buy a home and they didn't care if you have a job or not. Some really shady things went on . Now that the housing market is saturated with foreclosure selling lower, many people are buyig them instead of building a new home. This put the masons , roofers, lumber yard workers and all that work in the housing industry out of work. The housing glut is big and another wave is coming.
What I don't like about Obama is he has an opportunity to put people to work and went after his green agenda ideas that wasted money. His politics is in the way to create jobs.. The American people should come before politics.. why do we have a leader for? If not to keep America strong instead of serving the special interest groups and his green agenda as Obama does on a daily basis.. dividing the people instead of keeping us all working with a common goal of helping the American people thrive and prosper.
This is from '08 alone. I can go back farther if you like.
2008 January: Bank of America announces it will buy Countrywide. January: Citigroup announces mortgage portfolio lost $18.1 billion in value. February: Assistant Secretary David Nason reiterates the urgency of reforms, says “A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully.” (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08). March: Bear Stearns announces it will sell itself to JPMorgan Chase. March: President Bush calls on Congress to take action and “move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages.” (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08). April: President Bush urges Congress to pass the much needed legislation and “modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by … helping people stay in their homes.” (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08). May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further.
“Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans.” (President George W. Bush, Radio Address, 5/3/08).
“[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator.” (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08).
“Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans.” (President George W. Bush, Radio Address, 5/31/08).
June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying “we need to pass legislation to reform Fannie Mae and Freddie Mac.” (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08). July: Congress heeds the President’s call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing.
I remember Greenspan warning constantly for years of the housing bubble and that it would burst.. that the cost of housing had skyrocketed.
B.S. Greenspan was a huge proponent of "too big to fail".
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The builders also have a part in this.. every time the interest rate was taken down a point by the fed the same house was sold at $50,000 higher. And the buyers kept buying regardless how high the cost of the house was.
When money is cheap, you get inflation. That's the way it works.
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Bush tried to reel in through legislation but people like Barney Frank and Maxine Waters said it was fine and would veto whatever Bush tried to put though to stop the open door to the loose mortgage practices going on. Plus the shadow banking made it even worse. They looked for anyone to buy a home and they didn't care if you have a job or not. Some really shady things went on . Now that the housing market is saturated with foreclosure selling lower, many people are buyig them instead of building a new home. This put the masons , roofers, lumber yard workers and all that work in the housing industry out of work. The housing glut is big and another wave is coming.
I recall those that were warning about the coming disaster but I do not recall any of these warning coming from Bush especially in the form of legislation. Bush completely went along with the artificially low rates to keep the bubble inflated to help fund the wars.
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What I don't like about Obama is he has an opportunity to put people to work and went after his green agenda ideas that wasted money. His politics is in the way to create jobs.. The American people should come before politics.. why do we have a leader for? If not to keep America strong instead of serving the special interest groups and his green agenda as Obama does on a daily basis.. dividing the people instead of keeping us all working with a common goal of helping the American people thrive and prosper.
I can't argue with this but Haliburton screwed the taxpayers over and over and over but were still gave millions and millions.
Has anyone ever tried to figure out why those last two years were so bad? If so have you noticed that the Democrats controlled Congress during both of them and the House two year earlier than that? Is there a chance that too many of the troubles of that period had something to do with the Democrats being in control with Bush forced to be a lame duck. I got to wondering today about this and here is a good explanation.
Status quo Republicans like Bush are no better than Status Quo Democrats. Democrats are known for their financial incompetence and over spending and Republicans are known for their warmongering. Now both parties are equally to blame for both and beginning with Bush and continuing with Obama. They made sure by passing and continuing the Patriot Act and the NDAA and indefinite detention of American citizens and establishing Homeland Security and the TSA that we lost our civil liberties. They started wars that were totally unnecessary; they took our freedom away; stole our money and gave it to banksters and turned us into the most hated nation in the world. Then to try to keep us from noticing how bad things are, they try to turn us against each other.
What we need to do is unite and all fight for restoring our FREEDOM and stop bickering and blaming the two parties. Both have hurt our country and neither as they exist today deserve our support.
Status quo Republicans like Bush are no better than Status Quo Democrats. Democrats are known for their financial incompetence and over spending and Republicans are known for their warmongering. Now both parties are equally to blame for both and beginning with Bush and continuing with Obama. They made sure by passing and continuing the Patriot Act and the NDAA and indefinite detention of American citizens and establishing Homeland Security and the TSA that we lost our civil liberties. They started wars that were totally unnecessary; they took our freedom away; stole our money and gave it to banksters and turned us into the most hated nation in the world. Then to try to keep us from noticing how bad things are, they try to turn us against each other.
What we need to do is unite and all fight for restoring our FREEDOM and stop bickering and blaming the two parties. Both have hurt our country and neither as they exist today deserve our support.
The money that is poured into elections makes it prohibitive for anyone to run for office that is not connected. The Supreme Court decision on Citizens United was the last nail in the coffin. Any American that does not support campaign Finance Reform is nuts or just plain stupid. Until we have that, we will never have a true democracy again.
The money that is poured into elections makes it prohibitive for anyone to run for office that is not connected.
Because it forces you to vote (D) or (R)? It's simple. STOP IT. It doesn't happen for one reason and it isn't money. People are so afraid that if they do not vote for one party or the other, the other guy will.
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The Supreme Court decision on Citizens United was the last nail in the coffin. Any American that does not support campaign Finance Reform is nuts or just plain stupid. Until we have that, we will never have a true democracy again.
LOL, Obama and McCain didn't spend a massive amount of money even before the CU ruling?
I'm stupid because I can refuse to vote for the same old, same old?
I agree and remember him staning on his soap box touting he has enabled more black Americans ownership that ever before. He is not guiltless, nor is he the entire reason for the slide and certainly not the reason we have not recovered. These 0 interest loans nothing down were the insanity of the democratic party putting pressure on lenders to offer the poor more buying power. Bush carried the water. If you are at all honest with yourself you can give any credit to this sitting president for coming up with any concrete solutions or going program by program to cut waste as he promised. He has only added to the pain and misery.
Why? Because he got us in two unwinnable wars and then had to completely ignore all domestic issues.
what are you talking about? The first war was a direct retaliation on 9/11. The "2nd" war was actually an old war started in 1990 when Saddam invaded Kuwait. In fact, if you asked any intelligent American on 9-10-01 who was the most dangerous threat to the U.S they would have said Saddam Hussein.
You can't re-write history.
This is from '08 alone. I can go back farther if you like.
2008 January: Bank of America announces it will buy Countrywide. January: Citigroup announces mortgage portfolio lost $18.1 billion in value. February: Assistant Secretary David Nason reiterates the urgency of reforms, says “A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully.” (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08). March: Bear Stearns announces it will sell itself to JPMorgan Chase. March: President Bush calls on Congress to take action and “move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages.” (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08). April: President Bush urges Congress to pass the much needed legislation and “modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by … helping people stay in their homes.” (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08). May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further.
“Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans.” (President George W. Bush, Radio Address, 5/3/08).
“[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator.” (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08).
“Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans.” (President George W. Bush, Radio Address, 5/31/08).
June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying “we need to pass legislation to reform Fannie Mae and Freddie Mac.” (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08). July: Congress heeds the President’s call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing.
None of the liberals will touch your post with a ten-foot pole - because the fact that their party's(Democratic) intransigence made the crisis worse is too embarrassing to face up to.
Is there a chance that if enough Democrats had voted against that funding in the beginning as many did after the thing went for a time that it couldn't have happened. I keep wondering about that since so many leading Democrats in Congress went along in the beginning.
They never bring up that Tom Daschle (D) co -sponsored the bill while he was the Senate Majority Leader.
We know the Senate Majority leader can de-rail any legislation (AKA Harry Reid) he chooses.
It is also important to note many of the dems who voted in for the Authority were at the top of the list of "important" dems with a great deal power.
Dem's who voted FOR the wars:
Baucus (D-MT)
Bayh (D-IN) Biden (D-DE)Current VP
Breaux (D-LA)
Cantwell (D-WA)
Carnahan (D-MO)
Carper (D-DE)
Cleland (D-GA) Clinton (D-NY)Current Sec of state (Labeled Smartest women in the world by many lefties) Daschle (D-SD)Leader of the Senate at the timeand co-sponsored the bill Dodd (D-CT)
Dorgan (D-ND) Edwards (D-NC) Ran for VP
Feinstein (D-CA)
Harkin (D-IA)
Hollings (D-SC)
Johnson (D-SD) Kerry (D-MA) Ran for Pres.
Kohl (D-WI)
Landrieu (D-LA) Lieberman (D-CT)Ran for Pres.
Lincoln (D-AR)
Miller (D-GA)
Nelson (D-FL)
Nelson (D-NE)
Reid (D-NV) Current leader of the Senate
Rockefeller (D-WV) Schumer (D-NY)
Torricelli (D-NJ)
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