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Another voice that tried to slow down Fannie and Freddie in 2000 was none other than Paul Ryan.
Note that James Johnson, Fannie CEO during the Clinton admin, was a close political ally of Pres Clinton in those years. Johnson had been an aide to Sen Walter Mondale, who was the Dem nominee for prez in 1984. What a coincidence that all those Dems turned out to be on the wrong side of history.
Those racist Republicans investigated Fannie Mae in 2004. The Democrats involved, including but not limited to Barbara Boxer, Maxine Waters, Gregory Meeks, Lacy Clay (calling it a lynching of Raines), Arthur Davis, and of course Barney "it's safe and sound" Frank, all stonewalled the investigation.
We now know they all LIED!!!
We can thank Democrats for many things, and the financial collapse is one of them.
Clinton- "Democrats must resist efforts by Republicans to apply more standards or regulations to Freddie Mac or Fannie Mae"
Do I need to remind you (again) that the economic trouble didn't start four years ago?
Isn't it cute how the liberals keep trying desperately to change the subject to things no one else has mentioned, which have nothing to do with the arguments?
Who can blame them? Honesty is the one thing they can't bring to the table... because it completely exposes the destructiveness of their policies and the guilt of their leaders.
We were dealing with over a decade of massive spending, massive debt and rising unemployment caused by Reagan and Bush, their "give everything to the rich" trickle down economics was a monumental failure.
What creates strong economies is fairly simple. Fair tax rates, controlled spending, and a focus on supporting those that are the real job creators, small business.
Because of this, is what gave Clinton one of the most booming economies in history.
While the middle class and poor and hurting right now, the rich are doing extremely well. Letting the failed W tax cuts to the rich expire, will help get the economy turned around very quickly.
Amazing that you can not tell the difference between massive spending, massive debt when Obama does as Bush did.
Those racist Republicans investigated Fannie Mae in 2004. The Democrats involved, including but not limited to Barbara Boxer, Maxine Waters, Gregory Meeks, Lacy Clay (calling it a lynching of Raines), Arthur Davis, and of course Barney "it's safe and sound" Frank, all stonewalled the investigation.
We now know they all LIED!!!
We can thank Democrats for many things, and the financial collapse is one of them.
Clinton- "Democrats must resist efforts by Republicans to apply more standards or regulations to Freddie Mac or Fannie Mae"
What they were investigating and wanting regulation over in 2004 is not what led to the collapse.
My bad... I assumed (again) that you weren't being a troll, but wanting to engage in a debate on origins of the economic crisis.
Then why don't you talk about those origins? Instead you state an irrelvancy such as "the economic problems didn't just start four years ago" when no one said that they did - and the OP specifically stated that they began earlier and outlined what led to the crisis in detail.
Address that if you disagree - don't construct strawmen.
My bad... I assumed (again) that you weren't being a troll, but wanting to engage in a debate on origins of the economic crisis.
Hopeful assumption, but alas.
The seeds of the financial crisis were sown long before Obama. In fact, one could argue the crisis got its start in the late 90s with the fall of the Russian ruble and then, later, the Asian collapse. What is inarguable, at least if one cares about facts (most don't), is that the crisis grew during the Bush years, reaching its zenith almost precisely at the time Obama became President. The subsequent recession and lack of job growth are results of financial destruction years before Obama was even considered for President.
The accounting practices at the GSEs didn't cause the collapse.
...Yet no one (well almost no one) was looking at the growth in the non GSE portfolios which did collapse the economy
It doesn't matter if MBSes weren't "held" in the GSEs portfolios. The problem was the $5 trillion worth of mortgages with an implicit government guarantee that the GSEs bundled, securitized, misrepresented, and sold. All other non-GSE private sector sources only securitized and sold $2.6 trillion worth. http://www.fdic.gov/bank/analytical/.../ppt/Chang.PDF
The crisis was caused by Fannie and Freddie MISREPRESENTING the quality of the MBS they bundled and sold, and then NOT having enough money to make good on the implicit government guarantee when a lot of the loans began going into default.
Remember Representative Sherman saying the bailout was going to foreign investors?
It doesn't matter if MBSes weren't "held" in the GSEs portfolios. The problem was the $5 trillion worth of mortgages with an implicit government guarantee that the GSEs bundled, securitized, misrepresented, and sold. All other non-GSE private sector sources only securitized and sold $2.6 trillion worth. http://www.fdic.gov/bank/analytical/.../ppt/Chang.PDF
The crisis was caused by Fannie and Freddie MISREPRESENTING the quality of the MBS they bundled and sold, and then NOT having enough money to make good on the implicit government guarantee when a lot of the loans began going into default.
Remember Representative Sherman saying the bailout was going to foreign investors?
The GSEs $5 trillion U.S. Government guarantee was why that happened. Foreign investors bought government guaranteed MBS sold by the GSEs.
Until the Government acquired the GSEs there had not been an explicit government guarantee since 1968. The quality of the GSEs' bundles were superior to the quality of the non-GSE bundles.
From the document you linked:
Difference between GSEs and Private labels
n Risk guarantee – GSEs offer investors guarantees against default risk
while private issuers often pass the default risk onto parties willing to
bear it.
n Loan products – GSEs have historically purchased only traditional FRM
products and only recently begun purchasing alternative mortgages. Private label issuers have been purchasing these alternative mortgages
at much larger scales and for a longer period of time.
By 2003, Fannie Mae and Freddie Mac accounted for 52.3% of all residential mortgage loans outstanding (Federal Reserve and Monthly Funding Summaries). The following year, GSE market share of newly originated mortgages fell precipitously and remained low for the next three years: during 2001-2003, the GSEs funded nearly 70% of all mortgages originated; from 2004-2006, the GSE share of new mortgages was 47%, 41%, and 40%, respectively
.... From 2003 to 2007, the growth of outstanding mortgage debt accelerated to 11.9% per year but the volume of outstanding mortgages financed by the GSEs rose by just 7.6% per year. On a cumulative basis, the overall mortgage market grew 31% faster than the volume of mortgages funded by the GSEs over this period. This shift involved two related developments: (1) the share of total outstanding mortgage debt financed by the issuance of “nonagency” or “private label” asset-backed securities (PLS) grew by 219% over this period; and (2) the origination of non-traditional mortgage products, like subprime (generally poor credit history and other negative attributes like low downpayments and less than full documentation) and Alt-A loans (seemingly prime but with a flaw, typically low documentations) that would not normally meet GSE underwriting criteria also grew exponentially. These factors were associated with the share of mortgages financed by the GSEs falling from 52% at the end of 2002 to 44% at the end of 2006
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