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Truth About The Housing Collapse and Financial Meltdown of 2007/08; Just as I was starting to search for videos on this subject to add to the article I was going to do, I found that others had recently been writing on it also. The Housing Collapse and Financial Meltdown were caused directly by democrat policies and politics. Just as most of America’s crisis have been in the last 100+ years! I’s ridiculous the way they keep getting away with blaming Republicans due to the culpability of the mainstream media! Obama’s still getting away with it to this day, just as they let him escape questions about the Benghazi terrorist attack!
What Bloomberg failed to mention is that Obama, himself, adamantly demanded that banks make more loans to low-income borrowers. Sub-prime loans became the great American rip-off. Obama and the Democrats strong-armed lenders to give loans to people who could not repay them. The plan? In exchange, grateful and undoubtedly stunned new homeowners would obligingly ply the Democrats with their votes.
Obama, himself, adamantly demanded that banks make more loans to low-income borrowers. Sub-prime loans became the great American rip-off. Obama and the Democrats strong-armed lenders to give loans to people who could not repay them. The plan? In exchange, grateful and undoubtedly stunned new homeowners would obligingly ply the Democrats with their votes.
That’s right, the banks did it. In reality, it is another glaring example of Barack Obama and the Progressive Democrats‘ adeptness at avoiding culpability and deflecting blame. After all, to this date, they have continually fooled so many about their role in perpetuating the housing collapse that thrust the economy into a nose dive.
They are counting on voters lacking enough information to connect-the-dots as they point accusingly at their partners in crime. Most Americans have been told by Obama’s lap-dog media that it was all the fault of greedy bankers, mortgage brokers and Wall Street derivatives — some of which came into play once the set-up and the opportunity for greed bated the bad players into joint accountability.
Momonky: Both parties created the Housing mess. What exactly did Bush do in EIGHT years to reign in the problem? When it was so bad that anyone could see it would crash, he and his cronies did nothing.
Quote:
For many years the President and his Administration have not only warned of the systemic consequences of financial turmoil at a housing government-sponsored enterprise (GSE) but also put forward thoughtful plans to reduce the risk that either Fannie Mae or Freddie Mac would encounter such difficulties. President Bush publicly called for GSE reform 17 times in 2008 alone before Congress acted. Unfortunately, these warnings went unheeded, as the President's repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems. 2001 April: The Administration's FY02 budget declares that the size of Fannie Mae and Freddie Mac is "a potential problem," because "financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity." 2002 May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02) 2003 January: Freddie Mac announces it has to restate financial results for the previous three years. February: The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that "although investors perceive an implicit Federal guarantee of [GSE] obligations," "the government has provided no explicit legal backing for them." As a consequence, unexpected problems at a GSE could immediately spread into financial sectors beyond the housing market. ("Systemic Risk: Fannie Mae, Freddie Mac and the Role of OFHEO," OFHEO Report, 2/4/03) September: Fannie Mae discloses SEC investigation and acknowledges OFHEO's review found earnings manipulations. September: Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact "legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises" and set prudent and appropriate minimum capital adequacy requirements. October: Fannie Mae discloses $1.2 billion accounting error. November: Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any "legislation to reform GSE regulation should empower the new regulator with sufficient strength and credibility to reduce systemic risk." To reduce the potential for systemic instability, the regulator would have "broad authority to set both risk-based and minimum capital standards" and "receivership powers necessary to wind down the affairs of a troubled GSE." (N. Gregory Mankiw, Remarks At The Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03) 2004 February: The President's FY05 Budget again highlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: "The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore…should be replaced with a new strengthened regulator." (2005 Budget Analytic Perspectives, pg. 83) February: CEA Chairman Mankiw cautions Congress to "not take [the financial market's] strength for granted." Again, the call from the Administration was to reduce this risk by "ensuring that the housing GSEs are overseen by an effective regulator." (N. Gregory Mankiw, Op-Ed, "Keeping Fannie And Freddie's House In Order," Financial Times, 2/24/04) June: Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed by the GSEs and called for reform, saying "We do not have a world-class system of supervision of the housing government sponsored enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve demands the best in supervision to ensure the long-term vitality of that system. Therefore, the Administration has called for a new, first class, regulatory supervisor for the three housing GSEs: Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System." (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04) 2005 April: Treasury Secretary John Snow repeats his call for GSE reform, saying "Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-measures will only exacerbate the risks to our financial system." (Secretary John W. Snow, "Testimony Before The U.S. House Financial Services Committee," 4/13/05) 2007 July: Two Bear Stearns hedge funds invested in mortgage securities collapse. August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying "first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options." (President George W. Bush, Press Conference, The White House, 8/9/07) September: RealtyTrac announces foreclosure filings up 243,000 in August – up 115 percent from the year before. September: Single-family existing home sales decreases 7.5 percent from the previous month – the lowest level in nine years. Median sale price of existing homes fell six percent from the year before. December: President Bush again warns Congress of the need to pass legislation reforming GSEs, saying "These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. So I've called on Congress to pass legislation that strengthens independent regulation of the GSEs – and ensures they focus on their important housing mission. The GSE reform bill passed by the House earlier this year is a good start. But the Senate has not acted. And the United States Senate needs to pass this legislation soon." (President George W. Bush, Discusses Housing, The White House, 12/6/07) 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.
Obama is using the financial crisis to make Americans doubt themselves, their values, and the very system they had believed enabled their specialness. In the vacuum of this doubt, he is moving his agenda to radically alter the fiber of what it means to be American. – TJ Hancock (American)
Petch751: Fascinating. So, where the Republicans in all this? You know, the ones who controlled Congress from 2000 to 2006, the peak years of the Housing Bubble's creation? Were they all out to lunch? Magically unable to muster enough votes to stop the minority Democrats... despite having a majority of the votes in both houses? Nobody denies that Democrats were involved, and those clowns should be voted out of office (too bad that never happens - for either party), but I find the claim that a minority party in both houses of Congress somehow managed to create and run the Housing Bubble scam on their own without the majority party doing anything about it laughable... unless, the majority party - the precious Republicans - were also in on it.
Fortunately, McCain stood up for the American people and against the Big Banks when he voted the EXACT same way as Obama did in late 2008 when BOTH of them supported the Bank Bailout at our expense.
Yep, good thing those Republicans were fighting for the American people vs. answering to the Big Banks, just like the Democrats... right...
Uh, huh... It took until everything collapsed - the scam being over - for something to be done. Yeah, great job. We clearly need more leaders like these clowns in office.
And, again, where in all that timeline is any evidence that the Democrats solely responsible for this mess? Looks to me like Congress - all of them - were responsible. But we already know that, yet Congress keeps winning re-election despite having an approval rate of 15%.
Unless we still sticking with the fantasy that the majority Republicans who controlled Congress from 2000 to 2006 were somehow "unable" to stop the minority Democrats from solely creating the Housing Bubble, which is utterly laughable and not even possible.
Both parties were involved. If the fact that both McCain and Obama supported the bank bailouts doesn't make that clear to you, nothing else will.
Democrats retain control of the Senate where they remain incalcitrant by refusing to even allow a vote on a national budget that could move the nation toward economic recovery. Obama, meanwhile, is actively emptying the U.S. treasury by tossing American’s tax dollar at everything from speculating on doomed-to-fail green projects to refurbishing mosques in the Middle East.
I think my thread title sums it up. I really don't have sympathy for these people (the bosses using increasing costs as an excuse, not the employees). If you're laying people off because of who won an election, you're not the kind of employer most people want to work for anyway.
Your argument of course can be used for Bain Capital.
Lousy Businesses were failing anyway and were sold for their remaining assets and then use bain Capital as an excuse for layoffs.
Uh, huh... It took until everything collapsed - the scam being over - for something to be done. Yeah, great job. We clearly need more leaders like these clowns in office.
And, again, where in all that timeline is any evidence that the Democrats solely responsible for this mess? Looks to me like Congress - all of them - were responsible. But we already know that, yet Congress keeps winning re-election despite having an approval rate of 15%.
Unless we still sticking with the fantasy that the majority Republicans who controlled Congress from 2000 to 2006 were somehow "unable" to stop the minority Democrats from solely creating the Housing Bubble, which is utterly laughable and not even possible.
Both parties were involved. If the fact that both McCain and Obama supported the bank bailouts doesn't make that clear to you, nothing else will.
Believe whatever you want...
But Obama preaches that "it's Bush's fault" yet he was the senator that used strong arming "just as he is using strong arm methods on republicans today"
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