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the fact is the bubble started back in 94/95..you cant dispute that
I don't think many people would agree the housing bubble actually started under Clinton, especially since housing prices didn't start to rise rapidly and over inflate until the new millennium.
Yes, standards were lowered under Clinton but that was enough on it's own to cause the housing bubble.
So you don't think those private industries in the "free market" lobby the government to do things that benefit them?
That's not the free market, that's crony capitalism. We don't lower standards nothing else happens
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Originally Posted by dv1033
You don't think private home builders had any part in ensuring more people qualify for homes?
We don't lower standards, none of this happens. Treat the cause not the symptom.
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Originally Posted by dv1033
Your reply just comes off as very naive, as if the "free market " is actually free.....
The mortgage industry, left to their own standards, made a ton of money using conservative lending standards, and never failed as a whole. But you know better, right? pfffttt
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Originally Posted by dv1033
You just don't get it, private vs public debate is silly as they are one in the same.
LMAO I know what the cause is, you're reacting to symptoms. Keep chasing rainbows.
I don't think many people would agree the housing bubble actually started under Clinton, especially since housing prices didn't start to rise rapidly and over inflate until the new millennium.
Yes, standards were lowered under Clinton but that was enough on it's own to cause the housing bubble.
the last bubble had burst in 89/90...at least here in NY
housing started rising again (new bubble) in 94/95 once rules were relaxed
I saw it happen in real life...in 1992 my parents were thinking of selling their house...realtor told them they would be LUCKY to get 125k..they looked again in 1996 and it had already increased to 190k....they sold in late 04...for 460k(as is)....the same small house with a 30 year old furnace and old style leaky doublehung windows..... over triple in a matter of 13 years
In real life, there weren't any bubbles at all. Merely using the word in any serious sense is generally a reason to dismiss a speaker's comments out of hand. The S&L crisis for instance resulted from their being caught in an interest rate trap. They had to pay more to attract new deposits than they were earning on their existing assets. To push up yields, they began investing in riskier and riskier projects until the roof caved in. The Great Recession was meanwhile triggered by a credit crisis that resulted from the unregulated sale of large volumes of fraudulent mortgage paper into secondary markets. In neither case was any sort of bubble involved.
In real life, there weren't any bubbles at all. Merely using the word in any serious sense is generally a reason to dismiss a speaker's comments out of hand. The S&L crisis for instance resulted from their being caught in an interest rate trap. They had to pay more to attract new deposits than they were earning on their existing assets. To push up yields, they began investing in riskier and riskier projects until the roof caved in. The Great Recession was meanwhile triggered by a credit crisis that resulted from the unregulated sale of large volumes of fraudulent mortgage paper into secondary markets. In neither case was any sort of bubble involved.
Except that a good deal of the crisis was lobbying Congress to let savings banks issue stock an become commercial banks. Many fudged the books to exaggerate their assets, so to fetch a higher stock price. Part of that fudging was to make worthless bad loans appear as valuable assets.
The private investment banks were never under a government mandate and had no government induced housing goals.
False. They, too, had to buy loans, or loan-based investment products, from loan originators that had to meet HUD quotas or face federal lawsuits or other regulator restrictions. That's why Barney Frank made this startling admission:
From the same C-Span broadcast I already posted...
Frank blurted out: "No more goals, no more telling the private sector" how to invest in the housing market."
"...telling the private sector..."
Telling the private sector how to invest in the housing market. Let that sink in...
Don't need to prove that, we know most of the toxic loans originated when Bush JR was in charge.
Nope. Home ownership expanded significantly more under Clinton than Bush. Gues why... The GSE's initiated high LTV loans and loans to credit-tarnished borrowers to meet HUD mandates. THAT'S where the problem started and grew legs. Had that not happened, the mortgage meltdown and the subsequent financial crisis wouldn't have happened. To make matters WORSE, the GSEs were WARNED to not do it:
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"Among the most controversial of the products is a 3%-down loan that caused an uproar within Fannie Mae when it was introduced in the mid-1990s. Some senior executives, including the company's chief credit officer at the time, were opposed to the loans, in large part because a Fannie Mae experiment with 5%-down loans in Texas in the early 1980s was disastrous, with one in four borrowers defaulting.
Robert Levin, a Fannie Mae executive vice president who helped pioneer the 3%-down loans, recalls angry phone calls from regional executives who feared the loans were too risky. "People were saying, 'What are you doing? Nobody has ever been successful at this in the history of mankind!'"
the fact is the bubble started back in 94/95..you cant dispute that
Yes. Home ownership increased significantly more under Clinton than Bush.
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Home ownership grew significantly more under Clinton than Bush. That fact has already been proven.
