Economic GROWTH: Trump rolling back Dodd Frank! (solution, financial crisis, government)
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Welcome to 2005. Those too stupid to learn from history are doomed to repeat it.
Unless, of course, he's trying to cause a real estate meltdown so he and his fellow mafiosos can buy up all the foreclosures for pennies on the dollar. Stranger things have happened.
Just ask Mr. Mnuchin about his well-deserved nickname:
“FORECLOSURE KING” STEVEN MNUCHIN DOESN’T APPRECIATE HIS TOTALLY ACCURATE NICKNAME The nominee for Treasury secretary wants to know why no one ever brings up all the good stuff he did at OneWest.
Well, here come the no down payment mortgages, the short term boom for housing speculators and the inevitable collapse. trump is not a fan of history...short term instant gratification is his thing. Just ask Stormy.
Exactly. It is amazing how the far-right will support ANYTHING if it involves less government. Of course, being hypocrites, they'll whine and scream when this latest give away to the banking industry blows up the economy - again.
They have no understanding of reality and honestly think that "duh gubermint is evil" and private corporations are all good. Total ignorance like that disqualifies one from participating in actual discussions about this nation's laws, despite all the noise the far-right makes about things they don't understand.
These regulations were put in place to help prevent another economic collapse. Look for banks to run wild again resulting in another collapse which American taxpayers will have to bail them out from. Business/Industry is getting a blank check from Trump and the GOP. The general public will pay a steep punishment for this.
And the far-right will - insanely - blame "Obama" when Trump blows it all up again.
Banks were pressured on racial basis to give mortgage loans to minorities - even if they were not qualified for the loan. What does Dodd-Frank have to do with bad lending practices?
That was only a tiny part of the overall Housing Bubble and has already been disproven as being "the root cause." Bad loans were eagerly crafted and given to anyone who asked, far in excess of any legal requirements to give mortgages to poorer buyers. Then, the banks slapped the bad loans into retirement funds, gave them all an AAA rating, and got Bailed Out to create bigger bonuses - none of which was required by ANY law.
That was only a tiny part of the overall Housing Bubble and has already been disproven as being "the root cause." Bad loans were eagerly crafted and given to anyone who asked, far in excess of any legal requirements to give mortgages to poorer buyers. Then, the banks slapped the bad loans into retirement funds, gave them all an AAA rating, and got Bailed Out to create bigger bonuses - none of which was required by ANY law.
Quit trying to make excuses for the banks.
It's strange (not really) how foreign banks ADMIT their fraudulent practices (greatly) contributed to the recent global financial systemic debacle:
Deutsche Bank Agrees to Pay $7.2 Billion for Misleading Investors in its Sale of Residential Mortgage-Backed Securities
Deutsche Bank’s Conduct Contributed to the 2008 Financial Crisis
this will be great if it actually gets done. Dodd Frank is over regulation.
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Originally Posted by antinimby
No. More like keeping the correct protections in place while removing the onerous regulations. Something the Left knows nothing about.
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Originally Posted by Three Wolves In Snow
They need to be allowed to be discriminating. If someone cannot afford the home, don't lend to them, and I say that as someone with a sister who got a loan for a house that was far more than they could afford after banks were essentially told to lend to everyone. Guess what? Didn't take too long before they foreclosed on their house because....they couldn't afford it. The bank should never have loaned them a dime. With the way my sister spends money that she doesn't even have, I'm not in the least bit surprised that they lost their home. And this sounds harsh, but they deserved to lose it, not have everyone else pay for it. Smaller banks are harder to get loans from than larger banks. Smaller banks have more to lose. If these smaller banks are allowed to be "discriminatory" (meaning not lend to every Tom, Dick, and Harry just because they asked), it will prevent future collapse.
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Originally Posted by Metsfan53
how. Please site specific examples or concrete facts. Let's see them....
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Originally Posted by Metsfan53
please list which corrections are correct to be left in place and which ones are onerous?
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Originally Posted by Metsfan53
so by rolling back regulations to limit over-leverage, counterparty risk, off balance sheet shenanigans and to require banks to bulk up capital reserves or even have an accurate accounting of their positions and risk they will prevent this from happening again?
The funny thing is I don't disagree- banks should not be pressured to alter underwriting standards however if you think that was the only cause of the 07/08 collapse you have no clue what your talking about.
The Fact is you could have created a product called "built to fail foreclosure loan" and banks still would have lent on it for the vig they were making on offloading the paper to CDO factories levered 30 to 1 who took their warehouses and offloaded these crap loans to institutional investors drunk on the higher coupons these "borrowers" brought, b/c hey- housing never goes down....(hint banks got stuck and hurt b/c they kept super senior tranches since coupon was too small to offload to anyone). This is exactly the stuff Dodd Frank goes after. But by all means keep blaming it all on one small piece that fits your predetermined political narrative. IT's not like Golden West, IndyMac and other banks you've never heard of lost investors billions of dollars esp since savvy investors can take out CDS contracts for notionals of many multiples the market cap of these lenders either. Nope, it's so easy...
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Originally Posted by workingclasshero
the recession was cause primarily by two things
the Clinton housing bubble
and the offshoring of jobs under liberal high taxes
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Originally Posted by Metsfan53
How was it a mistake? Specifically
What issues didn’t address specifically?
So you’re answer is it wasn’t perfect so get rid of it all together and replace it with nothing?
Agreed. The problem lies in blaming borrowers for the cause. Before the free market stopped them from receiving the loans. If Congress didn't force lenders to lower standards we don't have a feeding frenzy. We don't have artificially inflated housing prices and we don't have a collapse.
Remember the 105% loans that were made? In 2007, 45% of first time mortgages were no money down. Talk about crazy.
sure- securitization, derivatives, shadow banking sector, leverage, and the ever present chaise for yield had nothing ot do with it. Here's a hint, if banks and lenders couldn't offload their paper to the secondary market they wouldn't give out mortgages anymore regardless of any relaxed lending standards....IF you don't think the tail was wagging the dog to juice returns you don't understand the issue at play....
THANK YOU! For some reason the lefties can't get their heads around this, despite so many having supported it. Dodd-Frank was literally written by the lobbyists for the big banks & passed by corrupt politicians. They did it in such a way that compliance with the oversight would be impossible for banks not having immense compliance departments. That meant small banks, community banks and credit unions would not be able to comply, only the mega-banks. The results speak for themselves as the mega-banks have increased in size at precisely the same rate that community banks and credit unions have been forced to close their doors.
What we need is Dodd-Frank repealed and GLASS-STEAGALL reinstated. Glass-Steagall forced banks to use their own money to bankroll risky investments, because it stated FDIC insurance only applied to customer deposits, not to customer deposits being used to fund high risk banking ventures.
Who repealed Glass-Steagall? Bill Clinton. Who toured the country building support for the repeal? Hillary Clinton. In the campaign 2016, who wanted to reinstate Glass-Steagall? Donald Trump, Bernie Sanders, Elizabeth Warren & Jill Stein. Who vowed to not even consider it? Hillary Clinton & the NeoCon R's.
Does this legislation reinstate Glass_Steagall? No it doesn't.
Does this legislation make it more likely the public will be paying for future bank failures caused on risky lending? Yes it does.
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