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Again Trump is the ultimate ruling elite. He gets to veto rules he don't like, a billionaire who wouldn't roll with the little guy, he wouldn't be caught dead socializing with you and most of his supporters, except at a rally. He wants to buy Greenland. He is in an elite group of people, the billionaires club.
Sure, he's an elite, but he's outside of the DC elite, and the DC elite hate him.
He's also the first POTUS in a very long time trying to make the US better for the average citizen.
He's the first POTUS in a very long time to try and actually take action on illegal immigration.
The left is surely in your head, you woke early this morning posting divisive talk. You probably eat breathe and sleep this stuff, and couldn't Wait to get posting stuff. I bet you haven't even had breakfast yet.
We do have Royalty in America today. It is called the CAREER POLTICIAN, and it comes form both parties. We need term limits. One term in the Senate, and three terms in the House. Politicians should have a six year expiration date, except for President where we already have a two term limit. Once you serve your time, you can no longer run for office. DONE. Go back home, and go back to your day job.
We do have Royalty in America today. It is called the CAREER POLTICIAN, and it comes form both parties. We need term limits. One term in the Senate, and three terms in the House. Politicians should have a six year expiration date, except for President where we already have a two term limit. Once you serve your time, you can no longer run for office. DONE. Go back home, and go back to your day job.
That I can agree with, I've always believed in term limits. I believe that's part of the problem with Washington.
Nope. Bill Clinton signed the Iraq Liberation Act in 1998. The goal: to depose Saddam Hussein.
Nope. That was caused by the lowered lending standards announced by HUD's Cuomo (Clinton era) requiring that Fannie and Freddie buy $2.4 trillion worth of home loans made to high-risk borrowers. Barney Frank even admitted it (after he retired from Congress, of course) in a 2013 C-SPAN broadcast.
Obamacare did nothing more than guaranty profits to insurance companies by requiring that everyone buy insurance.
Oh just stop the partisan stuff.
One more time....FHLMC/ FNMA lost market share as the housing bubble inflated because whole loans increasingly did not qualify for their purchase.
FHLMC/ FNMA was bypassed in favor of originators selling loans to a handful of Wall Street Broker/ Dealers who sliced and diced the loans and repackaged them as PRIVATE LABLE derivative securities. The INDEPENDENT credit rating agencies migrated many of these securities as investment grade.
There is always pressure on corporate return on investment. Stock Market was lackluster, interest rates were low for the time.
That opened the secondary market for institutional investors. The primary investors were public and private pension/ retirement plans, insurance, foreign investors and corporate investors restricted by charter to investment grade.
Over time, FHLMC/ FNMA were among the major corporate buyers and used their own capital to buy investment grade derivatives which is not the same thing as buying whole sub prime loans from originators.
At peak, the SEC lowered the net capital requirements of 5 broker/ dealers, Lehman, Bear Stearns, Merrill, Morgan Stanley and Goldman which allowed them to increase their leverage.
The congressional testimonies of the independent credit rating agencies revealed the same story. Their models failed to reasonably assess or value the risks of the private label derivative securities. Had they done so, the securities would ever have been rated investment grade and thus the big institutional investors would not have been able to buy these securities and thus there would not have been unlimited funding for sub prime loans.
A culture of greed inflated the bubble. The masses perceived housing as a one way ticket to wealth. They seemed to believe housing in the hot areas would increase in annual value by compounded double digit percentages. Many lenders lent to anyone with a pulse. Borrowers lied. Lenders lied. Appraisers lied.
The masses sucked the paper equity out of their homes to live beyond their means. This goosed the economy for a blip in time. Texas was able to avoid the worst of the home equity thing because of strict state laws concerning home equity loans, designed to incrementally protect lenders.
As the bubble inflated it appears the federal government was mostly oblivious. At peak, FRB Chair Greenspan spoke of “signs of froth” in some local markets.
Housing bubbles were and are not limited to the US and a few persist. What you dont see elsewhere is a private sector market built on a house of cards.
We do have Royalty in America today. It is called the CAREER POLTICIAN, and it comes form both parties. We need term limits. One term in the Senate, and three terms in the House. Politicians should have a six year expiration date, except for President where we already have a two term limit. Once you serve your time, you can no longer run for office. DONE. Go back home, and go back to your day job.
Quote:
Originally Posted by ipaper
That I can agree with, I've always believed in term limits. I believe that's part of the problem with Washington.
An amendment requires a 2/3 majority of Congress to favor it. Not likely Congress Critters are going to vote in favor of limiting their own terms.
The people do have a choice and it seems most prefer the devil they know...
One more time....FHLMC/ FNMA lost market share as the housing bubble inflated because whole loans increasingly did not qualify for their purchase.
FHLMC/ FNMA was bypassed in favor of originators selling loans to a handful of Wall Street Broker/Dealers who sliced and diced the loans and repackaged them as PRIVATE LABLE derivativesecurities. The INDEPENDENT credit rating agencies migrated many of these securities as investment grade.
There is always pressure on corporate return on investment. Stock Market was lackluster, interest rates were low for the time.
That opened the secondary market for institutional investors. The primary investors were public and private pension/ retirement plans, insurance, foreign investors and corporate investors restricted by charter to investment grade.
Over time, FHLMC/ FNMA were among the major corporate buyers and used their own capital to buy investment grade derivatives which is not the same thing as buying whole sub prime loans from originators.
At peak, the SEC lowered the net capital requirements of 5 broker/ dealers, Lehman, Bear Stearns, Merrill, Morgan Stanley and Goldman which allowed them to increase their leverage.
The congressional testimonies of the independent credit rating agencies revealed the same story. Their models failed to reasonably assess or value the risks of the private label derivative securities. Had they done so, the securities would ever have been rated investment grade and thus the big institutional investors would not have been able to buy these securities and thus there would not have been unlimited funding for sub prime loans.
A culture of greed inflated the bubble. The masses perceived housing as a one way ticket to wealth. They seemed to believe housing in the hot areas would increase in annual value by compounded double digit percentages. Many lenders lent to anyone with a pulse. Borrowers lied. Lenders lied. Appraisers lied.
The masses sucked the paper equity out of their homes to live beyond their means. This goosed the economy for a blip in time. Texas was able to avoid the worst of the home equity thing because of strict state laws concerning home equity loans, designed to incrementally protect lenders.
As the bubble inflated it appears the federal government was mostly oblivious. At peak, FRB Chair Greenspan spoke of “signs of froth” in some local markets.
Housing bubbles were and are not limited to the US and a few persist. What you dont see elsewhere is a private sector market built on a house of cards.
Excellent post. You covered a lot of ground. Imploding derivatives (Collateralized Debt Obligations, etc.) rating agencies like Standard and Poor's asleep at the switch, unethical investment bankers, predatory lenders, Joe and Jane Citizen piling on hoping to cash in, etc., etc. Plus inept government sponsored enterprises like Fannie and Freddie and you had all of the ingredients of a classic speculative bubble waiting to burst. Anyone who points to just one thing as the cause, Fannie and Freddie or Wall Street, or whatever, is either being dishonest or is just plain ignorant.
Again Trump is the ultimate ruling elite. He gets to veto rules he don't like, a billionaire who wouldn't roll with the little guy, he wouldn't be caught dead socializing with you and most of his supporters, except at a rally. He wants to buy Greenland. He is in an elite group of people, the billionaires club.
No, Trump is an outsider. Is he CFR, Trilateral, Bilderberg ?
Biggest shock to the country is that Trump got nominated and then got elected.
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