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The backflips right wing media lovers will go through to absolve Wall St and banks of any wrong doing while blaming poor people is astonishing. But after so many years of ingesting this garbage, it's in the DNA. And of course we know it isn't just any "poor" people they want to blame.
Working-class-hero: You're quoting pieces from 2000 while neglecting to consider the decision to deregulate financial derivatives with the Commodity Futures Modernization Act (CFMA) of 2000.
If you are trying to understand what happened it's not helpful to denounce the very words needed to adequately describe. To ban words like "Wall Street," "shadow banking," "interconnection," & "deregulation" just succeeds in 'muddying the waters'.
The backflips right wing media lovers will go through to absolve Wall St and banks of any wrong doing while blaming poor people is astonishing. But after so many years of ingesting this garbage, it's in the DNA. And of course we know it isn't just any "poor" people they want to blame.
I've come to consider it's basically just easier for some folks to perform the 'backflips' necessary rather than to consider the evidence & think for themselves:
The CRA Did Not Cause the Subprime Financial Crisis
Quote:
The Federal Reserve Board found there wasn’t a connection between CRA and the subprime mortgage crisis.
Its research showed that 60 percent of subprime loans went to higher-income borrowers outside of the CRA areas.
Furthermore, 20 percent of the subprime loans that did go to ghetto areas were originated by lenders that weren't trying to conform to the CRA.
In other words, only 6 percent of subprime loans were made by CRA-covered lenders to borrowers and neighborhoods targeted by the CRA.
Further, the Fed found that mortgage delinquency was everywhere, not just in low-income areas.
F&F directed them to make the mortgages that F&F could then turn around and package and buy from them.....F&F does not directly lend money to consumers.....and really linking to McClatchy...a super far left rag
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Investment banks are not required to go through Fannie and Freddie. They can securitize their own mortgages which is what they did. To guarantee a supply of mortgages the investment banks started buying sub-prime lenders. That way the investment banks could control the whole stream from mortgage origination to bundling into a CDO.
You won't read much about this in a review of articles from 2000 or earlier because it was a practice that didn't really get going until the 2000s when the investment banks started scrambling for loans to feed into their highly profitable CDOs. The demand for CDOs exploded in the mid 2000s because investors were looking for safe triple A investments with a high yield. Which is what the CDOs supposedly offered.
BTW, Fannie and Freddie didn't create a single CDO.
Thousands of words and cut and paste to get to their predetermined conclusion: blame the Democrats, poor people and black people. Rinse and repeat every few years when the subject comes up. Nothing like running interference for the GOP, banks, and Wall st as a hobby. They don't even get paid for it. Pathetic.
Unfortunately, we will have the opportunity to revisit these same issues:
Quote:
Last year the Trump administration moved to cripple the Consumer Financial Protection Bureau, created after the crisis to protect consumers from the sort of predatory lending that tanked the economy. And on March 14, the Senate passed a bill to seriously weaken other financial reforms contained in the Dodd-Frank bill, prompting the Congressional Budget Office to warn that the measure could increase the chances of a repeat of that 2008 financial crisis. Notably, this wasn’t just a Republican bill. Despite warnings from Sen. Elizabeth Warren (D-Mass.) that it represented “a punch in the gut to American consumers, 16 Democrats voted yes.
That’s not all. For weeks now we’ve heard rumblings of a coming move to weaken the Community Reinvestment Act, a crucial law that has helped to combat redlining and bring much-needed investment into low-income communities of color.
Warning of the 2008 Financial Crisis – and Stopping a New Wave of Predatory Lending
Thousands of words and cut and paste to get to their predetermined conclusion: blame the Democrats, poor people and black people. Rinse and repeat every few years when the subject comes up. Nothing like running interference for the GOP, banks, and Wall st as a hobby. They don't even get paid for it. Pathetic.
Don't forget the Free Market Fundamentalists like Mr. Greenspan during the last one. When warned, he just brushed it off & said:
Quote:
“That’s great that there’s so much innovation in the market. That means the market is working.”
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