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The automatic reaction by the Republican party to blame the financial collapse on the poor working class in this country is a real shame and just shows they are a party for the economic elite and only the economic elite.
Agreed. Made worse by the fact this was not just a national financial crisis but a global one. The rest of the world does not believe this to be the case & have taken more common sense measures to prevent or lessen the harms.
Freddie and Fannie were among the government policies (Government Sponsored Enterprises) that contributed to the mortgage meltdown but were not the only cause (see post #40). Trying to pin the blame only on government or only on Wall Street is idiotic. There were a number of causes that led to this speculative bubble including Joe and Jane Citizen (you and your friends and family) eager to pile on and cash in, further stoking the bubble. Plenty of blame to go around.
Absolutely! It brings me back to the news stories where the couples who loaded up Uhauls in the night and abandoned their loans, would say, “But the bank said we qualified for the mortgage!” Imbeciles! Did you really think you qualified for a $300,000 house on $40,000 salaries?
Freddie and Fannie were among the government policies (Government Sponsored Enterprises) that contributed to the mortgage meltdown but were not the only cause (see post #40). Trying to pin the blame only on government or only on Wall Street is idiotic. There were a number of causes that led to this speculative bubble including Joe and Jane Citizen (you and your friends and family) eager to pile on and cash in, further stoking the bubble. Plenty of blame to go around.
Agree there is plenty of blame to go around.
The magical thinking i.e that we are led by an invisible hand, that of the free market, & that the pursuit of self-interest automatically produces the best outcomes for everyone needs to be revisited.
They weren't the only cause, but they were the primary cause.
Government banking rules were one of other FACTORS as well, but the practices of Freddie and Fannie was what got the train rolling and drove it off the tracks.
You seem to be ignoring or downplaying the role that derivatives created by hedge funds, insurance companies, and investment bankers, played in the meltdown.
Yes- libs did cause the financial crisis through the elimination of "red lining". Don't worry- they will pull similar acts in the future that will result in another collapse.
The automatic reaction by the Republican party to blame the financial collapse on the poor working class in this country is a real shame and just shows they are a party for the economic elite and only the economic elite.
Do tell who exactly were receiving these sub prime loans with no down. Rich people?
You seem to be ignoring or downplaying the role that derivatives created by hedge funds, insurance companies, and investment bankers, played in the meltdown.
The toxic products created by financial institutions were created in pursuit of their own self-interest.
Investment bankers were acting in pursuit of their own self-interest.
Mortgage originators were acting in pursuit of their own self-interest.
Real estate brokers & agents were acting in pursuit of their own self-interest.
Home sellers & buyers were acting in pursuit of their own self-interest.
You seem to be ignoring or downplaying the role that derivatives created by hedge funds, insurance companies, and investment bankers, played in the meltdown.
There is no doubt that greed was a factor, but the GSEs were still the primary factor and cause.
If Freddie and Fannie weren't essentially saying, "Give anyone a loan, no matter how risky, and package them in huge groups, we will buy them from you and your stockholders will cheer the profits.", you wouldn't have had such a collapse.
It was government guaranteed speculation at an incredible level.
Do tell who exactly were receiving these sub prime loans with no down. Rich people?
The economic elite pushed these loans on the poor working class. These loans didn't exist until they thought of the idea and sold it to them. Yes, I believe in personal responsibility, but I think it applies to both sides.
The toxic products created by financial institutions were created in pursuit of their own self-interest.
Investment bankers were acting in pursuit of their own self-interest.
Mortgage originators were acting in pursuit of their own self-interest.
Real estate brokers & agents were acting in pursuit of their own self-interest.
Home sellers & buyers were acting in pursuit of their own self-interest.
& so on.
Because the GSEs were guaranteeing a profit regardless of risk because they were backed by US tax dollars through an unholy alliance with the federal government.
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