Yeah I know that the “help for the homeowners” turned out to be pretty much a crock of shit, but I’m saying, I’d be far more for that then for what we are doing. It’s interesting that this thread is mostly about the homeowners who are getting bailed out, who apparently are not getting bailed out, but very little about the fact that Bush is just looting the treasury and handing it over to his base.
Brown People to Blame for financial meltdown
- Thread starter Cypress
- Start date
Yeah I know that the “help for the homeowners” turned out to be pretty much a crock of shit, but I’m saying, I’d be far more for that then for what we are doing. It’s interesting that this thread is mostly about the homeowners who are getting bailed out, who apparently are not getting bailed out, but very little about the fact that Bush is just looting the treasury and handing it over to his base.
I did read about the tent cities going up across the country. And its unfortunate and I think that issue needs to be addressed. However this bailout won't help the newly homeless on our streets.
As for our gov't helping people who's income changed due to layoff's, medical reasons or other reasons beyond their control, I fully support those efforts. Extended unemployment, subsidized medical payments, etc.
As for these people that can't afford their homes, I'd suggest that the banks and the owners suffer the depreciation together. Instead of the banks keeping all of the money including the down payment...I think the losses should be shared equally. Meaning if someone bought a house for $100 and put $17 worth of equity into it, and they sell it, they should be entitled to 17% of the proceeds. Instead of the bank recouping all of the down payment. The bank made a bad investment too the need to feel that pain as well.
Furthermore, WTF is mortgage insurance for? Why isn't anyone pressuring these PMI companies to pay out?
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Might as well.
I want to be clear: I don't think any party should get bailed out one iota. There is plenty of blame to go around to all parties involved. I was only expanding on the homeowners because people seem to think a lot of them were innocent in this too.
Even in my own circle of associates I can think of a few people that borrowed waaay too much for a home.
uscitizen
Villified User
I go for the trickle up economy.
If the people that actually do the work are not making any money then the fat cat vultures at the top should not be either.
They do it by making it profitable. F&F bought these bad loans at a premium. That with the low interest rates are more than enough.
A lot of what we are talking about here were not bad loans at the time they were made. If the market had continued all participants would have done well. But the market did not reflect real demand. Rather the demand was due to the low interest rates.
uscitizen
Villified User
the market could not be sustained without real wage growth.
I’m sure plenty of them are, but plenty aren’t. Even people in non-sub-prime mortgages are defaulting now. This is the result of living in a society that has redistributed its wealth to the top 1 percentile. It’s the gilded age. And the homeowners won’t be getting help. That’s a red herring. The billionaires are looting the treasury and we’re arguing over whether some regular citizens deserve help they aren’t getting anyway. There should be a revolution in this country.
Thank you. Its always the brown people who are getting the blame forced on them.
Always. As your sinclair analogy demonstrates.
Yes, in a perfect - but impossible - Libertarian world we could always say that people will behave rationally. That's not human nature.
There's a reason we no longer tolerate the snake oil salesman, from circa 1886. Profiteers will always find ways to prey on people's ignorance and lack of knowlege. Don't NeoCons even fucking remember why we have consumer protection laws?
One thing we know about human nature: If we create the conditions in which the well financed and powerful can game the system, and take advantage of people in the short sighted pursuit of profit, there's not a freaking doubt they will rape and pillage.
To blame this fiasco on some allegedly ill-informed brown people is the height of arrogance, and it pisses me off.
I love the National Review article that speculated that WAMU went under, because of their hiring practices, i.e., they hired too many hispanics. OMFG.
This doesn't surprise you does it?
Kamala Trump
Verified User
Problem with that is that it's great for all americans.
This bailout will have negligeble effect on mainstreet. Tha's why dems wouldnt "walk the plank alone". This is baiout for wallstreet elites only. and it's brazen and it's kind of sick and scary.
I suppose not. But to be so blatently stupid and racist.......is just digusting.
The market could not be sustained because the information it was receiving was false, distorted by artificially low interest rates that led to an inefficient distribution of capital.
T
TRGLDTE
Guest
You mean, like when Dodd and Frank, in 2005, killed efforts to address the issue before it exploded? But I digress.
In a plot overlaying housing prices versus inflation, the two trends track in parallel from post-WW II until 1995 when Clinton sought and got an expansion of CRA. At that point there is a marked upward inflection of the housing price line and it accelerates away from the general inflation line, creating a bubble. It's pretty straight forward ---> cause and effect. Enabling an audience of people who have never been able to be homeowners shifted the demand curve.
Who was this new audience? Take a look at the rhetoric in the build up to the expansion of CRA 1995 with the goal of home ownership for all. President Clinton called this demographic under-served minorities, others might call them 'brown' people. I wonder what an examination of the demographic distribution of persons foreclosed would show. Given some evidence I have seen, it would tend to support Coulter.
Is this to be taken that I somehow impune brown people? Not at all. There is a correlation between 'brownness" and economic opportunity. It is not a quality of 'brownness" that leads to far above average financial failure rates, but rather the correlation seems to indicate a linkage.
At last, someone claiming to have data to support the argument that the CRA is the cause of the subprime mess. Well, let's see it.
T
TRGLDTE
Guest
I'll give you the source for the curve I noted when I get home.
What About Dodd and Frank proclaiming the housing market healthy just a few short years ago, while McCain's 2005 reform bill was killed, by the Dems?
That was a few years ago.
What about McCain claiming the economy was sound last week?
Cancel 2016.2
The Almighty
1977... CRA.... forced banks and S&Ls to offer credit to all areas in the markets they served. Which included low income areas. Again... this by itself did not cause the problem. But the CRA essentially created the behemouth that was Fannie and Freddie. It also was forced government intervention in the credit process. All in the name of more people owning homes.
1993... Clinton pushed to change the CRA that increased access to mortgage credit for inner city and distressed rural areas. This took effect in 1995.... along with the Fair Lending act in 1995... which again focused banks on loaning money to all areas... regardless of ability to pay back loans.
1999... GLB Act.... allowed banks/investment banks to merge which took away a natural barrier that allowed
I am blanking on the bill Bush one signed.... I will have to look it up... but from what I recall it was the first direct hit to Glass Steagall... just blanking on the bill name....
The reason it did not manifest.... as I mentioned previously.... is that the final blow... the one that made it all possible... was the Fed knocking interest rates to 40 year lows and keeping them there for such an extensive period of time. (2001-2005). THAT allowed all the rest to take off. Because with teaser rates on ARMs dropping to the 2-3% range, more people could afford to take out loans.
That is where the greed of lenders and borrowers took off.... so the final blow was delivered by the FED, not the politicians. But that does not remove the complicity of the politicians. To be clear, I am not trying to shift blame to liberals. This was a bi-partisan FUBAR. They both wanted to be the ones to champion "more home ownership"... no matter what the cost.