beigebook report

[Bonestorm]

1) Fannie and Freddie massively expanded their holdings of subprime debt. Your continued proclamation that they were not the direct lenders hides the fact that they created the appetite for the products.

This assumes that there wasn't already a voracious appetite for AAA-rated debt, which is an extremely dubious assumption. They didn't create an appetite for AAA-rated debt, SF. That's nonsense on stilts. And they purchased only the top-tranches. How is it possible for the GSE, purchasing only the AAA-rated top tranches of these CDOs responsible for creating the apparently insatiable demand for the lower rated, lower tranches?

2) According to Desh, the only thing that matters is who was President. The make up of Congress does not matter. Also, the vote was 90-2 in the Senate and equally lopsided in the House. I know it was bipartisan... you should try explaining that to Desh. She continues to claim it was 'the right's policies that failed'.

Care to call her out on that bullshit? Didn't think so.

I'm not following the back and forth between you and Desh. I'm just remarking on your comments, which standing alone are not accurate at all.

Again... saying they are not engaging in subprime lending is dishonest at best. When you continue buying up subprime debt from other lenders, you are creating a market for that debt. It means the other lenders can loan money and not have to keep it on their books.

You're assuming that the GSE created this market and that it didn't exist otherwise. That's nonsense.

Also, are you suggesting that the people at Fannie and Freddie didn't know what they were buying?

I don't know what they knew. I know that they bought the top tranches of AAA-rated CDOs.

The point was to Desh... she continues to claim that it is the 'right' that failed. Pointing out that Frank was lobbying hard AGAINST regulation was the point. Funny how you don't call out Desh for her bullshit claims. I wonder why?

See above.

So there you go Desh... further proof that Democrats blocked legislation.

Further proof? Where was the initial proof? Also, too, by 2007 there wasn't anything that could have been done to stop the collapse.

LMAO... there was a lot they could have done Dung. But they, like the Reps, didn't recognize how big the problem was. Again Dung, my point was to refute Desh's stupid claims that it was the 'right' who failed.

What could they have done? Magically reinflated the housing bubble? Shoveled trillions of dollars to banks? Rewritten mortgages?

 

[Cancel 2016.2]

running away again Desh?

 

[hazlnut]

You are an economic illiterate.

Illiterate is a big word for a white trash bigot like you.

 

[canceled.2021.1]

This is just wrong, SF, on a host of levels. First, the overwhelming majority of subprime lenders were not subject to the CRA and subprime lending was not done to a large degree by CRA-regulated entities. Second, financial sector deregulation was bipartisan, but it was championed by Republicans. You are aware that Phill Gramm, Jim Leach and Tom Bliley are Republicans, aren't you?

Third, the problems with Fannie Mae and Freddy Mac were largely not associated with subprime mortgage lending and, to the extent they were engaged in arguably subprime lending, their delinquincy rates were dramatically lower than other subprime originators. The problems with the GSEs were brought about because of their low capital requirements not because of the nature of the loans they were making, which largely were not subprime, and their purchases of AAA-rated bullshit. The main role that the GSEs played in the financial collapse was in purchasing AAA-rated bullshit, not by engaging in subprime lending.

Finally, Barney Frank didn't get in the way of any regulation of Fannie Mae and Freddy Mac. He voted against a particular bill that regulated them, but that bill passed the House anyway. It then proceeded to the Republican-controlled Senate and didn't make it out of committee. That's not the fault of Barney Frank or the Democrats.

In fact, upon the Democrats gaining the majority in 2007, Barney Frank sponsored a very similar bill with the Republican author of the bill that stalled in the Senate. That bill also passed the House only to die in the Democratic-controlled Senate. Barney Frank had nothing to do with it.



By 2007 there wasn't much that could be done. The housing sector was already crashing. The seeds for the financial collapse had been planted long before the Democrats gained control of Congress. The recession began 11 months after they took office.




Those things aren't mutually exclusive, SF.

How did tax cuts in 2001 and 2003 lead to the housing crisis? Connect those dots oh wise one

 

[canceled.2021.1]

Illiterate is a big word for a white trash bigot like you.

Well, given that I am more highly educated than you, I can understand your jealousy

 

[Cancel 2018. 3]

Tell us Desh... why did Carter begin mass deregulation?

Why did Clinton lower the capital gains tax rate? You know, that place where the wealthy derive the bulk of their income from?

no surprise evince ran from this