Where's the outrage?

[Fred Douglass]

Turns out that several executives from Fannie May and freddie Mac are getting MILLION-DOLLAR bonusses! Nihil stercum tauri!

Where's the foo keen outrage? It's clear to all except the kool-aid chuggers, that it was Clinton's reviving of the "make housing available to all" bill (CRA, or something like that?) which started this whole house of cards sliding down the tubes. There are literally HUNDREDS of articles which state the veracity of the above AND point out the roles played by Bawnie Fwonk and Crisp Dud. Everything Big Gummint touches turns to....let's call it the Mud-Ass Touch!

Gawd, imagine if those two above-mentioned pustules had been Republicans!? 24x7 "news" coverage!

Time to duck and cover....

[Ron61]

Just was reading about that in the paper and they are going to ask for another huge amount for bail out. Let the dam outfit go under and then let those overpaid egos stand in the un-employment line. This is ridiculous to keep giving those idiots Million Dollar Plus bonuses and then asking for Billions from the taxpayers because they are broke.
Barney Fife, er, Obama is in California now sucking up to the people in Sacramento. I like that one woman's description of him. He is like a tennis racket because his head bobbles when he talks.

Ron

[Silverback51]

Once again they are stating that they need to pay these bonuses to retain these highly skilled people.

[Fred Douglass]

...many, many articles state that it was the liberal Dumbocrats and that 1970's law aimed at putting indigents into private homes (still can't name it.....C_ _??) which started the economic disaster. Many of these explanations point out that banks were CAJOLED into lending to these people (threatened with legal action). They had to accept such things as welfare, ADC and unemployment check stubs as "sources of income" for qualification for massive mortgage payments.

My point was that the TWO Fed-subsidized Freddie/Fanny thingamabobs were just revealed to be giving THEIR execs massive million-dollar bone-asses.........

Talk about the wolf using the farmer's stove to cook the mutton!!!!!!

[Dan40]

Originally Posted by Fred Douglass

...many, many articles state that it was the liberal Dumbocrats and that 1970's law aimed at putting indigents into private homes (still can't name it.....C_ _??) which started the economic disaster. Many of these explanations point out that banks were CAJOLED into lending to these people (threatened with legal action). They had to accept such things as welfare, ADC and unemployment check stubs as "sources of income" for qualification for massive mortgage payments.

My point was that the TWO Fed-subsidized Freddie/Fanny thingamabobs were just revealed to be giving THEIR execs massive million-dollar bone-asses.........

Talk about the wolf using the farmer's stove to cook the mutton!!!!!!

The CRA [Community Reinvestment Act, I think] Goes way back beyond Clinton. Its first 'toothless' offering was over 30, maybe 40 years ago. [Carter?] It has been updated and strengthened many times. Some with Dem majority votes and some with GOP majority votes. ALL politicians are willing to buy the votes of the poor. Plenty of blame to go around.
The CRA IS one of the basic 'holes in the economic dike' but neither the reds or the blues blame the other for it. Because the whole premise of both parties would crash if they did.
The real beginning was way back in the late 60's, early 70's "Civil Rights Era" The first step was outlawing "red lining" [denying a loan because of the apps location or the property location without any further checking]
Bankers KNEW houses in certain areas would ALWAYS DEFAULT, so why waste money checking. An obvious case could be made that this was Racist. So the bankers did the income and credit checks as required. No change in results, no sufficient income, no down payment, no good credit history, no good property appraisal.
CRA is passed and it says says, You must make these loans. Banks say, We cannot make these loans, YOUR BANKING REGULATIONS say we are NOT ALLOWED to make loans with such high risk.
So the next step and the first one the politicians do not want anyone talking about, is Congress REPEALS the banking regs that disallow the worthless loans. And nothing happens, no loans. Congress says make loans or we will shut you down. Banks say, We can't make these loans. YOUR BANKING REGULATIONS say we cannot have bad paper on our books.
Congress REPEALS MORE BANKING REGS. Says banks may bundle bad loans as 'securities' and sell them. No loans result. Banks say we are deposit banks, we take deposits from the public and loan out money for QUALIFIED homes and businesses, YOUR BANKING REGULATIONS say we are not allowed to handle investment instruments below AAA. Congress REPEALS THIS TOO. Equal guilt on both parties. This is all over the course of years. At the start, bankers might have been the most conservative of all business men, AND HONEST. Cold hearted perhaps, but isn't that what was required in a banker?
New people enter the industry and see ways to make fortunes out of nothing. AND THEY DO!!! Why is there surprise?
The entire "house of cards" rides the INFLATION TRAIN for years. Inflation in houses STOPS, the "I" train crashes and burns and burns. Flames spread throughout the economy.
NOW the politicians says Greedy bankers and LACK of REGULATION caused all the mortgage mess. Like the "Not ME!" ghost.

By the way, I am a registered Independent, and I think liberals must have all had frontal lobos. But both parties ARE responsible. Can't just blame the Democrats and/or liberals. [is there a difference?]

Dan

[cobra bill]

If it's true, and I have no article to research to try and verify, though I would not put it past these clowns, we need to tax it away from them, as explained by Dana40 article, there are a lot of people to blame here in both parties, but more so then that it was shear greed, to the point that the bank were inventing ways to package and bundle these loans and sell them around the world as something other then what they really were. The same goes for the people pushing these ARM loans to people they knew could not qualify for that loan, sure there's some blame to go to the people taking those loans, but if someone is telling you can buy this house for the same price you are paying for rent, what are you going to do? Well most will get greedy and take the loan, but those who understand the industry should be more to blame, that's not to take away any blame from the person taking the loan, I just consider the professionals more at fault.

[SP01715]

...And now the NAACP has filed a lawsuit against Wells Fargo for supposed discrimination because blacks are having problems getting loans now. FYI, everyone is having a hard time getting a loan now!!! Special interest groups along with lawyers and politicians are the downfall of this country.

[VRM]

Dan40,
VERY well said!

Steve

[imagine2frolic]

The fox tending the chicken coop. I was against any kind of bailout for any body. We are enabling these CEOs like junkies....PHUK/EM/ALL....let the chips fall where they may, and we will be stronger for it.............i2f

[VRM]

Originally Posted by imagine2frolic

The fox tending the chicken coop. I was against any kind of bailout for any body. We are enabling these CEOs like junkies....PHUK/EM/ALL....let the chips fall where they may, and we will be stronger for it.............i2f

I said before that it was like negotiating with a fox to only eat 1 chicken if you give him access to the coop.

Time for a house (and Senate, bank, and balance sheet) cleaning.

[cobra de capell]

Good points, but not the whole story. Yes, banks were pushed through CRA to make loans in poor communities and to poor people, but there were other 'pushers' as well - ACORN was always there to push the envelope and FANNIE/FREDDIE were there to buy the loans and sell them to investors (even sub-prime loans), and yes Wall Street was there to package loans into securities about 100 different ways as a way to confuse the market into thinking that they were dealing with A1 paper.

By the way, it's not Community Banks that are behind this mess - it's big banking and mortgage bankers like Countywide. Small banks rarely make long-term mortgage loans to families and when they do it's normal through a third-party mortgage broker or lender or they are immediately sold directly to FANNIE/FREDDIE.

The bottomline, the trigger was the lowering of standards at FANNIE/FREDDIE, prompted by the biggest pusher of all - Congress, specifically Democrats in Congress. Volume went through the roof - a lot of people got very, very rich. As an aside, Barney Frank was practically married to an Executive at Freddie during this whole fiasco that was one of the one's ending up rich. They broke up - that's why Barney is moaning about everything.

[Fred Douglass]

......my camel thanks you.......

Gawd, this is such a mess. Some of your earlier posts are food for (depressing) thought!
My cousin's friend out in Palos Verdes (CA) is tearing his hair out. He was involved in real estate and lost his shirt, both through the market cratering and through his bank's disasterous performance.

There' gotta be a way out of this, and I doubt very much the Gummint is going to help. The LESS it is involved, the quicker the recovery.....

[Dan40]

Originally Posted by cobra de capell

Good points, but not the whole story. Yes, banks were pushed through CRA to make loans in poor communities and to poor people, but there were other 'pushers' as well - ACORN was always there to push the envelope and FANNIE/FREDDIE were there to buy the loans and sell them to investors (even sub-prime loans), and yes Wall Street was there to package loans into securities about 100 different ways as a way to confuse the market into thinking that they were dealing with A1 paper.

By the way, it's not Community Banks that are behind this mess - it's big banking and mortgage bankers like Countywide. Small banks rarely make long-term mortgage loans to families and when they do it's normal through a third-party mortgage broker or lender or they are immediately sold directly to FANNIE/FREDDIE.

The bottomline, the trigger was the lowering of standards at FANNIE/FREDDIE, prompted by the biggest pusher of all - Congress, specifically Democrats in Congress. Volume went through the roof - a lot of people got very, very rich. As an aside, Barney Frank was practically married to an Executive at Freddie during this whole fiasco that was one of the one's ending up rich. They broke up - that's why Barney is moaning about everything.

As I said in my post, the CRA is one of the "holes in the economic dike."
As widespread as all its tendrils are. It does not stand alone. But ACORN, all the big banking/investment firms, abuses of mortgages etc. can ALL be laid right at the feet of Congress. They repealed good regulations to achieve their own single minded goal of pandering to the votes with the lowest purchase price. The abuses would not have happened without them removing safeguards against exactly what did happen. Did they foresee what would happen? No, their vision stops at the next election. Then goes to work on the next.

And the same THEY are going to fix the problem????????????????????

Dan

[cobra de capell]

This just in.

Based on their success in stealing the 2008 election, ACORN has changed its name.
The catchy new acronym is defined below.

Commies
On a
Rampage
Now
Have
Obama
Leaving nearly
Everyone
Really
Screwed

This, as you can see, spells “CORNHOLERS.” The leadership of the group formerly known as ACORN felt this was a more descriptive name given what they did to the rest of us in November of 2008.

They suggest all affected Americans also learn another acronym familiar to most veterans: BOHICA.

Bend
Over
Here
It
Comes
Again.