1999 NY Times Article Revealed True Cause of Current Fannie Mae Crises
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RE: 1999 NY Times Article Revealed True Cause of Curren... - 10/24/2008 3:55:37 PM
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stamper_ben
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1999?
Oh well, it's still Bush's fault. 
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RE: 1999 NY Times Article Revealed True Cause of Curren... - 10/24/2008 4:08:29 PM
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Lapidoth
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quote:
ORIGINAL: stamper_ben
1999?
Oh well, it's still Bush's fault.
quote:
Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
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Why does He keep quoting Torah? Doesn't He know He's about to abolish it?
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BARUCH HABA BASHEM YAHUAH
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RE: 1999 NY Times Article Revealed True Cause of Curren... - 10/24/2008 5:24:06 PM
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IMA_CHRISTIAN
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It was Alan Greenspan who admitted he made a mistake in letting the banks run like that.
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RE: 1999 NY Times Article Revealed True Cause of Curren... - 10/24/2008 5:27:44 PM
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ta_mosquito
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From: from MN, now in Ontario :D
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Moving from Election 2008 to Current Events.
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RE: 1999 NY Times Article Revealed True Cause of Curren... - 10/24/2008 5:36:12 PM
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Dubya
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quote:
ORIGINAL: IMA_CHRISTIAN
It was Alan Greenspan who admitted he made a mistake in letting the banks run like that.
What does Greenspan think he could have done to prevent the crisis?
I'm not saying he is wrong... but what could he have done against the Congressional pressure from the likes of Barney Franks, Chris Dodd, and the entire Congressional Black Caucus?... not to mention pressure from President Clinton?
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RE: 1999 NY Times Article Revealed True Cause of Curren... - 10/24/2008 7:22:11 PM
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IMA_CHRISTIAN
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quote:
ORIGINAL: Dubya
quote:
ORIGINAL: IMA_CHRISTIAN
It was Alan Greenspan who admitted he made a mistake in letting the banks run like that.
What does Greenspan think he could have done to prevent the crisis?
I'm not saying he is wrong... but what could he have done against the Congressional pressure from the likes of Barney Franks, Chris Dodd, and the entire Congressional Black Caucus?... not to mention pressure from President Clinton?
i dont know coz i haven't followed politics like that. However if Greenspan was to blame, then its NOT Fannie Mae or Freddie Mac.
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RE: 1999 NY Times Article Revealed True Cause of Curren... - 10/24/2008 8:08:55 PM
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iluvatar
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quote:
ORIGINAL: Dubya
quote:
ORIGINAL: IMA_CHRISTIAN
It was Alan Greenspan who admitted he made a mistake in letting the banks run like that.
What does Greenspan think he could have done to prevent the crisis?
Not quite sure, but I'd imagine that moving interest rates a bit higher could have helped.
-Dan.
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Well, I've been to one world fair, a picnic, and a rodeo, and that's the stupidest thing I ever heard come over a set of earphones.
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RE: 1999 NY Times Article Revealed True Cause of Curren... - 10/24/2008 8:36:40 PM
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Moose531952
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"Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.".............In 2006 The Bush administraton TRIED to appoint an independent agency to monitor fannie mae, freddie mac, etc, but the new DEMOCRAT MAJORITY CONGRESS did NOT listen to Presient Bush. Bush is not to blame for all the problems this nation is facing. He has limited power, he is not a dictator. Bush's approval rating hovers at about 30% while the DEMOCRATIC MAJORITY CONTROLLED CONGRESS approval rating is at an all time record LOW of 9%, does that tell you anything? All the Bush bashers out there, who are mostly the liberally biased News MEDIA (CNN, NBC, ABC, CBS, PBS, Washington Times, to name just a few, plus the LIBERAL TV programs such as SNL, Letterman, Leno, Jon Stewart, THE P.U....er I mean The View, who are so LIBERALLY BIASED, it is time to face the truth: Bush is the media and the average American's SCAPE GOAT. Get real all you liberals, there is plenty of blame to go around as far as the failing economy, soaring prices, the Iraqi war, etc. To blame only Bush is the height of ignorance. Many liberals are Such Hypocrites!
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RE: 1999 NY Times Article Revealed True Cause of Curren... - 10/24/2008 8:52:05 PM
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Moose531952
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That's all you can contribute? "Oh well, it's still Bush's fault." That is such an ignorant statement. Sounds like you're Bush hater and basher. Your statement sounds so childish ("Oh well, it's still Bush's fault, neener neener!"). I think it would be a good idea if you stick to posting comments about things you have knowledge about, like Saturday morning cartoons. Give me a break.... 
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RE: 1999 NY Times Article Revealed True Cause of Curren... - 10/24/2008 8:56:29 PM
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Moose531952
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Hey enterprise1701, about the only thing the NY Times is good for is training puppies or lining a bird cage. 
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RE: 1999 NY Times Article Revealed True Cause of Curren... - 10/24/2008 9:19:09 PM
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relady
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quote:
"Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people I find it less than amusing that "low and moderate income people" automatically = bad credit to the right. Why is that? There are plenty of people in that income strata that are more than creditworthy and many of them cannot get loans now. How great is that?
The problems was not that "those people" were allowed to get mortgages...it's that banks all but stopped doing any real underwriting to determine creditworthiness. They stopped verifying income and employment for heaven's sake? How does that become the fault of the borrower? The BANKS should bear their portion of the responsibility in this mess and unfortunately, that's probably about 90% of the problem.
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RE: 1999 NY Times Article Revealed True Cause of Curren... - 10/25/2008 12:31:50 AM
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GroupW
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quote:
ORIGINAL: relady
quote:
"Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people I find it less than amusing that "low and moderate income people" automatically = bad credit to the right. Why is that? There are plenty of people in that income strata that are more than creditworthy and many of them cannot get loans now. How great is that?
The problems was not that "those people" were allowed to get mortgages...it's that banks all but stopped doing any real underwriting to determine creditworthiness. They stopped verifying income and employment for heaven's sake? How does that become the fault of the borrower? The BANKS should bear their portion of the responsibility in this mess and unfortunately, that's probably about 90% of the problem.
Thanks relady for the good context. The issue isn't that Fannie Mae and Freddie Mac were under pressure to fund loans low to moderate income families. Understand that prior to FNM and FRE getting involved, that segment of the market was dominated by subprime lenders with a much higher cost of funds than FNM or FRE.
Making those loans cheaper by offering them through FNM and FRE was a decent enough idea. The problem arose due to OFHEO's (the regulator) resistance to adequate supervision and regulatory oversight of the two agencies' capital and liquidity adequacy. Neither Fannie nor Freddie would have run into problems had their been some reasonable safety and soundness provisions adopted by the firm's regulators. That gets into a problem that exists on both sides of the aisle. Both Dems and Republicans had more than ample opportunity to enforce fiscal discipline within those firms and both failed.
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"Most people would rather die than think; in fact, they do so." -Bertrand Russell
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RE: 1999 NY Times Article Revealed True Cause of Curren... - 10/25/2008 1:03:36 AM
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rlj
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quote:
In 2006 The Bush administraton TRIED to appoint an independent agency to monitor fannie mae, freddie mac, etc, but the new DEMOCRAT MAJORITY CONGRESS
The democratic majority didn't take power until Jan. 20, 2007. Anything that happened in 2006 was done under the Republican majority.
The article doesn't show anything that wasn't already discussed on CW before now. When talking about the sub prime sloppy loans I know myself and a few others said they were absurd and should have never been made because they were designed to set people up to fail. We were told that this has opened home ownership for more people and more types of people and that this was a great thing. George Will did a column in the last year to year and a half saying the same thing. We're paying for it now or at least some of you are paying for it my negative tax liability is going up no matter who is elected. :D
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I could wile away the hours
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Consultin' with the rain
And my head I'd be scratchin'
While my thoughts were busy hatchin'
If I only had a brain
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RE: 1999 NY Times Article Revealed True Cause of Curren... - 10/25/2008 5:44:20 AM
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ElmerFishpaw
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Maybe this money crisis wouldn't be so bad if all the outsourcing, Nafta and generally Reagan's war on labor didn't happen or happen to such an extent.....not the mention the bankruptcy laws a few years ago where an old fashioned triple bypass could put someone in the poor house if they had little or no insurance....could be people could have done better paying the loans off.
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RE: 1999 NY Times Article Revealed True Cause of Curren... - 10/25/2008 1:04:50 PM
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colliefan
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From: Raleigh, NC
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quote:
However if Greenspan was to blame, then its NOT Fannie Mae or Freddie Mac.
pssst Greenspan is not an elected offical. And who directed these organizations to make these loans and who cooked their books? He is on the campaign committe of The Messiah. Ken Lay went to jail for what he did, this individual will probably serve on the Cabinet of The Chosen One.
quote:
They stopped verifying income and employment for heaven's sake? How does that become the fault of the borrower? The BANKS should bear their portion of the responsibility in this mess and unfortunately, that's probably about 90% of the problem
And why did they stop the verification? And the individual bears no responsibility for taking out a loan she can't afford? Did someone put a gun to her head and force her to sign on the dotted line? Typical of a believer in the Nanny State.
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RE: 1999 NY Times Article Revealed True Cause of Curren... - 10/25/2008 3:52:25 PM
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relady
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quote:
Typical of a believer in the Nanny State. Feel free to stop with the personal insults. This is so typical of the hyperbole that really doesn't do anything but alienate people. It certainly doesn't help us have a rational discussion. I assume you ARE rational, right?
quote:
And why did they stop the verification? Because they were too eager to take advantage and make money questionably. The greedy bankers saw $$$ signs and nothing else.
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And the individual bears no responsibility for taking out a loan she can't afford? I have NEVER, EVER said the indidividual doesn't bear some responsibility. They do, especially if they took a loan they knew they couldn't pay. But I don't really think that was the majority of individuals taking loans. And it certainly isn't the individual's responsibility to make sure the bank underwrites and verifies the information the individual gives. That is NOT the responsibility of the individual, that is the bank's responsibility alone.
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RE: 1999 NY Times Article Revealed True Cause of Curren... - 10/25/2008 10:16:40 PM
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colliefan
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quote:
It certainly doesn't help us have a rational discussion. I assume you ARE rational, right?
I am; it's the believers in the Annointed One that aren't; despite the FACTS he is an outright Marxist they continue to believe he is the One to stop the rise of the seas and bring healing to the planet.
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RE: 1999 NY Times Article Revealed True Cause of Curren... - 10/25/2008 10:18:25 PM
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colliefan
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quote:
But I don't really think that was the majority of individuals taking loans
and people who had no money as a down payment thought it was their right to own a home and not continue with the payments?
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RE: 1999 NY Times Article Revealed True Cause of Curren... - 10/26/2008 2:03:54 AM
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47.samuel
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quote:
George Bush 2000 Republican Convention Acceptance Speech
..... This is what I mean by compassionate conservatism. And on this ground we will govern our nation .....
We will transform today's housing rental program to help hundreds of thousands of low-income families find stability and dignity in a home of their own .....
http://www.2000gop.com/convention/speech/speechbush.html
*************************************************************
quote:
George Bush 2000 Republican Convention Acceptance Speech
..... Another priority for a new term is to build an ownership society, because ownership brings security and dignity and independence.
Thanks to our policies, home ownership in America is at an all- time high.
(APPLAUSE)
Tonight we set a new goal: 7 million more affordable homes in the next 10 years, so more American families will be able to open the door and say, "Welcome to my home."
http://www.washingtonpost.com/wp-dyn/articles/A57466-2004Sep2.html
Before we give George Bush a "free pass," placing "hundreds of thousands of low-income families ..... in a home of their own" was a stated Republican policy in 2000 and 4 years later he promised to build an additional, "7 million more affordable homes in the next 10 years."
Bush was quite explicit that "Thanks to our policies, home ownership in America is at an all- time high," in 2004.
The Republicans who controlled both the White House and both Houses of Congress from 2000 to 2006 were in total control of the federal government and must have been aware of problems concerning Fannie Mae and Freddie Mack - yet chose to do nothing.
When rumors as early as 1999 cast doubts on whether Fannie Mae and Freddie Mack were fiscally responsible, why were they not thoroughly investigated by the Bush Administration before he announced these ambitious housing goals in 2004?
< Message edited by 47.samuel -- 10/26/2008 3:01:49 AM >
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RE: 1999 NY Times Article Revealed True Cause of Curren... - 10/26/2008 7:29:06 AM
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martyfran
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As the following link shows, most of the subprime loans did not go to low income borrowers.
subprime loans to upper income borrowers
The financial mess was not caused by the government as it was greed among the financial services firms.
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RE: 1999 NY Times Article Revealed True Cause of Curren... - 10/26/2008 5:15:34 PM
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relady
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quote:
it's the believers in the Annointed One that aren't; despite the FACTS he is an outright Marxist they continue to believe he is the One to stop the rise of the seas and bring healing to the planet. I don't know anyone who is an Obama supporter who feels this way. Again, the hyperbole doesn't add to a rational discussion of anything.
quote:
and people who had no money as a down payment thought it was their right to own a home and not continue with the payments? I bought with no dp and was in my house 15 years. I have only had two buyer clients in 6 years that had 20% downpayment - one had received an inheritance and one borrowed from an investment. None of my clients, to my knowledge, have been foreclosed on. In fact they are all still in their homes and very happy. Not saying your scenario hasn't happened, I'm sure it has, it just simply is not the norm in my experience. So making it sound like anyone who took a 100% loan is a useless and irresponsibile individual is really not very accurate.
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