Housing crisis, the spark that begat the flame.

[piece-itpete]

Rex, how dare you think that people could be responsible for their own actions? Heresey! This is the USA - it's ALWAYS someone elses' fault.

I hereby summon you to a council of the Knights that say 'Ni!'

Originally Posted by Charles

...the financial laws of gravity have been suspended. ...

Best description I've heard :thmpsup:

Originally Posted by piece-itpete

Heaven forbid I should offend anyone btw. Accept my apologies in advance.

Pete

No one took the bait. Dang.

Pete

[d-ray657]

Originally Posted by bhunter

I seem to recall the Bush Admin trying to get stiffer regulation, but being thwarted by the left in Congress.

I'd like to see some evidence of this.

Regards,

D-Ray

[merrylander]

Originally Posted by d-ray657

I'd like to see some evidence of this.

Regards,

D-Ray

Hope you are not holding your breath.

[finnbow]

Originally Posted by d-ray657

I'd like to see some evidence of this.

Regards,

D-Ray

Particularly when the GOP controlled the Congress for 6 of 8 years under Dubya. And ain't it the GOP who is hollering about the financial reforms put into place by Dodd-Frank (though I also personally doubt their effectiveness)?

[piece-itpete]

http://www.nytimes.com/2003/09/11/bu...annie-mae.html

(SNIP)

''There is a general recognition that the supervisory system for housing-related government-sponsored enterprises neither has the tools, nor the stature, to deal effectively with the current size, complexity and importance of these enterprises,'' Treasury Secretary John W. Snow told the House Financial Services Committee in an appearance with Housing Secretary Mel Martinez, who also backed the plan.

Mr. Snow said that Congress should eliminate the power of the president to appoint directors to the companies, a sign that the administration is less concerned about the perks of patronage than it is about the potential political problems associated with any new difficulties arising at the companies.

.......

''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''

Representative Melvin L. Watt, Democrat of North Carolina, agreed.

''I don't see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,'' Mr. Watt said.

(ENDSNIP)

Pete

[finnbow]

Originally Posted by piece-itpete

http://www.nytimes.com/2003/09/11/bu...annie-mae.html

(SNIP)

''There is a general recognition that the supervisory system for housing-related government-sponsored enterprises neither has the tools, nor the stature, to deal effectively with the current size, complexity and importance of these enterprises,'' Treasury Secretary John W. Snow told the House Financial Services Committee in an appearance with Housing Secretary Mel Martinez, who also backed the plan.

Mr. Snow said that Congress should eliminate the power of the president to appoint directors to the companies, a sign that the administration is less concerned about the perks of patronage than it is about the potential political problems associated with any new difficulties arising at the companies.

.......

''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''

Representative Melvin L. Watt, Democrat of North Carolina, agreed.

''I don't see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,'' Mr. Watt said.

(ENDSNIP)

Pete

Though Frank and Watt spoke out against it, the GOP controlled both houses of Congress and the White House at the time.

[piece-itpete]

Ahh, but it's my turn to say we didn't have 60 in the Senate....

Not even 59 +1

Pete

[BlueStreak]

Originally Posted by merrylander

Let's see - we have a system where the mortgage broker finds a lender, takes a 'point' off the top and disappears. The lender takes two, maybe three 'ponts' off the top, securitizes the loan, and disappears.

The miracle is that it took so long for it to blow up in everyone's face. I am beginning to believe that all financial rules here were designed by thieves for thieves. When SCOTUS declares bribery is legal and later says corporations are citizens (even if they are based in Switzerland) what else can one expect.

The whole thing stinks, doesn't it? A corporation is a citizen, an individual with full Constitutional rights? By what stretch of the imagination? And people try to claim there is no corruption on the right.......a bunch of Boy Scouts, those angelic little Republicans. "They just want to do what's right for America.".....yeah, and I'm the fucking Pope.

Dave

[piece-itpete]

YOU'RE the fucking Pope??! Holy shit!

Pete

[noonereal]

Originally Posted by Charles

It goes back quite a bit further than Shrub. Sadly, both parties were too busy playing politics to address the issue.

Allowing the mortgage brokers to run free offering loans above appraisal with payments below interest had more to do with it than anything. It was a real money making operation provided one got out before the music stopped. I know several who didn't.

And the mortgage brokers are still out there. Their latest scam is luring the aspirants into their offices to apply for a mortgage that they have no hope of qualifying for, and then pocketing their origination fees.

Or so I was told by a couple I do work for. One is an attorney and the other is a CPA, so they understand perfectly how the game is being played.

Chas

All the morgage brokers I knew who were pullin' in over $350,000 a year are now selling insurance to their friends and family.