Lets get this party started: The Bush Mortgage Bubble

Started by Vern, January 26, 2013, 10:53:58 AM

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Solar

Quote from: JustKari on January 28, 2013, 03:01:41 PM
I am sure in his mind Bush gave Eve the apple.  :rolleyes:
You give him too much credit, Bush is evil incarnate, he is the Devil himself. :laugh:
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kramarat


Cryptic Bert

Well i asked Vera to show what specific bills that were passed by Republicans and executive orders issued by Bush that led to the housing crisis and he has not been able to do so. Game over.

I wonder what website gave him the idea to start this thread...

taxed

Quote from: The Boo Man... on January 28, 2013, 04:25:00 PM
Well i asked Vera to show what specific bills that were passed by Republicans and executive orders issued by Bush that led to the housing crisis and he has not been able to do so. Game over.

I wonder what website gave him the idea to start this thread...

Hi hear Chris Hayes has a blog...
#PureBlood #TrumpWon

taxed

Quote from: Vern on January 28, 2013, 02:38:46 PM
holy mother mary of god!!! boo, I did provide links.  The only thing I didnt specifically provide a link for was "They encouraged it."  let me know when you are ready for that specific link.

The only proof you provided is that you have no idea what you're talking about.  I'm sorry whoever told you to think Bush is responsible for the housing market didn't know much about the topic either.
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Cryptic Bert

#125
Quote from: taxed on January 28, 2013, 04:30:53 PM
Hi hear Chris Hayes has a blog...
And Rachel Maddow, Joe Scarborough and Chris O'Donnell. They're all the same person....


TowardLiberty

Quote from: Vern on January 28, 2013, 03:22:44 AM
You silly pubs are truly confused.  Lets review the facts you've learned in this thread

The Bush Mortgage Bubble started in late 2004 when Banks lowered their lending standards (you dont get to pretend it started in 1992 or 1977)
Bush's regulators not only didnt stop it. They encouraged it.
Bush stopped GSE 'reform' in 2003. It had nothing to do with subprime
Bush reversed the clinton rule that 'reined in' freddie and fannie
Bush forced GSEs to buy more low income home loans
Bush PROTECTED PREDATORY LENDERS
Bush stopped real GSE reform in 2005

and thats not even all of his toxic policies. and can someone explain to taxed that republicans controlled congress from 2003 to 2007 so Dodd wasnt chairman during the Bush mortgage Bubble. I told him but you guys know better than me how you dont like facts


Here is the policy that caused the bubble.



It began in 2001 as a response to the bursting of the tech bubble.

These artificially low rates were achieved through expanding money and credit.

Hence the credit bubble.

Both the housing and tech bubbles were the work of Greenspan. Krugman was even quoted saying that "we" need to replace the tech bubble with a housing bubble, in support of this policy of accommodative monetary policy, to "grow" the economy out of it's malaise.

kramarat

Quote from: TowardLiberty on January 28, 2013, 05:01:54 PM

Here is the policy that caused the bubble.



It began in 2001 as a response to the bursting of the tech bubble.

These artificially low rates were achieved through expanding money and credit.

Hence the credit bubble.

Both the housing and tech bubbles were the work of Greenspan. Krugman was even quoted saying that "we" need to replace the tech bubble with a housing bubble, in support of this policy of accommodative monetary policy, to "grow" the economy out of it's malaise.

The housing boom was intentionally created during the Clinton era. The tech bubble had no government involvement or manipulation involved, and therefore, while bad, it wasn't a killer.

After 9-11, there was a genuine fear of having the economy collapse. Lowering the interest rates provided almost free money to the banks, and not only kept Clinton's plan going, but sent it into overdrive, which led to the eventual burst of the bubble. They ran out of people to sell the crap mortgages to.

Without Clinton's loosening of the lending standards, and forcing banks to make bad loans, none of it would have happened.

You know what really sucks? With the free money being given to the banks, Obama and the fed are continuing the same reckless policies....................this time around, it's barely keeping our heads above water. There will be no booms.

TowardLiberty

Quote from: kramarat on January 28, 2013, 06:40:51 PM
The housing boom was intentionally created during the Clinton era.

I would disagree.

Quote

The tech bubble had no government involvement or manipulation involved, and therefore, while bad, it wasn't a killer.

Disagree there, too.

The same policy that created the housing bubble created the tech bubble.

Quote

After 9-11, there was a genuine fear of having the economy collapse. Lowering the interest rates provided almost free money to the banks, and not only kept Clinton's plan going, but sent it into overdrive, which led to the eventual burst of the bubble. They ran out of people to sell the crap mortgages to.

Without Clinton's loosening of the lending standards, and forcing banks to make bad loans, none of it would have happened.

You know what really sucks? With the free money being given to the banks, Obama and the fed are continuing the same reckless policies....................this time around, it's barely keeping our heads above water. There will be no booms.

Without credit expansion and low interest rates, there would have been no credit bubble nor housing bubble.

Vern

can someone tell boo that the policies that caused the Bush Mortgage Bubble were policies.

Quote from: TowardLiberty on January 28, 2013, 06:53:23 PM

The same policy that created the housing bubble created the tech bubble.

Without credit expansion and low interest rates, there would have been no credit bubble nor housing bubble.

the credit expanision in no way explains why banks lowered their lending standards in late 2004 and Bush's regulators let them (see the first post for the link).  Greenspan did turn out to be party hack.  He couldn t pop the tech bubble fast enough for the 2000 election. he claimed not to see the housing bubble.

Solar

Quote from: Vern on January 29, 2013, 03:41:31 AM
can someone tell boo that the policies that caused the Bush Mortgage Bubble were policies.

the credit expanision in no way explains why banks lowered their lending standards in late 2004 and Bush's regulators let them (see the first post for the link).  Greenspan did turn out to be party hack.  He couldn t pop the tech bubble fast enough for the 2000 election. he claimed not to see the housing bubble.
Greenspan is a party hack, which ever party is in charge.
Playing God with the economy is why were in the mess were in, both party's are to blame.
Now show the Bills or EO that Boo asked for.
If he was dictating, then there should be evidence, correct?
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kramarat

Quote from: Vern on January 29, 2013, 03:41:31 AM
can someone tell boo that the policies that caused the Bush Mortgage Bubble were policies.

the credit expanision in no way explains why banks lowered their lending standards in late 2004 and Bush's regulators let them (see the first post for the link).  Greenspan did turn out to be party hack.  He couldn t pop the tech bubble fast enough for the 2000 election. he claimed not to see the housing bubble.

As I've already shown, lending standards were lowered in 1994 in order to get people into home ownership, that otherwise couldn't afford it. Banks were forced to give out shakey loans, as a part of doing business. Ir's just a fact.

A couple of things happened while Bush was in office that created the perfect storm, but we can't let Clinton off the hook.

As Liberty pointed out, the fed dropped the interest rate to close to zero, which freed up huge amounts of cheap money that became available to the banks. But something else happened that played an even bigger part; there was a vast realization that the no doc loans that Clinton had implemented, weren't just for poor people. Banks were loaning money to anyone with a pulse, no documentation required.

If we assume that the drop in interest rates was solely to blame, we would be experiencing a boom today. What changed?
Lending standards have been tightened back up.

Even with the low interest rates, if everybody would have had to prove that they could pay back the loans and make the payments, there would have been no boom; and if there had been, it only would have involved people that could pay back the loans, therefore, there would have been no bust.

Clinton relaxed the lending standards, low rates came under Bush, and old fashioned human greed took over from there.

Solar

Quote from: kramarat on January 29, 2013, 04:28:45 AM
As I've already shown, lending standards were lowered in 1994 in order to get people into home ownership, that otherwise couldn't afford it. Banks were forced to give out shakey loans, as a part of doing business. Ir's just a fact.

A couple of things happened while Bush was in office that created the perfect storm, but we can't let Clinton off the hook.

As Liberty pointed out, the fed dropped the interest rate to close to zero, which freed up huge amounts of cheap money that became available to the banks. But something else happened that played an even bigger part; there was a vast realization that the no doc loans that Clinton had implemented, weren't just for poor people. Banks were loaning money to anyone with a pulse, no documentation required.

If we assume that the drop in interest rates was solely to blame, we would be experiencing a boom today. What changed?
Lending standards have been tightened back up.

Even with the low interest rates, if everybody would have had to prove that they could pay back the loans and make the payments, there would have been no boom; and if there had been, it only would have involved people that could pay back the loans, therefore, there would have been no bust.

Clinton relaxed the lending standards, low rates came under Bush, and old fashioned human greed took over from there.
Doesn't matter, it's still all Bush's Fault. :rolleyes:
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kramarat

#133
Quote from: Solar on January 29, 2013, 04:49:22 AM
Doesn't matter, it's still all Bush's Fault. :rolleyes:

But the big question is.............does big government ever stop doing stupid things?

Hell no!!!! :angry:

Obama's still at it:

http://news.investors.com/ibd-editorials-viewpoint/012413-641859-obama-community-reinvestment-act-low-income-loans.htm?ref=SeeAlso&p=full

Don't you know? Not loaning money to people that can't afford to pay it back, is racism. :blink:

Solar

Quote from: kramarat on January 29, 2013, 04:52:29 AM
But the big question is.............does big government ever stop doing stupid things?

Hell no!!!! :angry:

Obama's still at it:

http://news.investors.com/ibd-editorials-viewpoint/012413-641859-obama-community-reinvestment-act-low-income-loans.htm?ref=SeeAlso&p=full

Don't you know? Not loaning money to people that can't afford to pay it back, is racism. :blink:
And now we have his administration dictating who banks should loan to, even well established business.
To not see that Husein is destroying the economy is, makes a person a special kind of stupid.
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