and these guys know a socialist
and
marxist
being capitalists at the core of their being
they can smell a rat in the hen house
btw 65% of Americans own stock
and who caused the financial meltdown???
barney frank and chris dodd and franklin raines,
all to their man-boy barry, BO, elected
say no to BO
no
BO in the white house for the good of america
Could not agree with you anymore. BHO is bad for America. I can't believe people compare him to JFK who was strong on defense and a tax cutter! Too bad the Dems got hijacked in 68 and became the party of the protesters.
here here
the party of dems got hijacked by left wing liberals
blue dogs are the only worthwhile members of the party.
Hey, I am a free market capitalist, but this financial meltdown has a lot of culprits, and it all started in the mid 1990s. Groups involved with civil rights issues and activitists for poor people began to complain that poor people
and especially non-white poor people got mortgages much less often than white well to do people. It was not surprising that poorer, less credit worthy people were often turned down for credit. That's how credit is supposed to work, you lend to people who will pay you back.
But the advocates for poor and black people had immense political clout. Under President Bill Clinton, they passed legislation that called on banks to be required to lend to non credit worthy borrowers. The laws, including the Community Reinvestment Act (CRA) required two large government sponsored enterprises, Fannie Mae and Freddie Mac, to buy those lower quality mortgages from the banks, guarantee them, and sell them to the public. These were bundled into immense pools of subprime mortgages as they were called, and sold all over the world.
Putting less than credit worthy folks into homes is a noble idea, but it doesn't work. Now guess what, lenders will eventually revert back to the way homes loans were issued back in the 1960s/70s/80s where you will need to prove you have a job, sufficient income, collateral, and a 20% down payment. Unfortunately in the interim, instead of letting the market work it out, it appears those in foreclosure, or about to be in foreclosure will get a reduced mortage rate in order for them to stay in their homes. Noble, maybe, but if you are one of those folks doing it the right way, i.e. bought a home with a fixed rate mortage, making your payments ontime, paying off your credit cards every month, etc., how are you going to feel when your neighbor who didn't do it the right way, but gets a free "get of a jail" card from the U.S. Government?
We can blame banks, specifically the Countrywide's of the world, investment banks, mortgage brokers, politicians, specifically Frank, Dodd, Cox, Greenspan, and CONSUMERS. Now Henry Waxman is leading a McCarthy type witch hunt, and Americans won't be happy unless someone is jailed. You can't indict folks for greed and stupidity. If that is the case, then members of the House Finance and Senate Banking committees better be included in any indictments.
This shit seems to happen every 10 years with bubbles and meltdowns, and we seem to get through each of them. We had the tech meltdown in 2000/01. Doesn't anyone remember the NASDAQ @ 5000? We had the S&L and housing crisis in 1990/1. We had the oil shock of 1974, high inflation and high interest rates of the late 1970s and early 1980s. Look at the DOW and S&P in each period and you will see 40 to 50% drops.
Everyone is pissed, especially after looking at your 401K/IRA statements or brokerage accounts. The market is generally a leading indicator, and tends to go up during a recession in preparation for its eventual end. I wouldn't be surprised to see the S&P @ 1150 by the end of this year, and higher next year.
A.R.M. LOANS WHERE THE BAD GUYS IN THIS &
Did poor minorities cause the crisis?
Cable TV has been airing nonsense about unqualified borrowers who got loans as a form of economic affirmative action. Such baiting tactics belong back in the racial Stone Age.
By The Root
The offensive new vogue in cable TV talking points goes something like this: Wall Street is melting down because the government forced banks to make loans to poor people -- especially poor minorities.
They claim that the entire weight of the global financial collapse rests on the shoulders of unqualified poor, minority borrowers who got loans as a form of economic affirmative action. The evil institutions in this talking-points scenario are Fannie Mae and Freddie Mac, the formerly quasi-governmental creatures of secondary home-mortgage lending.
For several days, I had been hearing a diluted version of these talking points around the edges of various cable news shout-fests. It wasn't until Larry Kudlow, cable host, former Reagan administration official and former Bear Stearns principal, appeared on "Morning Joe" on MSNBC that I was smacked into full alertness. My jaw dropped as he began talking about the subprime mortgage crisis.
Not everybody can own a home. Some people have to rent, that's just the way it is," he said. Kudlow rattled off his theory that Congress forced banks to make low-income loans with no documentation of a borrower's ability to repay. Countrywide Financial, the notorious subprime lender, was forced to make loans to neighborhoods that banks once "redlined." Wracked with liberal guilt, lenders folded under government coercion to make bad loans, he claimed.
The co-hosts rejected this nonsense and escorted Kudlow from the set, not completely in jest. As Kudlow was escorted off, Joe Scarborough could be heard saying incredulously, "Watch the Kudlow show, where you will probably hear that poor people are responsible for the assassination of President Kennedy."
If only it were just a joke. In reality, these cable talking points have now morphed into an orchestrated Internet campaign of "homemade" videos with shades of Willie Horton. The fake story line reintroduces the trope of the irresponsible welfare queen who was given a house but who was so stupid and ungrateful as to lose it all in an entrepreneurial misadventure. The argument then descends into standard racial farce.
Usually, the videos feature white males glaring into the camera while their eyes dart back and forth to a script off-camera. This band of outraged Joe Six-Packs gives the example of a beneficiary of an "Extreme Makeover" new home who used the home as collateral for a loan to fund a small business that failed. The house went into foreclosure and was sold at auction. This is a sad story that has absolutely nothing to do with the subprime loan crisis.
GREENSPAN SAYS A.R.M. LOANS reason for economy issues
Greenspan admits ‘mistake’ that helped crisis
http://www.msnbc.msn.com/id/21134540/vp=27342682?
http://www.msnbc.msn.com/id/27335454
http://articles.moneycentral.msn.com/Banking/HomeFinancing/did-poor-minorities-cause-the-crisis.aspx
-- Modified on 10/24/2008 8:55:05 PM
Did you even read my post? Did you buy a home in the 60s, 70s, 80s and early 90s? If you did, you would have known the process. Kudlow was right, though it was not the politically correct thing to say. Wall Street, banks, and mortage firms all jumped on the bandwagon, which led to their greed and stupidity. They were able to use FNM and FRE to package the loans into CDOs, which investors bought all over the world. Do I blame the consumers, which included middle class, lower middle class, whites and minorities? Hell yes! Didn't they read the fucking escrow documents? Well guess what? All the so-called good intentions of the activitists in support of those named above will no longer be able to buy homes. Yep, that means back to renting, which is not a bad thing. In the future, if they don't have a 20% down payment they will not be granted loans.
This is not all that complicated to figure out. The problem is caused by people defaulting on their mortgages. Who are the people defaulting? Do you think the credit worthy borrowers are failing to make their mortgage payments or do you think it’s the non-credit worthy borrowers? I’ll give you a hint: In the 60’s, 70’s and 80’s only credit worthy borrowers could obtain mortgages and there was no mortgage crisis. The subprime loan program began in the 90’s allowing previously unqualified borrowers to obtain mortgages. Are you beginning to connect the dots or do you need another example?
-- Modified on 10/24/2008 10:13:00 PM
-- Modified on 10/25/2008 3:29:18 AM
"Re: Try this drivel: Put eom at the end the heading if their is no narrative. eom "
Translation:
>>> Put "eom" at the end of the subject line if that is the end of the message.
You're welcome Balboa7. (notice the use of "you're vs. "your")