FACTS on Dubya's great recession

Bush told Barney and democrats there was nothing wrong with Freddie and Fannie in 2003

Bush stopped GSE reform in 2003

Bush’s toxic housing and GSE policies from 2004

Bush said there was no housing bubble in 2005 ( Bernanke, Bush ' guy in testimony to Congress's Joint Economic Committee)

http://www.washingtonpost.com/wp-dyn/content/article/2005/10/26/AR2005102602255.html



Bush attacked the very reform that would have prevented the Bush Mortgage Bubble

Bush attacked reform because he said it “would lessen the housing GSEs' commitment to low-income homebuyers


The republican chairman of the House Financial Services committee Mike Oxley blames Bush for reform not passing



Here barney is specifically referring to bush’s policy of forcing GSEs to buy more low income home loans.

“Fannie Mae and Freddie Mac would suffer financially under a Bush administration requirement that they channel more mortgage financing to people with low incomes, said the senior Democrat on a congressional panel that sets regulations for the companies.”

“Frank's comments echo concerns of executives at the government-chartered companies that the new goals will undermine profits and put new homeowners into dwellings they can't afford.”

Ouch, barney just said the Bush policy will put people into homes they cant afford. What did Bush say to that?

“Alphonso Jackson, secretary of Housing and Urban Development, said the Bush administration has no hidden motives in seeking to raise the percentage of financing for low-income homeowners.

“There is no administration more supportive of Fannie and Freddie than we are,'' Jackson said today in interview. “We are just actualizing what should have been done years ago.''

double ouch!


http://democrats.financialservices....s/112/06-17-04-new-Fannie-goals-Bloomberg.pdf

 

Myths and falsehoods about the purported link between affordable housing initiatives and the financial crisis

MYTH: The 1977 Community Reinvestment Act forced lenders into irresponsible lending

MYTH: Excessive lending to undocumented immigrants is responsible for the financial crisis

MYTH: Congressional Democrats, led by Barney Frank, opposed strengthening oversight over Fannie and Freddie

MYTH: Fannie Mae and Freddie Mac caused the "current financial mess"

MYTH: Former President Clinton has blamed Democrats for the financial crisis

 

It is your claim and if there was any truth to it you wouldn't be working so hard to sell it. The truth doesn't need to be sold. Everyone knows the financial crisis was a bipartisan effort.

 

Not a Myth: This thread is total bull crap.

 

:

Sure Bubba, I thought it was Clinton's, Barney's, Fannie/Freddie, minorities, the poor, etc?

According to right wingers at least. Nah it COULDN'T be EXECUTIVE BRANCH POLICY RIGHT UNDER DUBYA THAT PUSHED THE BANKSTERS PONZI SCHEME ON US AS THEY CREATED A WORLD WIDE CREDIT BUBBLE? LOL

 

Saying "oh it was Bush" is only half the story. The monetary system provided the moral hazard that inspired the crisis' malinvestment. Sure, his policies were a catalyst, but the crisis as a whole are reflective of a larger, century old monetary order.

 

Took a century? You mean the securitization model that failed in the 1880's and 1920's were BOTH the result of that policy?

How did monetary policy allow OR force Banksters to give out over 50% of their loans in 2005 to those who didn't even need to document their incomes?


Abstract:
U.S. policymakers often treat market competition as a panacea. However, in the case of mortgage securitization, policymakers’ faith in competition is misplaced. Competitive mortgage securitization has been tried three times in U.S. history - during the 1880s, the 1920s, and the 2000s - and every time it has failed.


http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1924831

Did the Fed Cause the housing Bubble?

According to research by Ambrogio Cesa-Bianchi and Alessandro Rebucci, the housing bubble was caused by "regulatory rather than monetary-policy failures":

http://economistsview.typepad.com/economistsview/2013/04/did-the-fed-cause-the-housing-bubble.html






Was it easy money or easy regulation that caused the housing bubble?


… after the Fed started to tighten its monetary-policy stance and the prime segment of the mortgage market promptly turned around, the subprime segment of the mortgage market continued to boom, with increased perceived risk of loans portfolios and declining lending standards. Despite this evidence, the first regulatory action to rein in those financial excesses was undertaken only in late 2006, after almost two years of steady increases in the federal funds rate. …

When regulators finally decided to act, it was too late:

http://www.aei-ideas.org/2013/04/wa...sy-regulation-that-caused-the-housing-bubble/

 

*sigh*

www.washingtonpost.com/wp-dyn/content/article/2011/01/27/AR2011012702940.html

Golly gee, I don't see Bush being blamed here....

Truth is there is plenty of blame to go around. From the bipartisan effort by government to deregulate to those who packages the mortgage backed securities to the banks who gave the bad loans to the homeowners that borrowed beyond what they could afford.

See how it works and I didn't even need to type in all caps.....lolz!

 

Reading comprehension for the win and a little economic knowledge helps too.. 1st. You first have to have two consecutive of negative economic growth for their to be a recession that doesn't happen til late in 2006. What began in 2004 was problems with subprime mess that Bush had already been trying to rein in for a year and which ole barn and the rest of the democrats including Obama and Biden stonewalled in the Senate. The explosive growth happened not because of anything Bush did but because he was prevented from doing anything about it. There's a reason country wide gave all that money to Democrats. And lets not forget who was ruiining Fannie and Freddie at the time and made 8 figure salaries for basically shoving through as many mortgages dubious and other wise as they could without regard to the soundness of the loans.

 

Q. What can I create yet another Bush thread over, since all we see right now is Obama failure?

A. Recession!

 

LOL, Bush did add to the home ownership program but marginally adding to what both democrats and republicans had been doing. Clinton admin fought against regulation of derivatives, one of the major failures contributing to the crisis. Look up Brooksley Born. Barny Frank was a major contributor to pushing the sub prime loans for home ownership. If anyone has been paying attention, this administration is pushing the same thing.

 

You posted from the left wingnut Economist.

The Bottom line is Obama and the Democrats economic policies are a failure. Reagan inherited a worse economy and managed a mean 4% GDP growth over his terms as President. Obama and the Democrats have managed an anemic less than 2% mean GDP growth over Obama's 6 years. Not listening to the people got Democrats a historic loss of 69 seats and control of the House in 2010. In 2014 the Democrats still failing to launch the economy lost an additional 22 seats including control of the Senate. BTW they gained just 10 seats back in 2012.

After 6 years you'd think liberals would stop blaming anyone but our current administration. But, judging by the fever pitch of the finger pointing, now 10 years down the road, it's obvious they are out of excuses for the failure of Obamanomics to launch the economy anywhere but toward the current $18 trillion in debt with little to show for it but failed Green Energy companies at a huge cost.

 

lol

WHO WAS REGULATOR AGAIN???

While the report is scathing in its review of Wall Street, what's notable is how hard it comes down on federal regulators for missing warning signs, fighting turf wars and being shortsighted overall. "We conclude the government was ill-prepared for the crisis, and its inconsistent response added to the uncertainty and panic in the financial markets,"

"....The report also paints an unflattering picture of other regulators, including the Securities and Exchange Commission and banking overseers, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision."


WHO HAD THAT? LOL

"....The SEC, which had primary oversight over major investment banks, "failed to restrict their risky activities and did not require them to hold adequate capital and liquidity for their activities, contributing to the failure or need for government bailouts of all five of the supervised investment banks during the financial crisis," the report says. "

LOL

 

REALLY? REALLY? lol



Go read post #3, #4 and #5.

Thanks anyways

FROM POST #4


Q What about the second part of the "bush tried to stop the bubble" narrative when "Barney Frank and other dems said GSEs were fine "? GSE's did go bankrupt

A Yes Barney Frank and other dems said there was nothing wrong with the GSEs. And they were fine in 2003. The Bush Mortgage Bubble hadn't started yet (remember we learned that it didnt start until late 2004). Once the Bush Mortgage Bubble started, any entity that bought mortgages or invested in mortgage backed securities got hammered. Of the big five investment banks, only one survived and remained independent (it did change its charter to commercial bank to qualify for TARP funds). Numerous hedge funds went under. And yes, Freddie and Fannie went bankrupt. The difference is nobody was forcing hedge funds, investment banks, pension funds, insurance companies etc. to buy mortgages and mortgage backed securities (see above).


Oh and here's the key part of about democrats saying there was nothing wrong with GSEs: They were just repeating what Bush told them. (yea, this doesnt get mentioned in any 'conservative entertainment complex' editorials does it?).

Testimony from W’s Treasury Secretary John Snow to the REPUBLICAN CONGRESS concerning the 'regulation’ of the GSE’s Sept 2003

"Mr. Frank: ...Are we in a crisis now with these entities?

Secretary Snow. No, that is a fair characterization, Congressman Frank, of our position. We are not putting this proposal before you because of some concern over some imminent danger to the financial system for housing; far from it.“

- THE TREASURY DEPARTMENT'S VIEWS ON THE REGULATION OF GOVERNMENT SPONSORED ENTERPRISES



Q are you serious? I've heard "Barney Frank said Freddie and Fannie were fine" a million times as if it proved something and now I find out that Bush said it too. I give up. Whats my next question?

A uh you want to ask me about "dems blocking reform"

Q fine, did dems block reform?

A Well since everything else the 'conservative entertainment complex' said was a lie, why wouldnt this be a lie? Now remembering that Bush forced GSEs to buy more low income home loans, got freddie and fannie to buy an additional 440 billion in mortgage backed securities and reversed the restrictions Clinton placed on the GSEs purchases of subprime home loans this will not be much of a shock

"Strong opposition by the Bush administration forced a top Republican congressman to delay a vote on a bill that would create a new regulator for mortgage giants Fannie Mae and Freddie Mac."

Oxley pulls Fannie, Freddie bill under heat from Bush - MarketWatch

Despite what appeared to be a broad consensus on GSE regulatory reform, efforts quickly stalled. A legislative markup scheduled for October 8, 2003, in the House of Representatives was halted because the Bush administration withdrew its support for the bill,


(fyi, broad consensus means it would have probably passed. what happened to it again? oh yea bush stopped it)


http://www.politicalforum.com/political-opinions-beliefs/394878-facts-dubyas-great-recession.html

 

Yes, in righht wing world 59 months straight of private sector jobs growth, a record beating Clinton's BTW, of 11+ million jobs AFTER Dubya lost 1+ million in 8 years (only creating 4 million in first 7 years stopping Den 2007), is considered 'failure'


http://data.bls.gov/timeseries/CES0500000001

 

"LOL, Bush did add to the home ownership program but marginally adding to what both democrats and republicans had been doing. Clinton admin fought against regulation of derivatives, one of the major failures contributing to the crisis."

Weird show me the GOP who were WILLING to regulate that again? LOL'

" Barny Frank was a major contributor to pushing the sub prime loans for home ownership. "

LINK PLEASE? Pretty please? AND understand the difference of subprimes versus affordable housing goals??


In an op-ed piece in the Wall Street Journal, Lawrence B. Lindsey, a former economic adviser to President George W. Bush, wrote that Frank "is the only politician I know who has argued that we needed tighter rules that intentionally produce fewer homeowners and more renters."

 

Strawman talking points

Obama inherited an economy that dumped 9%+ the previous 3 months, an economy losing 700,000+ jobs, and in 13 months had turned it around to create the next 59 months of private sector jobs growth. 59 months, 11+m million PRIVATE sector jobs.. lol


Yes, Dubya/GOP 'job creator' policies Obama INHERITED and the GOP who fought him on EVERYTHING damaged US and Obama's period.

 

What would you expect, Bush was a progressive. He added 5% to the already large percentage of home loans. Affordable housing was based on sub-prime loans to expand loans for housing. Barney Frank, you can look up his involvement yourself. I am not responsible for your lack of knowledge on the subject.

 

Rather than reply to the above and the rest of the union label garbage, will just link this from now on, recommend his book, and encourage readers to educate themselves, listen to experienced private sector people, not politicians and Complex shills, rather than falling for cherrypicked, datamined, inaccurate, purposefully dishonest union label lies.

https://www.youtube.com/watch?v=dGmDSXN9N5Q

 

The recession began in the second quarter of 2001.. and IMO it was triggered by the dot com bubble.

 

Times get tough when equity bubbles burst, as they always do. The dot.com bubble, the housing bubble. Not caused by any President. Clinton claims credit for revenue caused by the dot.com bubble and others blame Bush for the housing bubble burst. Neither is correct.

 

BS. Backwards Bush was trying to change how Fannie and Freddie worked in 2003. Why because the Clinton cronies running Fannie and Freddie at the time set it ups so that they got rewarded strictly on the number of loans written not on whther or not said loans were good that was the heart of the problem. and 3 4 5 amount to little more than factless assertions as you interpret them. and Bush gained jobs every year until late 2006. The problem didn't lay with trying to help people get into homes but the standards that Fannie and Freddie then adopted to make it so. And the HOusing Buble didn't even begn to become apparent until mid 2006 when the wheels started to come off.

 

While we haven't seen the judges score cards, thus far it appears the new challenger is way ahead.

Although little new has been presented, the preflight research has been impressive if a bit one dimensional. Particularly effective is the repeated body shots of citing Government sponsored post mordums and official data. The champs counter punching hasn't been as effective because it largely stems from opinion pieces, magazine summaries, and news analysts. The challenger has also shown a tight defense, preempting a lot of the champ's punches and giving up only grazing shots to the arms and chest. Thus far, it has been an impressive effort but it's still early and the champ has shown knock out power in the later rounds. But from this observers score card, the champ may need it.

....and here's the bell.

 

You're ignoring that the previous 6 years prior to 2004 saw unprecedented growth in housing prices:



You're also ignoring that it was Bill Clinton who prioritized homeownership and lowered borrowing standards across the board in the hopes of getting more people into homes:

Bill Clinton's drive to increase homeownership went way too far
Add President Clinton to the long list of people who deserve a share of the blame for the housing bubble and bust. A recently re-exposed document shows that his administration went to ridiculous lengths to increase the national homeownership rate.
http://www.businessweek.com/the_thread/hotproperty/archives/2008/02/clintons_drive.html

Minorities' Home Ownership Booms Under Clinton but Still Lags Whites'
It's one of the hidden success stories of the Clinton era. In the great housing boom of the 1990s, black and Latino homeownership has surged to the highest level ever recorded. The number of African Americans owning their own home is now increasing nearly three times as fast as the number of whites; the number of Latino homeowners is growing nearly five times as fast as that of whites.
http://articles.latimes.com/1999/may/31/news/mn-42807

HOMEOWNERSHIP AND ITS BENEFITS - 1995
At the request of President Clinton, the U.S. Department of Housing
and Urban Development (HUD) is working with dozens of national
leaders in government and the housing industry to implement the
National Homeownership Strategy, an unprecedented public-private
partnership to increase homeownership to a record-high level over the
next 6 years.
http://www.huduser.org/publications/txt/hdbrf2.txt

Fannie Mae Eases Credit To Aid Mortgage Lending
In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.

http://www.nytimes.com/1999/09/30/business/fannie-mae-eases-credit-to-aid-mortgage-lending.html

Bill Clinton, Home Wrecker
"I want to target new (housing) markets, underserved populations, tear down the barriers to discrimination wherever they are found," Clinton said. "We have to do a better job of reaching the underserved; of eradicating discriminatory practices that prevent minorities from finding, financing or buying the home of their choice.

"We can widen the circle of homeownership beyond anything we have ever seen," he added.

Indeed, Clinton's policies for the first time threw millions of previously unqualified buyers into the mortgage mix, fueling an unprecedented housing bubble.

http://news.investors.com/article/585922/201109231847/bill-clinton-home-wrecker.htm?p=full

Bill Clinton - 25 People to Blame for the Financial Crisis
Among his biggest strokes of free-wheeling capitalism was the Gramm-Leach-Bliley Act, which repealed the Glass-Steagall Act, a cornerstone of Depression-era regulation. He also signed the Commodity Futures Modernization Act, which exempted credit-default swaps from regulation. In 1995 Clinton loosened housing rules by rewriting the Community Reinvestment Act, which put added pressure on banks to lend in low-income neighborhoods. It is the subject of heated political and scholarly debate whether any of these moves are to blame for our troubles, but they certainly played a role in creating a permissive lending environment.

http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877322,00.html

Simple supply and demand: when you throw millions of people who were unqualified for a home loan yesterday into the housing market by suddenly making them "qualified", without increasing the amount of available inventory, prices go up. That's what happened. Once they did, people felt "rich" and started taking equity out of their homes and buying new properties as investments.

You mentioned subprime mortgages - they increased from 35 billion to 330 billion between 1994 and 2003

http://www.sundriesshack.com/2008/09/21/the-roots-of-the-subprime-mortgage-mess-have-clinton-all-over-them/

You can blame Bush for his part in what happened, but pretending that his Administration alone was to blame is just partisan hackery, nothing more.

 

Meh, my link just destroyed your whole premise. You lose.