The origins of the 2008 financial crisis

[ldan1234]

There a number of untrue statements here. Ignore this author.

[liverleef]

@ldan1234 Not everything he says is bullshit. He states that there was a financial crisis in 2008. This is true.

[exbronco1980]

jack kemp says that the c.r.a. of 77 did not cause the crisis of 07/08.

[dac8555]

You say FRE and FNM were siezed by the federal government. This is Factually untrue. There were comepletely feneradl and became semi private by offering shares out to the public decades ago. FRE and FNM started 10 years before CRA.

All CRA did was say that banks couldnt descriminate based on geographic location. If the plan and numbers were solid, then they had to use the same criteria as any other loan. They could just say "i dont like that neighborhood". You blame everything on dems.

[genYprogressive]

Phil Gramm and Alan Greenspan caused this, with the help of Clinton. This is bullshit. 84% of the Toxic Assets were private non bank lenders. This video is bullshit.

[librep2008]

This is why we hate populists like Clinton, Chavez, Evo, and all those "progres" who believed poor are so because the rich pull them down!

[FightParanoia]

The mortgage collapse was caused by B&C lenders - not Fannie Mae. B&C loans were for people with lower credit scores and/or who had to "State" their income without be required to prove it. Every firm on Wall Street sold B&C loans because they were very profitable, much more profitable than the Fannie Mae loans because they had much higher interest rates. They were strictly backed by private investors and not Fannie Mae. But let's blame minorities

[joulesbeef]

For those that blame the CRA i invite you to actually read it. It isnt as complex as some laws, even a republican should be able to understand it.

it was not about lending to minorities or people with bad credit, but community redlining. Which means banks especially in the south based loans on where they would be spent and NOT on income or credit or EVEN RACE. See the banks wouldnt even lend to rich white people with great credit, if they were going to open a store in a minority community.

[groberts1776]

@joulesbeef

The CRA used code words to avoid using racial terms just like our Constitution which did not mention the word "slavery" but it clearly addresses the issue if you read it carefully.

[scatman44]

For those who blame the CRA, the Federal Reserve report on the CRA and the economic crisis is highly, I repeat, highly recommended.

[danwk7]

Studies used by the left often ignore many of the complex factors in giving home loans, they like to manipulate data to try and show there is racism when there really isn't. The CRA changed a lot in the Clinton administration, and that is when the beginning of the financial meltdown started.

[danwk7]

Now, David Horne, an economist at the FDIC, examined the date and found some glaring statistical errors in the study. Forty-nine of the seventy banks had not rejected even ONE minority loan applicant, and two of the remaining twenty banks were responsible for more than HALF of the denials to black applicants, one of the 2 banks was minority owned. He also found that many who were denied had a negative net worth and were often denied due to inability to verify their information.

[scatman44]

The CRA has NOTHING to do with this meltdown! If the CRA was to blame, then the meltdown would've happened much earlier! Just remember, there were people with good credit but still denied a loan based on either their race or location. And take a look at the much-improved Harlem and the South Bronx, both of which are beneficiaries of the CRA. People could also make an argument that the CRA caused gentrification, which priced those same low income people OUT of those previously redlined hoods!

[danwk7]

@scatman44 People with good credit were NOT denied coverage. Most of them simply had bad credit, couldn't hold a job etc

[scatman44]

Yes, they were! Back in the day, the practice of denying credit based on race or zip code was prevalent, no matter what credit score. There is an extensive history on redlining and race discrimination regarding credit. Too many of us have a belief that those practices didn't happen, but they did!

[danwk7]

You should look into reading the book "architects of ruin", it will explain everything to you and hopefully you will see things in a different, more correct light. The complexities of loans are often ignored by the media and the left who do not take into account many factors in their studies of red lining.

[scatman44]

I never wanted to go into a left-right debate. But since it's going there, one could counter-argue that the right likes to believe that redlining and other types of lending discrimination didn't exist. But everyone knows that it did! And can we have books written by authors in the center, or those who are more objective?

[danwk7]

No one denies that it existed, and perhaps it was wrong. But it was based on areas of people with poor lending history, not ethnicity. Many black owned banks did the same things.

[scatman44]

Had a Carver bank engaged in that practice, it would've been out of business a long time ago! I'm sure that the banks that redlined will tell you that those areas had people with poor credit. They'll say or do anything to keep the law off their backs (and a good law at that!). I want to see studies that show that those areas had concentrations of poor credit. Seems like every community of color had a lot of low credit scores, right? I guess we'll agree to disagree on this one.

[sscofield1018]

@scatman44

45% of black have bad credit, they were denied loan because they had bad credit or lived in a high crime area, not their race. Most of the foreclosures occurred in the areas with the most illegal immigrants.

[danwk7]

A study by the boston federal reserve bank in the 90's examined 6 million home mortgage applications and found that at constant levels of income,30% of blacks, and 27 % of hispanics were denied loans compared to only 17% of whites. Even with things like credit history, net worth, age, and education were factored in. It MUST be racism right? This study was used to justify many changes in the CRA that caused the financial meltdown in the latter years.

[KillRockfelleRochild]

kill Rockfeller and Rothschild Dynasty and all illuminati members

[logic33157]

The dollar bill says "In God we trust" ; its funny because money IS the only "God" we trust.

We brouth this problem to ourselbes. And sure, its unfair to many people. Many truly innocent people. And im not saying anything to the regards of "God damn America".

But America goes back to the ways of thinking where, "we dont need God". And I assure you this country will be damned for a good time.

Only God can fix it. If you doubt this, come up with a "solution". Not temporary, a REAL one.

[nazirdjon]

look up Islamic Finance. I already found many answers to my questions about economic things going on around

[psa100verse3]

With all the financial problems of our day, people should be beseeching God for His mercy and guidance. Just as He gave Noah 7 days to enter the ark (Gen 7:4,10), He has given mankind 7000 years from the flood to enter the safety of Christ (The Door) (2 Pet 3:8). The flood occurred in the year 4990BC. 7000 years from this date lands on 2011, the year this present world will be destroyed by fire (2 Pet 3:10-13). Anyone interested can click on my name and follow the weblink.

[logic33157]

The dollar bill says "In God we trust" ; its funny because money IS the only "God" we trust.

[chasbo13]

this video has merit, however, the volume of "minority" loans are just a drop in the ocean of all the bad loans given to wall street and professional speculators.

at the end of a bubble people always try to find a scapegoat, assuming that the natural flow of economics was sabotaged. however, capitalism is not natural nor orderly, it is chaotic and brutish. you can only blame the business cycles that have been occurring since the dawn of man.

[dangerousslave]

Fred and fannie was a weapon of mass destraction.. its all manufactured by the Bilderberg group to further control and push US into North American Union under the Amero Currency goodby American Constitution you are going to become the property of a multinational corporate state thats why they created the patriot act and homeland security to slap any one down that disagrees with the Dictatoship Its the same Shit in the UK the European or Bilderberg constitution is been sneaked in every day..

[ackbass]

Good info. What about the Gramm-Leach-Bliley Act (GLBA). Which passed in 1999 53 Republicans and one Democrat in favor; 44 Democrats opposed.

This legislation was a big step in deregulation of the bank industry.

Foreclosure Phil Grahamm's name is on the bill. He was a McCain advisor in this past election.

[groberts1776]

@ackbass

The final vote in the Senate was 90-8. Chris Dodd brokered a compromise which strengthened the CRA (creating more subprime loans) which brought all but a handful of Democrats onboard. GLBA was praised by President Clinton for increasing financial stability.

McCain sponsored legislation that addressed the instability created by the "too big to fail" GSEs. Obama did nothing.

Obama has been advised by the same Fannie Mae execs who robbed the country blind while taking huge bonuses.

[kfumike]

Ourearchhome, when you show a way to spread the wealth without "[imposing] injustice on some to benefit others" I'll show you how to eat your cake and have it to...

[ourearthhome]

The Community Reinvestment Act and all connected with it including Fannie and Freddie now can be seen as a disastrous failure. But what it failed to do is provide a way to make it possible for many more people to participate in the benefits of economic progress by increasing homeownership among lower income groups. We still need to find a way to share the benefits of progress that does not violate the principles of economics and does not impose injustice on some to benefit others. There is a way

[minowekay]

ourearthhome, yes. I have an idean for a way to share the benefits of progress.

We can train these poor people to perform jobs for which people will pay them. We could start in grade school, take them through high school, then maybe a trade school or college. Oh, 'scuse me. We've tried to do that but too many would rather play in school, graduate (or not), then just have "free" food and "free" housing, leaving them with more free time to do things which are more fun than working.

[mejexp]

There is a way. I worked 3 jobs to afford my first home. I worked 3 for college including working on a tomato harvester. The way to teach people and help people to to allow them to work their fingers to the bone and SAVE. It's called WORK AND SAVE. Why do Democrats think that we minorities are too lazy and too stupid to do that? This whole housing mess was created to enrich the Democrats, radical groups who ultimately do not serve the poor and corrupt corporate executives.