Trump's Mental Fitness for the job-Questioned again.

Claiming you could buy any three of the liberals on this board isn't a braggart?

 

But he wasn't elected president, unlike Trump.

 

Diverse shades of white?

 

I doubt you have the means to pay up on any wager, so i'll pass.

 

Actually they usually are

Because, and this is a thought for life, they are better thought through

 

Trump Derangement Syndrome. Treatment is available.

 

The housing bubble resulted from Clinton's disastrous housing policies and government monetary policy. The financial crisis was again the result of banking regulations imposed with no consideration of the possibility of housing securities failing. That has nothing to do with any Republican supply side economic policies. But yet the dishonest lib progs sing the same false narrative when attempting to divert blame from Obama and Obama (1%) nomics.

 

Yes.

 

Perhaps you should look again.

The only reason the election was close was the overwhelming vote of the less successful members of society voting Democrat.

http://www.foxnews.com/politics/elections/2016/exit-polls

Under $30k was 53% to 40% - Clinton win
$30k-$49k was 52% to 41% - Clinton win

 

Yeah ok, 200 page laws are the best way to go. Clearly you haven't put much thought into that argument.

 

Sorry but that is nonsense. The housing bubble was a result of the securitization of housing mortgages. And the financial crisis followed the collape of the housing mottgage securities market.And all of that happened during the Bush administration. Get your facts straight.

 

I, too, hope to live in a doublewide when I grow atrophied and dimmed.

 

Oh please. They put on a good show to flatter his pathetic childish ego and gave him nothing. Was almost funny to watch him being played.

 

Trump voters:




Clinton Voter, Cambridge Mass:

 

That's just stupid. MBS's had been in existence for decades. And still are. It's incredible that the resident lib progs continue in the land of make believe.


The housing bubble and financial crisis are actually two different things although the collapse of the housing bubble resulted in the financial crisis. The housing bubble was caused by the lowering of lending standards due to the HUD requirement that Fannie and Freddie make a set percentage of loans to low income borrowers. This policy was initiated by Bill Clinton and was based on an interpretation of the Community Reinvestment Act. At the end of Clinton's term that percentage was 50%. This was increased to 55% by the Bush administration. The lowering of the lending standards was used by unscrupulous mortgage lending firms like Countrywide and New Century to make many other high risk loans. Adding to the housing bubble was the easy money policy of the Fed which made loans easier to afford due to low interest rates. The housing bubble suddenly burst in 2008. This was similar to the dot.com bubble which burst in 2001 and recovered from by 2003 but why was the financial industry so terribly affected this time.


The financial crisis triggered by the housing bubble collapse was the result of a combination of financial and banking regulations going back to 1936 (See the list below). Mortgage backed securities have been around for years before the 00's. They are securities formed by conglomerating home mortgages and are a way for investors to earn a return through the housing market. They have historically been very safe investments. The HUD housing policies however resulted in a portion of the MBS's created in the 90's and 00's to consist of the subprime and other low standard loans. The Basel rules were based on the assumption that securities consisting of home mortgages were of very low risk. Therefore the reserve requirements for MBS's were set at a very low rate of 5%. This meant that for every $50K of MBS's that a commercial or investment bank had it could make loans totaling $1M. Since banks make money from loans they would use the investment vehicles with the lowest reserve requirement. And very many of them did. They bought AAA rated MBS's (the ratings were determined by the National Ratings Agencies - Fitch, Moodys, and Standard and Poors). This was required by gov regulation. But the ratings agencies were not doing due diligence on the make up of the MBS' which was unknown to the banks involved who trusted the ratings and Basel guidelines. Collapse of the housing bubble caused foreclosures in the subprime mortgages especially. This created fear and uncertainty in the value of the MBS's even though they were still paying ~ 90% of their returns. The market price dropped (in some cases a price could not be determined because no one was interested in buying). This is where the mark to market rule came in resulting large paper and consequently the banks reserves falling below the already low 5%. The bailout from the gov started out as TARP which was passed to buy up all these MBS's which had now large paper losses due to mark to market. It was quickly changed however to give money directly to the banks so that they could bring their reserves up to the 5% level. Bear Stearns was bailed out but Lehman was allowed to fail. This resulted in uncertainty and the credit markets froze (none of the banks wanted to lend to other banks who might not be bailed out). Some commercial banks like WaMu also had MBS's in reserve and ended up being taken over.



The analysis of what happened is contained in the book by Friedman and Kraus – “Engineering the Financial Crisis” – 2011. As can be seen these rules were issued over the years with no analysis on how they might conspire together to set up a catastrophic house of cards situation due to the homogenization of asset mix held by many of these investment houses. Collapse of the housing bubble which affected these assets including MBS’s (whose contained loans were still paying at ~ 80%) then lost value due to the market price dropping way below value triggering large paper losses due to mark to market accounting rules. This reduced the capital and lending capacity of the banks due to Basel I and the Recourse Rule (an adoption in the U.S. of part of what later became Basel II), which specify those capital requirements. The conflation of all of this resulted in the financial (really the banking) crisis. The authors also show that the repeal of Glass Steagal had nothing to do with the financial crisis. Glass Steagal prevented the mixing of private deposits with investments and that was not a factor. Here are the set of regulations:




1. SEC Regulations from 1936 requiring mandated minimum ratings for a growing number of institutional investments.


2. SEC decision in 1975 to confer NRSRO on the big three ratings agencies.


3. Basel 1 from 1978 which established favorable risk weighting for mortgages and GSE issued MBS’s.


4. Mark to market accounting established by FAS 115 in 1993 and refined by FAS 157 in 2006.


5. HUD targets for mortgages to low-income families in the late 1990’s resulting in reduction of down payment requirements for the GSE’s.

++

6. Recourse Rule issued by the FED, FDIC, and Office of the Comptroller of the Currency, and the Office of Thrift Supervision.






Here are some excerpts from an editorial from the WSJ:



Tim Geithner, then head of the New York Fed, opined that "financial market data" gave off no sign of trouble. Kevin Warsh, a fellow Fed governor, agreed: "Capital markets are probably more profitable and more robust . . . than they have perhaps ever been." What idiots. And yet they were right. Jobs, consumption and stock prices were holding up smartly despite the well-recognized turn in housing markets. Then came the financial panic. Did the housing bubble cause the panic—or was the panic somehow separate, making everything worse, including the housing crunch? Good question


Gratifying, then, is the attention showered on a recent book by Jeffrey Friedman and Wladimir Kraus, "Engineering the Financial Crisis." Their work is refreshing for many reasons: It does not assume the housing bubble is the whole story. It allows that honest ignorance (especially about the interaction of complex regulations) might explain the behavior of bankers and regulators. It asks especially interesting questions about the triple-A mortgage derivatives at the heart of the financial meltdown


Basel tried to make banks safer by prescribing capital levels, and by steering them toward "safe" assets. Experience had shown that mortgage-backed securities were among the safest, safer than business and consumer loans and even whole mortgages. So the Basel rules strongly favored mortgage-backed securities. Alas, this became an incentive to over-produce these assets until they became very dangerous indeed to the entire financial system (a formula also implicated in Europe's sovereign debt crisis).


http://online.wsj.com/article/SB10001424052970204468004577166723093578272.html


Google – The Meltdown Remains a Whodunit

 

You are proud of that analysis ?? That actually does capture what happened in the 2016 election. Blue collar workers lost their jobs and were abandoned by the D party who historically represented their interests. Instead the D's consist of lib prog elites, socialists, and those more concerned about the welfare of illegal aliens and drug dealers.

 

Liberals' questioning anyone's sanity is laughable. We're talking political correctness, not sanity.

 

Hardly, white folks just wanted to be led out of the cesspit that eight years of Obama created...

 

You think that house on the bottom is nice?

Plus we know it's not a liberal living there. They have a flag out front.

 

Yawnfest.

Some people called someone they don't like stupid.
Wow. Impressive. I simply must take this one seriously.

 

Yes he was..... as the nations he visited KNOW how to handle tricky visitors in a very diplomatic way. As long as Trump stayed on cue and followed the teleprompter he did fine. When he ad libs is when he creates gaffes and issues as he is NOT knowledgeable in the art of true diplomacy. The leaders he visited KNOW that Trump is a narcissist.......and loves lavish attention. So they fed his ego with pomp and circumstance (smoke and mirrors) keeping Trump in a happy space and preventing any Trump emotional eruptions.
As long as he follows the teleprompter......he does ok........as his peach writer is not too bad. (if a tad self serving ) Sophisticated oration is NOT his strong suit.

Just watched his peach covering his recent travels. When he talks about "fair and reciprocal" trade practices........ how does that fit with "America FIRST......... and does reciprocal mean favoring the US??

 

You mean like your draft dodging friend Donald Trump?

 

Except that blue collar workers left the D party decades ago, and obviously that hasn't gone very well for them.

 

When did blue collar D's leave the D party ?? Hillary and the D party in 2016 certainly were not aware of that. Blue collar workers were screwed over by the D's who were more interested in the welfare of illegal aliens, bathroom privileges, and free birth control than growing the economy and blue collar jobs.

 

And the art of diplomacy has given us North Korea, a complete disaster in the ME, Russia in ascension, and a soon to be nuclear Iran. The 80's are calling - their foreign policy was correct. Obama mocked Romney with that - the statement now drips with irony.