Thread: Study Debunks Another Conservative Meme: Flippers Caused Housing Bubble

Originally Posted by Landru Guide Us

pssst: get off my thread. You're a bore.

Your thread is a joke... like most of your posts.

Show everyone where it is a "Conservative Meme" that "Flippers caused the housing bubble".

What's that? You can't? Why? Oh... because you just made that crap up.

Thread Fail.

Originally Posted by Landru Guide Us

Democrats tried to regulated that problem, but Phil Graham made sure these these mortgage backed securities weren't regulated.

Of course the Democrats tried to regulate the "problem"...

[ame="http://www.youtube.com/watch?v=_MGT_cSi7Rs"]Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis - YouTube[/ame]

hey, kids.. Do you know what time it is? Its time to eat the rich. They are the problem -- not stupid politicians, not people buying homes they could not afford, but empowered by stupid laws, etc..

Originally Posted by cd8ed

So yet again, corruption of the government.
That is one of the governments jobs, to regulate so that companies cannot do this...

I agree, but that's the issue.

On the one hand, you have people demanding less government intervention.

On the other, the government is charged with regulation.

When regulators themselves are corrupted by corporate influences, then the market creates bubbles and eventually collapses.

Ideally, we would have more ethical regulators, but that requires having very strict controls on who can be a regulator and what a regulator is allowed to do.

Originally Posted by Landru Guide Us

pssst: get off my thread. You're a bore.

Would it kill ya to come up with some fresh material, Lord Meme?

Originally Posted by Landru Guide Us

Not banks "forced" by Dodd Frank to loan to poor people with Jetskis.

It's not suprising, but ANOTHER Tea Party meme bites the dust.

http://realestate.aol.com/blog/2011/..._lnk3%7C119768

Wanna bet some Tea Bagger here will post a video about Dodd Frank in response (I bet $10,000, like Romney).

Here's the study's conclusions;

It's true that there were a lot of people buying second homes and fixing them up and flipping them. But to say that was the cause of the housing bubble is a stretch. Granted it added to it, no doubt.

It's also true that the banks were not forced to make loans to the poor. But they did have pressure put on them to make more loans to the poor. Banks came out with all kinds of innovative loans. Interest only loans for 5-10 years and then a balloon payment at the end of the year. Veritable interest loans, loans with no down payment, etc. They even made loans to people who's payments would be well over the 25%-30% of their monthly income. Both hurt the economy. Banks were eager to do it. They had Fannie Mae and Freddie Mack to back up many of those loans if people defaulted.

Then the banks were also bundling these loans and selling them off, getting into all kinds of derivatives, merging with other companies that they were kept out of with an old law that protected the people ever since the Great Depression, the Glass–Steagall Act. They replaced part of it with the Gramm–Leach–Bliley Act, which open up the door for banks what was to come. It was a combination of the three that helped bring down the economy. Or should I say four, as Free Trade sure shot the biggest hole in it. These other things just finished us off.

Originally Posted by Landru Guide Us

Not banks "forced" by Dodd Frank to loan to poor people with Jetskis.

It's not suprising, but ANOTHER Tea Party meme bites the dust.

http://realestate.aol.com/blog/2011/..._lnk3%7C119768

Wanna bet some Tea Bagger here will post a video about Dodd Frank in response (I bet $10,000, like Romney).

Here's the study's conclusions;

Well the good news for us TEA Party Patriots, most all of us own homes. The fleabagging occu-turds will have to live with their parents until they die before they ever own a home. LoL!

Originally Posted by Marine1

It's true that there were a lot of people buying second homes and fixing them up and flipping them. But to say that was the cause of the housing bubble is a stretch. Granted it added to it, no doubt.

It's also true that the banks were not forced to make loans to the poor. But they did have pressure put on them to make more loans to the poor. Banks came out with all kinds of innovative loans. Interest only loans for 5-10 years and then a balloon payment at the end of the year. Veritable interest loans, loans with no down payment, etc. They even made loans to people who's payments would be well over the 25%-30% of their monthly income. Both hurt the economy. Banks were eager to do it. They had Fannie Mae and Freddie Mack to back up many of those loans if people defaulted.

Then the banks were also bundling these loans and selling them off, getting into all kinds of derivatives, merging with other companies that they were kept out of with an old law that protected the people ever since the Great Depression, the Glass–Steagall Act. They replaced part of it with the Gramm–Leach–Bliley Act, which open up the door for banks what was to come. It was a combination of the three that helped bring down the economy. Or should I say four, as Free Trade sure shot the biggest hole in it. These other things just finished us off.

No, there was no 'pressure' to force banks to make loans to the poor. That simply isn't supported by any evidence.

The CRA "forced" banks to stop redlining -- i.e., it stopped banks from refusing to make loans to qualified borrowers because they lived in minority neighborhoods.

As to the refis -- the facts are the facts. Refis exploded during the 90s and 2000s. Did new home buying explode? Nope. It was pretty level.

This was a crisis caused by failure to regulate table top mortgage brokers who sold their loans almost immediately, which where then securitized as CDSs.

None of this has anything to do with the bagger meme that Fannie and Freddie were making bad loans. Indeed, Fannie and Freddie didn't even resell their loans, so they wanted good loans on the books.

And what party prevented regulation of CDSs and mortgage brokers? I'll give you three guesses.

Originally Posted by Talon

Would it kill ya to come up with some fresh material, Lord Meme?

As soon as you baggers stop using memes, I'll stop exposing them.

Originally Posted by Consmike

But the right was not saying this was the cause of it. wow.

I've heard of it being used as a contributing factor, but not the cause. Amazing how far the left is willing to distort reality to make a point.

Originally Posted by eleison

Of course the Democrats tried to regulate the "problem"...

Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis - YouTube

hey, kids.. Do you know what time it is? Its time to eat the rich. They are the problem -- not stupid politicians, not people buying homes they could not afford, but empowered by stupid laws, etc..

We have liftoff!

I told you we'd get this wonderful memography.

Go into detail about how Fannie Mai and the CRA "forced" banks to make loans to unqualified borrowers. Spare no fact that supports your position Because there are none. Zero.