She spoke the truth. Republicans talked and talked, but never acted. No, it didn't. Things got out of hand because banks were packaging and selling the bad loans as AAA commercial paper.
Business tax cuts were needed, but personal tax cuts were not, and especially not for high-income groups.
They couldn't act, they had about three Republicans that got a good donations from Fannie Mae that wouldn't vote for stiff regulations on Fannie Mae, that's all that was needed to turn it down as none of the Democrats would vote for it. Not a single one. Yes, we know it didn't sneak up on them, they had plenty of warnings. But that isn't what Pelosi said. She said it sneaked up on them like little cat's feet. Sure, the banks were taking them all in. They weren't worried about those bad loans. They knew Fannie Mae would take them in . They bundled them up with all kinds of packages and sold them off. Thinks weren't to bad till interest rates went up and then all hell broke out.
It didn't create a housing bubble. The bubble happened when Bush looked the other way as subprime loans were packaged by and sold as AAA paper. Wrong. A lot of financial people "saw it coming." That's why Goldman was flogging bad commercial paper to the public and shorting it on the market.
Many of those high income people were business owners or had much of their money in businesses. By bringing back all these companies that moved out of the country or cut back, it helps millions of Americans in better jobs, along with the tax cuts they are getting, along with some getting raises, bonuses or better benefits. But the only thing you hear from the Left is it's nothing but crumbs from the table. Well if you are working at Burger King for $7.50 an hour and are now able to get a manufacturing job at say $15.00 -$17.00, that also has benefits like health care and vacations and you get a tax cut on top of that, it's far from crumbs from the table.
Lets not also forget the millions of Americans that have their 401-K's and IRA's also invested in American businesses, their investment rises as their stock rises.
Bush saw it coming in his first year in office. As I said before, he pleaded to Congress to come out with strong regulations, but couldn't get one Democrat to go along with it. As Clinton said, Democrats just wouldn't listen to the Republicans. They even called the regulators liars. Said there was nothing wrong.
The R's were blocked by the D's (Barnie Frank) in 2007. You know that. No one saw it coming. That's called hedging. You also know that. If Goldman saw the financial crisis coming they would have shorted everything and made a mint.
You're spending a lot of time trying to blame Democrats when I've presented clear evidence the problem came to a head when Bush was President. Bush regulatory power--the SEC and DoJ, for example--and the bully pulpit to point out the outright fraud in the marketing of MBSs. He failed to act.
Oh, stop--I didn't just fall off the turnip truck. If Bush "saw it coming," why didn't he use the power he had to stop it?
Home prices peaked in mid-2006. Take a look at when the bad mortgages were created. Selling crap and betting against it isn't hedging. Get real. The financial crisis and the collapse of MBSs are two different things. No one knew, for example, that Bush would be dumb enough to Let Lehman go broke.
So what ?? R attempts to do something were started much earlier than that but were killed in committee by the D’s in 2007. You know that. Banking regulations resulted in the collapse of MBS’s due to Mark to Market rules. Basel 1 and the Recourse Rule (US version of Basel 2) resulted in banks using MBS’s as their reserves. Lehman’s bankruptcy froze the financial system due to confidence issues but was not the cause of the financial crisis.
Home prices were dropping fast in January 2007 having peaked six months earlier. The feeding frenzy with selling bad MBSs happened earlier (see the graph above from my previous post). MBSs collapsed because the mark-to-market rules helped expose the fraud before the mortgage defaults hit. Lehman caused the CRISIS (it became a crisis) because banks even stopped lending to each other given the level of uncertainty created by letting a major financial institution go under. The jig was up by the time Democrats took control of the House in 2007.
Frank covered Bush's mouth and stopped the SEC and DoJ from dealing with the fraud in marketing MBSs? Really?
MBS prices were forced down by the mark to market rules. The AAA tranches held very little subprime. That is what destroyed the reserves on paper. How can a MBS which is paying a very high dividend lose all it's value ?? The dumba$$ rules are what torpedoed the banks that held them in their reserves.
The fraud was with the mortgage brokers such as Countrywide and New Century who were driven by Fannie and Freddie. The Bush administration attempted to do something about this but were blocked by the D's in 2007.
As I said, all mark-to-market did was expose the problem before it got worse. Uh huh. "The securitization of subprime mortgages into mortgage-backed securities (MBS) and collateralized debt obligations (CDOs) was a major contributing factor in the subprime mortgage crisis. Subprime MBS and CDOs were attractive to investors due to the higher interest rates they offered versus assets backed by prime mortgages. Subprime borrowers with less than perfect credit had higher interest rates on their mortgages due to the increased risk of default. Further, many loans with adjustable-rate mortgages were made that later added a great deal of fuel to the mortgage crisis. During this time, lenders pooled the subprime mortgages into MBS and CDOs. These financial products often received high ratings from credit agencies. Tranches of these securities were then sold to unsuspecting investors, who were not aware of the risk associated with them. The lower-quality tranches offered higher interest rates but absorbed the first losses associated with defaulting mortgages before the senior tranches." https://www.investopedia.com/ask/an...tization-play-us-subprime-mortgage-crisis.asp Oh, come on--it was only a matter of time before the securitized debt was exposed.
The financial crisis occurred due to banking regulations. The mbs’s held in bank reserves lost their value on paper. Do I have to post the analysis summary again ?? Do I have to post the reading list again ?? Do your homework ?? Attempting to manufacture silly scenarios from piecemeal internet links is dishonest.
I’m doing exactly the opposite. Fannie and Freddie relied on Countrywide to meet their HUD requirements that 55% of their mortgages go to low income borrowers. Why were the friends of Angelo list never disclosed ??
So, you were wrong about CDOs and MBSs not holding a lot of crap mortgage loans. Oh, well... Do waste your time posting drivel. Obviously, you either don't understand what happened or you're propagandizing the forum. Having to show the true value of the commercial paper exposed the inability of the asset in the future to support the return expected.
Too funny. Do your homework as suggested and stop embarrassing yourself with statements like the first sentence. How is your reading coming ??
