Your comment is absurd. Read about mark-to-market ... get a clue. https://www.investopedia.com/articles/financial-theory/08/mark-to-market-mayhem.asp The market value of that crap went in the toilet (who knows how the bundled loans would perform?) and it stopped the fraud in its tracks. Banks got caught with a small portion of the inventory they were selling to the suckers. Boo hoo. A lof of people should have gone to jail. Some banks should have been closed and recapitalized. PS. One of us supports his claim, one doesn't. You're the latter.
Fannie and Freddie weren't holding all the bad paper. A lot fewer bad mortgages would have been written if Fannie and Freddie weren't buying bad paper.
Read my list of references to see how mark to market worked to contribute to the financial crisis. Your reliance on multiple hundred word internet articles and refusal to educate yourself by reading multiple hundred page arguments supported by references and footnotes is indeed absurd.
Clinton's low income housing policy justified by a dumba$$ interpretation of the CRA drove the lowering of the lending standards so that Fannie and Freddie could meet their HUD requirement of 55% mortgages to low income borrowers. This was done so that Fannie and Freddie directors could receive their multiple tens of million of dollar bonuses. The AAA tranches of MBS held by banks as reserves had very little exposure (~5%) to these subprime mortgages but were destroyed on paper by mark to market accounting rules.
Get a clue. I was pointing you to a starting place to learn something. Get this--we were going to have a huge problem even if we allowed the questionable assets to be held at book value. The crisis came with Lehman's default. Bush created the crisis from the problem he created by not curbing the bad lending that was set in motion by the deregulation promoted by a Republican Congress and a Democratic President.
Housing prices weren't ruinously high when Bush took office. I was at that point we needed to stop the fraudulent lending driven by the opportunity to flog the loans to suckers. It was done because Bush didn't stop it. It wasn't only subprime loans that were a problem. The subprime lending helped send asset values through the roof and thus created questions around mortgages, period. There was little reason from the homeowner's viewpoint in continuing to make payments on a $600,000 mortgage on a homes they'd have difficulty selling for $400,000. Many people lost home because they lost their jobs or had their hours cut, putting even more homes on the market. Subprime mortgages drove up home prices (see above).
Deregulation also had nothing to do with the financial crisis. You would know this if you did your homework.
*WRONG*!!!! He was TOLD to get out. Technically a, "resignation." But in truth he was, as Drumpf so eloquently puts it, "FIRED"!!!! Hah!
The reason for the housing bubble low interest rates. The reason for the implosion was the abandonment of sub prime, alt A, liar loans .. by low income people who were not financially qualified to buy these properties but were issued mortgages by brokers who created the supply that Fannie and Freddie needed to meet their HUD requirement and pay their directors bonuses. Banking regulations then took over to create the financial crisis. The Lehman decision did not cause the financial crisis but exacerbated it. That's a failure of government which was initiated by Bill Clinton. And a failure of the D's to support the R legislation to curb Fannie and Freddie. BTW the inceasing trend line on housing prices started in 1996. What has happened after 2006 ??
He resigned. At Trump’s request. So what ?? Sessions did not have to recuse himself. The investigation was a counter intelligence investigation. He was duped by the Obama plants in the DOJ.
If Sessions hadn't recused himself then he could have been caught up in a legal battle for leading an investigation into a campaign which he participated in. And Trump didn't, "ask," him to resign. He demanded it! Sessions was, in essence, fired for behaving within the law. Something this Whitehouse holds no respect for whatsoever.
Fox News revisionism. Barney Frank was in the House minority until 2007 and it's absurd to claim he could have stopped Bush from using the SEC, DoJ, and the bully pulpit to stop the mortgage fraud behind the huge run up in home prices. Bush and his GOP pals didn't walk the talk, but have instead excused their inaction with a recounting of CYA public statements they made at the time. It reminds me of Democrats who supported Bush's Iraq War and at the same time made CYA statements they now point to as evidence they actually opposed Bush. Useless Hillary played that game. Republicans were in charge and had the responsibility of doing the right thing. Democrats were pandering to their base in supporting easy money.
Resigning or being fired ... resigning makes it possible for Trump to appoint someone to head the DoJ who then can fire Mueller. Sessions is a weasel and the idea he was duped is laughable.
Low interest rates contributed to home price increases. Egads. Try to get it right. You have the cause-and-effect wrong. Mortgagees issued subprime "liar loans" because they could securitize them. Fannie and Freddie enabled the fraud, but the mortgagees were motivated by greed and not by pressure from Fannie and Freddie. With the implication that even fewer regulations would have been better? Mark-to-market, your bugbear, wouldn't have been a problem in an orderly, solvent market supported by adequate, enforced regulation. The dam burst over Lehman. At the very least, flood waters would have gone over the spillway and caused a lot of damage downstream. Lehman caused credit markets to seize as banks stop lending to each other. Pure spin. The Republican Congress pressured Clinton to deregulate and he went along for personal gain. Clinton started driving toward the cliff, but it was Bush who failed to turn before it was too late.
That's incorrect. Sessions was not obligated to recuse himself from a counter intelligence investigation. Sessions retired because he recused himself when he did not have to and as a result could not represent the White House in the dumba$$ bogus Russian "investigation" initiated by using the dossier compiled by in part Russian operatives paid for by the Democratic Party to justify a FISA warrant. Sessions would have correctly not signed off on that - Rosenstein did. Stay away from the MSNBC/CNN cesspool and read Greg Jarret's book.
