Who is responsible for the current financial mess?

[piper17 1]

Pelosi: Dems bear no responsibility for economic crisis.


The following article is from the New York Times


By STEVEN A. HOLMES

Published: September 30, 1999

In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.

Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.


''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer (and current Obama advisor) . ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''


Pass the salt, please. Nancy Pelosi, Barney Frank, Franklin Raines and the rest need to eat their words!





By STEVEN A. HOLMES

Published: September 30, 1999

In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.
Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

g

''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer (and current Obama advisor) . ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''


Pass the salt, please.

"A man can never have too much red wine, too many books, or too much ammunition"...Rudyard Kipling

[jamieG 0]

The banks who lent people money with too much risk of non payment and the people who borrowed more than they could pay back. Once the first domino fell fear means now even people with good ratings cant get credit which is the source of new money given the reserve fractional system.

[akarunway 1]

Quote

Pelosi: Dems bear no responsibility for economic crisis.


The following article is from the New York Times


By STEVEN A. HOLMES

Published: September 30, 1999

In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.

Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.


''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer (and current Obama advisor) . ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''


Pass the salt, please. Nancy Pelosi, Barney Frank, Franklin Raines and the rest need to eat their words!





By STEVEN A. HOLMES

Published: September 30, 1999

In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.
Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

g

''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer (and current Obama advisor) . ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''


Pass the salt, please.

GREEDY people. Wall St. and your govt. to start w/

I hold it true, whate'er befall;
I feel it, when I sorrow most;
'Tis better to have loved and lost
Than never to have loved at all.

[DrewEckhardt 0]

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In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

Most annecodtal stories in the press read something like:

John or Jane Doe got a sub-prime mortgage with a teaser rate they could afford and regular rate that they couldn't when applying Fannie/Freddie's conforming 28/36 housing cost/total debt percentages to their income.

The lender told them that if their credit was better by the time they got to the unaffordable stage they could refinance, without saying that the loan may still be unaffordable (while there was only a 1.3% surcharge for subprime mortgages in 2007, some of these loans were startting at 0-2% when 30 year fixed prime mortages were 5.5-6%) or guaranteeing it would be an option.

It doesn't appear to have been a problem of more sub-prime people getting mortgages and then being unable to make the original payments.

I don't blame the writing of more sub-prime loans. They were just the first to go because they lacked substantial savings to fall back on when reality hit.

The same thing is going to happen will happen to early-career bay area people as the jumbo option arms they needed to buy reset, become unaffordable, and they exhaust their 401ks.

Home prices were up 60% over any previous inflation adjustead peak in the last 100 years and 80% over the long-term average in the last 60 years (things were more expensive in the early 1900s because we didn't have mass production). Since wages haven't inreased (this decade didn't line up with womens' acceptance into the work place and the birth of DINKs) that means costs had to have decreased which was only true in the short term given teaser interest rates and option mortgages that let borrowers make less than full interest payments.

[kallend 2,026]

"Franklin D. Raines, Fannie Mae's chairman and chief executive officer (and current Obama advisor)"

The Raines claim by the McCain camp got 2 Pinocchios for lying.

voices.washingtonpost.com/fact-checker/2008/09/obamas_fannie_mae_connection.html

Also

mediamatters.org/items/200809220011


But the Rick Davis story IS true. McCain's campaign chief DID take millions to lobby for Fannie and Freddie.

www.nytimes.com/2008/09/22/us/politics/22mccain.html?_r=1&oref=slogin&ref=politics&pagewanted=print

...

The only sure way to survive a canopy collision is not to have one.

[DJL 235]

Tony Alamo.

"I encourage all awesome dangerous behavior." - Jeffro Fincher

[riddler 0]

From CNN:

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Which party is more to blame for the U.S. financial crisis?

Democrats 28% 82530
Republicans 72% 210815

Trapped on the surface of a sphere. XKCD

[Lindsey 0]

I think the people responsible are all the folks who want more than they can afford and who are willing to stretch themselves beyond their means. People are too lured by shiney stuff these days and are too ignorant of the financial consequences.

linz

--
A conservative is just a liberal who's been mugged. A liberal is just a conservative who's been to jail

[rushmc 23]

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The banks who lent people money with too much risk of non payment and the people who borrowed more than they could pay back. Once the first domino fell fear means now even people with good ratings cant get credit which is the source of new money given the reserve fractional system.

And what you point out here was forced on to the banks by laws pushed by Carter, Clinton and ACORN. So, in essance you are correct

"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

[rushmc 23]

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"Franklin D. Raines, Fannie Mae's chairman and chief executive officer (and current Obama advisor)"

The Raines claim by the McCain camp got 2 Pinocchios for lying.

voices.washingtonpost.com/fact-checker/2008/09/obamas_fannie_mae_connection.html

Also

mediamatters.org/items/200809220011


But the Rick Davis story IS true. McCain's campaign chief DID take millions to lobby for Fannie and Freddie.

www.nytimes.com/2008/09/22/us/politics/22mccain.html?_r=1&oref=slogin&ref=politics&pagewanted=print

As did Dodd and we need to remember that Obamas election economic advisor cooked the books in 98 so he could get his 1.2Million dollar bonus by post dating 200 million in expenses. He was forced out and with paybacks and fines payed 25 million out of his 100 million dollar windfall.

Thanks for pointing out the greed

"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

[rushmc 23]

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I think the people responsible are all the folks who want more than they can afford and who are willing to stretch themselves beyond their means. People are too lured by shiney stuff these days and are too ignorant of the financial consequences.

linz

Exactly. And they (the banks) were forced into it by our government.

"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

[Lindsey 0]

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Quote

I think the people responsible are all the folks who want more than they can afford and who are willing to stretch themselves beyond their means. People are too lured by shiney stuff these days and are too ignorant of the financial consequences.

linz

Exactly. And they were forced into it by our government.

They weren't exactly *forced* into it by our government, but our government enabled them to make stupid financial choices, but the choices were still theirs. They lost their homes and screwed the rest of us in the process.... Of course some of us are making the most of it and investing right now. :)

linz

--
A conservative is just a liberal who's been mugged. A liberal is just a conservative who's been to jail

[rushmc 23]

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I think the people responsible are all the folks who want more than they can afford and who are willing to stretch themselves beyond their means. People are too lured by shiney stuff these days and are too ignorant of the financial consequences.

linz

Exactly. And they were forced into it by our government.

They weren't exactly *forced* into it by our government, but our government enabled them to make stupid financial choices, but the choices were still theirs. They lost their homes and screwed the rest of us in the process.... Of course some of us are making the most of it and investing right now. :)

linz

No, Bill Clinton said in a speach after the last law was passed that no back would be exempt. If a bank did not loan to those that should not be loaned to (which really did not matter because Freddie of Fannie would buy the paper) the gov would go after them.

This whole thing is over loaning to those that cant afford it. Can you name the "groups" that this was aimed at? Can you name which party these "group" normally votes for?

It is amazing to me how simple this really is. It is more amazing that the media chooses to distort the real cause to protect those they want protected.

The Post, the Times, the WSJ are writing scathing editorials pointing all of this out yet, the news side of the papers and the networks ignore it.

If we do not flush this out, it will happen again sooner than later

"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

[kallend 2,026]

Quote

Quote

"Franklin D. Raines, Fannie Mae's chairman and chief executive officer (and current Obama advisor)"

The Raines claim by the McCain camp got 2 Pinocchios for lying.

voices.washingtonpost.com/fact-checker/2008/09/obamas_fannie_mae_connection.html

Also

mediamatters.org/items/200809220011


But the Rick Davis story IS true. McCain's campaign chief DID take millions to lobby for Fannie and Freddie.

www.nytimes.com/2008/09/22/us/politics/22mccain.html?_r=1&oref=slogin&ref=politics&pagewanted=print

As did Dodd and we need to remember that Obamas election economic advisor cooked the books in 98 so he could get his 1.2Million dollar bonus by post dating 200 million in expenses. He was forced out and with paybacks and fines payed 25 million out of his 100 million dollar windfall.

Thanks for pointing out the greed

Right outrage, wrong campaign:

Karma is finally catching up to Phil Gramm, John McCain's chief economic adviser. The Swiss bank Phil Gramm works for, UBS, is under hot water after it was revealed today that they allegedly helped hide up to $20 billion belonging to their richest American clients in European and off-shore banks to avoid paying taxes to the IRS.

The news has many in Washington up in arms, and a senate committee has called a hearing for Thursday. They want to meet with UBS representatives, who allegedly "set up sham entities for the US clients in tax havens, such as Panama or the British Virgin Islands, and pose as the owners of the entities." One UBS banker has pled guilty to smuggling cash and diamonds to Europe so U.S. clients could avoid paying taxes.

Phil Gramm has worked for UBS since leaving the U.S. Senate immediately after using his position as a Senator to remove six-decade-old consumer banking protections in place since the Great Depression. The 1999 Gramm law, called the Gramm-Leach-Bliley Act, is the main cause of the subprime mortgage meltdown that has crippled the U.S. economy. Gramm deregulated the banking industry, quit the Senate to leave for UBS, then lobbyied George W. Bush on behalf of UBS to remove remaining state laws that protect consumers from predatory lending.

Scandals are nothing new to the Gramm family. Around the same time Gramm was lining his pockets by laying the groundwork to destroy our economy, his wife Wendy used her power as a government official to delay investigations into Enron wrongdoing. Wendy Gramm then quit to take a position on the Enron board of directors. Wendy Gramm later was sued for her part in insider trading and paid a $13 million fine with her own money.

...

The only sure way to survive a canopy collision is not to have one.

[rushmc 23]

Quote

Quote

Quote

"Franklin D. Raines, Fannie Mae's chairman and chief executive officer (and current Obama advisor)"

The Raines claim by the McCain camp got 2 Pinocchios for lying.

voices.washingtonpost.com/fact-checker/2008/09/obamas_fannie_mae_connection.html

Also

mediamatters.org/items/200809220011


But the Rick Davis story IS true. McCain's campaign chief DID take millions to lobby for Fannie and Freddie.

www.nytimes.com/2008/09/22/us/politics/22mccain.html?_r=1&oref=slogin&ref=politics&pagewanted=print

As did Dodd and we need to remember that Obamas election economic advisor cooked the books in 98 so he could get his 1.2Million dollar bonus by post dating 200 million in expenses. He was forced out and with paybacks and fines payed 25 million out of his 100 million dollar windfall.

Thanks for pointing out the greed

Right outrage, wrong campaign:

Karma is finally catching up to Phil Gramm, John McCain's chief economic adviser. The Swiss bank Phil Gramm works for, UBS, is under hot water after it was revealed today that they allegedly helped hide up to $20 billion belonging to their richest American clients in European and off-shore banks to avoid paying taxes to the IRS.

The news has many in Washington up in arms, and a senate committee has called a hearing for Thursday. They want to meet with UBS representatives, who allegedly "set up sham entities for the US clients in tax havens, such as Panama or the British Virgin Islands, and pose as the owners of the entities." One UBS banker has pled guilty to smuggling cash and diamonds to Europe so U.S. clients could avoid paying taxes.

Phil Gramm has worked for UBS since leaving the U.S. Senate immediately after using his position as a Senator to remove six-decade-old consumer banking protections in place since the Great Depression. The 1999 Gramm law, called the Gramm-Leach-Bliley Act, is the main cause of the subprime mortgage meltdown that has crippled the U.S. economy. Gramm deregulated the banking industry, quit the Senate to leave for UBS, then lobbyied George W. Bush on behalf of UBS to remove remaining state laws that protect consumers from predatory lending.

Scandals are nothing new to the Gramm family. Around the same time Gramm was lining his pockets by laying the groundwork to destroy our economy, his wife Wendy used her power as a government official to delay investigations into Enron wrongdoing. Wendy Gramm then quit to take a position on the Enron board of directors. Wendy Gramm later was sued for her part in insider trading and paid a $13 million fine with her own money.

Well, Rubin disagrees with you as to the effect of Gramms bill. So do I

"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

[Lindsey 0]

Sure it's about loaning to people who couldn't afford it. But people who can't afford it shouldn't be taking out the loans. People who lost their homes when they couldn't meet their mortgages have no room to whine, and this mess is AT LEAST as much these individuals' faults as it is the federal government's. We citizens put ourselves into this mess. We need to back up and take lessons from our grandparents. Handouts are usually not a good thing.

I agree, however, that credit shouldn't have been extended to people without means.

linz

--
A conservative is just a liberal who's been mugged. A liberal is just a conservative who's been to jail

[rushmc 23]

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Sure it's about loaning to people who couldn't afford it. But people who can't afford it shouldn't be taking out the loans. People who lost their homes when they couldn't meet their mortgages have no room to whine, and this mess is AT LEAST as much these individuals' faults as it is the federal government's.

I agree, however, that credit shouldn't have been extended to people without means.

linz

It is a mess and you nailed it.

What I am hearing now is those that should not have had loans will be treated as victim and even under forecloser will be allowed to keep their homes.

If anybody who, had good credit and money for a down payment got into trouble during this time for what ever reason, will NOT be treated the same. Only those who should NOT have gotten loans to begin with.

I really think much is going to come out on this sooner than latter. From what I am learning, the Dems will get hurt much worse than the R's. And I am NOT saying the R's are inocent

"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

[jcd11235 0]

Anyone who took out larger mortgages than they could afford to pay back.

Anyone who lent money more money to borrowers than the borrowers could afford to pay back.

Anyone who brokered such mortgages.

Anyone who rolled up and sold such mortgages.

Anyone who gave the associated mortgage backed securities better ratings than they realistically deserved.

Anyone who managed funds that bought those securities.

Anyone who knowingly invested in those funds.

Anyone who lobbied or voted for the deregulation that allowed the above to easily happen.

Anyone who encouraged others to buy homes beyond their means (e.g. realtors).

Anyone who treated real estate as a short term, high return investment vehicle.

(I'm sure I've left some people out. My apologies ito anyone who feels guilty, whose role I failed to mention.)


There's plenty of blame to go around.

Math tutoring available. Only $6! per hour! First lesson: Factorials!

[rhys 0]

http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=59935,

Ever since banks started tweaking numbers rather than having Gold bullion(or what have you)....

....it was never going to end up fair was it?

Now the elite instigators of all this will suck up the spoils of war, and gain one step closer to complete world ownership...

HA Ha Haaaaaa, I will take it all......... and you.....

you will have NOTHING!

Ha Ha ha Haaaaaa.

"When the power of love overcomes the love of power, then the world will see peace." - 'Jimi' Hendrix