Lately I keep hearing talk of another recession around the corner. What do you think? If there is another recession, how much can America take and what do you think is the root problem?
Could be months, could be years. Not a single cause of the last one has been addressed. So, sooner or later...
not only has the cfma not been reigned in and derivitaves properly regulated,the govt is trying to recreate the same scenario in the stock and housing markets.
at this point i dont think they care,so long as the problem occurs on the next president,or the one after and not them.
Very true. How far off do you think?
..and it will still be Bush's fault.
not only has the cfma not been reigned in and derivitaves properly regulated,the govt is trying to recreate the same scenario in the stock and housing markets.
at this point i dont think they care,so long as the problem occurs on the next president,or the one after and not them.
As long as capitalism exists there will be recessions
Could be months, could be years. Not a single cause of the last one has been addressed. So, sooner or later...
I think you made this term up.Actually, the cause of the Bush Mortgage Bubble has been addresed.
Lately I keep hearing talk of another recession around the corner. What do you think? If there is another recession, how much can America take and what do you think is the root problem?
It was a law Clinton put on the books that forced banks to relax their lending policies.Actually, the cause of the Bush Mortgage Bubble has been addresed. The Bush Mortgage Bubble was people buying homes they could not afford. Just so you know, the way you put somebody in a house they can’t afford is to not check their income. That’s why over 50% of all loans in 2006 were “stated income” loans. (yes, more than half of all loans in 2006 didnt verify the borrower's income)
Every regulatory effort since the Bush Mortgage bubble has been for banks to verify the ability of the borrower to repay the loan. That’s the key part of Dodd Frank. Here’s the Fed’s rule specifically addressing subprime No Doc loans.
FRB: Testimony--Braunstein, Mortgage lending reform--March 11, 2009
"Second, lenders are prohibited from making "stated income" loans and are required in each case to verify the income and assets they rely upon to determine borrowers' repayment ability. Lenders must also verify and consider the borrower's other debt obligations, such as by using a credit report. The rule is intended to ensure that creditors do not assess repayment ability using overstated incomes or understated payment obligations"
As far as recessions go, cons keep wishing for a recession and republicans actively try to cause one. So you guys just keep hoping. I’ll just keep rolling in the dough.
Not totally, never has been, but he has quite a bit of blame.
Lately I keep hearing talk of another recession around the corner. What do you think? If there is another recession, how much can America take and what do you think is the root problem?
not only has the cfma not been reigned in and derivitaves properly regulated,the govt is trying to recreate the same scenario in the stock and housing markets.
at this point i dont think they care,so long as the problem occurs on the next president,or the one after and not them.
So it was just one law from Clinton and nobody is doing anything about it. Wow, the system is indeed broken. Anyhoo, its seems almost inconsequential at this point but perhaps you could tell us the name of the law and then cut and paste the part about mortgage lending standards and the part that prevented bush’s regulators from enforcing the mortgage lending standards?It was a law Clinton put on the books that forced banks to relax their lending policies.
More importantly, the housing market crash was just a match that got lit. It was the bucket of gasoline that is the dirivatives market that caused the inferno. Just an FYI.
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