Are you ready for Obama's latest Hate of the Union Address"

[USA_1]

The dems stopping Bush and McCain from moving regulation of F&F has nothing to do with it either.

Notice Obama bank regulation and taxes will not touch F&F

Fannie and Freddie were victims of the housing bubble burst.
http://www.businessweek.com/investing/insights/blog/archives/2008/09/fannie_mae_and.html



There’s a dangerous — and misleading — argument making the rounds about the causes of our current credit crisis. It’s emanating from Washington where politicians are engaging in the usual blame game but this time the stakes are so high that we can’t afford to fall victim to political doublespeak. In this fact-free zone, government sponsored mortgage giants Fannie Mae and Freddie Mac caused the real estate bubble and subprime meltdown. It’s completely false. Fannie Mae and Freddie Mac were victims of the credit crisis, not culprits.

Start with the most basic fact of all: virtually none of the $1.5 trillion of cratering subprime mortgages were backed by Fannie or Freddie. That’s right — most subprime mortgages did not meet Fannie or Freddie’s strict lending standards. All those no money down, no interest for a year, low teaser rate loans? All the loans made without checking a borrower’s income or employment history? All made in the private sector, without any support from Fannie and Freddie.

Look at the numbers. While the credit bubble was peaking from 2003 to 2006, the amount of loans originated by Fannie and Freddie dropped from $2.7 trillion to $1 trillion. Meanwhile, in the private sector, the amount of subprime loans originated jumped to $600 billion from $335 billion and Alt-A loans hit $400 billion from $85 billion in 2003. Fannie and Freddie, which wouldn’t accept crazy floating rate loans, which required income verification and minimum down payments, were left out of the insanity.

There’s a must-read study by staff members of the Federal Reserve Bank of New York analyzing the roots of the subprime crisis that came out in March. I don’t think it got much attention then as the conclusions seemed uncontroversial at the time. But now that Washington politicians are trying to rewrite history, it should be mandatory reading for every American interested in knowing how we got here.

The study identifies five causes of the subprime meltdown:
-Convoluted loan products that consumers didn’t understand.
-Credit ratings that didn’t do a good job highlighting the risks contained in subprime-backed securities.
-Lack of incentives for institutional investors to do their own research (they just relied on the credit ratings).
-Predatory lending and borrowing (which I think means fraud perpetrated by borrowers).
-Significant errors in the models used by credit rating agencies to assess subprime-backed securities

 

[ptif219]

Yeah right. It all happened the last two years of Bush's presidency.:roll:

After the dems took over the majority in congress

 

[USA_1]

After the dems took over the majority in congress

And the re-writing of history begins...........

 

[ptif219]

And the re-writing of history begins...........

You don't like facts?

 

[USA_1]

You don't like facts?

I love facts. I hate spin. I am here to make sure the facts come out.

 

[molten_dragon]

That's got to be sarcasm right? :shock: Or do you really believe that? :shock:

That was definitely sarcasm. Whether you liked him or not, pretty much anyone would have to admit that public speaking was not George W. Bush's strong point.

 

[Barbbtx]

The dems stopping Bush and McCain from moving regulation of F&F has nothing to do with it either.

Notice Obama bank regulation and taxes will not touch F&F

In my opinion Fannie, Freddie were the biggest causes of our troubles, yet they are mostly ignored and allowed to go about their business. Barney Frank and Maxine Waters told Bush and McCain that F&F were doing just fine. If they were R's, The D's would be calling for all sorts of investigations.

 

[USA_1]

In my opinion Fannie, Freddie were the biggest causes of our troubles, yet they are mostly ignored and allowed to go about their business. Barney Frank and Maxine Waters told Bush and McCain that F&F were doing just fine. If they were R's, The D's would be calling for all sorts of investigations.

And you would be wrong.

Fannie Mae and Freddie Mac were victims, not culprits - BusinessWeek

Start with the most basic fact of all: virtually none of the $1.5 trillion of cratering subprime mortgages were backed by Fannie or Freddie. That’s right — most subprime mortgages did not meet Fannie or Freddie’s strict lending standards. All those no money down, no interest for a year, low teaser rate loans? All the loans made without checking a borrower’s income or employment history? All made in the private sector, without any support from Fannie and Freddie.

Look at the numbers. While the credit bubble was peaking from 2003 to 2006, the amount of loans originated by Fannie and Freddie dropped from $2.7 trillion to $1 trillion. Meanwhile, in the private sector, the amount of subprime loans originated jumped to $600 billion from $335 billion and Alt-A loans hit $400 billion from $85 billion in 2003. Fannie and Freddie, which wouldn’t accept crazy floating rate loans, which required income verification and minimum down payments, were left out of the insanity.

There’s a must-read study by staff members of the Federal Reserve Bank of New York analyzing the roots of the subprime crisis that came out in March. I don’t think it got much attention then as the conclusions seemed uncontroversial at the time. But now that Washington politicians are trying to rewrite history, it should be mandatory reading for every American interested in knowing how we got here.

The study identifies five causes of the subprime meltdown:
-Convoluted loan products that consumers didn’t understand.
-Credit ratings that didn’t do a good job highlighting the risks contained in subprime-backed securities.
-Lack of incentives for institutional investors to do their own research (they just relied on the credit ratings).
-Predatory lending and borrowing (which I think means fraud perpetrated by borrowers).
-Significant errors in the models used by credit rating agencies to assess subprime-backed securities.