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So... Just Where did It All REALLY Start?

Discussion in 'Business & Economics' started by Pidgey, Apr 22, 2009.

  1. Pidgey

    Pidgey Well-Known Member

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  2. PLC1

    PLC1 Moderator Staff Member

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    Right.

    From your article:

    You would also expect the global financial crisis to have ended soon after the price of oil went back down, wouldn't you?

    Is it possible that there could be more than one cause for the current depression?

    What Obama said, verbatim:

    Here's the part where he is "blaming the US for all of the world's ills":

    All caps are from the source.

    Is he right about the major cause of the recession?

    Is he right that speculation on Wall Street helped bring about a worldwide recession?

    Or is he just blaming America for all of the world's ills, just as all liberals have always done (or words to that effect)?

    Read what he actually said, think about it, then decide for yourself.
     
  3. Cruella

    Cruella Well-Known Member

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    Barack Obama; "MANY AMERICANS FOUND THAT SUDDENLY THEY COULD TAKE OUT LOANS THAT BY TRADITIONAL STANDARDS, THEIR INCOMES JUST COULD NOT SUPPORT. OTHERS WERE TRICKED INTO SIGNING THESE SUBPRIME LOANS BY LENDERS WHO WERE TRYING TO MAKE A QUICK PROFIT. THE REASON THESE LOANS WERE SO READILY AVAILABLE WAS THAT WALL STREET SAW BIG PROFITS TO BE MADE".

    With landmark lawsuit, Barack Obama pushed banks to give subprime loans to Chicago’s African-Americans

    President Barack Obama was a pioneering contributor to the national subprime real estate bubble, and roughly half of the 186 African-American clients in his landmark 1995 mortgage discrimination lawsuit against Citibank have since gone bankrupt or received foreclosure notices.

    As few as 19 of those 186 clients still own homes with clean credit ratings, following a decade in which Obama and other progressives pushed banks to provide mortgages to poor African Americans.
     
  4. PLC1

    PLC1 Moderator Staff Member

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    So, the problem was making loans to blacks?

    I thought it was giving loans to all races of people who couldn't afford them, then selling those loans as good debt?
     
  5. Cruella

    Cruella Well-Known Member

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    That's not what I got out of the article.

    Government in a sense blackmailed banks into making a certain percentage of their mortgage loans through the "Community Reinvestment Act" (which was targeted towards minorities) under threat of discrimination lawsuits.

    If race was an issue in this article, it's because the discrimination lawsuit that Obama brought was for 189 African Americans. So it's like a double wammy. The banks were under threat by the government to make the loans, and then when they did, they were sued because the borrowers were now considered victims of the banks.

    Nice gig to get in on, if your a lawyer. They play both sides of the issue and who gets stuck in the middle? Unless that was the goal, to put the banks out of business to begin with.
     
  6. PLC1

    PLC1 Moderator Staff Member

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    These loans should never have been allowed to happen whether they were made to blacks or not. The government simply didn't do its job.

    No one had to encourage or require that sub prime mortgages be made to anyone. The fact that money could be made basically by gambling with other people's money was plenty of motivation.
     
  7. Cruella

    Cruella Well-Known Member

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    The Government-Created Subprime Mortgage Meltdown
     
  8. Cruella

    Cruella Well-Known Member

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  9. PLC1

    PLC1 Moderator Staff Member

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    Redlining was the practice of denying loans for property in specific (mostly black) sections of cities. I'm not sure just how redlining forced banks to make loans to people who couldn't afford them, but maybe. The fact of the matter is that such loans should have been outlawed, and not encouraged.
     
  10. Cruella

    Cruella Well-Known Member

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    I don't know if you read the articles or not, but it looks to me like blackmail. I also remember a BofA spokes person during the TARP mess, say that they were "forced" by the government to make the risky loans. It seems the Democrats want this both ways. They actively push people into these loans, they force the banks to give the loans and then they sue them when the don't. Catch 22.

     
  11. dogtowner

    dogtowner Moderator Staff Member

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    redlining evolved into just issuing them worse interest rates (much ss lenders always did for subprimers).
     
  12. PLC1

    PLC1 Moderator Staff Member

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    Indeed, they did pay more:





     
  13. Cruella

    Cruella Well-Known Member

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    You can look at insurance rates and even school success. It depends on your zip code. Businesses can't avoid facts on the ground. Even a pizza delivery guy redlines.
     
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