Bad-News For The "Blame ACORN" Herd!

Mr. Shaman

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"Let's say there are three prospective homebuyers in a neighborhood. A local bank makes mortgage loans to all three, then bundles up the mortgages and sells the bundle to a big Wall Street firm, like the now-bankrupt Lehman Brothers.

The Wall Street firm takes its bundles of mortgages and offers them to investors. The investors make money off the interest payments from the original borrowers.

These instruments helped minimize risk for the local bank because it was no longer responsible for the loans it made to the local homebuyers.

"You didn't even have to worry about a loan once you made it. You didn't have to keep it on your books," Rodriguez said. "The only limitation was how fast you could turn the loans."

It was an intoxicating era when you could make a lot of money quickly through the housing market, and you did it through the "basic idea of leverage," Rodriguez said.

"Prime mortgages dropped to 64 percent of the total in 2004, 56 percent in 2005 and 52 percent in 2006," the Brookings study notes.

Even so, many banks and brokerage firms continued bundling the mortgages, many of them bad loans, and Wall Street kept buying them and selling them to investors. And the people who could have put a brake on the increasing amount of risk -- the agencies that regulate the U.S. financial sector -- weren't paying attention."

Great idea, there, Georgie....Allowing The Marketplace To Regulate Itself!!

:rolleyes:
 
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Nice try. Can you in your infinite wisdom tell us who in Congress was the chairman of the house financial services committee and whose Hershey highway he was traveling? Can you also explain who tried to stop any regulation of the lending industry? Or are you going to run away as usual when you are wrong, as usual.
 
Great idea, there, Georgie....Allowing The Marketplace To Regulate Itself!!




:rolleyes:

You made it clear that the agencies (government) were not doing their job. Why would you blame the free market for the failure of the governmental regulatory agencies?

Without those agencies to begin with the free market would not have generated this mess.
 
You made it clear that the agencies (government) were not doing their job. Why would you blame the free market for the failure of the governmental regulatory agencies?
Ah, yes....let's not blame Corporate America for their greed. They knew the Bush Admin had zero interest in oversight, and Corporate America (simply) couldn't help themselves.

:rolleyes:

"By almost any measure, 2008 was a complete disaster for Wall Street — except, that is, when the bonuses arrived."

"President Barack Obama called the prospect that some of the $700 billion Wall Street bailout could end up paying for bonuses to managers of struggling financial institutions "shameful" Thursday."
 
Ah, yes....let's not blame Corporate America for their greed. They knew the Bush Admin had zero interest in oversight, and Corporate America (simply) couldn't help themselves.

:rolleyes:

It is the governments job to provide oversight to stop injustice.

So yes if the gov does not do it's job and the "greedy corporations" then go out and commit injustice it is the fault of the gov that did not do it's job.

Since the Republicans and the Democrats and the Tories and the Whigs and all politicians througout history cannot be trusted to do it's job it is time to get someone else to do it.

Or at the very least to not let the people who make the rules make the rules about themselves. They have systematicaly removed all checks and balances that restrain government from doing harm itself, then they give themselves the best salaries and the best insurance plans then they engage in backroom deals and create an unfair tax code. And somehow they get us to think that half of them are trustworthy and the other half are not.
 
Who got the ball rolling? Selling mortgage backed securities is not a "new thing". And clearly sub-prime lending wasn't always popular, because it was considered risky. Obviously it was risky when you look at sub-prime forclosures. So where did this all begin?

Answer? CRA. The community reinvestment act, made minority lending a priority. Further, the HUD department, used Fannie and Freddie to push this, through allowing banks to sell sub-prime mortgages to Fannie and Freddie in packages. The result is that it legitimized the sub-prime market, and the banks ran with it. Of course the feds were not going to stop sub-prime loans to "minorities" because that's what they themselves demanded.
 
It is the governments job to provide oversight to stop injustice.

So yes if the gov does not do it's job and the "greedy corporations" then go out and commit injustice it is the fault of the gov that did not do it's job.
....Yeah....did not do it's job, by CHOICE!!

December 16, 2006

"Treasury Secretary Henry Paulson and business advocates such as the U.S. Chamber of Commerce are singing from the same hymnal, complaining that U.S. business is now overregulated and thus is suffering from a competitive disadvantage in world financial markets.

These efforts are already paying off. Just this week, the Department of Justice bowed to business pressure by announcing new restrictions on federal prosecutors handling cases against corporations. The next day, the Securities and Exchange Commission issued proposed new rules that would soften one of the key regulations enacted by Congress to prevent corporate fraud."
 
....Yeah....did not do it's job, by CHOICE!!


Fine, let's start with your false premise that businesses are the bad guys.

Then the bad guys ask the police to not stop them from doing bad things. And then the police agree to not stop the bad guys from doing bad things. then the bad guys do bad things.

Clearly the were working together.

that is if your premise is true.

But since there is no wrongdoing on the part of businesses here they are not the bad guys. After all selling loans to people who cannot pay them back because the government forced you to do it and feeling secure in accepting bad loans because the government was going to buy them from you is not bad - at least not on the part of the businesses.
 
....Especially when there were limited-resources to investigate such things.

:rolleyes:

I find your color choices to be distracting. I usually ignore all the embedded links in your posts and if I am not talking directly to you I often ignore your posts alltogether, not because I won't debate with you, but because it is just too hard on the eyes. But it is your decision to keep that up or not.

It is especially hard to read what you wrote after I open the "reply" box and it looks something like this:

"[ QUOTE = Mr. Shaman;84815][ CENTE R ]....Especially when there were [ URL ="http://www.youtube.com/watch?v=4ccQ_jiJjVA"][B ][I ][ COLOR="Red"]limited[/I]-resources[/COLOR][/B][/URL] to investigate[/COLOR ][/B ] such things."

I can't even read that sentence!

I don't want to watch some video that you then embedded in some colored link that will probably turn out to be a fruitless waste of time. If there is something worthy in there you can repeat it to us and provide the link as a source so we know were you got it.

Are you trying to say that the business limited the governments ability to investigate? Since when does the potential crook get to decide how much money the police officer gets to use? If the crook does have the power to limit the police then I still blame the police for allowing it. Who is the authority here? Uncle Sam or K-Mart?
 
I find your color choices to be distracting.

I usually ignore all the embedded links in your posts and if I am not talking directly to you I often ignore your posts alltogether, not because I won't debate with you, but because it is just too hard on the eyes.

I don't want to watch some video that you then embedded in some colored link that will probably turn out to be a fruitless waste of time.
Make life more simple, for yourself.

Quit whining & move on.

:rolleyes:
 
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