HAPPY BIRTHDAY!!!!!!

[mark francis]

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October 24
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1929 Black Thursday:
Dow Jones Industrial Average drops 12.8%, starting the stock market crash of 1929.
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View attachment 25601
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View attachment 25602
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Bill Wyman
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How sad that bad judgment and bad understandings of fiscal laws should have turned an effort to allow more blacks in the US to buy homes should have caused the worldwide 2008 banking collapse.




How the Federal Government Created the Subprime Mortgage Crisis

Friday, September 14, 2018

How the Federal Government Created the Subprime Mortgage Crisis

Daniel Press

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Rather than a failure of the free market, the federal government was directly complicit in the mortgage market’s spectacular ramp-up and eventual collapse.

If anything symbolizes the American dream, it is homeownership—an asset that is viewed as part of a route from poverty and exclusion to independence and responsibility. However, as detailed in Part I, for over a century, state and federal governments worked to racially segregate American neighborhoods, promoting homeownership for whites while denying it for African-Americans. The result is that decades after discriminatory treatment in housing was outlawed, the homeownership gap between minorities and whites remains large.

Such a shameful condition motivated many well-meaning activists to pressure government housing authorities to expand homeownership opportunities to minority and low-income residents. The left saw this as a way to reduce discrimination and marginalization, solving the problems of past racism. The right saw it as a way to build an “ownership society” and give low-income earners a stake in the American dream, an anti-communist tactic first envisioned by Woodrow Wilson.

From the 1990s to the 2000s, both political parties bent the federal mortgage agencies to their will, continually relaxing underwriting standards to promote homeownership. Along with historically low interest rates, this led to an explosion in subprime lending, which fueled the housing bubble and spread toxic mortgages throughout the financial system. Rather than a failure of the free market, the federal government was directly complicit in the mortgage market’s spectacular ramp-up and eventual collapse.

 

[Phoenix68]

How the Federal Government Created the Subprime Mortgage Crisis

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See: 4:45 - 12:00
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[Phoenix68]

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October 30
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Grace Slick
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Charles Martin Smith
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[mark francis]

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See: 4:45 - 12:00
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How ​

The banking deregulation bill of 2000, particularly the 2000 Act, allowed for the securitization of mortgage-backed securities (MBS) by removing restrictions on the sale of these securities. This legislation enabled financial institutions to package and sell MBS, which were then sold to investors globally. The relaxation of regulations and the expansion of the subprime mortgage market were key factors in the financial crisis of 2008. The lack of transparency and understanding of these complex financial products, even among sophisticated investors, contributed to the crisis's severity.

Center for Economic and Policy Research

 

[Phoenix68]

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November 4, 2008
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"Barack Obama becomes the first African-American to be elected President of the United States."

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November 4
Walter Cronkite
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February 27, 1968
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[mark francis]

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November 4, 2008
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"Barack Obama becomes the first African-American to be elected President of the United States."

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November 4
Walter Cronkite
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February 27, 1968
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Like so many other prominent Americans, Cronkite was affected by bad opinions.