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Reply With QuoteYawn!
No housing bubble based on Sub-Prime lending until GW.
Free Market allows CDOs to buy insurance policies far in excess of value of mortgages during GW.
Double yawn.
You Do understand the concept of time, I presume?
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Moderator
You have all read my posts detailing that the banks wouldn't lend to blacks and Hispanics 'cause they were racist... and that first Jimmy Carter and then Clinton came along and they passed (then modified) The Community Reinvestment Act. With the CRA the federal government forced banks to lend money to people who had no prayer of ever paying it back.
Thus we had the heart of the banking crisis.
Well... many of you said that I was wrong... many of you insist that the banks had engaged in predatory lending, that they had forced these unsuspecting, unwitting, unqualified, poor people of color to take these loans. To listen to you guys, these people were walking along the street. They walked past the front door of the bank. And some evil banker went out there and grabbed 'em and pulled 'em in and intimidated 'em and said, "You are going to buy that house, and you're gonna do it with this mortgage!"
It's happening again... and this time you can watch it with me in real time:
If you then are white with a score of 450... no loan. If you are Black with the same 450 score... loan city baby!The principle instrument this time is not the Justice Department, Fannie Mae and Freddie Mac, as it was last time, but the brand-new Consumer Finance Protection Bureau, designed by good old Elizabeth "Nobody-Ever-Made-It-On-Their-Own" Warren, which should really be called the Bureau for Bringing Down the Entire Economy. As reported in last Sunday's New York Post by Hoover Institution Media Fellow Paul Sperry, the CFPB has just announced that it is adopting a 20-page "Policy Statement on Discrimination in Lending" issues by the Interagency Task force on Fair Lending in 1994 that kicked off Attorney General Janet Reno's draconic enforcement of the Community Renewal Act. Part of the policy statement reads, "Applying different lending standards or offering different levels of assistance to applicants who are members of a protected [i.e., minority] class is permissible in some circumstances. Providing different treatment to applicants to address past discrimination would be permissible if done in response to a court order." There are already plenty of court orders sitting around.
If a Black person... errrr... person of color... with that low a credit score can be deemed to pay off a loan, one would think that a White person with the same score (all other things being equal) could too.
Conversely... If a White person with that low a credit score can be deemed NOT able pay off a loan, one would think that a Black person... errrr... person of color... with the same score (all other things being equal) would default as well.
But wait! There's more!
So there you have it my friends... if you're White and default on your car loan... well... you defaulted and that will show up on your credit report for 7 years.But the real destruction is going to be wrought by CFPB, created by Dodd-Frank and just getting started. Last week Richard Cordray, who is serving as a disputed recess appointee without the consent of the Senate, announced that not only will CFPB be going after banks but will also target the credit rating agencies that evaluate people's creditworthiness based on past performance in paying debts. They too will be vetted for racial discrimination. In May 2011, the non-partisan Policy and Economic Research Council completed what it described as the first evaluation of Equifax, Experian, and TransUnion, the three credit rating agencies. The report concluded that in less than 1 percent of cases was a score changed by more than 25 points after a dispute process and that "consequential inaccuracies are rare." Moreover, "95 percent of disputing participants were satisfied with the outcomes of their disputes, suggesting widespread satisfaction" with the process. In other words, credit ratings are pretty accurate. Banks rely heavily on them and say that, if anything, the agencies tends to underestimate the rate at which minority buyers will default on mortgages.
So guess what happens next? Under the pretext of "regulating" the agencies, CFPB will hammer away, forcing them to upgrade the scores of blacks and Hispanics. Standards will be diluted or abandoned entirely and within a few years the banks will be flying blind with no reliable information on who is a good credit risk and who isn't. Does that sound like the formula for another mortgage meltdown? It sure does to me.
On the other hand... if you're a Black person... errrr... person of color... and default on your car loan... well... you were (somehow) the victim or racism, and your credit score shouldn't be effected.
Let's see how this works...
The American Spectator : And You Thought the Housing Crisis Was Over!
Vice President
Yawn!
No housing bubble based on Sub-Prime lending until GW.
Free Market allows CDOs to buy insurance policies far in excess of value of mortgages during GW.
Double yawn.
You Do understand the concept of time, I presume?
You should always have an informed opinion, so after I inform you, please feel free to express my opinion...USCitizen
Moderator
The bubble was building long before GW. The effects of a program are often not seen for several years. None of those instruments to redistribute liability would have been invented if the banks weren't forced to take on bad debt. If someone forces me to take bad debt, I am certainly going to try to get rid of that liability or at least spread out the pain.
The problem with all of these left wing, social engineering programs is that they have unintended consequences. Any time you attempt to distort the free market vial legislation you are going to have trouble. We saw it with CRA and we saw it with NAFTA. Libs want these programs but they don't want to live with the consequences.
Vice President
The Unregulated Instrument should NEVER have come into being.Originally Posted by OldmanDan
Inexcusable.
You should always have an informed opinion, so after I inform you, please feel free to express my opinion...USCitizen
Moderator
And it wouldn't have if government had stayed out of real estate.
President
I just love it the way T-Square completely discounts the market and the profit motive when explaining history.
It's like everything happens because Barney Frank says something, and nobody is trying to make a buck.
Moderator
There is plenty of fault to go around. The point is, if government had stayed out of the Real Estate market and stopped their attempts as social engineering, it wouldn't have started in the first place.
Vice President
That has got to one of the stupidest responses I have ever read on this, or any forum.
Create an unregulated instrument, fully capable of bankrupting a nation, if not the world, because of government getting involved, at the behest of Life Insurance companies in the first place?
You should always have an informed opinion, so after I inform you, please feel free to express my opinion...USCitizen
Moderator
Yeah... and you think that profit is a crime...
Vice President
An erudite response to the ONGOING CDO.
BNY/Mellon says the next CDO crash comes before Christmas.
You should always have an informed opinion, so after I inform you, please feel free to express my opinion...USCitizen
U.S. House Representative
I am sorry, but I must interject here----------->why is it that as long as it is GWs fault, all is well; but as soon as more facts are introduced towards others, we yawn?
If the original post is accurate, then maybe we all should be concerned. If another housing bubble occurs anytime soon, it won't only be my home that goes back into the tank, it will be liberals houses too!
Maybe I should say it differently to make my point------------>if a republican came up with another idea that led anywhere near the territory that has caused this economic disaster, if we as republicans couldn't change their minds, I would vote either independent, or democrat to stop such lunacy from causing our country to again, collapse on itself. Politics are politics, but we all know that we would be wise to make sure we have a grip on what actually went wrong so as we don't fall into the very wise saying that, "history repeats itself." The only reason that some people don't want to delve into who/why this all actually occured are those who are politically comfortable with who is getting the blame. The overall health of the economy is more important than that, and I am quite positive that there are reasonably educated liberals on here who know as well as I do what actually occured, and why.
But to sit there and ignore new policys that are now attempted to be put in that could very well foster another like occurance for political reasons at the expense of the country as a whole?!?!?!?!?!?! You would think that is against what we as Americans stand for. And it certainly seems against every debate point you bring to the fore front of why Obama should be re-elected. Just because the facts don't fit your narrative is no reason to throw the country under the bus, is it?
County Council Member
Wow. tsquare really makes a compelling case about how the white person is getting screwed. We really should just go by the fact that both these people have 450 scores and not lend to them. We should ignore the fact that there is statistical evidence that, if a black guy and a white guy have similar credit histories and similar job histories, the while guy would get a higher score. I suppose that it is right that we should let the credit industry discriminate if they want to. All this stuff about equal opportunity should not get in the way of someone exercising their right to screw someone over because they don’t like their color.
We should all get incensed when we see these cases where it appears that anyone is getting preferential treatment over a white person. We should only focus on that finish line and ignore the fact that the white guy got a head start.
Vice President
White guy here...
[1] Pretty much unemployed for 4 years when the first car dealership manager walked into the back room and within 5 minutes knocked my credit score up from 620 to 750 to qualify me for the lease I was willing to
[2] Pretty much unemployed for 5 years when the second car dealership manager walked into the back room and within 10 minutes knocked my credit score up from 580 to 760 to qualify me for the lease I was willing to accept.
Nah! Nothing to do with race.
You should always have an informed opinion, so after I inform you, please feel free to express my opinion...USCitizen
Secretary of State
Only committed conservatives believe tsquare's conservative propaganda.
The Big Lie is easily shot down.
Much more at the link.I have a fairly simple approach to investing: Start with data and objective evidence to determine the dominant elements driving the market action right now. Figure out what objective reality is beneath all of the noise. Use that information to try to make intelligent investing decisions.
But then, I’m an investor focused on preserving capital and managing risk. I’m not out to win the next election or drive the debate. For those who are, facts and data matter much less than a narrative that supports their interests.
One group has been especially vocal about shaping a new narrative of the credit crisis and economic collapse: those whose bad judgment and failed philosophy helped cause the crisis.
Rather than admit the error of their ways — Repent! — these people are engaged in an active campaign to rewrite history. They are not, of course, exonerated in doing so. And beyond that, they damage the process of repairing what was broken. They muddy the waters when it comes to holding guilty parties responsible. They prevent measures from being put into place to prevent another crisis.
And remember, tsquare is the guy who promised "massive inflation" after the Fed announced its quantitative easing strategy three years ago. In other words, he doesn't exactly have a great record on economic analysis.
Vice President
Impossible, Milton Friedman is absolutely ecstatic about Quantitative Easing when cash is scarce.
You should always have an informed opinion, so after I inform you, please feel free to express my opinion...USCitizen
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