has anyone proven that Bush knew about the scope of the bank derivatives?

[AlexVega]

Clearly when Bush came into office the U.S. economy was on shaky ground. Dot Com turned to Dot bust. The housing market was getting ready to implode. Partly due to the unqualified American's allowed to have mortgages, people loaning up to 140% against the value of the house, and of course banking derivatives.

Question is how much did Bush's team know?

Clearly they were trying to keep the economy going and enabled the banks and the tax cuts where there way of trying to spur investment. However, the writing was on the wall. There is always a ton of work to fix the economy and right the ship after a democrat leaves office.

While Clinton had his faults, he was such an amazing salesperson he made you feel great. Salesmanship is something Obama lacks on top of his other faults.

 

[AlexVega]

Beating a dead Bush and giving yourself "Clearly" away, jen.

Thank you Sean.

 

[Colonel Hogan]

Clearly when Bush came into office the U.S. economy was on shaky ground. Dot Com turned to Dot bust. The housing market was getting ready to implode. Partly due to the unqualified American's allowed to have mortgages, people loaning up to 140% against the value of the house, and of course banking derivatives.

Question is how much did Bush's team know?

Clearly they were trying to keep the economy going and enabled the banks and the tax cuts where there way of trying to spur investment. However, the writing was on the wall. There is always a ton of work to fix the economy and right the ship after a democrat leaves office.

While Clinton had his faults, he was such an amazing salesperson he made you feel great. Salesmanship is something Obama lacks on top of his other faults.

Are you really that stupid that you don't know who or what paved the way for subprime lending to unqualified borrowers?

Non-agency securitizations were only a few years old when they received a pow-
erful stimulus from an unlikely source: the federal government. The savings and
loan crisis had left Uncle Sam with $402 billion in loans and real estate from failed
thrifts and banks. Congress established the Resolution Trust Corporation (RTC) in
1989 to offload mortgages and real estate, and sometimes the failed thrifts them-
selves, now owned by the government. While the RTC was able to sell $6.1 billion of
these mortgages to Fannie and Freddie, most did not meet the GSEs’ standards.
Some were what might be called subprime today, but others had outright documen-
tation errors or servicing problems, not unlike the low-documentation loans that
later became popular.


**********************

The CRA encouraged banks to lend to borrowers to whom they may have previ-
ously denied credit. While these borrowers often had lower-than-average income, a
1997 study indicated that loans made under the CRA performed consistently with
the rest of the banks’ portfolios, suggesting CRA lending was not riskier than the
banks’ other lending.

“There is little or no evidence that banks’ safety and sound-ness have been compromised by such lending, and bankers often report sound business opportunities,” Federal Reserve Chairman Alan Greenspan said of CRA lending
in1998.

*********************

In 1993, President Bill Clinton asked regulators to improve banks’ CRA perform-
ance while responding to industry complaints that the regulatory review process for
compliance was too burdensome and too subjective. In 1995, the Fed, Office of Thrift Supervision (OTS), Office of the Comptroller of the Currency (OCC), and Federal Deposit Insurance Corporation (FDIC) issued regulations that shifted the regulatory focus from the efforts that banks made to comply with the CRA to their actual results. Regulators and community advocates could now point to objective, observable numbers that measured banks’ compliance with the law.

http://fcic.law.stanford.edu/report

Get a fucking clue and read the FCIC report. President Bush's fault was that he was no smarter than all the other bright bulbs in the room, including President Clinton, who thought subprime lending was a great idea and an equitable expansion of economic opportunity to those who had been "unfairly" deprived of participation in the American dream of home ownership.

Bush was still little more than a drunken owner of a professional baseball team when the housing crisis was first working up a good head of steam.

The question is not what Bush's team knew. The question is what the financial experts and regulators spanning at least TWO presidential administrations and more than 16 years SHOULD HAVE KNOWN and SHOULD HAVE restricted financial products and lending practices accordingly.

The fact that they didn't means only that there is a ton of blame to go around for the shit that followed and fell on the heads of everyone including yours and mine.

 

[AlexVega]

Are you really that stupid that you don't know who or what paved the way for subprime lending to unqualified borrowers?



Get a fucking clue and read the FCIC report. President Bush's fault was that he was no smarter than all the other bright bulbs in the room, including President Clinton, who thought subprime lending was a great idea and an equitable expansion of economic opportunity to those who had been "unfairly" deprived of participation in the American dream of home ownership.

Bush was still little more than a drunken owner of a professional baseball team when the housing crisis was first working up a good head of steam.

The question is not what Bush's team knew. The question is what the financial experts and regulators spanning at least TWO presidential administrations and more than 16 years SHOULD HAVE KNOWN and SHOULD HAVE restricted financial products and lending practices accordingly.

The fact that they didn't means only that there is a ton of blame to go around for the shit that followed and fell on the heads of everyone including yours and mine.

Well, don't we nave some anger issues. Zero to fuming prissy in ten seconds. Is that a new record?

Thank you for the information.

 

[bronzeage]

Has anyone ever proven that Bush understood what a derivative was?

 

[Colonel Hogan]

Has anyone ever proven that Bush understood what a derivative was?

Him and a long line of "smarter" people who should have but didn't.

 

[M. Jordan]

Has anyone ever proven that Bush understood what a derivative was?

that's funny, I was thinking the same thing. It appears to me that although the housing / lending issue came to full fruition during Bush's term it was well underway at the end of Clinton's. There was too much money being made in fees up front and then in securities later for anyone to step on that. During the Bush terms there wasn't much else good going on in the economy, it was pretty much a one act show. It seems that a whole host of people had their hand in the making of that economic crises, both parties and numerous financial institutions. That new movie called "The Big Short" does a pretty good job of making it understandable in my opinion.

 

[Que]

The concept of derivatives and in this case derivatives themselves were never the problem. The problem was the fault of the fraudulent nature of the underying instruments.

The fraudulent nature of those mortgages, the so called liar loans with "stated income" requirements and lower requirements for income and higher tolerance for debt ratios that were not sustainable tacitly encouraged by Fannie Mae and Freddie Mac because of the aggressive interest the Clinton administration had in increasing loans in underserved areas and populations. Those populations were under-served for a very good reason. Those buyers tend to not make lifestyle choices that would enable them to qualify for a mortgage.

 

[Que]

Him and a long line of "smarter" people who should have but didn't.

Barney Frank and Chris Dodd were guarding the hen house and successfully deflected investigation and oversight. To have their names on the so-called fix for the problem has got to be the biggest inside joke and all of Washington

Nothing in the dodd-frank bill even begins to address the actual problem which by the way is now about to occur again.


Liberals love sensible regulation on everything but their sacred cows. There is no way under this president he would be willing to preside over the decline in minority homeownership ratios. To below the Carter Administration.

 

[M. Jordan]

The concept of derivatives and in this case derivatives themselves were never the problem. The problem was the fault of the fraudulent nature of the underying instruments.

The fraudulent nature of those mortgages, the so called liar loans with "stated income" requirements and lower requirements for income and higher tolerance for debt ratios that were not sustainable tacitly encouraged by Fannie Mae and Freddie Mac because of the aggressive interest the Clinton administration had in increasing loans in underserved areas and populations. Those populations were under-served for a very good reason. Those buyers tend to not make lifestyle choices that would enable them to qualify for a mortgage.

Agreed mostly but, the derivatives were based on packages of loans that were failing at a rate well above the norm. The push was always to get more $ freed up to reinvest in more sub prime loans which generated huge fees at the front end. Read "Reckless Endangerment" for a pretty precise history of the first stages of the problem. It became a free for all in the mid 2000's, lots of dirty politics needed to get us there.

 

[M. Jordan]

Barney Frank and Chris Dodd were guarding the hen house and successfully deflected investigation and oversight. To have their names on the so-called fix for the problem has got to be the biggest inside joke and all of Washington

Nothing in the dodd-frank bill even begins to address the actual problem which by the way is now about to occur again.

Barney Frank pats himself on the back and as you say was very instrumental in changing certain crucial laws initially. Phony.

 

[Que]

Agreed mostly but, the derivatives were based on packages of loans that were failing at a rate well above the norm. The push was always to get more $ freed up to reinvest in more sub prime loans which generated huge fees at the front end. Read "Reckless Endangerment" for a pretty precise history of the first stages of the problem. It became a free for all in the mid 2000's, lots of dirty politics needed to get us there.

people exploited the rules to their benefit of course as would be expected but this is all at the feet of Franklin rains. If those rules were not in place no one could have exploded with them there would have been no subprime market subprimes such as that should not exist

That market used to be the exclusive province of FHA and VA. Conventional loans internet market directly because of Fannie and Freddie. And pressure to do so. People with absolutely no capital were able to become investors on pure speculation buying houses that they intended to resell. This is what fuels the ridiculous prices that we saw.

 

[Misshotndeep]

For your consideration.

 

[M. Jordan]

For your consideration.

Well, my my, that was a ray of sunshine wasn't it? Although no expert, I can't put too much into predictions, certainly it may be on the way now but just how and when is not likely on anyone's radar for real.

 

[Que]

Well, my my, that was a ray of sunshine wasn't it? Although no expert, I can't put too much into predictions, certainly it may be on the way now but just how and when is not likely on anyone's radar for real.

Since nothing has been done about the rooy caused of the last bubble, it is on everyone's radat that makrs their living buying selling and servicing real estate loans mortgages appraisal and the like. None of them intend to complain about the problem because all of them hope to profit from this Bible as well and they all think that they will get out in time.

 

[Misshotndeep]

Please see point 3.

 

[M. Jordan]

Since nothing has been done about the rooy caused of the last bubble, it is on everyone's radat that makrs their living buying selling and servicing real estate loans mortgages appraisal and the like. None of them intend to complain about the problem because all of them hope to profit from this Bible as well and they all think that they will get out in time.

Well that's not quite true. The no docs loans aren't still around, and the foreclosure rates are way down. That could certainly all change but its not where it was in 2004/2005

 

[M. Jordan]

Please see point 3.

I believe that this is one very real item that was gutted in the original Glass Steagal Act. Piece by piece it has been torn apart and "Customized" into what we are seeing now.

 

[Misshotndeep]

I believe that this is one very real item that was gutted in the original Glass Steagal Act. Piece by piece it has been torn apart and "Customized" into what we are seeing now.

I agree. It was defiantly gutted over the years. I have not seen what the current regulations are. I know there were some put back in place after the crash of 2008.

 

[Sean Renaud]

Barney Frank and Chris Dodd were guarding the hen house and successfully deflected investigation and oversight. To have their names on the so-called fix for the problem has got to be the biggest inside joke and all of Washington

Nothing in the dodd-frank bill even begins to address the actual problem which by the way is now about to occur again.


Liberals love sensible regulation on everything but their sacred cows. There is no way under this president he would be willing to preside over the decline in minority homeownership ratios. To below the Carter Administration.

You make it sound like Obama cares about the black community in any solid substantial way which as evidenced by how little he's gone after police in this nation he clealry doesn't give a shit.

I thought we had all essentially agreed that this was Clinton's fault and years ago at that. Bush was simply the idiot caught holding the bag and I doubt anything specific ever really reached him. I don't know what his financial expertise is to know if he would have reacted proactively if he had known but he'd been in office for less than a year and then something happened that probably distracted him.

 

[BotanyBoy]

Liberals love sensible regulation on everything but their sacred cows.

Hua? Liberals LOVE regulation over their sacred cows and they use it to protect/empower them and it drives conservatives insane.

That being said they aren't the only ones doing it....

At the end of the day after everyone is done blowing their sunshine/smoke up each others ass's with their bullshit philosophies on how things should be done instead of how they are and will continue to be done, the only real world difference between (D) and (R) is what industries/special interest groups they are in DC to get money/legally shelter or empower. That's it.

I thought we had all essentially agreed that this was Clinton's fault and years ago at that. Bush was simply the idiot caught holding the bag and I doubt anything specific ever really reached him. I don't know what his financial expertise is to know if he would have reacted proactively if he had known but he'd been in office for less than a year and then something happened that probably distracted him.

Pretty much......

 

[Sean Renaud]

^^^^ Pretty much this.