If you ask me if I spoke out before and I answer....you're now unhappy with my answer because it doesn't "fit" for you?
Whatever...
In all seriousness, your generalization is a correct description of liberal outrage but the idea that naming names means anything materially about responsibility is wrong.
Naming names doesn't mean squat...besides an attempt to score political points.
Anyone who is involved in the industry can make a list in 10 minutes of worthy suspects
I'd start with Alan Greenspan, the CEO's of S&P, Moody's, & Fitch, Andrew Mozillo, Blankfein, the heads of the financial regulatory bodies, Tim Geithner...
Naming names proves what?
Holding them accountable is more important...who's doing that?
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"We want to be the fastest team in America, fast teams win."
"This is why we spend so much time recruiting because you need playmakers. You need difference makers."
... Banks were forced to alter prudent lending practices or be penalized, thus creating the subprime market...
There were no penalties or fines under the CRA. The only enforcement mechanism was that non-compliant financial institutions had a more difficult time getting their mergers and acquisitions approved through their governing agency.
The mortgage crisis was born of a perfect storm:
Wall Street making a killing wrapping and re-wrapping (to smoke the really bad tranches by the rating agencies) high return, high risk mortgages and selling them in CDS pools to investors both institutional and retail, hungry for good returns (secured to boot!),
combined with
Mortgage brokers making $10,000 a pop loaning someone else's money selling anyone who could breathe and write their name,
and
"What's my monthly payment" Americans whose earnings were flat and had been flat for a decade being attracted to buying the McMansion they always dreamed of having (super size me baby) or who wanted to HELOC their home and buy a boat, build a pool, or get a condo at Disney World.
That was the gogo juice that blew up the mortgage crisis balloon - not the CRA.
So Obama can enact legislation without congress now? Cool!
Yeah, but putting it forth would be even more awesome. Talk about ferreting out the weasels? This would make a lot of people on both sides very uncomfortable. I like that.
In an effort to be "fair" to those who had no business buying a home the government expanded the CRA under Clinton mandating equal opportunity for all to participate in the American Dream of home ownership .
Banks were forced to alter prudent lending practices or be penalized, thus creating the subprime market. No income loans were made to those with little or no down with marginal credit under the auspicious that it was only "fair". These loans carried a heavy "premium" and were abused by borrowers, Realtors, lenders and Wall Street alike. Of course the industry was blamed even though government was the underlying cause.
For the record, yours truly did not participate in that market. 30% down, excellent credit makes sense for a no doc. No money down with assets not supportive of stated income does not, however, if at the time institutions did not offer these loans they were considered to be discriminating and would pay the penalty.
Given the Banks power over both parties - and all those former employees working as advisors to everybody - is it not reasonable to think that the Banks, in fact, were the ones pushing for it (or at least tacit approval) knowing all along that they were going to open up the subprime/MBS markets?
I don't know. I haven't seen the numbers. But I'd be curious where the bank's lobbying efforts were going on all of these things. It's not even a conspiracy theory, just the way these organizations (are allowed to) operate.
Lax credit standards, in compliance with government mandate. Fraud, because like most sane people, they didn't want to be holding the bag when the stupidity underlying those mandates blew up. But who is at fault, the guy that said "here, hold this old, wet dynamite", or the guy who just got all this dynamite shoved on him and said screw that and got rid of it?
this is absolutely false
quite a few studies were done since the crash, and none of them showed this to be the cause, and had little effect on perpetuating it.....the only ones pointing the finger to Gov standards lowering are the ones looking to deflect responsibility
the Gov did not put a gun to the head of private institutions to make bad and many times fraudulent deals........they were egged on by the fact that these mortgages could be repackaged with erroneous AAA ratings, and sold off to buyers who were being misled
There were no penalties or fines under the CRA. The only enforcement mechanism was that non-compliant financial institutions had a more difficult time getting their mergers and acquisitions approved through their governing agency.
The mortgage crisis was born of a perfect storm:
Wall Street making a killing wrapping and re-wrapping (to smoke the really bad tranches by the rating agencies) high return, high risk mortgages and selling them in CDS pools to investors both institutional and retail, hungry for good returns (secured to boot!),
combined with
Mortgage brokers making $10,000 a pop loaning someone else's money selling anyone who could breathe and write their name,
and
"What's my monthly payment" Americans whose earnings were flat and had been flat for a decade being attracted to buying the McMansion they always dreamed of having (super size me baby) or who wanted to HELOC their home and buy a boat, build a pool, or get a condo at Disney World.
That was the gogo juice that blew up the mortgage crisis balloon - not the CRA.
Combined with artificially low rates thanks to the Fed, ratings agencies afraid to do their job, insurers like AIG blindly insuring everything they could see, federal laws like the repealing of Glass Steagall that changed the nature of the market, housing goal rules on Fannie and Freddie that helped keep the private pipeline liquid, and of course lax oversight of all of it by the Feds.
Truly the perfect storm.
Combined with artificially low rates thanks to the Fed, ratings agencies afraid to do their job, insurers like AIG blindly insuring everything they could see, federal laws like the repealing of Glass Steagall that changed the nature of the market, housing goal rules on Fannie and Freddie that helped keep the private pipeline liquid, and of course lax oversight of all of it by the Feds.
Truly the perfect storm.
Agreed. And in so doing they are financing the balance sheet scrubbing of the TBTF banks for free whilst destroying the value of millions of your "average joe" US savers/taxpayers.
It has stunned me how they have pulled this off and avoided the outrage of middle class America. I guess when you have bought and own both the Rs and the Ds you can tamp it down through Fox News and MSNB.
What banks specifically did that? I've taken out numerous mortgages (10+) from 1997 - 2008 and have never once witnessed that.
Here, here to that. I've gotten multiple mortgages and always had piles of income verification. BTW I'm a w-2 employee, yet the processors made it a pain in the $#%.
Didn't watch the video (wrong place to) and the responses sound as if she was playing the Bad Cop role.
We can argue all week what was the real root causes of the real estate/banking bubble. But unless you have a rooting interest in seeing one side win or lose, I don't really see anything of real value that has transpired since, elections included. If things transpired because corporations were too big to fail or the money trail was too convoluted to track to the real culprits then fine, but what exactly has been done to prevent it from occurring in the future? Absolutely nothing.
All that comes out of Washington is a bunch of staged drama for our viewing (and rooting) interests. Nothing more.
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