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Old 10-09-2008   #11
Mike Harvey's Avatar
Salida, Colorado
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Originally Posted by mr. compassionate View Post
Marko, could you please give evidence of the Repulicans who backed the CRA or show clips of Repubs backing Franklin Raines during the '05 and '07 Senate Hearing. I believe the Dems spun this "as a lynching" of Mr. Raines. As always, playing the race card, they should be ashamed. We,the public, should be should be outraged!
everyone on the right wants to blame the CRA...bullshit. Since when did anyone have to twist someone else's arm to make money? People are greedy and the rules let them game the system...Mark is right...there are no innocents in this mess.

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Old 10-09-2008   #12
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Mr. C

I never advocated that the Repubs had anything to do with CRA.

My ship analogy is about the bigger picture. Sure, the Dems are mainly behind the CRA... whatever... it's a small part of the bigger picture. If you read any of the Austrian School links I provided you will quickly notice that very few of the articles place the blame on just one party. They feel that the "current economic disaster is the result of the combination of negligence, hubris, and wrong economic theory" - which involves both parties.

Here is an example of the last sentence: In 1999 a bill was passed by a Republican Congress and signed by Democratic President Bill Clinton that rescinded Glass-Stegall Act of 1933.

Here is another example of their writings. Whether or not they are right is up to the reader to decide. Again, the only reason I am siding with the Austrian school of thought is because they have been right all along.

What caused this? It is a simple question, and yet answers are all over the map, as you might expect. Here's mine in two words: fiat money. The word fiat means: out of nothing. Money out of nothing is money that is eventually worth nothing. The possibility of precisely that happening emerged on August 15, 1971. Since Nixon severed the last tie of the dollar to gold, the world's monetary system has not been restrained by anything physical. We've depended on the discretion of central bankers. We can't trust that, and this crisis shows precisely why.

Of course there are subsidiary factors. The lifting of restrictions on Freddie and Fannie. Subsidized lending. The Fed's artificially low interest rates. The Community Reinvestment Act. Financial "deregulation." The war. Bush profligacy. Debt. There is much more besides. But fighting each of these forces individually is like battling down flies at the garbage dump. The core issue is that there is nothing to restrain money creation.
Understanding the Crisis by Llewellyn H. Rockwell, Jr.

Now, if people want to continue to keep batting down the flies at a garbage dump, fine. I'm choosing to not go down the partisan road... it's a waste of time. The Dem's and Repubs are both complicit through a combination of many different things. This is why I will not vote for either of these 2 corrupted parties.

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Old 10-09-2008   #13
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Originally Posted by mr. compassionate View Post
Marko, could you please give evidence of the Repulicans who backed the CRA or show clips of Repubs backing Franklin Raines during the '05 and '07 Senate Hearing.
It's not from a very credible website or speaker, but I hope you'll indulge me:
"....But I believe owning something is a part of the American Dream, as well. I believe when somebody owns their own home, they're realizing the American Dream. They can say it's my home, it's nobody else's home. (Applause.) And we saw that yesterday in Atlanta, when we went to the new homes of the new homeowners. And I saw with pride firsthand, the man say, welcome to my home. He didn't say, welcome to government's home; he didn't say, welcome to my neighbor's home; he said, welcome to my home. I own the home, and you're welcome to come in the home, and I appreciate it. (Applause.) He was a proud man. He was proud that he owns the property. And I was proud for him. And I want that pride to extend all throughout our country.

One of the things that we've got to do is to address problems straight on and deal with them in a way that helps us meet goals. And so I want to talk about a couple of goals and -- one goal and a problem.
The goal is, everybody who wants to own a home has got a shot at doing so. The problem is we have what we call a homeownership gap in America. Three-quarters of Anglos own their homes, and yet less than 50 percent of African Americans and Hispanics own homes. That ownership gap signals that something might be wrong in the land of plenty. And we need to do something about it.
We are here in Washington, D.C. to address problems. So I've set this goal for the country. We want 5.5 million more homeowners by 2010 -- million more minority homeowners by 2010. (Applause.) Five-and-a-half million families by 2010 will own a home. That is our goal. It is a realistic goal. But it's going to mean we're going to have to work hard to achieve the goal, all of us. And by all of us, I mean not only the federal government, but the private sector, as well.
And so I want to, one, encourage you to do everything you can to work in a realistic, smart way to get this done. I repeat, we're here for a reason. And part of the reason is to make this dream extend everywhere.
I'm going to do my part by setting the goal, by reminding people of the goal, by heralding the goal, and by calling people into action, both the federal level, state level, local level, and in the private sector. (Applause.)
And so what are the barriers that we can deal with here in Washington? Well, probably the single barrier to first-time homeownership is high down payments. People take a look at the down payment, they say that's too high, I'm not buying. They may have the desire to buy, but they don't have the wherewithal to handle the down payment. We can deal with that. And so I've asked Congress to fully fund an American Dream down payment fund which will help a low-income family to qualify to buy, to buy. (Applause.)

We believe when this fund is fully funded and properly administered, which it will be under the Bush administration, that over 40,000 families a year -- 40,000 families a year -- will be able to realize the dream we want them to be able to realize, and that's owning their own home. (Applause.)

The second barrier to ownership is the lack of affordable housing. There are neighborhoods in America where you just can't find a house that's affordable to purchase, and we need to deal with that problem. The best way to do so, I think, is to set up a single family affordable housing tax credit to the tune of $2.4 billion over the next five years to encourage affordable single family housing in inner-city America. (Applause.)

The third problem is the fact that the rules are too complex. People get discouraged by the fine print on the contracts. They take a look and say, well, I'm not so sure I want to sign this. There's too many words. (Laughter.) There's too many pitfalls. So one of the things that the Secretary is going to do is he's going to simplify the closing documents and all the documents that have to deal with homeownership.
It is essential that we make it easier for people to buy a home, not harder. And in order to do so, we've got to educate folks. Some of us take homeownership for granted, but there are people -- obviously, the home purchase is a significant, significant decision by our fellow Americans. We've got people who have newly arrived to our country, don't know the customs. We've got people in certain neighborhoods that just aren't really sure what it means to buy a home. And it seems like to us that it makes sense to have a outreach program, an education program that explains the whys and wherefores of buying a house, to make it easier for people to not only understand the legal implications and ramifications, but to make it easier to understand how to get a good loan.
There's some people out there that can fall prey to unscrupulous lenders, and we have an obligation to educate and to use our resource base to help people understand how to purchase a home and what -- where the good opportunities might exist for home purchasing.
Finally, we want to make sure the Section 8 homeownership program is fully implemented. This is a program that provides vouchers for first-time home buyers which they can use for down payments and/or mortgage payments. (Applause.)

And so, therefore, I've called -- yesterday, I called upon the private sector to help us and help the home buyers. We need more capital in the private markets for first-time, low-income buyers. And I'm proud to report that Fannie Mae has heard the call and, as I understand, it's about $440 billion over a period of time. They've used their influence to create that much capital available for the type of home buyer we're talking about here. It's in their charter; it now needs to be implemented. Freddie Mac is interested in helping. I appreciate both of those agencies providing the underpinnings of good capital. "
Speaker: George W. Bush
For Immediate Release
Office of the Press Secretary
June 18, 2002

Source: President Reiterates Goal on Homeownership

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Old 10-09-2008   #14
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fico scores, s&p, moody's, credit default swaps, government largesse and short selling.

This amazes me, this is showing up in boater forum. Things must be getting serious.
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Old 10-09-2008   #15
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El Flaco, i've worked on Habitat for Humanity homes before and yes it's a nice feeling to get someone into a house.

Of course Bush jumped on board he's a politician but still the lesser of two evils.
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Old 10-10-2008   #16
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One of the reasons looking back in time for causation is so prevalent right now is simply because no one can look forward with any predictive authority. An economic "readjustment" (to use a benign term) of this magnitude has not occurred in 80 years. The point we're at in history is unique due to technology and economic interdependency.

CRA wouldn't have been too big a deal without deregulation.
Deregulation might not have been a big deal without CRA.
To me, the crossroads of disaster came at Fannie Mae and Freddie Mac.
These government-chartered entities screwed up the Return on Investment figures. To me, it was Fannie & Freddie's risk-taking that started the snowball that is now an avalanche.

Fannie and Freddie took risks knowing full well that the government was implied to be on the hook for losses. Their speculation was paying off in terms of profit that one could see on the balance sheet.

All these other groups have to compete in an open market, which Fannie and Freddie are a part of (but without the open risk the others have). So the other banks tended to buy what FM/FM were buying.

(This is where I think "mark-to-market" was a disadvantage to the general investing public. This was a speculative bubble. Assets on paper were increasing, and instantly being leveraged in the era of cheap borrowing. Now that the speculation is revealed, and prices are plummeting, fund managers are crying for the abolition of mark-to-market. Incidentally, FASB just allowed new accounting policies to mitigate some of the mark-to-market problem we currently have)

The existence of FM/FM is anti-free market. Their time has come and gone. Err, well, it should have, but perhaps when this is all over they'll be needed again.

As for the future, well, who knows? We're all socialists today, no doubt about it.
"self-aggrandizing jackass" - it says it right on the label
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Old 10-10-2008   #17
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Isn't it IRONIC?

George Dubya Bush is America's first MBA president. Isn't it IRONIC that such a "savvy" person should preside over the destruction of America?
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Old 10-10-2008   #18
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the years througout show your graph as bush the entire time. looks like great amount of growth to not have a great dip. looks like he has done more good than bad. thanks for the graph the destruction of americaq isn't due to bush but rather americans that spend more money than they make. the problem is when we have the housing market chrunched due to high mortgage interest rates and the comsumers unable to afford the house. you have a problem. no money coming back into indutry that is already hurting. think about it. did bush buy your house or did you buy the house?

anybody not live in a building that was paid for by a mortgage?
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Old 10-10-2008   #19
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looks like he has done more good than bad.
didnt you say you were starting college soon, please go and learn something.
"Yesterday I was clever and tried to change the world. Today I am wise and try to change myself." -Rumi
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Old 10-10-2008   #20
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Originally Posted by gh View Post
didnt you say you were starting college soon, please go and learn something.
and obviously you dont know anything about the subject because this is all you posted. please explain why bush is the reason please? from what i hear the dems including obama set up the plan w/ congress so that the people that couldn't afford houses could with the balloon payments. so the people that couldn't afford housing could and instead of banks lowering interest rates when the comsumer was unable to payback, the market took the hit.

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