Saw Movie "Big Short" and it missed the mark. Gov't caused the mortgage bubble and bust, not banks

[oletex]

and Wall Street. More specifically Barney Frank shares the biggest share of the blame although he had some help in the early Clinton years with his and their (congress) subsidized housing and affordable housing push. In 1992 he was the prime mover to force Fannie/Freddie to purchase 30% of the loans at or below underwriting standards on income and credit. Then went on a tirade and get no money down approved. By 2000 the mark was moved to 50% and yes it was lead by Frank. It was eventually moved to 55% in 2007 when Bush was in office. Yes Frank who finally woke up to the calamity eventually urged caution after the damage was done and just before the big fall. And it was not just Fannie/Freddie it was the other government backed agencies as well including FHA and such. The ultimate calamity were the no stip loans where stated income, residence and so forth were all the rage. You had these "Mortgage companies" who didn't have a dime in assets renting a strip center office for $400. a month and setting up a phone bank buying billions in home mortgages, packaging a $25M portfolio and selling them off to banks, hedge funds, insurance companies and overseas buyers. The good, the bad and the ugly. So yeah the banks and investors wanted a piece of the government backed pie. But they were the symptoms, not the disease.

 

[dieharddawg62]

and Wall Street. More specifically Barney Frank shares the biggest share of the blame although he had some help in the early Clinton years with his and their (congress) subsidized housing and affordable housing push. In 1992 he was the prime mover to force Fannie/Freddie to purchase 30% of the loans at or below underwriting standards on income and credit. Then went on a tirade and get no money down approved. By 2000 the mark was moved to 50% and yes it was lead by Frank. It was eventually moved to 55% in 2007 when Bush was in office. Yes Frank who finally woke up to the calamity eventually urged caution after the damage was done and just before the big fall. And it was not just Fannie/Freddie it was the other government backed agencies as well including FHA and such. The ultimate calamity were the no stip loans where stated income, residence and so forth were all the rage. You had these "Mortgage companies" who didn't have a dime in assets renting a strip center office for $400. a month and setting up a phone bank buying billions in home mortgages, packaging a $25M portfolio and selling them off to banks, hedge funds, insurance companies and overseas buyers. The good, the bad and the ugly. So yeah the banks and investors wanted a piece of the government backed pie. But they were the symptoms, not the disease.

I agree you, but the banks knew what they were doing and the risks. The big banks knew that as did Hank Paulsen. He said they didn't see it coming. He's a liar.

The truth is that they are all complicit. It was both parties. Billions is dollars was lost and to date no one has gone to jail. They are all in cahoots.

Nothing has changed, it will happen again. This time they might not be able to keep the whole system from on crashing. It's just a matter of time.

 

[HeulenHund2]

Yep, capitalism is MAGIC, let bankers and Wall St commit every shady trick and fraud imaginable, as long as regulations don't hamper them, it will magically turn out right. While We're at it let's stop policing banks altogether, let them use customers' money how it pleases them, hell, if they steal it all the magic Ayne Rand Fairy will balance things out.

Some people are complete dupes.

 

[BonJax]

It all started with Jimmy Carters' Community Reinvestment Act, but really got ramped up under Clinton. If there was one face to put on that whole abortion, it was Barney. W tried to slow it, but backed off when Barney etal pushed back. Shame on W for not pushing harder to stop it.

 

[Boost Assendahm]

LOL! Yeah Republicans had absolutely nothing to do with it. They were all to blame and you good and well know it. Republicans, Democrats, and Wall Street were all equally culpable in that shady shit. The simple fact is there isn't much difference in either party.

Agree. Business/politics as usual in our nation's Capitol needs serious "change." Not hope and platitudes from any professional politicians or their groupie media. We surely need more balance in DC and more legitimate action for and by the people.

 

[HeulenHund2]

Agree. Business/politics as usual in our nation's Capitol needs serious "change." Not hope and platitudes from any professional politicians or their groupie media. We surely need more balance in DC and more legitimate action for and by the people.

Little can be done by Whoever is elected POTUS, It's Congress that is systemically corrupt almost beyond hope. It doesn't matter that ''reformers'' are elected every 2 years, the body has such a mass of corruption through K-St. and Wall St. They might as well joust windmills.

 

[HeulenHund2]

It all started with Jimmy Carters' Community Reinvestment Act, but really got ramped up under Clinton. If there was one face to put on that whole abortion, it was Barney. W tried to slow it, but backed off when Barney etal pushed back. Shame on W for not pushing harder to stop it.

That's quite a neat little fiction.
How about Bush's American Dream Down Payment Act and Republicans' use of it to dismantle almost all accountability in real estate lending ? He also gave Wall St almost free reign by having those charged as overseers lay off enforcement. His famous ''I trust business'' line shows what a fool the man was.

 

[Fivehade]

and Wall Street. More specifically Barney Frank shares the biggest share of the blame although he had some help in the early Clinton years with his and their (congress) subsidized housing and affordable housing push. In 1992 he was the prime mover to force Fannie/Freddie to purchase 30% of the loans at or below underwriting standards on income and credit. Then went on a tirade and get no money down approved. By 2000 the mark was moved to 50% and yes it was lead by Frank. It was eventually moved to 55% in 2007 when Bush was in office. Yes Frank who finally woke up to the calamity eventually urged caution after the damage was done and just before the big fall. And it was not just Fannie/Freddie it was the other government backed agencies as well including FHA and such. The ultimate calamity were the no stip loans where stated income, residence and so forth were all the rage. You had these "Mortgage companies" who didn't have a dime in assets renting a strip center office for $400. a month and setting up a phone bank buying billions in home mortgages, packaging a $25M portfolio and selling them off to banks, hedge funds, insurance companies and overseas buyers. The good, the bad and the ugly. So yeah the banks and investors wanted a piece of the government backed pie. But they were the symptoms, not the disease.

nice bit of propaganda, but without overly leveraged Wall Street derivative trading, that constantly ratcheted up the risk, it couldn't have happened

between them and overly ambitious corporate land and development speculators , it was just a recipe for disaster

one thing I did learn from all of it was to not spend 2 minutes worrying about housing debt, ever again. if I can't make my house note, I'll borrow the equity out and just walk away, just like so many others did.....I used to think that was wrong to do, but now I don't

 

[oletex]

I agree you, but the banks knew what they were doing and the risks. The big banks knew that as did Hank Paulsen. He said they didn't see it coming. He's a liar.

The truth is that they are all complicit. It was both parties. Billions is dollars was lost and to date no one has gone to jail. They are all in cahoots.

Nothing has changed, it will happen again. This time they might not be able to keep the whole system from on crashing. It's just a matter of time.

Something has changed.

Yep, capitalism is MAGIC, let bankers and Wall St commit every shady trick and fraud imaginable, as long as regulations don't hamper them, it will magically turn out right. While We're at it let's stop policing banks altogether, let them use customers' money how it pleases them, hell, if they steal it all the magic Ayne Rand Fairy will balance things out.

Some people are complete dupes.

Yeah they are feathering their own nest and do it crookedly but the problem is your alternative (communism) is worse to the power of 1000. If not for capitalism this would not be the greatest place on earth to live and raise your family and go about as far as your work ethic, enthusiasm and dreams will allow. You are almost assuredly on the teat, such teat courtesy of the USA tax payer who is able to keep themselves and over half the rest (takers) on the teat due to....capitalism. That's why we have to put walls up to keep people out instead of people here like your communist utopias. LOL. South America is getting them a dose of such utopia and the pitchforks are out!

 

[HeulenHund2]

Something has changed.

Yeah they are feathering their own nest and do it crookedly but the problem is your alternative (communism) is worse to the power of 1000. If not for capitalism this would not be the greatest place on earth to live and raise your family and go about as far as your work ethic, enthusiasm and dreams will allow. You are almost assuredly on the teat, such teat courtesy of the USA tax payer who is able to keep themselves and over half the rest (takers) on the teat due to....capitalism. That's why we have to put walls up to keep people out instead of people here like your communist utopias. LOL. South America is getting them a dose of such utopia and the pitchforks are out!

There is a rational middle between unfettered, top worshiping capitalism and communism. In fact this Country has always functioned best when that balance is best struck.
The idea the most aggressive capitalist can be turned loose on an ''honor system'' is just as flawed as the idea people will function well without the motive of personal gain.

 

[dieharddawg62]

Each side has to quit blaming the other, crony capitalism and government out of control is the problem. It's both parties. Corporate and individual give away programs are destroying our country. We are no longer a free market system when government decides who is going to get subsidized or not.

In Georgia, agriculture (landowners) are paid huge amounts of money to plant or not to plant. They are on the teet as well. It's out of control. They justify it by saying the farmers are providing an essential service for life. It's a bunch of bull shat payments for votes.

 

[HeulenHund2]

Each side has to quit blaming the other, crony capitalism and government out of control is the problem. It's both parties. Corporate and individual give away programs are destroying our country. We are no longer a free market system when government decides who is going to get subsidized or not.

In Georgia, agriculture (landowners) are paid huge amounts of money to plant or not to plant. They are on the teet as well. It's out of control. They justify it by saying the farmers are providing an essential service for life. It's a bunch of bull shat payments for votes.

The PC ( computers) revolution saved this Country to this point, but We have given most of Our chips away in the name of international free trade.
That leaves Us without the core of what made Us great, onshore production. We're also not investing in this country, We're taking the route Spain took to backwater status, We stopped investing in Our Nation's future.
We might be squandering the great wealth We still have, but might not have in a generation.

 

[Hoffman_rg]

That's quite a neat little fiction.
How about Bush's American Dream Down Payment Act and Republicans' use of it to dismantle almost all accountability in real estate lending ? He also gave Wall St almost free reign by having those charged as overseers lay off enforcement. His famous ''I trust business'' line shows what a fool the man was.

Each side has to quit blaming the other, crony capitalism and government out of control is the problem. It's both parties. Corporate and individual give away programs are destroying our country. We are no longer a free market system when government decides who is going to get subsidized or not.

In Georgia, agriculture (landowners) are paid huge amounts of money to plant or not to plant. They are on the teet as well. It's out of control. They justify it by saying the farmers are providing an essential service for life. It's a bunch of bull shat payments for votes.

I don't see much here about the role of the GSEs in the mortgage crisis. As of 2008, Fannie Mae and Freddie Mac owned or guaranteed about half of the U.S.'s $12 trillion mortgage market. This made both corporations highly susceptible to the subprime mortgage crisis.Although not the whole story, they do deserve considerable blame for the banking disaster that occurred.

Although originally chartered by the government, the GSEs had morphed into super for-profit monstrosities run by executives whose huge bonuses depended on the price of the company stock. However, the earnings goal turned out to be unachievable without breaking rules and hiding risks.
The execs such as Raines & Johnson earned many millions of bonuses and the GSEs contributed thousands in campaign contributions to both parties.

 

[oletex]

There is a rational middle between unfettered, top worshiping capitalism and communism. In fact this Country has always functioned best when that balance is best struck.
The idea the most aggressive capitalist can be turned loose on an ''honor system'' is just as flawed as the idea people will function well without the motive of personal gain.

You are the only one here espousing any honor system and turning folks loose. Get a grip and stop the liberal big lie. That crap is old and dated, nobody pays any attention to the hyperbole. And it makes an otherwise smart person like yourself seem common and kind of a con man peddling that strawman stuff. You are cagy enough to make a point and keep your dignity.

 

[oletex]

I don't see much here about the role of the GSEs in the mortgage crisis. As of 2008, Fannie Mae and Freddie Mac owned or guaranteed about half of the U.S.'s $12 trillion mortgage market. This made both corporations highly susceptible to the subprime mortgage crisis.Although not the whole story, they do deserve considerable blame for the banking disaster that occurred.

Although originally chartered by the government, the GSEs had morphed into super for-profit monstrosities run by executives whose huge bonuses depended on the price of the company stock. However, the earnings goal turned out to be unachievable without breaking rules and hiding risks.
The execs such as Raines & Johnson earned many millions of bonuses and the GSEs contributed thousands in campaign contributions to both parties.

This Johnson has went off into auto dealerships and is stuffing subprime loans down the throats of bankers as we speak. I do some work for some of his stores.

 

[HeulenHund2]

I don't see much here about the role of the GSEs in the mortgage crisis. As of 2008, Fannie Mae and Freddie Mac owned or guaranteed about half of the U.S.'s $12 trillion mortgage market. This made both corporations highly susceptible to the subprime mortgage crisis.Although not the whole story, they do deserve considerable blame for the banking disaster that occurred.

Although originally chartered by the government, the GSEs had morphed into super for-profit monstrosities run by executives whose huge bonuses depended on the price of the company stock. However, the earnings goal turned out to be unachievable without breaking rules and hiding risks.
The execs such as Raines & Johnson earned many millions of bonuses and the GSEs contributed thousands in campaign contributions to both parties.

Those organizations were a fraction of the problems, and not even close to the biggest portion. These were very sophisticated international cons led by Wall St and London. It wasn't just Real Estate either. This was the biggest financial shell game in world history.

 

[BonJax]

That's quite a neat little fiction.
How about Bush's American Dream Down Payment Act and Republicans' use of it to dismantle almost all accountability in real estate lending ? He also gave Wall St almost free reign by having those charged as overseers lay off enforcement. His famous ''I trust business'' line shows what a fool the man was.

If you think (or continue to espouse) that Barney Frank wasn't at the center of this, you've confirmed what I've thought all along. Which is that you simply make up facts and BS as you go.

 

[dieharddawg62]

This Johnson has went off into auto dealerships and is stuffing subprime loans down the throats of bankers as we speak. I do some work for some of his stores.

I've read that they are doing the same thing with car loans. Idiots...

 

[dieharddawg62]

If you think (or continue to espouse) that Barney Frank wasn't at the center of this, you've confirmed what I've thought all along. Which is that you simply make up facts and BS as you go.

Exactly!

 

[HeulenHund2]

If you think (or continue to espouse) that Barney Frank wasn't at the center of this, you've confirmed what I've thought all along. Which is that you simply make up facts and BS as you go.

Barney Frank was a bit player in this giant international cluster duck.
You say I make up facts, yet everything I've posted is very well known facts.
So I wonder if all You really do is read some far right comic book level site that pretends a mouse ate the forest. It's just plain ridiculous to think Frank had anywhere close to THE role in the financial melt downs of 2007/2008.

 

[Hoffman_rg]

Barney Frank was a bit player in this giant international cluster duck.
You say I make up facts, yet everything I've posted is very well known facts.
So I wonder if all You really do is read some far right comic book level site that pretends a mouse ate the forest. It's just plain ridiculous to think Frank had anywhere close to THE role in the financial melt downs of 2007/2008.

Helulen,
The mortgage giants held 10.5 million nonprime loans worth $1.6 trillion — one in three of all subprime loans, and nearly two in three of all so-called Alt-A loans, often called “liar loans.” Their portfolio yielded eight million foreclosures, or one in six. The two mortgage giants “adopted accounting practices that masked their subprime and Alt-A lending,” Barney Frank and congressional oversight committees ignored this because they were getting campaign contributions and the GSEs were helping meet minority home ownership goals.
http://www.nytimes.com/2008/12/10/business/10fannie.html?_r=0

 

[HeulenHund2]

Helulen,
The mortgage giants held 10.5 million nonprime loans worth $1.6 trillion — one in three of all subprime loans, and nearly two in three of all so-called Alt-A loans, often called “liar loans.” Their portfolio yielded eight million foreclosures, or one in six. The two mortgage giants “adopted accounting practices that masked their subprime and Alt-A lending,” Barney Frank and congressional oversight committees ignored this because they were getting campaign contributions and the GSEs were helping meet minority home ownership goals.
http://www.nytimes.com/2008/12/10/business/10fannie.html?_r=0

Warren Buffet and Paul Volker separately came to the same conclusions, neither mentioned Barney frank.
Their take was the use of derivatives, and other ''shadow finance'' practices used by finance and Wall St types to mask risk for short term profits that led to trillions in bonuses, those houses of cards failed. Nobody went to jail and they all got to keep The riches they made while destroying the world financial market, costing millions their life's savings, homes and American tax payers even bailed them out while they continued with lavish parties and bonuses using that bail out money.
Of course what does Warren Buffet and Paul Volker know compared to those who want to pin the whole thing on Barney Frank ?

 

[Molardawg2]

We have the best govt. money can buy....the whole thing is just a veneer of legitimacy to make the public think they have some say in what goes on in the world when really all they are is debt slaves living in cultural experiment being conducted by the powers that be.

 

[Dawgman94]

Each side has to quit blaming the other, crony capitalism and government out of control is the problem. It's both parties. Corporate and individual give away programs are destroying our country. We are no longer a free market system when government decides who is going to get subsidized or not.

In Georgia, agriculture (landowners) are paid huge amounts of money to plant or not to plant. They are on the teet as well. It's out of control. They justify it by saying the farmers are providing an essential service for life. It's a bunch of bull shat payments for votes.

Land owning in Columbus was very cut throt in the 40's 50's 60's 70's 80's and the 90's my family own two plots of land one was green island we sold the green island one we also had a 1955 belare. . All this before I was born we could have bean billionaires if we were smart but no way a small imsurance company would make it. Bull no way a cow pastor could become a gold course. No way a car can be worth 500,000 grand and upwards .

 

[Hoffman_rg]

Warren Buffet and Paul Volker separately came to the same conclusions, neither mentioned Barney frank.
Their take was the use of derivatives, and other ''shadow finance'' practices used by finance and Wall St types to mask risk for short term profits that led to trillions in bonuses, those houses of cards failed. Nobody went to jail and they all got to keep The riches they made while destroying the world financial market, costing millions their life's savings, homes and American tax payers even bailed them out while they continued with lavish parties and bonuses using that bail out money.
Of course what does Warren Buffet and Paul Volker know compared to those who want to pin the whole thing on Barney Frank ?

Frank is an arrogant pompous know it all. He was head of the House Financial Services Committee which was responsible for regulating the GSEs. He refused to see the housing bubble, wanted more deregulation of the banks so they could make more subprime loans to minorities. He derided publically anyone who warned there was a housing bubble developing..

Derivatives are not a shadowy financial practice and the large banks continue to use this investment technique. http://www.zerohedge.com/news/2014-...more-40-trillion-dollars-exposure-derivatives

 

[BonJax]

Warren Buffet and Paul Volker separately came to the same conclusions, neither mentioned Barney frank.
Their take was the use of derivatives, and other ''shadow finance'' practices used by finance and Wall St types to mask risk for short term profits that led to trillions in bonuses, those houses of cards failed. Nobody went to jail and they all got to keep The riches they made while destroying the world financial market, costing millions their life's savings, homes and American tax payers even bailed them out while they continued with lavish parties and bonuses using that bail out money.
Of course what does Warren Buffet and Paul Volker know compared to those who want to pin the whole thing on Barney Frank ?

You love you some Barney, don't you?

 

[Dawgman94]

You love you some Barney, don't you?

Don't forget she is not liberal

 

[HeulenHund2]

Frank is an arrogant pompous know it all. He was head of the House Financial Services Committee which was responsible for regulating the GSEs. He refused to see the housing bubble, wanted more deregulation of the banks so they could make more subprime loans to minorities. He derided publically anyone who warned there was a housing bubble developing..

View embedded media

Derivatives are not a shadowy financial practice and the large banks continue to use this investment technique. http://www.zerohedge.com/news/2014-...more-40-trillion-dollars-exposure-derivatives

I'm not defending Frank, but He wasn't a key figure in the huge financial bubble from 2006/2008.
As for derivatives, come on. The misuse and shady overuse was a big a factor in the house of cards bursting as anything.
Yes, derivatives are still being misused, and it's still a problem.

 

[Dawgman94]

I'm not defending Frank, but He wasn't a key figure in the huge financial bubble from 2006/2008.
As for derivatives, come on. The misuse and shady overuse was a big a factor in the house of cards bursting as anything.
Yes, derivatives are still being misused, and it's still a problem.

He sounds like silvester the cat

 

[HeulenHund2]

He sounds like silvester the cat

Me no get it.

 

[Dawgman94]

Me no get it.

 

[dieharddawg62]

Frank is an arrogant pompous know it all. He was head of the House Financial Services Committee which was responsible for regulating the GSEs. He refused to see the housing bubble, wanted more deregulation of the banks so they could make more subprime loans to minorities. He derided publically anyone who warned there was a housing bubble developing..

View embedded media

Derivatives are not a shadowy financial practice and the large banks continue to use this investment technique. http://www.zerohedge.com/news/2014-...more-40-trillion-dollars-exposure-derivatives

What freakin idiot?