Interesting Video re: Democrats & the current crisis

[Veritas]

This is pretty interesting. Most of this is pretty well documented. These issues are what I expected McCain to hammer BHO on last night, but BHO did a good job of keeping the Iraq red herring flopping around.

The last few minutes gets a little foamy mouthed.

H5tZc8oH--o

[CK Sooner]

Interesting...

Spek, yo.

[Penguin]

I believe everything that I see on YouTube and Wikipedia.

[CK Sooner]

I believe everything that I see on YouTube and Wikipedia.

http://www.youtube.com/watch?v=gSpKWzJIs4Y&feature=related

[badger]

In honor of gameday, from Seattle:
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[Veritas]

The 1.20.09 people carck me up. As if everything just get fixed when Bush leaves office. Idiots.

[badger]

The 1.20.09 people carck me up. As if everything just get fixed when Bush leaves office. Idiots.

Yea, I saw that booth there in that store and I thought, "Wait a sec... why is there only Dem stuff here?"

And then I thought... well, hippies have no money, so perhaps all the educated Republicans bought up the righty stuff :D

(but no, seriously, it was all liberal. There was absolutely NOTHING on that table pro-McCain)

[badger]

Edit: whoops

[JohnnyMack]

:rolleyes:

The Raines link is a weak one and you know it. McCain enlisted a former lobbyist (Culvahouse) for Fannie Mae as part of his VP vetting committee (although they clearly didn't do much! :))

How much did the boards (not the regular employees) of Fannie & Freddie contribute to McCain's campaign?

More than 20 McCain advisors worked as lobbyists for either Freddie or Fannie.

Rick Davis.

Also the RNC won't release it's numbers until Oct. 15th on how much money they were given and from who.

I think all of the above contribute to why McCain doesn't want to engage Obama on this.

Also, I almost negged you for the link that included John Mayer doing a cover of a Tom Petty song.

[Vaevictis]

http://www.fdic.gov/regulations/laws/rules/6500-2515.html


SEC. 804. (a) IN GENERAL.--In connection with its examination of a financial institution, the appropriate Federal financial supervisory agency shall--
(1) assess the institution's record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of such institution; and
(2) take such record into account in its evaluation of an application for a deposit facility by such institution.

Just sayin'.

[Vaevictis]

With respect to Freddie and Fannie, however, this is important:

http://news.yahoo.com/s/ibd/20080924/bs_ibd_ibd/20080924general01;_ylt=A0geu1a91tpIjIcA8wCspph4How


Other rule changes gave Fannie and Freddie extraordinary leverage, allowing them to hold just 2.5% of capital to back their investments, vs. 10% for banks.

That's insanity.

[Vaevictis]

http://www.house.gov/apps/list/hearing/financialsvcs_dem/barr021308.pdf


More than half of subprime loans were made by independent mortgage companies not subject to comprehensive federal supervision; another 30 percent of such originations were made by affiliates of banks or thrifts, which are not subject to routine examination or supervision, and the remaining 20 percent were made by banks and thrifts.

[Vaevictis]

http://www.frbsf.org/news/speeches/2008/0331.html


Before I turn to potential interventions, I want to make one final point. There has been a tendency to conflate the current problems in the subprime market with CRA-motivated lending, or with lending to low-income families in general. I believe it is very important to make a distinction between the two. Most of the loans made by depository institutions examined under the CRA have not been higher-priced loans, and studies have shown that the CRA has increased the volume of responsible lending to low- and moderate-income households. We should not view the current foreclosure trends as justification to abandon the goal of expanding access to credit among low-income households, since access to credit, and the subsequent ability to buy a home, remains one of the most important mechanisms we have to help low-income families build wealth over the long term.

[JohnnyMack]

I'm not a believer that the low-income home owners are the problem here. I think the banks perverted this system because the laws weren't tight enough in the first place. But everyone was making money so, WHEEE!!!! who cared? This goes back to banks and wall street being greedy and bundling these loans as good sound investments and the govt. not doing enough to regulate it.

[Veritas]

I'm not a believer that the low-income home owners are the problem here.
Explain, please, how the people who agreed to loans are not responsible for their decisions.

[yermom]

Explain, please, how the people who agreed to loans are not responsible for their decisions.

i don't think it's the low income people that are the ones buying the bubble houses and defaulting on them. i could be wrong though

my impression is more of the investment type buyer expecting to just pay interest and flip the house in couple of years

[JohnnyMack]

Explain, please, how the people who agreed to loans are not responsible for their decisions.

Have you been to Las Vegas or Florida or Arizona lately?

[Penguin]

my impression is more of the investment type buyer expecting to just pay interest and flip the house in couple of years


Yeah, I agree. You hear about people who made a $50,000 profit in 2 months because they slapped some paint on the walls and threw in some cheap Home Depot cabinets. There's even a show called "Flip This House." I'm sure every moron that couldn't really afford a house but was blinded by greed thought they could "flip" a house for thousands of dollars without having to make a single mortgage payment.


I hate to say it, but those people who wind up defaulting, well, they pretty much deserve it.

[JohnnyMack]

Explain, please, how the people who agreed to loans are not responsible for their decisions.

And I do think they're responsible, but they're not the primary reason congress had to cough up the cash.