All Forums > General Discussion > Non-Sports > Obama: Worst President Ever?
11/7/2013 12:56 PM
Posted by MikeT23 on 11/7/2013 12:46:00 PM (view original):
Posted by moy23 on 11/7/2013 12:43:00 PM (view original):
The economy crashed because of 'greed'. The fed, the banks, and those that signed for mortgages they could not afford are all equally guilty. Arguing over which party is at fault here is pointless.
I wasn't really blaming anyone.   Just pointing out that Clinton opened some doors to bad loans that had been locked shut. 
You're pointing out something incorrect.

Almost all subprime loans were made by companies not subject to CRA regulation. The law didn't unlock anything.

 
11/7/2013 12:56 PM
Posted by MikeT23 on 11/7/2013 12:35:00 PM (view original):
Will you ever admit that the Democratic party has any fault in any thing?  
All the time. I've criticized Obama on multiple occasions.
11/7/2013 1:04 PM
Posted by bad_luck on 11/7/2013 12:56:00 PM (view original):
Posted by MikeT23 on 11/7/2013 12:46:00 PM (view original):
Posted by moy23 on 11/7/2013 12:43:00 PM (view original):
The economy crashed because of 'greed'. The fed, the banks, and those that signed for mortgages they could not afford are all equally guilty. Arguing over which party is at fault here is pointless.
I wasn't really blaming anyone.   Just pointing out that Clinton opened some doors to bad loans that had been locked shut. 
You're pointing out something incorrect.

Almost all subprime loans were made by companies not subject to CRA regulation. The law didn't unlock anything.

 
Yet, if you bother to read anything about Clinton/CRA, you'll see that it was revised because it was too burdensome and detailed to produce actual results.    That would lead one to believe the process was streamlined and, because the approval process was less "strenuous", loans that were declined would now be improved.

I'm not going to continue arguing this with you because you're a liberal parrot.    But I will recommend you read up on it and stop using "almost all" because you think that exonerates you from committing to anything(much like any good liberal).
11/7/2013 1:07 PM
FWIW, pre-Clinton, I could not get a loan or credit card.   I'm not complaining about the policy changes made back then, they definitely benefitted me individually, but to pretend they didn't open the doors to bad loans is to have your head stuck in liberal sand.
11/7/2013 1:14 PM
11/7/2013 1:20 PM
Posted by tecwrg on 11/7/2013 1:14:00 PM (view original):
Appropriate for anyone arguing that the CRA caused the subprime mortgage crisis.

 
11/7/2013 1:37 PM
Actually, it's appropriate for anybody who wants to deny that changes in regulations overseen and endorsed by the Clinton Administration did not start setting up the dominos that toppled in 2007/2008. 

I guess in the land of rainbows and unicorns that you live in, things are just as you say they are.
11/7/2013 1:38 PM
From the Minneapolis Federal Reserve study:

The first point is a matter of timing. The current crisis is rooted in the poor performance of mortgage loans made between 2005 and 2007. If the CRA did indeed spur the recent expansion of the subprime mortgage market and subsequent turmoil, it would be reasonable to assume that some change in the enforcement regime in 2004 or 2005 triggered a relaxation of underwriting standards by CRA-covered lenders for loans originated in the past few years. However, the CRA rules and enforcement process have not changed substantively since 1995.2/ This fact weakens the potential link between the CRA and the current mortgage crisis.

Our second point is a matter of the originating entity. When considering the potential role of the CRA in the current mortgage crisis, it is important to account for the originating party. In particular, independent nonbank lenders, such as mortgage and finance companies and credit unions, originate a substantial share of subprime mortgages, but they are not subject to CRA regulation and, hence, are not directly influenced by CRA obligations.


 
11/7/2013 1:39 PM
The Minneapolis fed's conclusion:

Two basic points emerge from our analysis of the available data. First, only a small portion of subprime mortgage originations is related to the CRA. Second, CRA-related loans appear to perform comparably to other types of subprime loans. Taken together, the available evidence seems to run counter to the contention that the CRA contributed in any substantive way to the current mortgage crisis.

 
11/7/2013 1:40 PM
Posted by tecwrg on 11/7/2013 1:38:00 PM (view original):
Actually, it's appropriate for anybody who wants to deny that changes in regulations overseen and endorsed by the Clinton Administration did not start setting up the dominos that toppled in 2007/2008. 

I guess in the land of rainbows and unicorns that you live in, things are just as you say they are.
See above. What was it you were saying about unicorns?
11/7/2013 1:40 PM
11/7/2013 1:53 PM
One can find all kinds of things on the internet.   http://news.investors.com/ibd-editorials-perspective/122012-637924-faults-community-reinvestment-act-cra-mortgage-defaults.htm



Democrats and the media insist the Community Reinvestment Act, the anti-redlining law beefed up by President Clinton, had nothing to do with the subprime mortgage crisis and recession.

But a new study by the respected National Bureau of Economic Research finds, "Yes, it did. We find that adherence to that act led to riskier lending by banks."




 
11/7/2013 1:56 PM
That was fun.
11/7/2013 2:03 PM

Be nice and you can post in this thread.    But no comment on the study that PROVES the Clinton/CRa was partly responsible for the recession?

11/7/2013 2:10 PM
I guess you can't figure out how to be civil or have no idea how to respond when your premise is wrong.     Either way, you STFU so that's a win for everyone.
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