Republican Position - Minorities Caused the Financial Crisis

[firespin]

My mistake, building peaked in April of 06.

Right about the time the price bubble burst.

But they still had massive inventories of unsold homes at that same time.

I dunno about "massive", but you get the captain obvious award for noting that when people couldn't buy houses at the high prices anymore, inventories did increase, the prices started to come down, and builders slowed their building plans.

 

[tmleadr03]

You means banks were still loaning money to builders. You think developers wait to build homes until they are ordered by customers?

And everyone knew the economy was heading south. It has been stagnant for 8 years.

http://investintaiwan.nat.gov.tw/en/env/stats/gdp_growth.html


Interesting that we had a growth going on for the last 8 years even including 2001.

 

[Odd_ball]

I dunno about "massive", but you get the captain obvious award for noting that when people couldn't buy houses at the high prices anymore, inventories did increase, the prices started to come down, and builders slowed their building plans.

I already posted this:

Which is kind of ironic, you would think lower prices would mean more potential buyers.

 

[firespin]

Haha..same here...he's right it was April of 2006 when they finally started slowing down on new construction.

Which is kind of ironic, you would think lower prices would mean more potential buyers.

Speculators were causing part of the buildup. They were only interested in buying houses when the prices were appreciating, and there was excess demand....possibly fueled by speculators. (See also petroleum prices mid 2008)

 

[kevintn]

http://investintaiwan.nat.gov.tw/en/env/stats/gdp_growth.html


Interesting that we had a growth going on for the last 8 years even including 2001.

Invalid link for me.

 

[Odd_ball]

http://investintaiwan.nat.gov.tw/en/env/stats/gdp_growth.html


Interesting that we had a growth going on for the last 8 years even including 2001.

Interesting that we actually have negative GDP growth if you factor in inflation:

August of this year inflation was at 5.37%.

According to your Taiwan government site, GDP growth was at it's highest in the past 8 years in 2004 with 3.91%.

That chart is sobering, look at other countries with GDP rates in the 10s. (China)

 

[tmleadr03]

Invalid link for me.

Well nuts, it opened right up a second time for me. Let me find another source.

It would be GDP growth rates since 1979. Last 16 years are positive, including the year we got attacked and the year Katrina hammered us.

 

[Odd_ball]

Speculators were causing part of the buildup. They were only interested in buying houses when the prices were appreciating, and there was excess demand....possibly fueled by speculators. (See also petroleum prices mid 2008)

I can agree with that. But no one here can really say the banks screamed :

"No No NO! Please Congress, DO NOT relax our lending regulations!" lol

They had a glut of unsellable new homes, so they started giving them out like candy at a parade. (I'm guessing using ARMs as a compromise).

 

[tmleadr03]

Interesting that we actually have negative GDP growth if you factor in inflation:

August of this year inflation was at 5.37%.

According to your Taiwan government site, GDP growth was at it's highest in the past 8 years in 2004 with 3.91%.

That chart is sobering, look at other countries with GDP rates in the 10s. (China)

It all depends on how you calculate the inflation though doesnt it?

 

[Odd_ball]

Well nuts, it opened right up a second time for me. Let me find another source.

It would be GDP growth rates since 1979. Last 16 years are positive, including the year we got attacked and the year Katrina hammered us.

It worked for me. It's actually scary. China has GDP growth in the double digits. Some years more than 12%!

 

[kevintn]

Well nuts, it opened right up a second time for me. Let me find another source.

It would be GDP growth rates since 1979. Last 16 years are positive, including the year we got attacked and the year Katrina hammered us.

"Address not found" using FF.

 

[firespin]

I can agree with that. But no one here can really say the banks screamed :

"No No NO! Please Congress, DO NOT relax our lending regulations!" lol

They had a glut of unsellable new homes, so they started giving them out like candy at a parade. (I'm guessing using ARMs as a compromise).

An unsellable glut would be associated with price declines, like we have now. What did housing prices do from 2002 through 2006?

The candy giveaway actually increased the building, not vice versa.

 

[tmleadr03]

It worked for me. It's actually scary. China has GDP growth in the double digits. Some years more than 12%!

Indeed, started happening when they made their market a bit more "free". Maybe we should take a que from them...

 

[tmleadr03]

"Address not found" using FF.

Still looking for another decent chart.

 

[tmleadr03]

It worked for me. It's actually scary. China has GDP growth in the double digits. Some years more than 12%!

Check this out for a wonderful eye opener. I dont know half the countries in the top 10 and my global geography isnt really that bad. We are number 179.

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(real)_growth_rate

I would like to point out that Georgia is in the top 10 by developing a very free market economy. They shot up in the last few years due to that.

 

[Karen Kraft]

As I have said in other threads - it was the packaging of mortgage backed securities and CDS's that caused the financial crisis. That article does not address either of these issues.

The desire to link this all to Fannie/Freddie and the CSR - is simply not accurate.

Moreover, as my post indicated - the real thing that pushed this was an ideology of complete deregulation. I think even your article demonstrates that my thesis is correct.

Yeah, there were some snarkish crap-stories -- not here, but on other boards, where people were claiming that the black caucus was the cause of all this. Typical election-time bullshit.

Plenty of blame to go around.

 

[Cap’n AMatrixca]

No lavy, Barack Obama and ACORN causeed the financial crises with their antithetical thesis to trickle down, that being trickle up.





If you give poor people your stuff, then everyone gets richer and happier.

http://forum.literotica.com/showthread.php?t=613119

Bill Clinton got the ball rolling, but it took another young hot-shot lawyer to talk Congress into opening the floodgate and that young, shrewd, deep-thinking community organizer was one Barack Hussein Obama, and his close friend Pritzker was one of the first people to lose her bank following this disciple of Saul David Alinsky...

It took real criminal action on the part of the Democrats to keep the scam going so long, but when oil spiked, they could no longer play hide the Ponzi.

 

[Cap’n AMatrixca]

I dunno about "massive", but you get the captain obvious award for noting that when people couldn't buy houses at the high prices anymore, inventories did increase, the prices started to come down, and builders slowed their building plans.

He forgot to predict that durable good would take a hit too...





Deregualtion, lavy cracks me up. What the hell can she possibly know about business, other than the links her bloggers feed her so she can act real smart and stuff, just like Obama did before Congress when he argued on behalf of ACORN and Pritzker...

Has anyone seen the results on the neighborhoods Barack "lifted up" with his novel new approach to wealth formulation?
They look like Lebanon during the civil war.

 

[Cap’n AMatrixca]

I can agree with that. But no one here can really say the banks screamed :

"No No NO! Please Congress, DO NOT relax our lending regulations!" lol

They had a glut of unsellable new homes, so they started giving them out like candy at a parade. (I'm guessing using ARMs as a compromise).

Yeah, the feds wanted loans made, so they did everything they could. When the law was there, and money was there, the activists then went to work on the local bank, and the local bank, having been given the Freddie and Fannie FOR THE PURPOSE of taking on the bad paper decided to simply make the bad loans and make Barack and ACORN go away.

He was in the same business as Al Sharpton and Jesse Jackson (and Rev'rund Wright) but he was clean and articulate, he learned to look like one of us and substitute the word Middle-Class for Bourgeois as per Alinsky...

So, if you and lavy want to hold your breaths and scream deregulation, then fine. Do it. DEREGULATION!

DEREGULATION!
BUSH!

(but Barack's WITH Bush)

A_J FUCKING LIES! McSAME is WITH BUSH! IT WAS DEREGULATION DAMMNIT! IT WAS BUSH!

BUSH!!

BUSH!!!

 

[MeeMie]

http://www.youtube.com/watch?v=aGbwUrZ9eDk

 

[Odd_ball]

Yeah, the feds wanted loans made, so they did everything they could. When the law was there, and money was there, the activists then went to work on the local bank, and the local bank, having been given the Freddie and Fannie FOR THE PURPOSE of taking on the bad paper decided to simply make the bad loans and make Barack and ACORN go away.

He was in the same business as Al Sharpton and Jesse Jackson (and Rev'rund Wright) but he was clean and articulate, he learned to look like one of us and substitute the word Middle-Class for Bourgeois as per Alinsky...

So, if you and lavy want to hold your breaths and scream deregulation, then fine. Do it. DEREGULATION!

DEREGULATION!
BUSH!

(but Barack's WITH Bush)

A_J FUCKING LIES! McSAME is WITH BUSH! IT WAS DEREGULATION DAMMNIT! IT WAS BUSH!

BUSH!!

BUSH!!!

I have posted a list of 20 things that have caused and are causing the current economic correction.

The real estate market is only one of 20 factors.

But keep screaming 'ACORN! SUB PRIME!!!", to try and divert all attention fom the other 20 factors. The WARS being a huge one.

 

[Karen Kraft]

People wonder why many "elitists" thing the Republicans are a tad bit racist, even if not explicitly so.

You must have read that someplace.

Is that some wiki cut-and-paste, or what?

 

[Ishmael]

People wonder why many "elitists" thing the Republicans are a tad bit racist, even if not explicitly so.

Nice twist Lavy. Inductive logic at it's very best.

Not one thinking individual that I know is blaming any minority. The blame lies squarely on the shoulders of congress who passed some very misguided legislation.

The goal of the legislation was to encourage 'minority' house ownership, not a bad idea in and of itself. But it also encouraged wreckless behavior. And minorities weren't the only ones that took advantage of the situation. Pile on top of that the implied garuntee of the loans by Freddie and Fannie and you had a recipe for disaster. You had wreckless lenders concocting convoluted terms and conditions while not doing due diligence on the applicants, who in many cases were guilty of fraud themselves, knowingly or not. The underwiting of 125's for the crowd that just had to have that PWC now, so why not mortgage the family shack at 125% of value? And when the bottom fell out of the market, which anyone with a lick of sense knew it would, why, just toss the keys on the floor and walk away.

The fact of the matter is that over 92% of all the mortgages out there are perfectly good, sub-prime or not. The problem is that the sub-primes were bundled with perfectly good prime mortagages and now no one knows which portfolios are shit and which aren't. So nobody wants to touch any of them.

But the root cause was government law and policy that encouraged the writing of high risk loans via a carrot (Freddie-Fanie) and stick (CRA) approach. High risk is high risk and forcing the financial markets to engage in that sort of behavior while implying that their ass was covered was not a very prudent policy in the long run. If the government wanted to underwrite high risk mortgages they should have just done so with a dedicated 'on budget' fund so that taxpayers could at least see what the governments true exposure was.

It's an old saw, but invariably true, "The road to hell is paved with good intentions."

Ishmael

 

[miles]

People wonder why many "elitists" thing the Republicans are a tad bit racist, even if not explicitly so.

If an issue doesn't exist, make one up. Got any more red herrings?

http://www.letsgetitright.org/blog/red%20herring.gif

 

[Janlou]

Ridiculous

This "racism" charge is hurled by Democrats all over the place.

California, Arizona, Nevada and Florida, 4 states with 21 percent of the population have over half the forclosures.

VIN SUPRYNOWICZ wrote a good column on this the other day. His observation is just fact:

The Democrats in Washington enacted the Community Redevelopment Act under Jimmy Carter in 1977, and then put the whole deal on steroids under Bill Clinton in 1995.

Federal regulators refused to approve perfectly prudent bank mergers unless everyone participating cranked up their racial quota ratings by making "enough" bad loans to inner city minority folk, even if they had to let them use their welfare and unemployment checks to "qualify" for a mortgage.

This worked great when it came to buying Democratic votes. In the long run it didn't work out so well for the banks.