primitives discuss Barney Franks

[franksolich]

http://www.democraticunderground.org/discuss/duboard.php?az=view_all&address=389x5919058

Oh my.

twitomy (176 posts)      Wed Jun-24-09 10:14 PM
Original message
 
Frank wants to LOOSEN housing regulations!

(Reuters) - Two U.S. Democratic lawmakers want Fannie Mae and Freddie Mac to relax recently tightened standards for mortgages on new condominiums, saying they could threaten the viability of some developments and slow the housing-market recovery, the Wall Street Journal said.

<http://www.reuters.com/article/GCA-Housing/idUSTRE55L39... >

WTF...It was de-regulation that contributed to these mess, and this clown wants to repeat it...

Uh, the primitive's a newbie, and probably doesn't know it's not a good idea to call the flatulent congressman from Boston a "clown."  The gay primitives might get all upset and bent out of shape.

sandnsea  (1000+ posts)      Wed Jun-24-09 10:17 PM
Response to Original message
 
1. No it wasn't

It was shoving people into no-interest teaser loans in order to use those loans as collateral to gamble.

If we've got regulation on the kinds of loans written and limiting profit, then these loans will be just as good as they were for the 30 years before the Bushies deregulated them because the big banks couldn't compete with the cushy deal Fannie & Freddie got.

Taverner  (1000+ posts)        Wed Jun-24-09 10:21 PM
Response to Reply #1
 
4. Yes it was - how do you think de-regulation killed the economy?

sandnsea  (1000+ posts)      Wed Jun-24-09 10:27 PM
Response to Reply #4
 
5. I'll repeat

It was shoving people into no-interest teaser loans in order to use those loans as collateral to gamble.

It was the bursting of that gambling bubble, the derivatives, that killed the economy; not some poor people with $100,000 mortgages.

DJ13 (1000+ posts)      Wed Jun-24-09 10:18 PM
Response to Original message
 
2. The condo market is nearing a collapse

DURHAM D (1000+ posts)      Wed Jun-24-09 11:03 PM
Response to Reply #2
 
6. what does that mean? 
 
Oh I get it - for 30-40 years condos have been a good living situation for many but in the past year they have become absolute poison.

Wrong.

DJ13 (1000+ posts)      Wed Jun-24-09 11:28 PM
Response to Reply #6
 
7. No, the MARKET for condos (new & existing) is near a collapse

The lenders arent loaning under the renewed regulations.

The condo market has declined by 60% (verses 20-30% for houses) in the last year.

4lbs (1000+ posts)      Wed Jun-24-09 10:18 PM
Response to Original message

3. It wasn't deregulation of Fannie Mae and Freddie Mac that caused it.

It was the deregulation of the entire banking industry, that allowed banks to evolve and grow to become large multi-service financial conglomerates, that built the house of cards, and caused it to come crashing down about a decade later.

So.....this is the Impeached One's fault, right?

twitomy (176 posts)      Thu Jun-25-09 08:38 AM
Response to Reply #3

8. Yes--Deregulation

We need more regulation across the board, not less...

If the condo market,"collapses", so be it. Maybe then more people can afford them.

Sometimes in the economy you have to let nature take its course. Propping up bubbles only kicks it down the road into a bigger mess..

Interestingly, this is what franksolich thinks, too.

Perhaps it would have been better to have no "stimulus plan" costing a trillion dollars and more, at all, and let the economy correct itself.

Sometimes the very best course of action is to do.....nothing.

[USA4ME]

sandnsea
 
1. No it wasn't

You can say that all day long, but it won't make it true.  You see, your having convinced yourself of a lie has no bearing on those of us in the industry who know the truth.  I know this upsets you, you'd prefer we ignore what really happened and believe the way you would have us to believe, but the world doesn't work that way.  Better luck next life.

sandnsea

... then these loans will be just as good as they were for the 30 years before the Bushies deregulated them because the big banks couldn't compete with the cushy deal Fannie & Freddie got.

People's exhibit #1 to demonstrate this dolt doesn't know what she's talking about.  The "big banks" loaned money based upon Fannie and Freddie regulations so that Fannie and Freddie would purchase them.  Very, very few banks portfilio any of their own loans, they almost always turn around and sell them.  And just because you continue to send your mortgage payment to BofA or Chase doesn't mean they still have your loan.  Many banks retaining the servicing of loans they no longer own.

Grow up, primitive.

.

[NHSparky]

Add to this it was the Community Reinvestment Act, passed under Carter, and expanded under Clinton, which basically COMPELLED the banks to make loans which they wouldn't have otherwise made to high-risk applicants.  Better to pay off people who MIGHT pay back their loans than throw their money down a hole defending themselves from ACORN and government (and now, what's the difference?) lawsuits which wrongly claimed that minorities and low-income applicants were being unfairly denied loans...(gee, ya think?)

[SSG Snuggle Bunny]

sandnsea  (1000+ posts)      Wed Jun-24-09 10:27 PM
Response to Reply #4
 
5. I'll repeat

It was shoving people into no-interest teaser loans in order to use those loans as collateral to gamble...

It was weird.

There I was walking down the street when suddenly this pack of bankers tackled me and made to sign a no-interest loan note.

And then Elvis came down in his UFO and probed me and made me carry Bigfoot's baby.

Gawd, I hate Tuesdays.

[NHSparky]

No-interest loans?  No documentation?

Where the hell do I sign up?

[DumbAss Tanker]

It was weird.

There I was walking down the street when suddenly this pack of bankers tackled me and made to sign a no-interest loan note.

And then Elvis came down in his UFO and probed me and made me carry Bigfoot's baby.

Gawd, I hate Tuesdays.

You too?!?

 

[Wineslob]

No-interest loans?  No documentation?

Where the hell do I sign up?

Southern Arizona.

[Karin]

Bunny, you forgot to mention that they jumped out of the shrubbery! 

That Twitomy, I don't think he belongs there.   

[JohnnyReb]

Grow up, primitive.

.

I don't care how many foodstamps you give'em, that ain't gonna happen....out maybe but not up.

[miskie]

"no-interest teaser loan" ?

Lets assume for a moment this is 100% true.. (which it isn't.. but Ill play along) let me ask you, sandnsea - What kind of 'moran' signs something like this without reading it first ? I don't know about other states, but I have never known it was possible to buy a house without an attorney present, who will describe each page of the sales contract and mortgage agreement in easy-to-understand words, if the legalese is too difficult to read..

This whole 'these poor people were duped by the evil megaconglomerates and none of it is the consumers fault' is a ridiculous notion.

Here it is in plain English.

The Community Reinvestment Act pushed banks to make higher risk loans, else face all sorts of penalties.
Fannie & Freddie basically said, 'make the loans, we will back them'
Banks made loans to high risk clients, since they were covered by Fannie and Freddie
Other consumers and investors, looking at the rapid increase in property values, and the ease to get a loan, started to gamble on 'flipping' properties.
The bad loans were spread throughout the entire financial system, often as mortgage backed securities.
Fannie & Freddie then said, 'You know what, we really can't back these loans. Sorry'
Values plummeted, creating 'toxic assets' (paper thats worth more than market value - a guaranteed loss to investors)
Human sacrifice. Dogs and cats living together... mass hysteria.

There is plenty of blame to go around, but it all begins with the Community Reinvestment Act. And that Is Carter's baby.

[Reality vs DU]

There is plenty of blame to go around, but it all begins with the Community Reinvestment Act. And that Is Carter's baby.

That baby was then adopted and raised by Billy Boy, and has grown up to become a huge loser