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Author Topic: How the Democrats Created the Financial Crisis: Kevin Hassett (MUST read)  (Read 2127 times)

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Offline Wretched Excess

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How the Democrats Created the Financial Crisis: Kevin Hassett (MUST read)
« on: September 22, 2008, 03:05:35 PM »

This should be REQUIRED READING for everyone that considers themselves to be "informed" on the financial crisis.

Quote
How the Democrats Created the Financial Crisis: Kevin Hassett

 Sept. 22 (Bloomberg) -- The financial crisis of the past year has provided a number of surprising twists and turns, and from Bear Stearns Cos. to American International Group Inc., ambiguity has been a big part of the story.

Why did Bear Stearns fail, and how does that relate to AIG? It all seems so complex.

But really, it isn't. Enough cards on this table have been turned over that the story is now clear. The economic history books will describe this episode in simple and understandable terms: Fannie Mae and Freddie Mac exploded, and many bystanders were injured in the blast, some fatally.

Fannie and Freddie did this by becoming a key enabler of the mortgage crisis. They fueled Wall Street's efforts to securitize subprime loans by becoming the primary customer of all AAA-rated subprime-mortgage pools. In addition, they held an enormous portfolio of mortgages themselves.

In the times that Fannie and Freddie couldn't make the market, they became the market. Over the years, it added up to an enormous obligation. As of last June, Fannie alone owned or guaranteed more than $388 billion in high-risk mortgage investments. Their large presence created an environment within which even mortgage-backed securities assembled by others could find a ready home.

Much More
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Offline DixieBelle

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Re: How the Democrats Created the Financial Crisis: Kevin Hassett (MUST read)
« Reply #1 on: September 22, 2008, 03:16:49 PM »
Excellent!! Must read indeed.
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Offline Hawkgirl

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Re: How the Democrats Created the Financial Crisis: Kevin Hassett (MUST read)
« Reply #2 on: September 22, 2008, 04:01:50 PM »
I'm forwarding this to the moonbats.
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Offline Thor

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Re: How the Democrats Created the Financial Crisis: Kevin Hassett (MUST read)
« Reply #3 on: September 23, 2008, 01:22:59 PM »
Too bad that the Dems & Libtards are in such a state of denial that they can't see what is truly going on.
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Offline Ptarmigan

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Re: How the Democrats Created the Financial Crisis: Kevin Hassett (MUST read)
« Reply #4 on: September 23, 2008, 10:11:34 PM »
This whole financial crisis was brewing the late 1990s, which is an economy boom based on Dot-Coms that crashed. The Feds under Greenspan kept lower interest rates to keep inflation at bay.
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Offline Lauri

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Re: How the Democrats Created the Financial Crisis: Kevin Hassett (MUST read)
« Reply #5 on: September 23, 2008, 11:23:58 PM »
Greenspan needs to be up there explaining his rate cuts again... i think he is somewhat culpible in this little fiasco.  :whatever:
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Offline Ptarmigan

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Re: How the Democrats Created the Financial Crisis: Kevin Hassett (MUST read)
« Reply #6 on: September 23, 2008, 11:47:46 PM »
Quote from: Lauri on September 23, 2008, 11:23:58 PM
Greenspan needs to be up there explaining his rate cuts again... I think he is really culpible in this huge fiasco.  :whatever:

*FIXED*
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Offline Lauri

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Re: How the Democrats Created the Financial Crisis: Kevin Hassett (MUST read)
« Reply #7 on: September 24, 2008, 01:23:59 PM »
Quote from: Ptarmigan on September 23, 2008, 10:11:34 PM
This whole financial crisis was brewing the late 1990s, which is an economy boom based on Dot-Coms that crashed. The Feds under Greenspan kept lower interest rates to keep inflation at bay.

at this point, with the likely truth-ism that 96% of mortgage holders are paying them just fine, i am curious as to where all this money is going.

i begrudgingly agree we have to bail them out. its like a parent/child thing; we know they should take the financial hit, but in the long run, theyve possibly learned the lesson and you wont have to do it again.

but this is Congress we're taking about.  :thatsright:
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Offline Peter3_1

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Re: How the Democrats Created the Financial Crisis: Kevin Hassett (MUST read)
« Reply #8 on: September 24, 2008, 10:51:33 PM »
Barney Frank was also opposed to the new , proper accounting requirements. Further  in 2005, raising public demand for the change would hav e been impossible. NOW, the time has come to pay the piper. And we don't want to.
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Offline Wretched Excess

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Re: How the Democrats Created the Financial Crisis: Kevin Hassett (MUST read)
« Reply #9 on: September 24, 2008, 10:59:12 PM »
Quote from: Peter3_1 on September 24, 2008, 10:51:33 PM
Barney Frank was also opposed to the new , proper accounting requirements. Further  in 2005, raising public demand for the change would hav e been impossible. NOW, the time has come to pay the piper. And we don't want to.

tonight fox news ran a video of him in 2006 during a hearing on additional mae and mac regulations;  he was adamantly opposed, denied that there was a problem or would be a problem, and said that the additional regulations would hurt fair housing efforts.

I am paraphrasing from imprecise memory, but basically, there was an effort to tighten up on questionable loan practices that he was beating back.

the video had him nailed dead to rights on this thing.
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Offline Peter3_1

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Re: How the Democrats Created the Financial Crisis: Kevin Hassett (MUST read)
« Reply #10 on: September 25, 2008, 02:44:35 PM »
Indeed, it is true. Frank is one of the more destructive Congressmen in office today. A social liberal par exellance, who has no problem with YOU and I paying the bill. He needs to go, but he's Congressman for Life FRANK, and I've  got the equally bad Senator for Life Schumer.
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