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 Post subject: Interesting
PostPosted: Mon Sep 29, 2008 1:53 pm 
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Location: Bradford
Is this right?

View full article here

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 Post subject: Re: Interesting
PostPosted: Mon Sep 29, 2008 3:26 pm 

Joined: Tue Jun 12, 2007 5:03 pm
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Re the Community Reinvestment Act: This ties in with Helen’s post (This Might Explain Some Things). I was about to post this on a separate thread as I couldn't wee any way of commenting on Helen's post.

As well as the links shown there, see some of the excellent articles at the Ludwig von Mises web site http://mises.org/ including “The CRA Scam and its Defenders http://mises.org/story/2963

Yes, that’s what happens when governments mess with markets.


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 Post subject: Re: Interesting
PostPosted: Mon Sep 29, 2008 3:50 pm 

Joined: Mon Dec 18, 2006 3:09 pm
Posts: 429
Yes it is. But normal people think its Bush, though Fox News has started to cover it, hopefully with more effort after the bill is signed of course. I would think that McCain did not mention it in his debate because he wanted the Paulson bill signed, but when it has, then the gloves will come off big time.

A very good blog:

http://biglizards.net/blog/index.html

Go down to "Democrats Try to Hijack the So-Called 'Bailout' " and then work upwards.


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 Post subject: Re: Interesting
PostPosted: Mon Sep 29, 2008 4:49 pm 
This is EXACTLY what has happened.

Treasury and the Executive Branch have been raising this issue for 5 years. Iraq and the "need" for campaign financing by the Legislative Branch have running this under the table. No coverage by the Mass media and certainly no coverage in the Business/Finance media.

For another "insight" - see YouTube video - http://www.youtube.com/watch?v=_MGT_cSi7R

First time poster here.. Don't know if I can HTML code here..


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 Post subject: Re: Interesting
PostPosted: Mon Sep 29, 2008 4:54 pm 
Interesting, that link works from an email that I have sent, but not here...

Search YouTube for - Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis


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 Post subject: Re: Interesting
PostPosted: Mon Sep 29, 2008 5:00 pm 

Joined: Mon Aug 01, 2005 8:47 pm
Posts: 4434
Yes it's all true and one tatty bit that wasn't mentioned, was that one of Barney Fwank old boyfreinds, who he referred to as his "spouse" at one point, before they "divorced".........was a senior manager at Fannie Mae.

However had the banks not made themselves so vulnerable in the OTC derivatives mkt, due to their insane bonus driven culture, they might well have ridden out the Sub-Prime mess, albeit with reduced profits, rather than going belly up, at the first hiccup.

Also bare in mind that the many of these institutions, have not only gorged on OTC Derivatives, but have broken rule number one of banking, by borrowing short, to lend long....That's what has killed Bradford & Bingley and Northern Crock and over here the FSA should never have allowed that to happen.....

There are three guilty parties, the Politicians, the regulators and the banks and they all screwed up big time.


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 Post subject: Re: Interesting
PostPosted: Mon Sep 29, 2008 5:20 pm 
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Posts: 138
There was an interesting article in my local paper a couple of weeks ago about a guy who, a couple of years ago was denied a $13,000 loan to buy a car because he was not creditworthy. That same guy was able to get a $300,000 loans to buy a house a week later.

My personal opinion? I think this process was set up by the Left to bust the economy, allowing them to step in and take control. You need a "crisis" to intervene in markets in a big way. They got one.

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 Post subject: Re: Interesting
PostPosted: Mon Sep 29, 2008 5:34 pm 
FU (Fed Up) wrote:
but have broken rule number one of banking, by borrowing short, to lend long....That's what has killed Bradford & Bingley and Northern Crock and over here the FSA should never have allowed that to happen.....
There are three guilty parties, the Politicians, the regulators and the banks and they all screwed up big time.


Oh, nonsense. Borrowing short and lending long is what banks always do, because they have no business otherwise. How else should they issue 30-year mortgages ? By match funding with 30-year deposits ? Sorry, not practical.


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 Post subject: Re: Interesting
PostPosted: Mon Sep 29, 2008 5:46 pm 

Joined: Thu Oct 18, 2007 5:02 pm
Posts: 52
Location: sunderland,Tyne and Wear
Well Obama has made his point clearly that this is the result of eight years Republican rule.It seems like he will get away with this accusation as noone seems to have queried this yet...unless this video and others like it make a difference,if it gets the publicity ,it will sink him.

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 Post subject: Re: Interesting
PostPosted: Mon Sep 29, 2008 6:45 pm 
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That would mean that there is no creditworthiness check and there are no different different interest rates for different customers based on their creditworthiness. Really? I find that quite hard to believe.

Quote:
Neither the CRA nor its implementing regulation gives specific criteria for rating the performance of depository institutions. Rather, the law indicates that the evaluation process should accommodate an institution's individual circumstances. Nor does the law require institutions to make high-risk loans that jeopardize their safety. To the contrary, the law makes it clear that an institution's CRA activities should be undertaken in a safe and sound manner.


http://www.federalreserve.gov/dcca/cra/

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 Post subject: Re: Interesting
PostPosted: Mon Sep 29, 2008 6:58 pm 
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That website was updated on 10 July 2008. I wonder what it said before!

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 Post subject: Re: Interesting
PostPosted: Mon Sep 29, 2008 7:03 pm 

Joined: Mon Aug 01, 2005 8:47 pm
Posts: 4434
HarryR

All you need to know, as to why borrowing short to lend long, is a financial suicide note

I hope you aren't a banker.


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 Post subject: Re: Interesting
PostPosted: Mon Sep 29, 2008 8:14 pm 

Joined: Fri Feb 23, 2007 9:49 am
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Stan J Liebowitz http://www.utdallas.edu/~liebowit/ professor of Economics in the Business School at the University of Texas at Dallas has addressed this topic.
http://www.nypost.com/seven/02052008/po ... htm?page=0 “The Real Scandal”

“...the mortgage crisis is that it is a direct result of an intentional loosening of underwriting standards - done in the name of ending discrimination, despite warnings that it could lead to wide-scale defaults. ... In the 1980s ... activists [claimed] ... that banks discriminated against minorities in mortgage lending. In 1989, sympathetic members of Congress got the Home Mortgage Disclosure Act amended to force banks to collect racial data on mortgage applicants; this allowed various studies to be ginned up that seemed to validate the original accusation. ... the Boston Fed [stated] "discrimination may be observed when a lender's underwriting policies contain arbitrary or outdated criteria that effectively disqualify many urban or lower-income minority applicants." ... Some of these "outdated" criteria included the size of the mortgage payment relative to income, credit history, savings history and income verification. Instead, the Boston Fed ruled that participation in a credit-counseling program should be taken as evidence of an applicant's ability to manage debt. ...”

An early paper of his on this topic is http://www.utdallas.edu/~liebowit/mortg ... tgages.pdf “Mortgage Discrimination in Boston: Where's the Bias?”

His latest paper is downloadable at http://papers.ssrn.com/sol3/papers.cfm? ... id=1211822 “Anatomy of a Train Wreck: Causes of the Mortgage Meltdown” “... Why did the mortgage market melt-down so badly? Why were there so many defaults when the economy was not particularly weak? Why were the securities based upon these mortgages not considered anywhere as risky as they actually turned out to be? It is the thesis of this paper that, in an attempt to increase homeownership, particularly by minorities and the less affluent, an attack on underwriting standards was undertaken by virtually every branch of the government since the early 1990s. The decline in mortgage underwriting standards was universally praised as an 'innovation' in mortgage lending by regulators, academic specialists, GSEs, and housing activists. This weakening of underwriting standards succeeded in increasing home ownership and also the price of housing, helping to lead to a housing price bubble. The bubble increased the number of housing speculators with estimates indicating that one quarter of all home sales were speculative sales prior to the bubble bursting. The recent rise in foreclosures is not related to the subprime/prime distinction since both markets had similar size increases in foreclosures that occurred at exactly the same time. Instead, the adjustable-rate/fixed-rate distinction is the key to understanding the rise in foreclosures. This is consistent with speculators turning and running when housing prices stopped rising. It is not consistent with the nasty-subprime-lender hypothesis currently considered to be the cause of the mortgage meltdown. ...”

The Boston Fed. Boston Fed - Equal Opportunity Lending manual can be found at http://www.bos.frb.org/commdev/commaff/closingt.pdf

Why did so many banks lend to so many with a real potential for default?

Laurence Auster’s article, http://amnation.com/vfr/#008719 dramatically entitled “Racial socialism and the subprime mortgage crisis” links to an at least superficially informative article by Thomas DiLorenzo http://www.lewrockwell.com/dilorenzo/dilorenzo125.html “The Government-Created Subprime Mortgage Meltdown”

Steve sailer has also addressed this http://isteve.blogspot.com/2008/09/dive ... nking.html

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 Post subject: Re: Interesting
PostPosted: Mon Sep 29, 2008 9:02 pm 
"This video is no longer available due to a copyright claim by Warner Music Group"

Damn.


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 Post subject: Re: Interesting
PostPosted: Mon Sep 29, 2008 10:01 pm 
I just managed to grab the flash file from another copy of the vidoe on Youtube.

Anyone know where I can upload it?


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