New study confirms economy was destroyed by Democrat policies
A new study
from the widely respected National Bureau of Economic Research released
this week has confirmed beyond question that the left's race-baiting
attacks on the housing market (the Community Reinvestment Act--enacted
under Carter, made shockingly more aggressive under Clinton) is
directly responsible for imploding the housing market and destroying the
economy.
The study painstakingly sorted through failed home loans that caused the housing market collapse and identified an overwhelming connection between them and CRA mortgages.
Again, let's review:
-President Bush went to Congress repeatedly for years warning them that Fannie Mae and Freddie Mac were going to destroy the economy (17 times in 2008 alone). Democrats continuously ignored him, shut down his proposals along party lines and continued raiding the institutions for campaign contributions on their way down.
-John McCain also co-sponsored urgently critical reforms that would have prevented the housing market collapse, but Democrats shut that down as well, along party lines, and even openly ridiculed anyone who suggested reforms were necessary...to protect their taxpayer-funded campaign contributions as the economy raced uncontrollably toward the cliff.
-No one was making bad loans to unqualified people until Democrats came along and threatened to drag banks into court and have them fined and branded as racists if they didn't go along with the left's Affirmative Action lending policies...all while federally insuring their losses. Even the New York Times warned in the late 1990s that Democrats continuing to force banks into lowering their standards would lead to this exact catastrophe.
-Obama himself is even on the record personally helping sue one lender (Citibank) into lowering its lending standards to include people from extremely poor and unstable areas, which even one of the left's favorite blatantly partisan "fact-checkers," Snopes, admits (while pretending to 'set the record straight').
-Even The New York Times admitted that there is "little evidence" of any connection between the "Republican" deregulation measures Obama blames, like the Gramm-Bleach-Liley Act (signed into law by a Democrat), and the collapse of the housing market.
But non-Fox media have spent years deliberately and relentlessly inoculating people against the facts, training them to mindlessly blame Bush for being in charge when Democrat policies destroyed the economy. So here we sit, to this day, still watching Obama excuse and shrug off endless economic failures, illegal government takeovers and utter national bankruptcy with zero accountability. (end of article)
Who wants to start with the comments? I'm looking forward to reading your comments:
z
The study painstakingly sorted through failed home loans that caused the housing market collapse and identified an overwhelming connection between them and CRA mortgages.
Again, let's review:
-President Bush went to Congress repeatedly for years warning them that Fannie Mae and Freddie Mac were going to destroy the economy (17 times in 2008 alone). Democrats continuously ignored him, shut down his proposals along party lines and continued raiding the institutions for campaign contributions on their way down.
-John McCain also co-sponsored urgently critical reforms that would have prevented the housing market collapse, but Democrats shut that down as well, along party lines, and even openly ridiculed anyone who suggested reforms were necessary...to protect their taxpayer-funded campaign contributions as the economy raced uncontrollably toward the cliff.
-No one was making bad loans to unqualified people until Democrats came along and threatened to drag banks into court and have them fined and branded as racists if they didn't go along with the left's Affirmative Action lending policies...all while federally insuring their losses. Even the New York Times warned in the late 1990s that Democrats continuing to force banks into lowering their standards would lead to this exact catastrophe.
-Obama himself is even on the record personally helping sue one lender (Citibank) into lowering its lending standards to include people from extremely poor and unstable areas, which even one of the left's favorite blatantly partisan "fact-checkers," Snopes, admits (while pretending to 'set the record straight').
-Even The New York Times admitted that there is "little evidence" of any connection between the "Republican" deregulation measures Obama blames, like the Gramm-Bleach-Liley Act (signed into law by a Democrat), and the collapse of the housing market.
But non-Fox media have spent years deliberately and relentlessly inoculating people against the facts, training them to mindlessly blame Bush for being in charge when Democrat policies destroyed the economy. So here we sit, to this day, still watching Obama excuse and shrug off endless economic failures, illegal government takeovers and utter national bankruptcy with zero accountability. (end of article)
Who wants to start with the comments? I'm looking forward to reading your comments:
z
42 comments:
Any moment now, Ducky will be along to refute this study by claiming NBER is a GOP shill, of course Paul Krugman is a member of the organization, so that won’t work. Nothing ever does with Ducky. Meanwhile, no lessons learned in Washington: Obama wants to see more loans being made to people who can’t afford homes even now when the interest rates are next to nothing. Maybe we could solve the economic crisis if we simply rid ourselves completely of every progressive …
Z,
Today's Post pretty much says it all and anything more, that I can come up with, would be redundant. In my lifetime [every] scheme that the DemocRATS have concocted has been a disaster from the Great Society on! Of course, DemocRATS will always find ways to transfer blame for their utter lack of economic responsibility to others and Bush was a handy scapegoat in this case. I won't be a bit surprised to see this reenforced as further commentary develops today.
ADDENDUM:
ObamaCare is likley to be the next bomb!
But, this morning, job numbers are up, unemployment down.
I wish they'd show how much of that is government jobs.
Mustang, that Obama wants to do that is typically stupid; if this congress goes along, it shows something so much even worse than that ....
He's also got ads in MX touting welfare in the States....unbelievable.
Nothing has changed. FHA is currently being filled to the brim with risky subprime loans. The problem of government interference in the housing sector is NOT getting any better.
Excellent post, Z.
The fact that the half of the country that voted for Obama twice cannot handle the truth means nothing will happen and we will continue going down the toilet.
"But, this morning, job numbers are up, unemployment down.
I wish they'd show how much of that is government jobs."
Yes and I'd like to see, exactly, how such statistics were developed. In particular the inclusion or exclusion of those who are no longer counted as part of the Labor Force. One of the most important things I learned, while enduring the study of Statistics, was that it is quite possible for: figures to lie and liars to figure! Color me very skeptical of anything coming from this Administration!
Yes, yes, yes, of course, but meanwhile the DJIA continues to SOAR like a rocket. Why?
Real estate is still lagging far behind and may never reach pre-Depression II levels again in my life time or yours, but all-in-all things are going pretty well for those of us fortunate enough to have some money.
The reasons for that escape me, but I plan to enjoy it while it lasts, and be thankful things aren't a whole lot worse -- yet.
Would it make impoverished conservatives happy if the economy were to collapse totally on Obama's Watch just so we could say, "I told you so!" as we started our descent from the window ledge of a tall building, or trudged off to the poorhouse carrying nothing but the clothes on our back?
Unproductive economies don't "just collapse". The malaise simply lingers... and things begin to "decay"...perpetually.
Ayn Rand was right about one thing. The government will attempt to KILL anyone who might seek to "cure" the economic patient... as ALL parties are REQUIRED to "SYSTEMICALLY" shrug "productive" activities and behaviours.
The rich are "evil", dontcha know?
ps - the DJIA is the "mirage" that keeps the sucker-victims in the game of belief that the "system" is NOT gamed. In reality, you've gotta "play/(pay DC)" to WIN!
...It's the POWERBALL/LOTTO Jackpot illusion that it's still "possible" to win.
Let's see, a four month old editorial quoting 50 words out of any context from a "new" but undated article that is not otherwise referenced constitutes "proof" of the cause of the failure of the world financial system.
Powerful article and look at the fringe right wing flock to it.
"To satisfy CRA examiners, "flexible" lending by large banks rose an average 5% and those loans defaulted about 15% more often, the 43-page study found."
I would have asked what constitutes "large" banks, what percentage of their loans were non CRA "flexible lending" and what the total default costs were.
Note that the excerpt above is not a direct quote from the study.
Then there is the single line at the end concerning a "wave of speculation". Hmmm, wonder what that was about.
I'd also like some proof for the statement that Countrywide was regulated by HUD. Absolutely the pure stinky cheese.
Another interesting quote "The strongest link between CRA lending and defaults took place in the runup to the crisis — 2004 to 2006 — when banks rapidly sold CRA mortgages for securitization by Fannie Mae and Freddie Mac and Wall Street." I like the "and Wall St.". In fact the brightest bulbs in the room were all making bets that housing prices would not drop. Fannie and Freddie as publicly traded companies were loosing share and couldn't deliver on Raines' promise to double the stock price.
All a big greed fest and without a doubt Clintoon was up to his ears in this crap along with his crack economic team led by Robert Rubin. These piles of human filth tanked the world economy selling trillions upon trillions of bad paper because they made a few loans in poor communities and couldn't capitalize the defaults.
Please, bore me later. Let me know when you buy a vowel.
See? Didn't I tell you?
Outstanding analysis, Mustang.
Your critical skills are really intimidating.
Don’t be silly, Cosmo. A third grader would intimidate you.
A banker who is allowed to borrow money at X and loan it out at X plus Y will just go crazy and do too much of it if we don't have rules that prevent it.
Greenspan kept the lending easy and the money spigot ON.
Nobody forced these guys to do anything they did not want to do.
I don't need a study to now that leftist and statist policies ruin an economy. I just have to look around to figure it out. The FrogBurger family is looking for a house here in LA and statist policies trying to save the banks' asses and the asses of people who can't pay their mortgage make it really hard for people with decent savings and paychecks to buy a house. It's pretty irritating. Again it's not just the left. It's all those statist policies. So that includes some of the ones by Bush. But obviously the left is even worse.
I am really getting to the point now where I utterly despise the elite. The elite is statist because it's a way to protect their power and for some their assets. Maybe it's where I could be considered some left anarchists but at the end of the day it really feels that way. I look at all those CA rich liberals who say they are for the people. But they can afford big houses and don't mind all the regulations on housing and the environment impacting housing prices for the middle class. On the contrary they love it. It guarantees the hefty price of their assets.
This is why I loathe gov as tool of the elite to maintain their power.
Meanwhle, back at the New York Stock Exchange:
Dow Jones Industrial Average
- May 3 4:40pm ET
14973.96+142.38 (0.96%)
It topped 15K for a while earlier today, but settled at this still a very high all-time record.
Since it is The Only Game in Town -- as queer and illusory as it may seem, given the real figures on unemployment, which have not improved one IOTA under BHO, because so many millions have GIVEN UP looking for work, and THAT is NOT reflected in the always-deceptive, self-serving STATISTICS -- I'm going to stick with it. My money may be steadily decreasing in purchasing power, but having it under ANY circumstances sure beats the alternative.
I've already reserved the penthouse at the Ritz Tower to jump out of, if and when The Day of Darkest Doom arrives. ;-)
Meanwhile, I shall go on singing till the cows come home.
CHEERIO!
Your last post is absolutely SPO IN, Froggie.
The Left-Right paradigm is no longer relevant. It's The Oligarchs v. The People now, and has been for a much longer time than most of us even begin to realize.
Like it or not, we're headed for ONE WORLD GOVERNMENT run by THEM, of course.
The very thought makes my blood run cold. But like sheep we will be led peacefully to the slaughter never suspecting what's really in store for us.
"KNOWING" is NO HELP at ALL.
Z,
The only bastards making out in this economy are the big banks. That's why the stock market is spiking.
My friend who owns a restaurant is struggling with Obamacare as he tries to decide whether to lay off his employees or shorten their hours. These are employees that have been with him from the beginning.
When I taught DARE he made numerous donations to my program. He has long sponsored baseball and softball teams for kids and there were many other times he donated to the community.
This economy is BS and small business people are getting killed by it.
These bastards have their roots in the Progressive Era during which the 16th an 17th Amendments passed along with the most insidious government action ever, the Federal Reserve Act.
Progressive.
Stock markets are spiking because the government is printing money and buying up bad debt. Unless you happen to be a gnome like liberal man, a reasonable person will conclude that Obama Care isn’t the only train wreck heading in our direction. Now is NOT the time to invest in real estate.
@L&O:
"his economy is BS and small business people are getting killed by it."
Meanwhile Frank is back to full time poofing and Dodd is living high off his pension and lobbying scams.
Why can't these two POS be imprisoned and tried for murder?
When I taught DARE he made numerous donations to my program. He has long sponsored baseball and softball teams for kids and there were many other times he donated to the community.
----
But health insurance for his employees isn't a way to donate to the community.
FrogBurger, what do you suggest other than 'government'?
And, re Bush, he was far from perfect, but on the housing issue I'm tired of people forgetting how he warned of the situation we're in now.
And now Obama's repeating it..man
I suggest a gov that is extremely limited with term limits. And I'm not against randomly drawing citizens like the Greeks would do.
@Ducky:
"But health insurance for his employees isn't a way to donate to the community."
No..it isn't. His business is not running a charitable institution...he needs to make profits in order to donate anything to a community. Since "OCare" has seen costs for individuals rise over 40% since we now have to pay for the non contributors...he needs to make a BUSINESS decision..not a SOCIALIST's WET DREAM for the uninspired and those who can't work/ won't work / will never contribute to...the "Community". But I'm happy as hell for guys like you who don't mind at all to support them.
Most if us choose not to...or decide to be charitable when we have enough left over.
The local community college is letting adjunct professors go because of Obamacare...apparently they can't afford them. About 90% of the professors are adjunct and apparently about 40% of those will be gone.
@Elmers Bro:
" About 90% of the professors are adjunct and apparently about 40% of those will be gone."
Holy Shit...praise be to God....the dispshit in Cheef...never realized the consequences of his "historical" FU...did he?
For once the socialist community disorganizer...accomplished something POSITIVE...the elimination of 40% of the POS socialists from poisoning more young minds...and maybe saving these naive asswipes from getting a BS in Bullshit degrees like English lit which are totally useless in today's world. Moms and Dads all over who are footing this 400K useless "education" ought to be begging Obullcrap for 4 more years!!
By then...he'll have single handedly eliminated asshole "professors" like Ayers and Dohrn from ever teaching anarchy again...as they lose tenure.
I'm going to convert to Obama-butt-ism tomorrow.
@Libdipstick:
"1500 for the first time-ever"
It went that low? Better pull your $100 bucks outa there clown.
Libman, get an economics class. Even French people on French TV know the workforce participation in the US is at its lowest and talk about it.
Stock market is inflated by the Fed.
Get a few books on the economy instead of being a drone.
Robert gets it completely. My question is: what in the #e!! should I invest in? I certainly don't see a clear path of any sort. This Nation has all of the capacity for greatness that it ever did. The only problem is that, in its greatness, it somehow created Liberalism; an insidious,parasitic disease. The manifestation is clear, B.O. elected twice and nearly 50% paying no Federal Income Tax but sucking from others, "Big Time"! Anyone who supports this is worse than a COCK ROACH! At least the cock roach wasn't taught to be the way it is in PUBLIC EDUCATION!!!!!
Why do we put up with this? Why do we put up with us taxpayers paying Michelle Obama to fly around like she's holding a political office? Are there any limits to the O'Trauma's expenses? Can we invoke "sequester" on HER spending?
This is DISGUSTING! Our "dear leaders Bracak and Mochelle" will applaud when a gay person announces their sexuality to the world...but remain silent when someone who doesn't agree with hyper-Liberal policies does something that doesn't help the Obama's meaningless, mediocre presidency.
Smart investors back WINNERS, even if they think the "winners" may not be people they'd like to invite over for dinner or consider as prospective husbands for their daughters.
Business is Business.
Morality is Something Else Altogether.
The two are like oil and water. They don't mix.
Jews understand and abide by this obvious truth better than anyone else on the planet, and that may very well be a large part of the enormous success they've long enjoyed dominating The Money Game.
I'm happy to say my assets have been well-protected and managed by a Jewish firm in New York for many years. In light of recent circumstances highly inimical to profit making their performance has been spectacularly successful in protecting my interests.
Now why would that be?
Because MY interests are wedded to THEIR interests. The better my portfolio performs, the more money my money managers make. It's a great incentive to do well.
I bless these competent individuals in my prayers every day, and thank God for their business acumen.
We never have -- and never will -- live in an ideal world, ERGO the only sensible thing to do is deal with REALITY, and stop blaming forces beyond out control for our misfortune -- and above all -- stop building castles in the air.
Lol, 'new study.' On the day jobs are up and the Stock Market hit a record. Obama sure sucks at this 'socialist' thing, lol!
Ducky,
His contributions to the community are made when he can afford them and aren't nearly what it's going to cost him to pay for this new drain on his bottom line. Wise up.
Ducky,
His contributions to the community are made when he can afford them and aren't nearly what it's going to cost him to pay for this new drain on his bottom line. Wise up.
So, how do you explain unemployment and the lowest rate in 4 years and a record setting day on wall street? You're the one needing 'wising up.'
Lib,
As I said above, this economy favors the big banks and large companies. I believe, those would be your avowed enemy? That's why the stock market is thriving.
They are investing money because of an artificially low interest rate imposed by our friends in Fed. They are the best friend of big business. The stock market has never been an accurate measure of the economy.
As for your sacred unemployment rate, that reflects those actively involved in a job search. Many have dropped out and stopped looking.
Also, how about the minority unemployment rate? An unemployment rate of over seven per cent? That's good? Well done by your big government hero.
Again I say, wise up.
And yet, despite the GOP blocking jobs bill with an record number of filibusters, jobs continue to growth and there has been economic growth each month. The GOP would rather see the middle class crumble than see a success for Obama.
FB,
"Get a few books on the economy instead of being a drone."
PROBLEM:
The assumption that this dolt can read!
how do you explain unemployment and the lowest rate in 4 years and a record setting day on wall street
Pretty easy idiot:
- Decreasing workforce participation i.e. people leaving the workforce
- People stopping getting unemployment checks or going on disability
Even French people on TV mention that. It's not like we're crazy.
Really read more books, if you can read English.
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