He think the “economic crises” was due to not enough regulation. I think started and was magnified by too much regulation. Am I wrong? I know this does not relate directly to LGF or Jihadist. Have a great holiday season no matter what you celebrate.
Tags: Economy, regulation
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I agree with you, Avid. Over regulation. Lowering the criteria to increase minority homeownership changed the whole dynamic of mortgage lending. They called it “subprime” and with the higher debt to income ratios, and the lower credit criteria and 100% loans the banks “had” to charge higher interest on those loans because they were taking a greater risk with them.
Higher interest rates put them in homes with payments that were harder to make and when they start to fall behind on their mortgage this is the first thing you hear:
“PREDATORY LENDERS!”
“Predatory lenders”
I think that is a bit one-sided, the people who signed the loan documents also have a responsibility not to be stupid and not to expect a tax payer bailout when they are that stupid.
It does not take a genius to figure out that on a $40,000 income you can not afford a $650,000 home with monthly payments of $3,000. Now home prices where shooting up so fast a lot of people panicked thinking they would never find affordable housing so they knowingly took that plunge and for a lot of them the gamble did not payoff.
And I think it begs the question, why would lenders be so careless with their own future?
What caused Country Wide to make so many questionable loans that they go belly up?
Was it just greed or is there more to it.
Another issue is the Offshoring of good paying jobs to India and other countries. This made wages stagnante and Americans sued creidt to compensate.
*used I meant.
Rodan I agree but I think that has alot to do with over regulation and tax breaks to hire else where. Do you not agree?
Rodan
In my opinion with regard to wages stagnating, I am not sure but that may depend on what industry you are employed in or even just the company you work for, some are more generous then others. Real-estate agents and most everyone else in the housing industry made lots of bank during the housing boom even though most are out of work or making zero at the present time.
I have been both an employee and now self employed for the last two years, so I understand what it is like waiting for that raise that never comes or is not enough, but then the flip side is, I have not raised my rates in two years, but then the housing industry is not in great shape so I can not bring myself to charge more per hour, I would rather just work more or add a few more hours into my proposals. And the other flip side to that, this was one crappy Christmas money wise, it is customary for my clients to pay 30 days after they get my billing. I am still trying to get billing paid for September of this year.
Wow that turned into a rant more than anything else.
Bar, the lenders had to make the loans if the people qualified. With lower criteria, more people qualified. If they didn’t make the loans, they were discriminating against lower income minorities.
(and personal responsibility doesn’t seem to play into it at all). :-/
There’s lots of blame to go around, from FNMA and Freddie Mac, who loosened criteria so much that conventional lenders and portfolio lenders had to loosen just to stay competitive, to brokers who faked income of their customers, to borrowers who knew they couldn’t afford payments, to government officials who turned a blind eye to the whole thing. When the market started to turn (and make no mistake, it began to turn in 2005, not 2007 as reported by the media), lenders, used to the cash cow that new loan originations had become, pushed the envelope with borrowers and pushed for higher values on the properties being secured by the loans, all the while, the Fed pushed up interest rates and ordinary people, who could afford loans previously, were being squeezed out.
Not to mention, California real estate was ludicrously overvalued. I saw 500 square foot bungalows being valued at over $600K. People working at the lower end of the income spectrum simply cannot afford that, and when owners couldn’t sell because of the declining market, and they couldn’t make the payment, they walked away.
Avid,
Corporate Conservatism has failed. Bush lowered taxes and it did nothing but led to an economy where wages stagnated.
This is why Republicans don’t win anymore. The GOP is too busy licking the boots of Corporations. We need to neutralize the Dems with a Populist economic message and create policies that benefit the Middle Class. Because of Cultural and foriegn policy the GOP can beat the Dems. We need a new economic message, till then the Democrats will keep winning because of Economic issues.
Rodan do you still agree that we need to kill the Jihadis? Over regulation keeps the wages down. I think I do not agree with you economically Rodan. It is funny that CJ thinks we are the same person. I am more of a Mark Levin guy. But as long as you are against the Jihadis then I am still with you. But conservatism IMHO has never failed. I do not understand this “corporate” you keep on throwing around. I agree that there is an Islamic leftist alliance but IMHO you sound like a leftist.
Avid,
The Corporatists are in cahoots with the Jihadists as well. GE supports Iran, AIG has a Sharia law board and various other Corporations has ties to the Saudis and Dubai. The Corporatists by keeping wages low have enabled the Dhimmicrats to come into power this enabled the Jihad.
As fror me being a Lefty, after the failed economic policies of the last 8 years I don’t believe in Coporate Conservatism. I don’t believe in Marxism either. I want an economic policy that allows Companies to make money but those benefits should go to workers too. It shouldn’t go to CEO’s who ship our jobs overseas. I want a Patriotic economic policy.
Rodan,
Read the comment you left before. I think you sound like a Lefty. I think you listened to too much Micheal Savage. Try Levin. BTW I agree with this. “GE supports Iran, AIG has a Sharia law board and various other Corporations has ties to the Saudis and Dubai. The Corporatists by keeping wages low have enabled the Dhimmicrats to come into power this enabled the Jihad.”
I think too many regulations allowed this to happen. But as long as you are against Jihadis you are against the real enemy IMHO.
you can Listen to Levin’s old show for free here http://www.marklevinshow.com/audio/
Avid,
Becareful remeber you and I are the same person! LOL!
/ sarc!
LOL Rodan. I wish I was in Florida now. It is way too cold here. Where is that global warming all the leftist where talking about? I sure could use some of that.
Avid,
You nptice AL Gore only appears in the Summer when it’s hot? When it gets Cold he disappaears?
No I have not noticed that. I think Al Gore is still doing his thing I think he gets more press for it in the Summer. But I did notice how they changed the words from “Global Warming” to “Climate Change”. I think South Park did a great job defrauding Al Gore and his man-bear-pig a metaphor for “Global Warming” IMHO.
LOL I just read this http://www.washingtonpost.com/wp-dyn/content/article/2008/12/24/AR2008122402174.html It seems Al Gore is catching on to the fact that most people are not buying his lies. He does not want to loose his investments in “Carbon Credits” so he is now telling the MSM that is is now happening quicker then he thought. LOL The fake science of “Global Warming” hysteria is amusing to me.
I wonder how many Americans sold their SUV’s that they were already upside down in just because gas prices hit over $4 a gallon and the MSM kept quoting “experts” that claimed gas would be $10 buy now.
I have neighbors that owned 2 newer SUV’s this past summer, the minute gas hit 4 bucks the SUV’s became cars and ironically now that gas is around 2 bucks they just purchased 2 new SUV’s. I could be a coincidental, but I kinda doubt it.
I wonder if all the folks that dumped their SUV’s ever took a little time to run the simple math out to see the true cost difference.
I think most as in 99% are penny wise and pound foolish, but then I could be wrong.
I would buy a new SUV, a couch, and clothes, if the new ones where really good. I am sorry but I think the style of new stuff is okay but it is just not comfortable. I think that is what is wrong with the economy there is nothing new that is good. The market that I am is booming but the new stuff sucks IMHO.
Here is a good read : H/T to Patterico.com
http://directorblue.blogspot.com/2008/12/charts-tragic-results-of-community.html
And now thanks to Obama, most of these same people are now back in power, Clinton 2, because we all know this current mess is the fault of Bush and the republicans.
I cant fucking believe how much shit democrats getaway with thanks to the MSM and others.
bar:
I cant fucking believe how much shit democrats getaway with thanks to the MSM and others.
The only way we are gonna change anything in the MSM is start arresting them one at a time for treason, until the fuckers get the damn message.
Savage
As good as that sounds, they being the MSM do have freedom of speech and in my opinion even with all there crap it doesn’t equal treason anymore then right-wing radio.
What I mean about Dhimmicrats getting away with all this shit, they treated black Americans as less than’s for a hundred years are the civil war yet that same democrat party gets credit for passing and promoting the civil rights act. Now in reality those black Americans already had the same rights as the rest of America, we did not need new laws to protect blacks we just needed to enforce the original ones and make the south respect those laws.
And the other Dhimmicrap on my mind is the mortgage meltdown caused by Dhimmicraps and their stupid socialism, yet they will and have already gotten the credit for saving the day, so far. All of this mortgage stuff is being laid at the doorstep of the republican party and Bush. Kinda like when a scandal happens the MSM only reports the politics of the person if it involves an ( R ), or if the ( R ) is gay then he is really open to ridicule that Barney Frank ( D ) has never seen.
Here is some interesting history of the republican party.
From: http://www.senate.gov/
I can understand you Avid.
I have a family member who, in a serious manner, was glad we’re having President Obama because he is such a great man with such great policies and he’ll run things well and be the best president we ever had.
I asked which of his policies they liked best, they didn’t really say anything.
He doesn’t have policy.
He has “Change!” “HOPE!” and “I’m Black!” That’s it.
As for the homeloan system….. Barney Frank ought to be tossed in jail if anyone should. He was in charge of that very regulation that he said didn’t exist. I remember him recently saying that we need to have a group to regulate the financial industry…… My thought was. “Like an oversight committee…. a….. financial oversight committee….. just like the one he’s on.”
I’m telling you… there comes a time hen, in the course of human events, it becomes necessary for one people to dissolve the political bonds which have connected them with another…… but when is that time?