Originally Posted by MacTripper
And Bush deserved it, don't lump him with the other criminals.
Bush and the Treasury created a wonderful real estate bubble that put a lot of people to work. Only fools didn't know what it was.
It was the Congress that changed hands under Bush and California (yea that bankrupt I.O.U giving California) liberal socialist ideals that got some banks AND the government controlled Freddie and Fannie into the failure of the sub-prime market in 2005. Their failure to adhere to the tried and true three rules of lending: Credit, Collateral and Character; is the primary reason our economy is in the mess that's it's in.
The Bush Treasury had to take control and fire the CEO's of both Freddie and Fannie, after repeatably warning the out of control new Congress about their "Socializing the risks and privatizing the profits" - Alan Greenspan to Congress, concerning the two GSE's. It's this stopping of their socialist "everyone has a right to own a house" ideals is the reason they blamed the Bush administration for the near worldwide economic collapse, when it really was their fault of irresponsible mandatory lending to the GSE's and banks under the Community Reinvestment Act revisions made by socialist Bill Clinton.
In a real estate bubble, it's speculative, a game of musical chairs, the last owning the property loses.
It's a game not for the working, struggling or the poor. But the Democratic controlled Congress made it so.
Conservative banks are doing fine today. The banks that managed to dump their toxic sub-prime mortgages before the bubble blew are also doing ok. Everyone who prepared for the downside are doing ok today.
Everyone who has taken even a entry level economics course in high school know what a post real estate bubble recession is. What made this one so much worse was the sub-prime.
Rich people usually only gamble with what they have extra, not their only house.
Where did the first and most banks fail than anywhere else? California.
Where the sub-prime lending mess started? California.
Where is the "home" of the liberal media empire? California.
Read Charles Gasperino's book: The Sellout. Explains who is responsible for making this mess worse than it is.
Glad to see some reasoned thought on the whole debate.
A couple of additions:
-it wasn't the CRA per se that lead to the crisis. It was the free reign and expansion of 'coverage' that was granted to FM in the late 90's by Clinton that created the incentive to invest in the subprime market. Subprime lending dates back to the 70's, with the advent (political) of 'red-lining'- this was and is the big housing entitlement push by the dems. Interestingly enough, it was Bush who read the writing on the wall as early as 2001, and had been trying to reign in FM/FM since then- 17 times alone in 2007. But of course the Dems in congress stone-walled him each time.
-as you've alluded to, the majority of the banking/investing companies had enough smarts to not invest in subprime lending/loans. Of those that did, the shadow banks (eg Lehman) carried most of the risk, but were also the most under-regulated or non-regulated (where was the SEC?). This is where the majority of the strife that hit Wall Street came from, and frankly, I'm glad that Lehman was let go. This is also why most investment firms continue to do well (read: Goldman).
The Obama lemmings will continue to blindly follow his pied-piperness, but I give him a lot of credit for continuing to blame the Bush admin for the state of the economy today- takes guts, but it's sad that he won't step up to the plate and admit his mistakes. He needs to stop the blame and do his job.
Interestingly enough, around October 2008, Time published an article listing those responsible for this economic mess. Bush was listed, but the reason was basically that he was there. No other reasons- this is especially telling since Time clearly leans left, and would be happy to find any reason at all to put Bush in the sewer.
Bottom line: everyone can't always get what they want, not now and not in the foreseeable future; and if people don't pay for something, they will abuse it. Until we start realizing these basic principles, we'll continue to provide handouts at the expense of those who work hard for what they have.