Wan2GetBigR saidBarney Frank should have been gone a long time ago. This is the first time I ever remember seeing so many "Barney for Congress" ads on television. He's definitely running a little scared, as this race with Sean Bielat has been tighter than most he's had to face.
So you'd rather have an avowedly anti-gay Congressman than Barney Frank? Who is also very likely to put the country back on the road to utter financial decimation as Bush did?
You mean the financial decimation pushed for and caused by liberals but PERMITTED and encouraged by Bush? I like how you conveniently want to Blame Bush for his irresponsible behavior in letting the kind of policies YOU WORSHIP to be enacted during his tenure.
The roots of the financial collapse date back to Reagan and the complete failure of his and Bush I's administration's to regulate a derivatives market that grew for a few billion in the 1980s to trillions in at the time of the crash. Please read up on your history of the Financial Services Modernization Act (yes, signed by Clinton but WRITTEN by Republican Sen. Phil Gramm), and how Gramm's wife, who served on the Audit Committee for Enron when it collapsed due to financial hi-jinx, refused to admit that this enormous market required any regulation.
I'm familiar with all of it and its speculation and conjecture - I'm referring to hard facts and what directly CAUSED the housing crisis, not this "too much money was sitting around" horsecrap . These "roots", as you refer to them, would have meant nothing if the government didn't mandate that fannie and gang push for more subprime lending at the direct risk of taxpayer dollars. People were allowed to buy homes they couldn't afford and the whole thing backfired - PERIOD, END OF EFFING STORY. And your hero, Barney Frank, was the key instrumental figure behind this all happening. So quit blaming Reagan and Bush. And every time you routinely lie about who is to blame for the crisis, I will call you out on it.
You're an idiot because you don't even know the basics about the law you're trying to blame the crisis on.
First, the government didn't mandate that any loans be made to anyone because CRA was nonbinding.
Second, and more importantly, the vast majority of sub-prime loans were not made by banks that fell under the purview of CRA to begin with but by independent mortgage lenders like Countrywide.
Third, the mortgages themselves did not cause the crisis. Rather is was the rampant speculation through derivatives, CDOs, CDSs, and over-leveraging that cause what might have been an isolated problem for sub-prime lenders and turned it into an international financial crisis. Those are the facts, which you - like many ideologues - refuse to accept.
Finally, you hilarious accusation that policies I support lead to the crisis is your most ridiculous claim yet.
I am for constrained, regulated capitalism. If my views ruled the day, the entire underpinning of the crisis would never have happened. Rather, it's your desire for unrestrained and, indeed, predatory capitalism that led to the crisis.
Why do I need to keep repeating myself? I refer you to another thread where I delineated specifically what was to blame.
"The government should not control/regulate banks in the way that they do to begin with. Since they DO have extensive regulations over banks then it is important for them to maintain certain standards for the banks to follow since the fate of the banks is linked to the government and ultimately the taxpayers.
You can’t responsibly deregulate financial institutions without first addressing the added risk to the taxpayers, who are indirectly liable for their failures (FDIC - from which a great extent of bank failure funding comes from taxpayer guarantees in addition to the FDIC insurance premiums that banking institutions are required to pay in order to be eligible members) and secondly requiring a reduction (if not elimination) of the coverage liability available through FDIC / taxpayer guarantees when actuarial figures would easily show that the increased risk of pursuant deregulated activity (derivatives, investment banking, security underwriting and speculation, variable rate mortgages, sub-prime mortgages, etc) was HIGHLY probable to create either 1) a massive real estate bubble or 2) the partial (if not entire) collapse of the banking system as we know it resulting in the bankruptcy of FDIC and the potential for trillions of government borrowing to keep the financial system "solvent" due to the disgustingly greedy and naive behavior of politicians and investment bankers. It was a marriage between greed and do-gooderism.
This is not at all dissimilar from having the government mandate that a private business should pursue riskier business practices, while at the same time having the taxpayers guarantee the added insurance risk for these practices. In the end, it becomes a "nothing to lose" scenario for the banks and politicians, because so few are held accountable for their losses and the average taxpayer flips the bill in the end. But your track record has shown that you could care less about the taxpayers - which, as a group, are a vaporous apparition to left-wing do-gooders like yourself."
1. I've never said CRA was the cause of the housing crisis, but it definitely played a big part. The government directed that fannie and freddie which held MOST of the loans, push into greater supbrime lending. This is a fact.
2. It is true that other banks were forced to engage in the same risky practices in order to keep up with the competition and keep their shareholders happy. The environment which led to this toxic behavior would not have happened if the government hadn't gotten involved in the first place. Let's be clear, it was government INVOLVEMENT that created this, not government deregulation.
3. The banks are implicitly backed by the government, the market also assumes that they are.
4. And yes, the policies you support, the do-gooderism, the affirmative action, all of the ideas that propel your world are what made people like Barney Frank and other leftwing loonies push to get people who couldn't afford homes approved. Quit lying to yourself and everyone else. You cannot convince me for one moment that you would not have supported the very same kind of irresponsible lending in the name of doing good. But now it makes for a convenient punching bag because it occurred during Bush. And yes, a big part of the blame rests on his shoulders, but just remember that most of it rests on the shoulders of people YOU SUPPORT: Barney Frank.