Home ownership wasn't what caused the collapse you uneducated, low IQ lying, worthless piece of human excrement.
This is why Trump will be reinstated soon.
- Thread starter Joe Capitalist
- Start date
Home ownership wasn't what caused the collapse you uneducated, low IQ lying, worthless piece of human excrement.
Another triggered lunatic rant from LyingVagina426. This is predictable from triggered low IQ loons on the left when they get conffronted with the truth and facts.
The collapse was triggered by the dramatic weakening of underwriting standards for subprime loans, beginning in 2004 and extending through 2007.
Underwriting standards are regulated by the Executive Branch, and the Bush Administration ceded the enforcement of those standards to the lenders in 2004.
Bush's ownership society, reversal of Clinton's GSE rules, tax cuts, and deregulation of mortgage lending all fueled it. The bubble would never have happened or gotten as huge as it did without the actions Bush the Dumber took to inflate it.
You're the biggest crybaby on JPP.
The qualification for mortgages was determined by banks. The mortgage companies did what they were told. The rating agencies also caved into the bank pressure as they testified to in the investigation afterwards. This whole mess lies in the hands of banks and their political and lobbying power.
And it was all egged on by Bush the Dumber and the GOP who were trying to make the economy look like it was growing as a result of their shitty tax cuts, when it was really growing as a result of debt.
BidenPresident
Verified User
Trump should be in front of a firing squad.
That is another massive lie. But then lying your dumb ass off is par for the course. By the way, dumbass, Presidents don't write the laws, the Congress does. Moron.
For uneducated lying dumbasses like you:
KEY TAKEAWAYS
The stock market and housing crash of 2008 had its origins in the unprecedented growth of the subprime mortgage market beginning in 1999.
U.S. government-sponsored mortgage lenders Fannie Mae and Freddie Mac made home loans accessible to borrowers who had low credit scores and a higher risk of defaulting on loans.
These borrowers were called "subprime borrowers" and were allowed to take out adjustable-rate mortgages, which would start out with low monthly payments that would become much larger after a few years.
Financial firms sold these subprime loans to large commercial investors in pools of mortgages known as mortgage-backed securities (MBS).
By the fall of 2008, borrowers were defaulting on subprime mortgages in high numbers, causing turmoil in the financial markets, the collapse of the stock market, and the ensuing global Great Recession.
The role of Fannie and Freddie is to repurchase mortgages from the lenders who originated them and make money when mortgage notes are paid. Thus, ever-increasing mortgage default rates led to a crippling decrease in revenue for these two companies.
The Rise of Mortgage-Related Investment Products
During the run-up in housing prices, the mortgage-backed securities (MBS) market became popular with commercial investors. An MBS is a pool of mortgages grouped into a single security. Investors benefit from the premiums and interest payments on the individual mortgages the security contains.
This market is highly profitable as long as home prices continue to rise and homeowners continue to make their mortgage payments. The risks, however, became all too real as housing prices began to plummet and homeowners began to default on their mortgages in droves. At the time, few people realized how volatile and complicated this secondary mortgage market had become.
Another popular investment vehicle during this time was the credit derivative, known as a credit default swap (CDS). CDSs were designed to be a method of hedging against a company's creditworthiness, similar to insurance. But unlike the insurance market, the CDS market was unregulated, meaning there was no requirement that the issuers of CDS contracts maintain enough money in their reserves to pay out under a worst-case scenario (such as an economic downturn). This was exactly what happened with American International Group (AIG) in early 2008 as it announced huge losses in its portfolio of underwritten CDS contracts that it could not afford to pay upon.
Try to be less of a moron.
https://www.investopedia.com/articles/economics/09/subprime-market-2008.asp
Another lie. But here's a fact; you're the biggest, sociopathic lying dumbass on the forum.
More moronic lies. I don't think you can post without lying and looking like a moron LyingVagina426.
When it comes to regulations, such as the case with mortgages and underwriting standards, the Executive Branch regulates it.
Bush's regulators ceded enforcement of lending standards to the banks in 2004.
Not during Clinton.
In 2000, Clinton imposed HUD rules that prevented GSE's from buying risky loans.
Bush reversed that rule in 2004.
"(In 2000) HUD restricted Freddie and Fannie, saying it would not credit them for loans they purchased that had abusively high costs or that were granted without regard to the borrower's ability to repay."
"In 2004, the 2000 rules were dropped and high‐risk loans were again counted toward affordable housing goals."
Remind me, who was President in 2004?
Wrong; that is the job of the Federal Reserve System. It works independent from political inclinations of Presidents. Be less of a moron.
Another stupid lie. Like I said, I don't think you can post without lying and looking like an uneducated moron.
Another lie. But here's a fact; you're the biggest, sociopathic lying dumbass on the forum.
All you do here is whine, bitch, and plagiarize because you're a fucking crybaby who lived vicariously through Donald Trump.
That's why you take criticism of Trump so personally.
More asinine lies and stupidity. Of course, I gave you a link to the causes of the collapse, your predictable response is to flail and lie harder. Be gone you worthless, partisan, low IQ maggot.
Watch as Democrats attack the Government regulator testifying about the risks of these mortgage backed loans:
Senate Committee Hearings on Fannie Mae & Freddie Mac 2004
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More moronic lies. I don't think you can post without lying and looking like a moron LyingVagina426.
You're so fucking stupid that a reality TV show host conned you into believing lies because reality is just too much for a fragile snowflake like you.
NO IT ISN'T MORON.
Lending regulations are enforced (or not) by the Executive Branch.
This isn't up for dispute.
BidenPresident
Verified User
Truth Detector is a moron. Put that troll on ignore.