Who is to blame for the subprime mortgage crisis? related questions

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Who is to blame for the subprime mortgage crisis?1elcapitain2012-09-19 16:30:04
This is something I found online ... I think it sounds pretty conservative biased ... let me know what you think: MedlinePlus MedlinePlus 1997 MedlinePlus MedlinePlus Fannie Mae is a GSE ( government sponsored entity ) regulated by Congress . ? Fannie Mae buys mortgages from other companies. MedlinePlus ? It is backed by taxpayers for all losses , but keeps all profits . MedlinePlus ? President Clinton loosens Home Loan Requirements . MedlinePlus MedlinePlus 1998 MedlinePlus Banks ? Start making thousands of bad loans , 0 down , no documentation , for 120% ! ( 1998
I figured out what the subprime mortgage crisis purpose is...what do you think?0Kaiya2012-11-05 12:00:14
Starting with Carter's "Community Reinvestment Act" on to Obama suing Citicorp for the Congressional Black Caucus to force them to make loans to unqualified buyers... The whole agenda was to make taxpayers buy homes for people who otherwise could never afford them........ The plan was after people who could not repay their loans defaulted and foreclosures began, that would be used as a sympathy issue and more bailouts would be called for (or it would be "cruel"). Now 40% of those who were offered refis to prevent foreclosures, defaulted yet again! There were 1 MILLION foreclosures. If an average house costs $200,000, WHY DIDN'T WE JUST BUY A MILLION HOUSES AT $200BILLION INSTEAD OF BAILING OUT THE BANKS AT $700BILLION? Aren't we just being royally screwed?
Do people realize that its an error to blame this economic mess on Subprime lending?0Dawn Buckley2012-11-02 02:46:03
he fact is the subprime loan was a good idea ( helping people with lower FICO scores if they had enough income ) . The dangerous part was the ARM and option ARM loan . About 80 % of subprime mortgages are good ... and still good. This financial mess we are in was influenced by the lax regulation to give ARM ( Adjustable Rate Mortgage ) . MedlinePlus MedlinePlus I find it sad to see the media blame people with subprime loans for this disaster , when the issue is really the ease with which credit institutions presented the ARM loans because they felt home prices continue to rise forever , and when that did not happen and adjusted mortgage payments and people who could not refinance due to lack of equity crashed the whole system and blame borrowers . Only negligible. MedlinePlus MedlinePlus Anyone have any thoughts on this?
Why does everyone blame only the big corporations for the credit crisis?0sharon ashford2012-11-03 22:30:26
Yeah, the banks shouldnt have given out loans to people who may have been at high risk for defaulting, but companies dont like to lose money. they must have thought that enough people would be able to pay them that it would be profitable, and they were wrong. but they were wrong, because too many people took out loans that they would end up defaulting on. nobody forced them to live beyond their means. the credit crisis is 50/50 blame IMO; half poor risk management on the corporate side and half stupidity and poor financial management/personal responsibility of american consumers. yet i am yet to see anyone blame anyone other than the banks. seems like nobody ever looks to themselves.
Why do Democrats continue to blame republicans for the financial crisis?3Learner2012-09-05 22:44:03
In 2005 , John McCain warned that Fannie Mae and Freddie Mac were in trouble. He tried to pass legislation to do something about it. However, it was blocked by Democrats. Obama tries to blame the Bush administration for the collapse of the mortgage industry. But it was actually the Clinton administration who helped start the subprime lend , which is what started this whole mess. http://online.wsj.com/article/SB12229057
Do you believe that George Bush is to blame for our current financial crisis?0Ryan2012-10-13 18:35:31
I believe Bush and Cheney has caused all this, and that this could have been avoided if they had been in the White House. Let's look at what we know as indisputable facts: MedlinePlus MedlinePlus 1) WSJ reports that bank executives held a "secret meeting" with members of the Fed and the SEC that allowed them to be over-leveraged, in some cases up to 40-1. This new rule says that for every $ 1 the bank has, they are allowed to borrow, lend or spend $ 40. MedlinePlus MedlinePlus 2) We know that mortgage fraud (including fraud assessment) began in 2000 and peaked in 2004-2005. Evaluation fraud is when an appraiser says a house is worth more than it really is. Therefore, this has caused prices to artificially inflate home. This then has a side effect of making homes more expensive than its neighbors. It is exactly the opposite of what a home foreclosure can make for a sub-division. Both create a domino effect on property values. MedlinePlus MedlinePlus 3) Chris Cox Bush appointed to head the SEC. Let's examine all the failures by the SEC. a) Allowing banks to be over-leveraged b) Allowing banks to transact business with loans fraudelent. c) A $ 50 billion Ponzi scheme led by Bernie Madoff MedlinePlus MedlinePlus 4) I did not realize that banks were using over-leveraged loans based on fraudulent cash to make up the price of oil. Let me say this once and for all: the only reason OIL & GAS SAW $ 138 $ 5 gallon was because banks were sitting on lots of cash. Remember that it was Goldman Sachs predicted $ 200 oil. And the White House failed to realize the national security and political implications of large fluxuations in oil prices. MedlinePlus MedlinePlus 5) I do not even go into the implications of the Credit Default Swap game against risk Ponzi scheme. MedlinePlus MedlinePlus Let's face it. Since Bush took office, it was party time for the banks. They built a house of cards for themselves, and see where the banks are now. Look at where the economy is now. MedlinePlus MedlinePlus On a side note, you may be interested in knowing MBNA was one of the largest contributors to the Bush campaign, and MBNA authored the Bankruptcy Bill that Bush signed into law. This bill makes it impossible for people to declare bankruptcy and the only way to ensure that renounce their debt is through death. And Bush did this without considering the implications on the economy. Again, acts to meet only a few at the expense of the entire nation. MedlinePlus MedlinePlus Whether you believe me, you should be okay with this because it began and intensified his watch or Bush was stupid, or was selfish.
Why do conservatives try to blame low income people for the housing crisis?0JL2012-11-04 14:33:44
Right wingers claim that the housing bust was caused by "liberals' making it too easy for lower income people to buy homes. This of course is a lie but who cares, it sounds good! The housing crisis was caused by the massive de-regulation of the mortgage industry. Just go to Las Vegas and see the blocks of foreclosed homes that were bought for a half million dollars by people who could only afford a two hundred thousand dollar house. These homes were bought at inflated prices through ARM loans, and interest only loans. They were told the home would go up in value to the point where at the end of three to five years they could either sell the home for a large profit, or else refinance. These were the six figure yuppie types that bought these places, not lower income people. The government did not "force" banks to loan money to anyone. This is a Limbaughesque lie. As for Bush seeing the crisis coming and trying to stop it is laughable. I saw a speech on You Tube where Bush is speaking before a group of Realtors in 2002. He says and I quote, "Just because people have lousy credit does not mean they have to live in a lousy home." He encouraged people with "poor credit to work with Fannie and Freddie." Yes, after the roof started caving in the Bush Administration told Congress to do something. If Bush was as on top of this as right wingers claim, why did he never mention it in any of his state of the union speeches? Mortgage companies are who we ought to blame. They were lending money to people with NO CREDIT checks, and lying about people's incomes to get them into expensive homes. The Republican National organization of Realtors were cheering as well.
Is Democrats in congress or is Wall Street to blame for our economic crisis?0SMH2012-11-02 05:34:26
Bush attempted to tighten regulation of Fanny Mae in 2001, 2003, 2005 2006 qnd 2007. Mccain co sponsored a bill to tighten these regulations and prevent sub prime loans in 2006. In all case the Powerful democrats that controlled the banking commitee and Senate oversight Commitee blocked those bills from comming to the floor for a vote. Barney Franks, Nancy Pelosi and Harry Reed all led the fight to block these regulations claiming that it would prevent loans to the poor and minorities. Check your facts before responding.
Do Right-wingers Simply Lack the Intellectual Development to Comprehend the Causes of the Subprime Crisis?1Shakespear2012-11-06 01:52:03
The propagandists of the bankers (ie Faux News) wants to promote a simplistic explanation, no sense of the financial crisis that does not bother to examine the capitalist system. Instead, they want to blame the "do good" Democrats forcing our dear and trusted bankers to write mortgage loans to poor people who could not afford those houses. What nonsense fairy tale! MedlinePlus MedlinePlus Who remembers a time when people were rushing to exploit poor bankers are required to write mortgage loans? I have friends who earn very meager still living in the same apartment old shit they did 10 years ago. I'm more politically involved and have never heard of any program that would have allowed these wonderful friends to buy houses. Why are people still stuck paying exorbitant rents on apartments of shit when they could have bought wonderful houses instead? MedlinePlus MedlinePlus And we're not talking about a couple of my personal friends. These are apartment communities are huge and filled with tenants who work relatively low pay. No "do good" Democrats were demanding affordable rental properties for these people. During the peak of the bubble of low-income people who supposedly could have bought a house for $ 175,000 for the same amount they were paying in rent apartment in ruins MedlinePlus dangerous neighborhoods. But I do not know anyone who made that purchase. MedlinePlus MedlinePlus In contrast, and as we all know, was middle-class people with good incomes who moved in newer homes and larger. He was wealthy investors who were gobbling properties and then "flipping" them weeks later. That's the story we all remember. MedlinePlus MedlinePlus The fact that the collapse of the housing bubble is that most defaults came from the middle class. The poor never were buying homes they could not afford the demands that Democrats did the bankers. That never materialized claim until long after the crisis broke out and was looking right BS explanation that would exonerate the bankers while blaming the liberals and the poor. MedlinePlus MedlinePlus As we all know, the bankers were getting really filthy rich during the entire housing bubble. Shares of Countrywide Financial, Goldman Sachs, Merrill Lynch, Lehman Brothers were all flying to new highs almost daily as record quarterly earnings became a regular event. MedlinePlus MedlinePlus Furthermore, the amount needed to bail out bankers exceeded the value of the properties in default. In fact, the bankster bailout requires more money than it would have been necessary to pay the mortgage each and every credit card for all Americans. MedlinePlus MedlinePlus What's more, the crisis is global. How is it possible that a few million dollars in bad loans for middle class Americans in homes secured by the property itself could have brought the entire world capitalist system to collapse? MedlinePlus MedlinePlus No, no. There must be a rational explanation and depth of the crisis that the bankers and their propagandists want the public to know. The bankers were involved in a MedlinePlus highly leveraged Ponzi scheme with MedlinePlus many with Enron-style accounting tricks off-balance. MedlinePlus * At the time of the crisis, only $ 11.5 trillion were paid all mortgages and every credit card for all Americans. However, the rescue is now over $ 18 trillion. Why banks need more bailouts money than they actually have a debt?
Would the subprime crisis happen if property supply did not grow so fast or high?2Alyssa Pacheco2012-11-03 10:19:03
subprime was doing so well and the houses were built , right? MedlinePlus ates of interest and then went to the monthly payments or anything like that , and basically monthly payments soared. and other things that eventually led many subprime borrowers to keep their payments and foreclose on their homes ? MedlinePlus MedlinePlus what investors thought property values ​​always go up . subprime mortgages were traded on the market . but the value of homes dropped because too many houses , more executions , and the houses lose value relative to the initial assessment . their actions are perceived to be worth less . lowers confidence and people sell sell sell . yes ? MedlinePlus MedlinePlus Well, I do not understand why sell sell sell lead to the collapse of a company , but that's a different issue . if you do, then my question is, what happens if the subprime households still taken back by the lenders did not lose value ? if the initial loan was $ 100,000, and until the borrower has returned $ 10,000 ( whether principal or interest ) , then by default and the lender takes the house and the house is worth $ 90,000 and the manages to sell at that price , then what is the problem than nonprofit are doing ? MedlinePlus MedlinePlus
Why does President Obama keep trying to blame former President Bush for the Economic Crisis?8Adoni2012-09-30 15:02:03
----- The Administration saw it coming, and Barney Frank and the Democrats blocked it. It seems that everyone forgot ... ----- MedlinePlus MedlinePlus September 11, 2003 - Stephen NY Times' Labaton MedlinePlus MedlinePlus The Bush administration today recommended the most significant regulatory reform in the industry of housing finance from the savings and loan crisis a decade ago. MedlinePlus MedlinePlus Under the plan, disclosed at a Congressional hearing today, a new agency created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored enterprises, which are the two main players in the mortgage industry. MedlinePlus The new agency would have the authority, which now rests with Congress, to set one of the two capital reserve requirements for the companies. It would exercise authority over new lines of business. And it would determine whether the two are adequately managing the risks of their portfolios balloons. MedlinePlus MedlinePlus The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac - which together have issued more than $ 1.5 trillion in outstanding debt - is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates. MedlinePlus MedlinePlus ----- On page two of this article is to defend Barney Frank and Melvin L. ----- Watt MedlinePlus MedlinePlus Significant details must still be resolved before Congress can approve a bill. Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income housing and affordable. MedlinePlus MedlinePlus '' These two entities - Fannie Mae and Freddie Mac - are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. '' The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.'' MedlinePlus MedlinePlus Representative Melvin L. Watt, Democrat of North Carolina, agreed. MedlinePlus MedlinePlus '' I do not see much more than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,'' said Watt. MedlinePlus MedlinePlus http://www.nytimes.com/2003/09/11/busine
Subprime mortgage essay help? feedback and help. thanks :)?0vinita mahto2012-09-06 10:19:07
The subprime mortgage crisis was the collapse of the U.S. housing market , which was caused by massive defaults in the U.S. housing mortgages in the face of a sharp decline in housing prices in the United States. All this happens when irresponsible lenders start lending to irresponsible people , which is sub -prime mortgage, a type of loan to people with bad credit history . The crisis was caused by a "housing bubble " housing overvalued by easy credit and speculation house. This is also related to a crisis in pension funds worldwide , as many of them have invested in the U.S. housing market . MedlinePlus Subprime mortgages carry a higher risk for lenders , due to the fact that many of the homeowners who have loans in default . Lenders know that if you lend money to people who can not afford to pay , so in other words , is expected to go into default . However, knowing as they know it , what they do is , charge interest rates to borrowers. MedlinePlus If you were to ask who

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