What?  So this is your answer. LOL now that's funny. This guy just destroyed my whole thread. Lets attack him.

Disappointing.

Came expecting an Obama pony.

No. Just letting you know that I know you're evading your ban yet again. Since all you do is spew ThinkProgress talking points and fap over Fauxcahontis, it's pretty obvious which ones are your alts even when you post in your own threads pretending to be different people like some kind of fucking lunatic.

Seek help.

>User was moderated for this post [RH]

But the problem wasn't that people couldn't afford housing, it was that they became victims of predatory lending. ARM companies would give out loans boasting all the best intentions, at a 2-4% rate and then after a couple years, inflate to 6% then 8% etc etc. Of course people wouldn't be able to afford payments at rates like that, but it was a loophole for ARMCs to exploit.

ARMCs didn't care about getting long term incomes, they fronted money, took a loan, then boosted the terms, then sold all their loans to big banks for a lump sum. The big banks then were buying loans at rates people couldn't afford, so when they estimated making 800k over 20 years on a home they then realized that they had to drop rates down, meaning that 800k loan they paid for turned into a 500k loan, meaning they were drastically overpaying ARMCs and losing tons of money in the process. This was due to a lack of regulation on ARMs and a fundamental failure of banks to be vigilant. To banks, this was just business as usual until they realized the extremely destructive consequences.

From Wiki:

The crisis can be attributed to a number of factors pervasive in both housing and credit markets, factors which emerged over a number of years. Causes proposed include the inability of homeowners to make their mortgage payments (due primarily to adjustable-rate mortgages resetting, borrowers overextending, predatory lending, and speculation), overbuilding during the boom period, risky mortgage products, increased power of mortgage originators, high personal and corporate debt levels, financial products that distributed and perhaps concealed the risk of mortgage default, bad monetary and housing policies, international trade imbalances, and inappropriate government regulation.^{[2][42][43][44][45]}

Three important catalysts of the subprime crisis were the influx of money from the private sector, the banks entering into the mortgage bond market and the predatory lending practices of the mortgage lenders, specifically the adjustable-rate mortgage, 2–28 loan, that mortgage lenders sold directly or indirectly via mortgage brokers.^[46] On Wall Street and in the financial industry, moral hazard lay at the core of many of the causes.^[47]

An estimated one-third of ARMs originated between 2004 and 2006 had "teaser" rates below 4%, which then increased significantly after some initial period, as much as doubling the monthly payment.^[87]

The proportion of subprime ARM loans made to people with credit scores high enough to qualify for conventional mortgages with better terms increased from 41% in 2000 to 61% by 2006. However, there are many factors other than credit score that affect lending. In addition, mortgage brokers in some cases received incentives from lenders to offer subprime ARM's even to those with credit ratings that merited a conforming (i.e., non-subprime) loan.^[94]

There's also a section on government policies which continue to show that these companies were able to function because of banking and lending deregulation, which was bipartisan.

In office now, we have a regulations guy who has provided a wealth of shadow bank regulation and regulation on the banking system to both encourage lending and attempt to regulate the predatory lending that led to the crash.

Yes, there were government policies previously at fault. Yes, consumers were taking loans they couldn't afford. Yes to everything. Everything is just a piece of the pie that contributed to the crash. However, that doesn't change the fact that subprimes and their option-ARM offsrping accounted for 60% of all variable resets from 2006-2010. Banks and ARMCs were in it for big profits and raped everyone.

I often wonder who is to blame. Reading vgc, one would think "the administration", but they didn't really pull the trigger, did they? Sure it was the deregulation that gave banks and ARMCs the ability, but noone told those institutions to rape everyone's faces. The policies were designed to increase home buying, not increase bank profits.

Yep He's the only one that reads and actually collects facts. LOL

So you don't have anything else? Yep.......  You earned this!

Says the guy with the quaint screen-name. Your boy "Dubyah" was quite the piece of work. Obama, while far from perfect, has been cleaning up his mess for years now.

I'll give ya a hint. If you get your news from somewhere OUTSIDE of talk radio and Fox News, you might actually know a thing or three.

Have a nice day!

I'm pretty sure those smart people are leftist good doers.I know how they are.I'm part of a (pretty violent and criminal)minority in europe  and they were told to kiss my S no matter what I do.That's where my hemerrhoids come from(last time i was banned for writing this)

I can beat up people ,discriminate gays,treat women like shit and they will call it culture and feel tolerant .A white christian european trying to the same would be beaten to death by them.I guess that kind of (self)racist behaviour is what they call political correctness

But yes,Obama is very different.

He is black

his IQ is not below 75

he is not alcohol and drug addicted

he is muslim(even my radical muslim uncle knows that-and he is not a conspiracy theorist idiot like me.Barak is a muslim name,sometimes also used by (semite) jews.Hussein is a muslim name.but I think too many people in the USA are so dumbed down that even a guy called "mohammed khomeini islam" would be considered as christian as soon as the media said so

He is the only black guy born in the first half of the 60ies in the USA who owns a birth certificate where "ethnicity:african" is written instead of negroe or black.Some say:this is A prophetic Sign others say:badly falsefied certifikate and his grandma swores:he was born in kenia

And Obama is cheneys cousin.-oh sorry.Bush is also cheneys cousins.(one huge happy family)

I don't know which administration you're talking about, but hold the presses! Policies have unintended consequences?! Who'd have thunk it?

According to the NBER it all started with the Community Reinvestment Act, and more specifically the activist rejiggering of it in the '90s. It's pretty rare that you see an academic paper answer its premising question ("Did the CRA induce banks to make risky loans?") with an emphatic, "Yes, it did."

The whole point of the CRA was that it was "unfair" that banks didn't want to lend to poor people (many of whom were minorities, so it was also racist) because they wouldn't be able to pay back those loans, so there were all kinds of incentives and assurances offered them to make these bad loans which, predictably, created a tremendous moral hazard that blew up in all of our faces. Anyone who understands this should feel chills when they read in today's Washington Post that:

Housing officials are urging the Justice Department to provide assurances to banks, which have become increasingly cautious, that they will not face legal or financial recriminations if they make loans to riskier borrowers who meet government standards but later default.

You can't tell the banks that they stand to make tons of money from the loans and will face none of the risks, and then complain that they are just doing things to make money and not to help people... when that's exactly what they're in business to do, and they don't pretend otherwise. This "problem" is easily solved if you quit relieving them of the responsibility when they make bad loans and just generally get over the fact that not everyone can own a house and most people simply don't need to.

"He" is you. LOL.