Another ignorant liberal slapped down! A response to a dummycrat who tried to blame the 2008 collapse on George Bush: Marc, you said, 2008 collapse was caused by a group of bank CEOs who bribed lawmakers into legalizing their way of gambling. I just want to demonstrate to everyone just how ignorant of facts you are when you make ridiculous statements. Your response is a great little liberal talking point, and as usual with most liberal responses, its cloaked in a generality, without any facts to support it. Now, let someone who trades professionally in these equity markets explain to you what 2008 was about. Jimmy Carter passed The Community Reinvestment Act, and Bill Clinton dramatically expanded it. What this law did was to lower lending sandards on mortgage instruments, in order to follow the democrat mantra, that everyone should own a house. These financial institutions that you so erroneously slandered, would not lower their lending standards at first, but were forced by the Federal Government and threatened with penalties if they did not accept these new sub prime mortgage standards. These were variable rate mortgage rates, no doc loans, no credit checks, and you didnt even have to have a job to get one. So the banks did what the Government demanded and wrote junk loans, loans that were given to very high risk mortgagees! As is standard practice, these and other mortgages were bundled and sold to Fannie Mae and Freddy Mac. Fanny and Freddy lowered their reserve holdings in order to make their bonuses. Franklin Reins (Obamas economic advisor) is the one who lowered the reserves, in order for them to make their bonuses. BTW Obamas boy Franklin walked away with 91 million dollars for himself! After Freddy and Fannie buy these mortgages, they insured them with AIG. Well, as interest rates began to tick up, these variable rate, subprime, government forced loans, began defaulting. Country Wide was the first lender to fall! Then it became a domino effect, as other lenders began getting overwhelmed with defaults. So Fannie and Freddie turned to AIG, and AIG could not handle the claims, because the defaults were overwhelming. So AIG was bailed out, along with a host of other lenders who had governement forced sub prime loans on their books. The governement took our money, the US taxpayer and bailed AIG out, and other lenders that were in trouble, and also forced some lenders who didnt even want the money, to also take the bail out money (Wells Fargo). So please Marc, dont waste your time responding to my posts, unless you have an understanding of what you are responding to, and can make a lucid and logical argument built on facts, instead of stupid liberal talking points. Im not a dummy democrat that doesnt have an understanding of how my world works!
Posted on: Wed, 30 Oct 2013 16:10:50 +0000
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