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IBD still blaming the govt for the housing crisis?
what "hard evidence" does IBD or anybody have that the govt policies caused the financial/housing crisis?
http://news.investors.com/ibd-editor...#disqus_thread
Subprime Scandal: We've long suspected the Financial Crisis Inquiry Commission wasn't honest in examining events before the meltdown. But an ex-commissioner says the probe was actually a full-blown political cover-up.
In a just-released book, former FCIC member Peter Wallison says that a Democratic Congress worked with the commission's Democratic chairman to whitewash the government's central role in the mortgage debacle. The conspiracy helped protect some of the Democrats' biggest stars from scrutiny and accountability while helping justify the biggest government takeover of the financial sector since the New Deal.
Wallison's sobering, trenchantly written "Hidden in Plain Sight: What Really Caused the World's Worst Financial Crisis and Why It Could Happen Again" reveals that the Democrat-led panel buried key data proving that the U.S. Department of Housing and Urban Development and other federal agencies pushed the housing market over the subprime cliff. The final FCIC report put the blame squarely on Wall Street.
In 2009, then-House Speaker Nancy Pelosi appointed her California pal Phil Angelides, a long-time Democrat operative, to lead the commission. The fix seemed to be in, and Wallison's account of the inner workings of the 10-member body confirms it. Here's what took place during the FCIC's 18-month, $10 million probe:
• Angelides provided no staff to help Wallison and other Republicans interview witnesses, conduct research or draft the report. But commission Democrats were assigned almost 80 staffers to help formulate their single theory that bank risk-taking and greed unleashed by deregulation caused the crisis.
• Angelides never notified Wallison or other commissioners about the hundreds of witnesses he called to testify in closed-door interviews with his staff, denying them the chance to cross-examine the witnesses.
• Staffers failed to put these private witnesses under oath, even though the final report was based almost exclusively on their testimony with little or no do ents or data to back up their statements, which simply validated the Democrat narrative.
• Angelides buried evidence revealing that by 2008, three in four high-risk mortgages wound up on the books of HUD-controlled Fannie Mae and Freddie Mac or agencies such as the Federal Housing Administration. A data-rich memo by former Fannie Mae chief credit officer Ed Pinto proved that government, not the private sector, drove risky lending. But Pinto's research "was never formally made available by the chair or staff to the other members of the FCIC," Wallison writes.
• Angelides withheld the final draft of the report from Wallison and other commissioners until eight days before sending it to the printer, never giving them the time they needed to go over the wording or content of the almost 900-page draft.
Angelides effectively censored any hard evidence that the government's housing policies were the predominant cause of the financial crisis. The best-selling report was cooked up from the start.
"The FCIC majority misused its mandate for political purposes," Wallison writes, adding that the panel made sure its findings supported Democrat demands for a "new New Deal" that would put even more of the banking industry under federal control.
Democrats passed the Dodd-Frank Act in July 2010, six months before the FCIC released its report — "a clear demonstration that the Democratic Congress knew well in advance exactly what this well-controlled commission would say." After Dodd-Frank shockingly left Fannie and Freddie untouched, the FCIC excused the glaring oversight by exonerating the toxic twins and their affordable-housing masters at HUD.
As a result, Fannie and Freddie, now under full federal control, are back making low down payment loans to low-income borrowers, and the Dodd-Frank-mandated Consumer Financial Protection Bureau is forcing banks to ignore credit risks in the name of affordable housing.
A corrupt investigation led to corrupt reforms. What we need now, in light of Wallison's revelations, is an investigation of the investigation, along with a top-to-bottom review of Dodd-Frank rules. It's necessary that Republicans hold public hearings so Americans will know how they were lied to about the crisis and how they're being led down the garden path.
Read More At Investor's Business Daily: http://news.investors.com/ibd-editor...#ixzz3Pge318FP
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Read More At Investor's Business Daily: http://news.investors.com/ibd-editor...#ixzz3PgdpuS6B
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IBD still blaming the govt for the housing crisis?
what "hard evidence" does IBD or anybody have that the govt policies caused the financial/housing crisis?
Fannie and Freddy encouraged and lapped up the loans. It is what it is boo. They wrote the rules.
Fannie and Freddy didn't originate the derivatives of said debt. If that had been all it had been it would have been contained fiscally. Bad debt is one thing and lord knows the feds work with it but it was the repeated doubling down and dispersals that caused the destruction of everyone's wealth.
Fanny and Freddy helped launder the loans into A paper. The rest followed.
That was a mess with many fathers... OP looks like he wants to sell books...
No . Are we still trying to assign blame for 2008?
what's ed is how we're brainwashed into believing everyone has to go to college and grad school so the loaners (freddie and fannie included) can charge 6%+ on student loans and enslave the millennials to decades of debt to pay off the cluster that CC's generation gave us.
well, why not? But that was such a massive cluster , a lot of people were just looking the other way...
There were a number of financial ins utions that did not touch those loans. They knew exactly how bad those things were and how deceptively packaged they were. It's sad that so many individuals in financial ins utions clearly made greedy knowingly deceptive decisions and still have winter and summer homes.
So many people participated individually knowing how deceptive the whole mess was. And they are walking around totally unscathed. That... Pisses me off.
encouraged? evidence
I suspect they kept buying ty loans that they suspected were , but they weren't the originators, and they weren't the only buyers of that . IIRC, the vast majority of the toxic loans weren't bought by them, but by Wall st, private investors, non-regulated banks, etc.
Yoni, tell us again how the housing crisis was CAUSED by "RACIST" CRA!
Last edited by boutons_deux; 01-24-2015 at 09:45 AM.
The bankers rule this country and every other in the west. You want justice? You'd better grab your rifle and organize into militias because that's the only way you'll be getting it. These guys could buy you 1000 times over.
you must be so damn miserable. i pity you
Yeah I would ask you to explain how any of that is anything but the total truth but you and I both know you can't do that. Sometimes you have to be a man and face reality even if its "miserable." If you don't like something its up to you to make that change, don't just sit around waiting for an indictment that'll never come
if that's really how you feel then get the off of spurstalk and go do something instead of ranting here and occasionally posting pictures of black
I currently taking more measures than you that's for sure. Spurstalk is like something I do when I'm taking a dump.
any examples you'd like to share?
Lol no not here or with you. It's all legal though
Actually I could probably be thrown in jail in a lot of european countries, especially in London those suckers are hardcore authoritarian leftists masquerading as socialists. the queen that old ****!!!
so nothing. ok
That's not quite right. The dealer-brokers laundered it into A paper, Fannie and Freddie were used as sponges to soak up the bad paper when the credit crunch hit in 2007.
Danny and Freddy set the guidelines of what they would and would not accept. Those "don't have to prove income" loans? Fanny and Freddy approved. Those toxic ARMs where the buyers clearly didn't have the income for the escalation? Fanny and Freddy approved. You can blame it on the loan originators (which admittedly were dishonest) but it was the equivalent of F & F leaving a few thousand dollars (per loan) just laying on the sidewalk and expecting everyone to be honest and not pick it up and keep it.
F & F were totally complicit in acquiring, packaging, mislabeling as A paper and then flipping the loans to investors.
"Success" and bonuses at F&F were based on volume and not quality. The financial incentive for F&F managers was to accept and package as many loans as possible, bad or not. These were not innocent bureaucrats victimized by mortgage originators and brokers. They were all in it together but if F&F guidelines had been tighter they could have never pulled it off.
No . F & F did not rate those loans, they were mandated to trust banks/ratings agencies to do that. Certain banks went as far as filing made up do ents.
This whole thing was an historic gaming of the system. You could argue the "system" was flawed/rigged to begin with, but the fact remains that the perpetrators not only got bailed out, they also just paid some slap in the wrist fines (not even all of them) and moved along. Now they're fighting to remove the regulations that came afterwards to stop a lot of this. It's ridiculous, if not for the reality that they're likely going to get away with it again.
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