And as usual the leftist liars show up in full force to revise history.


Same ole, same ole.

Look it's another one!

Poor people suddenly inundated banks in droves in 2004, stinking of filth, all intent on taking advantage of programs that had been in place for decades, and ONLY THEN did the speculators decide to jump in and drive up prices to unsustainable levels!

Revisionist indeed.

Jesus christ you're an idiot.

 

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"eah those speculators jumped in but ONLY after all those poor people drove prices through the roof!"

Except the same process has been in play for the last 25 years with the student loan industry. As more and more dollars are being pumped into "the education market", private "schools aka diploma mills" have opened by the 1000s as investment vehicles to take advantage of all the "free money".

People were being priced out of homes and now the exact same thing is happening in education and the government solution is....put out even more money.

Lets all watch the student loan bubble burst over the next few years, it will be amusing to see all of the people who blame everyone but government.

 

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This is not what fannie and freddie did.


Those two played an ever shrinking role in the securitization process through the 2000's. Fannie and Freddie were guaranteeing only 30% of new mortgages at the peak of the bubble (down from historical average of around 50%). Over the same time period private securitizers (Countrywide for example) went from 10% to 40%.


Those private companies had over 5 times the default rate that Fannie/Freddie had. And that number would have been far higher if F/F had not been turned into a hidden bank bailout vehicle in 2007 when it started buying large quantities of high risk mortgages from banks when the first signs of financial disaster started to show up.


This also ignores how the process actually works. Lenders start a mortgage, pool a bunch of mortgages together and sell them to Fannie/Freddie. The risk of repayment should show up in the price of the mortgage pool. When lenders fudge the risk numbers, they are still liable for default after Fannie/Freddie buys the mortgage.


The right has been trying very hard to turn these facts upside down as it really threatens their faith based ideology.


Fannie and Freddie are deeply flawed but the criticism here is wrong.

Paul is a magical thinker. When you point out that the highest rate of defaults was on investment mcmansions he just sees that as further proof that gubmint encouraging banks to lend to poor people was the real problem. There is no arguing with that sort of stupid.

The right's stupidity is staggering sometimes.

 

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You think that's what I said?

Seriously?

 

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I quoted what you said and responded to what you said. If you meant something other than what you said, which I assume is what you're about to claim given the obvious stupidity displayed in the actual quote, then just say so and get it over with

You're one of several on this board on record blaming 100% of the housing crisis on poor people and government programs, while ignoring any and all evidence that suggests it was much more complex than that and COMPLETELY absolving bankers of any wrongdoing whatsoever, so I doubt there is really any reason to keep the conversation going anyway...but I so enjoy you making an idiot of yourself every time this topic comes up so if you want to continue, knock yourself out. We'll just continue to /point and

 

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Oh I meant exactly what I said. It's your interpretation of what I said that boggles the mind.




Government programs yes. Poor people get an equal share with everyone else who overpaid for houses and then couldn't live up to their commitments.




I said all bankers who committed crimes should go to jail and the ones who merely made bad decisions and lost money should have to watch as their banks fail and are liquidated. It's not people on my side of the political fence that chose to bail them out.

 

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