"GOP sees new bomb scare victim: Trump"

What is the source of these "excellent points" ?? The post from which these "excellent points" came from is absurd.

 

Were you alive Curing the clinton presidency? The source is my experience.

Drivel? No, factual. Where were you? History is the source.

 

We Republicans also want back the party that has been hijacked by Trump and his flock. I am and always have been a moderate Republican and all your rants
won't change that. I don't have to be a liberal to oppose Trump's conduct.

 

Your experience is not representative.

And as expected there is no source. You've made that all up. What monopolies were created and what environmental regulations were slashed ?? How many people lost their homes in the dot.com stock market bubble recession which lasted two quarters ??

 

I did not make any of it up. Monopolies are created when environmental regulations are slashed for profit and that has been
the history ( robber barons had no regulation). People lost their money, their jobs, their RV, ergo their homes. The crash may have lasted for 6 months, but life doesn't go back to normal when the collapse is over. A recovery begins and takes time. There was a housing bubble
also that exploded. The stock market crashed in March of 2000 and continued its downward spiral thru 2001. You speak as though you know and you have no clue. If you want to know what environmental regulations were relaxed during the Clinton years, go to the library. You can't recreate history no matter how hard you try. I don't even know what your point is unless it is to call me a liar just because.
And you are accusing me of making this up?? I was heavily invested in that stock market and studied it on a daily basis. You?

 

Point made

As a side note, what does that say about all those GOP Congressman who have remained mum on Trump's actions? Will history look back and ask where were they when Trump was going off the rails?

 

What monopolies are you claiming were created ?? Name two.

The recovery from the dot.com / 9-11-01 attack started in 2002. The real median household income recovered to just below the then maximum of 1999. The economy grew at ~ 4%. Approximately 7 million jobs were created. The housing bubble and financial crisis of 2008 was the result of federal housing policy, Fed monetary policy, and federal banking regulations.

You are just making things up.

 

What actions are those ?? Putting the welfare of US citizens above the welfare of non citizens ??

 

Well, that is partisan, but let's say, taking Putin's word in front of the world over that of the American intelligence agencies, and other than a few Senators, the GOP remained mum

 

That’s absurd.

 

It was a few days before the midterms, there was no word on who he was or why he did it. The baseless false flag claims pissed me off.

The synagogue shooter was virulently anti-Trump, thought he was head of the Jewish conspiracy or some such nonsense.

 

Wow, RWers sure have a lot of groups they are against.

 

Funny how MSM swept the ricin scare (sent to some Trumps) under the rug.

 

But you are and therefore you do.

 

Look up "Robber Barons" in the library and get an explanation of what happens when there is no government oversight of our environment. Monopolies do not appear overnight. Again, the great recession was the result of no government oversight of Fannie and Freddie (in fact Barnie Frank encouraged approval of sub-prime mortgages), and no oversight of banks approving mortgages to anyone who applied, whether qualified or not, resulting in the collapse near the end of the Bush presidency. And the Clinton recession? What is invented?

 

So you have no examples and are making things up.

The Clinton recession was extremely mild. It doesn't even register on the quarterly real gdp numbers.

http://www.multpl.com/us-real-gdp-growth-rate/table/by-year

This is what caused the "Great Recession::


The housing bubble and financial crisis are actually two different things although the collapse of the housing bubble resulted in the financial crisis. The housing bubble was caused by the lowering of lending standards due to the HUD requirement that Fannie and Freddie make a set percentage of loans to low income borrowers. This policy was initiated by Bill Clinton and was based on an interpretation of the Community Reinvestment Act. At the end of Clinton's term that percentage was 50%. This was increased to 55% by the Bush administration. The lowering of the lending standards was used by unscrupulous mortgage lending firms like Countrywide and New Century to make many other high risk loans. Adding to the housing bubble was the easy money policy of the Fed which made loans easier to afford due to low interest rates. The housing bubble suddenly burst in 2008. This was similar to the dot.com bubble which burst in 2001 and recovered from by 2003 but why was the financial industry so terribly affected this time.


The financial crisis triggered by the housing bubble collapse was the result of a combination of financial and banking regulations going back to 1936 (See the list below). Mortgage backed securities have been around for years before the 00's. They are securities formed by conglomerating home mortgages and are a way for investors to earn a return through the housing market. They have historically been very safe investments. The HUD housing policies however resulted in a portion of the MBS's created in the 90's and 00's to consist of the subprime and other low standard loans. The Basel rules were based on the assumption that securities consisting of home mortgages were of very low risk. Therefore the reserve requirements for MBS's were set at a very low rate of 5%. This meant that for every $50K of MBS's that a commercial or investment bank had it could make loans totaling $1M. Since banks make money from loans they would use the investment vehicles with the lowest reserve requirement. And very many of them did. They bought AAA rated MBS's (the ratings were determined by the National Ratings Agencies - Fitch, Moodys, and Standard and Poors). This was required by gov regulation. But the ratings agencies were not doing due diligence on the make up of the MBS' which was unknown to the banks involved who trusted the ratings and Basel guidelines. Collapse of the housing bubble caused foreclosures in the subprime mortgages especially. This created fear and uncertainty in the value of the MBS's even though they were still paying ~ 90% of their returns. The market price dropped (in some cases a price could not be determined because no one was interested in buying). This is where the mark to market rule came in resulting large paper and consequently the banks reserves falling below the already low 5%. The bailout from the gov started out as TARP which was passed to buy up all these MBS's which had now large paper losses due to mark to market. It was quickly changed however to give money directly to the banks so that they could bring their reserves up to the 5% level. Bear Stearns was bailed out but Lehman was allowed to fail. This resulted in uncertainty and the credit markets froze (none of the banks wanted to lend to other banks who might not be bailed out). Some commercial banks like WaMu also had MBS's in reserve and ended up being taken over.



The analysis of what happened is contained in the book by Friedman and Kraus – “Engineering the Financial Crisis” – 2011. As can be seen these rules were issued over the years with no analysis on how they might conspire together to set up a catastrophic house of cards situation due to the homogenization of asset mix held by many of these investment houses. Collapse of the housing bubble which affected these assets including MBS’s (whose contained loans were still paying at ~ 80%) then lost value due to the market price dropping way below value triggering large paper losses due to mark to market accounting rules. This reduced the capital and lending capacity of the banks due to Basel I and the Recourse Rule (an adoption in the U.S. of part of what later became Basel II), which specify those capital requirements. The conflation of all of this resulted in the financial (really the banking) crisis. The authors also show that the repeal of Glass Steagal had nothing to do with the financial crisis. Glass Steagal prevented the mixing of private deposits with investments and that was not a factor. Here are the set of regulations:




1. SEC Regulations from 1936 requiring mandated minimum ratings for a growing number of institutional investments.


2. SEC decision in 1975 to confer NRSRO on the big three ratings agencies.


3. Basel 1 from 1978 which established favorable risk weighting for mortgages and GSE issued MBS’s.


4. Mark to market accounting established by FAS 115 in 1993 and refined by FAS 157 in 2006.


5. HUD targets for mortgages to low-income families in the late 1990’s resulting in reduction of down payment requirements for the GSE’s.


6. Recourse Rule issued by the FED, FDIC, and Office of the Comptroller of the Currency, and the Office of Thrift Supervision.






Here are some excerpts from an editorial from the WSJ:



Tim Geithner, then head of the New York Fed, opined that "financial market data" gave off no sign of trouble. Kevin Warsh, a fellow Fed governor, agreed: "Capital markets are probably more profitable and more robust . . . than they have perhaps ever been." What idiots. And yet they were right. Jobs, consumption and stock prices were holding up smartly despite the well-recognized turn in housing markets. Then came the financial panic. Did the housing bubble cause the panic—or was the panic somehow separate, making everything worse, including the housing crunch? Good question


Gratifying, then, is the attention showered on a recent book by Jeffrey Friedman and Wladimir Kraus, "Engineering the Financial Crisis." Their work is refreshing for many reasons: It does not assume the housing bubble is the whole story. It allows that honest ignorance (especially about the interaction of complex regulations) might explain the behavior of bankers and regulators. It asks especially interesting questions about the triple-A mortgage derivatives at the heart of the financial meltdown


Basel tried to make banks safer by prescribing capital levels, and by steering them toward "safe" assets. Experience had shown that mortgage-backed securities were among the safest, safer than business and consumer loans and even whole mortgages. So the Basel rules strongly favored mortgage-backed securities. Alas, this became an incentive to over-produce these assets until they became very dangerous indeed to the entire financial system (a formula also implicated in Europe's sovereign debt crisis).


http://online.wsj.com/article/SB10001424052970204468004577166723093578272.html


Google – The Meltdown Remains a Whodunit

 

Too much flapping in addition to your rhetoric about my "making things up".
Again, go to the library and look up the "Robber Barons" to see what happens when there is little or no oversight. Plenty of examples of monopolies for your reading pleasure. The Clinton recession was not "mild". People lost everything and some committed suicide. The accounting firm that I was involved with informed me that they had never seen anything like it as many of their clients were financially wiped out. The meltdown occurred during the Bush presidency, and his effort to preclude that from happening came too little too late, as banks handed out sub-prime mortgages like M&Ms.

 

I blame Nancy Pelosi.

 

Oh that's just the short list.

 

And Mitch???

 

Thanks Obama.

 

A saint; the literal embodiment of G-d walking the earth.

 

And Nancy!

 

On water also?

 

Also gay abortion.