What Caused the Economis Crisis in America. Best video ever!

[BeachBum]

YouTube - Burning Down The House: What Caused Our Economic Crisis?

Dont understand the current Fannie Mae and econimic crisis? Watch this VIDEO.

I have no political political affiliation. Furthermore, I can remain neutral on most issues and examine both sides.

This said watch the video. Google the links, and consider this very carefully in your vote come November. All is self explainatory.

Use the pause button if it is too fast

[Transparent Theatre]

You've posted this before.

It's a shallow attempt to blame the Democrats for the crisis - after two terms of RePIGlican economic policies??

So I don't accept your claims not to have a political position as true, frankly.

This is just a shallow piece of Republican propaganda trash

[trebor]

There must be an election coming up somewhere soon. Right?

[BeachBum]

Originally Posted by Transparent Theatre You've posted this before. It's a shallow attempt to blame the Democrats for the crisis - after two terms of RePIGlican economic policies?? So I don't accept your claims not to have a political position as true, frankly. This is just a shallow piece of Republican propaganda trash

Sorry, to sink your boat. I never posted this before. As for propoganda, I've seen propoganda from both sides in a number of different countries and people. However, it is up to people with brains to sift through the trash for facts. Despite the fact that this video is politically motivated. The Simple truths are evident. If you look further back at the S&L faliure in the mid 80's it was a similar faliing by one political side. Now it is no different. You can not refute the simmple fact that this cirsis was brought on by passage of leglislation aimed at passing off mortages to low-income persons without sufficient credit or ncome histories. I am not sure what planet you came from. But This notion that all people deserve equal access to mortages is absurd. Credit and borrowed money is built upon a base of the ability of the creditee to pay back the debt. Nothing is free. People work to obtain better salaries,pay bills to build credit. "Relaxing" banking law to the point that The democratic legislature did was against all rules of free enterprise. It contradicts fundamental economic policy and eventually hurts all involved. It does not take a roclet scientist too see that a huge % of sub-prime loan recepients are in foreclosure. And by huge i mean 30+ percent.

People that number blows my mind. Imagine your mother, father and sister. One out of those three people. One of them is going to lose his house, be on the street with all his saving gone! Credit ruined and no ability to get another home for year!.. Forget abut the words fannie and freddie.. Think about mom and pop and sis. they are the one s that are getting slammed by some really bad decisions. and i mean bad decisions.

Could it have been prevented? Yes, if economists were running the country. But not when politicans enter the fray.


What social architects dont grasp is long-term affects. The people who are really suffering are the fools that took sub-prime loans and now are in foreclosure and lost everything. But the sad fact is most of them are too ignorant to see that the same people that are rubbing their backs now and saying . Dont worry, it will be ok (and it wont, they still lose it all). These same people are the same persons who put them in this position.

I am not a republican. Not a democrat either. I am simply a person with a decent education and a brain that can read between the lines. Your term 'rePIGlican ' substantiates the fact that your motivations are political. It is like the designer of the Titanic who is questioned y his fellow passangers as to why the boat was sinking? As he is up to his knees in freezing cold water, he shruggs his shoulders and says." What are you taling about. I designed the 'unsinkable' Titanic. Don't you read the news reports! "

I suggest you stop reducing this to political and use your brain, do some research, study an econimic text. and see for yourself. Despite its obvious political origin, this video does an excellent job of underlining the root couse of the current banking crisis. Politicians made the problem. But it doesn;t mean educated persons can not use their brains to understand the causes and correct it.

So I suggest, watch the video again. Check the links. When you have questions I can debate you here. because I have a number of basic texts on economic theory you can red that substantiate the facts.

[Judge]

What caused this economic crisis for the MTV generation

[Gypsy]

Just because a government tries to promote home ownership,as right wing and centrist ones both sides of the pond have tried to do over the last 3 decades, does not make them responsible for a crash like this one.

Was there any compulsion from the Clinton Administration?Any instruction telling banks to lend 110% of value to people with no credit rating?

The fault lies 100% with the managers in the banks that carried out the lending, the credit committees that allowed it, the oversight and risk management committees that did not stop it, the external auditors for not qualifying the accounts of the banks, and when we have exhausted all of those; the regulatory bodies that did appear to be asleep at the wheel.

If what the Clinton administration did was so bad - why did 8 years of republican Government not reverse it?

[BeachBum]

Originally Posted by Judge What caused this economic crisis for the MTV generation

Simple,,,,MTV caused it... let me trace the history..

1980 MTV airs.. ( think). THen a succession of MTV VJ's starts spouting off about loving, peace and multi-everything ethics.... America is cought in this whirlpool of crap. People dont think for themsleves. The next thing you have is a Nation of Whining cry babies that cant think past the TV. In step some savvy political like Reagan or Clinton creeps in, they smile wave the everybody gets a free lunch, TV, card or tax cut and next thing you know mom pop and sis are betting their future lunch money on sub-primes and losing it all!!.....so you see MTV started it all.

[BeachBum]

Originally Posted by Gypsy Just because a government tries to promote home ownership,as right wing and centrist ones both sides of the pond have tried to do over the last 3 decades, does not make them responsible for a crash like this one. Was there any compulsion from the Clinton Administration?Any instruction telling banks to lend 110% of value to people with no credit rating? The fault lies 100% with the managers in the banks that carried out the lending, the credit committees that allowed it, the oversight and risk management committees that did not stop it, the external auditors for not qualifying the accounts of the banks, and when we have exhausted all of those; the regulatory bodies that did appear to be asleep at the wheel. If what the Clinton administration did was so bad - why did 8 years of republican Government not reverse it?

This is exactly what I mean ... People dont use their Brains!!!

Gypsy. you are without a doubt smart. Your living in Russia so you must have something on the ball. But you yourself stated the exact problem.
The fault lies 100% with the managers in the banks that carried out the lending, the credit committees that allowed it, the oversight and risk management committees that did not stop it, the external auditors for not qualifying the accounts of the banks, and when we have exhausted all of those; the regulatory bodies that did appear to be asleep at the wheel.
That is exactly the the effect. But what was the cause? Banks, lending committees work utilizing tables and risk analysis factors to achieve a credit score. The score is applied against the applicant. That is what decides the loans. THE ROOT CAUSE was when legislature passed LAWS that allowed banks to score applicant higher because the 'RISK' factor was being assumed by , can you guess,??? Fannie and Freddie.....

So my dear friend Gypsy you hit the nail on the head. YOu just missed who put the nai there in the first place.

[Gypsy]

Originally Posted by BeachBum This is exactly what I mean ... People dont use their Brains!!! Gypsy. you are without a doubt smart. Your living in Russia so you must have something on the ball. But you yourself stated the exact problem. The fault lies 100% with the managers in the banks that carried out the lending, the credit committees that allowed it, the oversight and risk management committees that did not stop it, the external auditors for not qualifying the accounts of the banks, and when we have exhausted all of those; the regulatory bodies that did appear to be asleep at the wheel. That is exactly the the effect. But what was the cause? Banks, lending committees work utilizing tables and risk analysis factors to achieve a credit score. The score is applied against the applicant. That is what decides the loans. THE ROOT CAUSE was when legislature passed LAWS that allowed banks to score applicant higher because the 'RISK' factor was being assumed by , can you guess,??? Fannie and Freddie..... So my dear friend Gypsy you hit the nail on the head. YOu just missed who put the nai there in the first place.

Ok.

If I was a citizen of the US the law there would allow me to own a gun.

If I take that gun and shoot someone who is responsible?

There has to be a presumption that people will act with commonsense.

No framer of legislation can cover every potential outcome - in a free country anyway.

Lending without adequate asset cover is stupid and dangerous as we have seen. Do you really want Congress telling banks how to run their businesses?

Whatever pressure the Clinton administration applied, the subsequent lending was foolish,and broke every banking convention as well as the internal rules of the banks involved.

Of far more interest to me is why the external auditors did not qualify the accounts of the banks concerned. Can anyone really say that the accounts for 31 March 2006 or7 represented a True and Fair View of the companies assets and liabilities at that date?

[Kvartiraokhotnik]

Don't decide what caused the recession by merely picking red or blue. This demonstrates an oversimplification of complex events, and exemplifies the mentality of a football fan. He knows not why he supports one team, but will defend their honour to the death.

Politics and economics are complicated and should NEVER come down to just red or blue, black or white.

Watch Ron Paul, or any of his economic advisors (Schiff) or Jim Rogers to find out what caused the recession. They don't just repeat what the republicans and democrats say (blaming one another for their own mistakes) but instead talk intelligently about what inflation actually is, and why it happens.

All the vids are on the MTV thread.

[BeachBum]

Originally Posted by Kvartiraokhotnik Don't decide what caused the recession by merely picking red or blue. This demonstrates an oversimplification of complex events, and exemplifies the mentality of a football fan. He knows not why he supports one team, but will defend their honour to the death. Politics and economics are complicated and should NEVER come down to just red or blue, black or white. Watch Ron Paul, or any of his economic advisors (Schiff) or Jim Rogers to find out what caused the recession. They don't just repeat what the republicans and democrats say (blaming one another for their own mistakes) but instead talk intelligently about what inflation actually is, and why it happens. All the vids are on the MTV thread.

yeah your correct. But i dont know how to state in the limited time and space here on site what we both know is a VERY complex issues. If I start mouthing off about Tax loopholes, IRS provisions, CR dockets, legislative review commissions I will quickly lose everybody. But in all honesty my informed opinion is that Video I initially posted lays a good roadmap for the the current crisis despite the obvious political tilt.

[Kvartiraokhotnik]

If you want to watch a REALLY great (though long) film on the US economy, and a very early warning on what has happened and will happen to the economy....

strap yourselves in for a financial and historical documentary masterpiece....

The Money Masters - Part 1 of 2

The Money Masters - Part 2 of 2

watch it at your leisure. Sorry for the monotonous voice! What do you think?

[xSnoofovich]

Originally Posted by Gypsy Was there any compulsion from the Clinton Administration?Any instruction telling banks to lend 110% of value to people with no credit rating?

What about the law firms that sued if not enough sub-prime loans were not given out?

They seem to have a lot of ties to both Carter, Clinton, and Obama.

[Gypsy]

Originally Posted by xSnoofovich What about the law firms that sued if not enough sub-prime loans were not given out? They seem to have a lot of ties to both Carter, Clinton, and Obama.

My understanding of the CRA, and it was a Jimmy Carter piece of legislation, later amended by Bush sen, Clinton and GWB, was that it required lenders to lend based solely on the credit scoring and to ignore ethnicity and some other factors, with penalties if someone could show they were disadvantaged according to the act:I guess that'swhere the law suits came from.

The Head ofthe Regulatory body made speeches urging lenders NOT to break normal banking rules and norms in order to comply, and stressed lending properly. And it is a fact that the vast majority of subprime loans were made by companies NOT covered by the act. Sorry if that contradicts your prejudice but it is a fact.

[DDT]

I have read quote after quote from various sources of democrats who said, 4 years ago, "There is nothing wrong with Fannie May and Freddie Mac" and voted against reforms asked for by Bush administration. Even Obama voted 'NO". Anybody can find these. How Nancy Pelosi and cohorts can blatantly blame republicans for this is beyond comprehension.

What do Obama and Barney Frank have in common besides being Democrats.? They both were listed in the top 25 recipients of campaign contributions from Fannie Mae and Freddie Mac and they both are hypocrites. Obama is number 3 on the the list and Barney Frank is 16. Obama, the candidate of change, was in bed with Fannie Mae and Freddie Mac yet he criticizes John McCain, who along with George Bush, tried to fix the problem.

Obama, Barney Frank, Fannie Mae, Freddie Mac, Democrats cause of crisis, McCain warned, McCain reformer, Youtube video, Democrat coverups, ** Bailout Truth ** « Citizen Wells