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Where's obama at?

Boca

Governor
Prove your case. How many mortgages funded as a result of banks complying with the CRA were foreclosed?
What you're missing is that the CRA foreclosures are only those of mortgages originated by the specific banks that were targeted. For everyone of those there were 3 other subprime mortgages issued by other lending organizations.
 

middleview

President
Supporting Member
What you're missing is that the CRA foreclosures are only those of mortgages originated by the specific banks that were targeted. For everyone of those there were 3 other subprime mortgages issued by other lending organizations.
So you have numbers to show that 25% of foreclosures were of mortgages that you can say were somehow related to the CRA? I'd bet not.

Most mortgages that defaulted were originated with companies like Countrywide...not a bank and not covered by the CRA.

Why did mortgage foreclosures go through the roof in 2005 thru 2006? Those would have been loans from 2003 and on....after the first or second mortgage rate resets.

 

middleview

President
Supporting Member
Are you dishonest or simply too dim to understand what you read? You are meandered far from the original point....and that was the legislation that caused the recession. You blame the democrats in Congress who took control in January 2007. You cannot identify any legislation passed between then and the beginning of the recession that would have been the cause.

The link from Gawker does not talk about Dodd-Frank at all. It is talking about the Stimulus bill.

The Stimulus bill was not the source of funds used by AIG to pay bonuses. That was TARP.
https://en.wikipedia.org/wiki/AIG_bonus_payments_controversy
 

middleview

President
Supporting Member
He didn't save GM he saved the unions contract. All GM had to do default union contract would have busted and renegotiate GM is saved.
1. GM came to the government looking for a bailout. If all GM had to do was decide they could walk away from the union contract...why didn't they? The bailout cost the CEO of GM his job, as well as several other company officers. That was a condition of the loan.

2. How is it that you think GM could walk away from a union contract? By December 2008 GM was insolvent. They could not sell cars. They had a large inventory of unsold vehicles and were in danger of defaulting on payments to their lenders. Without a source of funds, they had no hope of survival. Nobody was about to bring $50 billion to the table to save GM...if it wasn't the federal government.
 

Days

Commentator
That's odd..... the Russian government devalued the ruble, defaulted on domestic debt, and declared a moratorium on repayment of foreign debt in August 1998.

The filing for Chapter 11 bankruptcy protection by financial services firm Lehman Brothers on September 15, 2008 remains the largest bankruptcy filing in U.S. history, with Lehman holding over $600 billion in assets.

The bank had become so deeply involved in mortgage origination that it had effectively become a real estate hedge fund disguised as an investment bank. At the height of the subprime mortgage crisis,
it was exceptionally vulnerable to any downturn in real estate values.

Can't argue though with factory closings and job losses except to note that it only exacerbated the effects of lower lending standards that came with the everybody should own a home mind set in Washington a decade earlier.

Again...from the New York Times

But the government-subsidized corporation
[Fannie Mae] may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980s.
I don't know nuttin about the mafia but I'll take your word for it
Lehman held the 2nd largest amount of mortgages/bonds in America, Goldman Sachs held the most. (amongst Wall Street banks) But those bonds were not bad paper. The bonds they held from USSR default OTOH were never faithfully replaced by the new Russian republic... they got zeroed. IN 2008 they ran into a cashflow problem... purely because the FED and Paulson refused to bail them out - and I think that had to do with Lehman's horrible position over all... the Soviet bonds being a big part of that. The bankruptcy was a colossal failure as money moves too fast to unwind a monster like Lehman... they tried to do it for five years and then gave up, I have no idea what is happening with Lehman today, its a legal cluster-fvck.

The FED Wall Street banks had Bush seize FANNIEMAE into receivership and then restrict volume of loans... so the market flowed into Wall Street. funny stuff because Wall Street ended up swallowing all the fraud, in so doing they preserved FANNIEMAE through the housing bust. That's why FANNIEMAE isn't in trouble, except for synthetic restrictions by government; but that's not really hurting them either on account of, the entire market is so slow, FANNIEMAE would not have done any different. Again, I don't know what their status is today.

I was a Loan Originator in the state of Illinois from 2000 to 2009, I quit when the whole industry went to hell.
 

Days

Commentator
1. GM came to the government looking for a bailout. If all GM had to do was decide they could walk away from the union contract...why didn't they? The bailout cost the CEO of GM his job, as well as several other company officers. That was a condition of the loan.

2. How is it that you think GM could walk away from a union contract? By December 2008 GM was insolvent. They could not sell cars. They had a large inventory of unsold vehicles and were in danger of defaulting on payments to their lenders. Without a source of funds, they had no hope of survival. Nobody was about to bring $50 billion to the table to save GM...if it wasn't the federal government.
GM was far from insolvent, or they would (should) not have been bailed out. GM was #1 car company in the hottest market on earth; China. GM had the same problem everyone had; there was a cash crunch, the commercial loans that big industry runs on had froze. Ford saw it coming and liquidated in advance to survive it. GM did not. That's why the government punished them and removed their top officers.
 

middleview

President
Supporting Member
Lehman held the 2nd largest amount of mortgages/bonds in America, Goldman Sachs held the most. (amongst Wall Street banks) But those bonds were not bad paper. The bonds they held from USSR default OTOH were never faithfully replaced by the new Russian republic... they got zeroed. IN 2008 they ran into a cashflow problem... purely because the FED and Paulson refused to bail them out - and I think that had to do with Lehman's horrible position over all... the Soviet bonds being a big part of that. The bankruptcy was a colossal failure as money moves too fast to unwind a monster like Lehman... they tried to do it for five years and then gave up, I have no idea what is happening with Lehman today, its a legal cluster-fvck.

The FED Wall Street banks had Bush seize FANNIEMAE into receivership and then restrict volume of loans... so the market flowed into Wall Street. funny stuff because Wall Street ended up swallowing all the fraud, in so doing they preserved FANNIEMAE through the housing bust. That's why FANNIEMAE isn't in trouble, except for synthetic restrictions by government; but that's not really hurting them either on account of, the entire market is so slow, FANNIEMAE would not have done any different. Again, I don't know what their status is today.

I was a Loan Originator in the state of Illinois from 2000 to 2009, I quit when the whole industry went to hell.
Lehman was securitizing mortgages from Aurora Loan Services. They were infamous here for giving 125% mortgages. I worked across the street from their HQ. I knew someone who paid an appraiser to bump up the value of his home and then getting a 125% loan on the value. It was corrupt as hell and had nothing at all to do with Freddie or Fannie.

Look up "Million for a Billion". It was Merrill Lynch's plan to keep the money machine running. They would pay brokers a million bucks for every billion in mortgage backed securities they bought.

The group, created in 2006, accepted tens of billions of dollars of Merrill's Triple A-rated mortgage-backed assets, with disastrous results. The value of the securities fell to pennies on the dollar and helped to sink the iconic firm. Merrill was sold to Bank of America, which was in turn bailed out by taxpayers.

The origins of Merrill's crisis came at the beginning of 2006, when the bank's biggest customer for the supposedly safe assets -- the giant insurer AIG -- decided to stop buying the assets, known as "super-senior," after becoming worried that perhaps they weren't so safe after all.
https://www.propublica.org/article/the-subsidy-how-merrill-lynch-traders-helped-blow-up-their-own-firm
 

middleview

President
Supporting Member
GM was far from insolvent, or they would (should) not have been bailed out. GM was #1 car company in the hottest market on earth; China. GM had the same problem everyone had; there was a cash crunch, the commercial loans that big industry runs on had froze. Ford saw it coming and liquidated in advance to survive it. GM did not. That's why the government punished them and removed their top officers.
GM could not sell cars. They couldn't simply stop production and wait for their inventory to be bought down. If you cannot pay your bills you are bankrupt. You have a couple of choices, chapter 7 or chapter 11. Chapter 11 can work if you have someone willing to provide enough cash for continuing operations. GM couldn't find anyone with enough capital to allow them to continue paying their bills. That means they were insolvent. They owned more than they were worth to any potential buyer.
 

Dawg

President
Supporting Member
1. GM came to the government looking for a bailout. If all GM had to do was decide they could walk away from the union contract...why didn't they? The bailout cost the CEO of GM his job, as well as several other company officers. That was a condition of the loan.

2. How is it that you think GM could walk away from a union contract? By December 2008 GM was insolvent. They could not sell cars. They had a large inventory of unsold vehicles and were in danger of defaulting on payments to their lenders. Without a source of funds, they had no hope of survival. Nobody was about to bring $50 billion to the table to save GM...if it wasn't the federal government.

GM never paid taxpayers back
 

Constitutional Sheepdog

][][][%er!!!!!!!
Are you dishonest or simply too dim to understand what you read? You are meandered far from the original point....and that was the legislation that caused the recession. You blame the democrats in Congress who took control in January 2007. You cannot identify any legislation passed between then and the beginning of the recession that would have been the cause.

The link from Gawker does not talk about Dodd-Frank at all. It is talking about the Stimulus bill.

The Stimulus bill was not the source of funds used by AIG to pay bonuses. That was TARP.
https://en.wikipedia.org/wiki/AIG_bonus_payments_controversy
Dishonest [Unwelcome language removed] hack that's exactly what you are
 

middleview

President
Supporting Member
Dishonest [Unwelcome language removed] hack that's exactly what you are
You are the one linking to an article about TARP(2008) or the Stimulus (2009) and claiming it is about Dodd Frank(2010)...still claiming to be posting about the cause of the 2007 Bush recession....
 
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Days

Commentator
GM could not sell cars. They couldn't simply stop production and wait for their inventory to be bought down. If you cannot pay your bills you are bankrupt. You have a couple of choices, chapter 7 or chapter 11. Chapter 11 can work if you have someone willing to provide enough cash for continuing operations. GM couldn't find anyone with enough capital to allow them to continue paying their bills. That means they were insolvent. They owned more than they were worth to any potential buyer.
That is a patently false representation of GM's position. Their debt was manageable and their market penetration worldwide was doing just fine, thank you. What they needed was cash to maintain operations, and that was frozen due to the global financial meltdown.
 

Days

Commentator
Lehman was securitizing mortgages from Aurora Loan Services. They were infamous here for giving 125% mortgages. I worked across the street from their HQ. I knew someone who paid an appraiser to bump up the value of his home and then getting a 125% loan on the value. It was corrupt as hell and had nothing at all to do with Freddie or Fannie.

Look up "Million for a Billion". It was Merrill Lynch's plan to keep the money machine running. They would pay brokers a million bucks for every billion in mortgage backed securities they bought.

The group, created in 2006, accepted tens of billions of dollars of Merrill's Triple A-rated mortgage-backed assets, with disastrous results. The value of the securities fell to pennies on the dollar and helped to sink the iconic firm. Merrill was sold to Bank of America, which was in turn bailed out by taxpayers.

The origins of Merrill's crisis came at the beginning of 2006, when the bank's biggest customer for the supposedly safe assets -- the giant insurer AIG -- decided to stop buying the assets, known as "super-senior," after becoming worried that perhaps they weren't so safe after all.
https://www.propublica.org/article/the-subsidy-how-merrill-lynch-traders-helped-blow-up-their-own-firm
Aurora Loan Services... another less than stellar position that Lehman took.

Bonds based upon mortgages became liabilities when the underlying mortgages being packaged were as much as 20-50% fraud. That doesn't make for very good performance for those bonds.
 

middleview

President
Supporting Member
That is a patently false representation of GM's position. Their debt was manageable and their market penetration worldwide was doing just fine, thank you. What they needed was cash to maintain operations, and that was frozen due to the global financial meltdown.
Then explain why the CEO would agree to being fired and a major reorganization in order to get enough money to maintain operations....

GM was looking at Chapter 7.
 

Days

Commentator
Then explain why the CEO would agree to being fired and a major reorganization in order to get enough money to maintain operations....

GM was looking at Chapter 7.
You answered your own question and I already explained it...

GM was far from insolvent, or they would (should) not have been bailed out. GM was #1 car company in the hottest market on earth; China. GM had the same problem everyone had; there was a cash crunch, the commercial loans that big industry runs on had froze. Ford saw it coming and liquidated in advance to survive it. GM did not. That's why the government punished them and removed their top officers.
 

middleview

President
Supporting Member
You answered your own question and I already explained it...

GM was far from insolvent, or they would (should) not have been bailed out. GM was #1 car company in the hottest market on earth; China. GM had the same problem everyone had; there was a cash crunch, the commercial loans that big industry runs on had froze. Ford saw it coming and liquidated in advance to survive it. GM did not. That's why the government punished them and removed their top officers.
GM was not the #1 car company in the world in 2008. Toyota was. GM made a desperate deal to borrow the money from the federal government because no other source was available. In the absence of federal money...GM would have gone chapter 7.

The government did not "remove" anyone. They were forced to resign in return for a deal.
 

Days

Commentator
GM was not the #1 car company in the world in 2008. Toyota was. GM made a desperate deal to borrow the money from the federal government because no other source was available. In the absence of federal money...GM would have gone chapter 7.

The government did not "remove" anyone. They were forced to resign in return for a deal.
yeah, so what did I write? GM was #1 in Chinese market; not the entire world market. So they had market penetration. Where were they in US market? #3? That's still selling cars. You said they couldn't sell cars, they not only were selling cars just fine, they were positioned nice to move ahead in the market... and did. So, that was a factor for doing the bailout. When a manufacturer has sales but needs operating cash, that's called a good loan.
 

middleview

President
Supporting Member
yeah, so what did I write? GM was #1 in Chinese market; not the entire world market. So they had market penetration. Where were they in US market? #3? That's still selling cars. You said they couldn't sell cars, they not only were selling cars just fine, they were positioned nice to move ahead in the market... and did. So, that was a factor for doing the bailout. When a manufacturer has sales but needs operating cash, that's called a good loan.
GM had no sales. Auto sales in the US had dropped from 16 million to 10 million cars in 2008/2009. Why do you think Cash for Clunkers was rolled out?
 
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