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News & Politics News & Politics

The Economy Was Destroyed by the Dems...New Study Confirms.

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America, designed by geniuses to be run by idiots. 

New study confirms economy was destroyed by Democrat policies

A new study from the widely respected National Bureau of Economic Research released this week has confirmed beyond question that the left's race-baiting attacks on the housing market (the Community Reinvestment Act--enacted under Carter, made shockingly more aggressive under Clinton) is directly responsible for imploding the housing market and destroying the economy.

The study painstakingly sorted through failed home loans that caused the housing market collapse and identified an overwhelming connection between them and CRA mortgages.

Again, let's review:

-President Bush went to Congress repeatedly for years warning them that Fannie Mae and Freddie Mac were going to destroy the economy (17 times in 2008 alone). Democrats continuously ignored him, shut down his proposals along party lines and continued raiding the institutions for campaign contributions on their way down.

-John McCain also co-sponsored urgently critical reforms that would have prevented the housing market collapse, but Democrats shut that down as well, along party lines, and even openly ridiculed anyone who suggested reforms were necessary...to protect their taxpayer-funded campaign contributions as the economy raced uncontrollably toward the cliff.

-No one was making bad loans to unqualified people until Democrats came along and threatened to drag banks into court and have them fined and branded as racists if they didn't go along with the left's Affirmative Action lending policies...all while federally insuring their losses. Even the New York Times warned in the late 1990s that Democrats continuing to force banks into lowering their standards would lead to this exact catastrophe.

-Obama himself is even on the record personally helping sue one lender (Citibank) into lowering its lending standards to include people from extremely poor and unstable areas, which even one of the left's favorite blatantly partisan "fact-checkers," Snopes, admits (while pretending to 'set the record straight').

-Even The New York Times admitted that there is "little evidence" of any connection between the "Republican" deregulation measures Obama blames, like the Gramm-Bleach-Liley Act (signed into law by a Democrat), and the collapse of the housing market.

But non-Fox media have spent years deliberately and relentlessly inoculating people against the facts, training them to mindlessly blame Bush for being in charge when Democrat policies destroyed the economy. So here we sit, to this day, still watching Obama excuse and shrug off endless economic failures, illegal government takeovers and utter national bankruptcy with zero accountability.

Hope everyone has an inoffensive politically
correct seasonal period of celebratory behaviour with variations of
traditions & significance!

by on Dec. 30, 2012 at 6:24 AM
Replies (11-20):
mustbeGRACE
by Silver Member on Dec. 30, 2012 at 10:58 AM
2 moms liked this


Quoting Clairwil:

Quoting JustCJ:

-No one was making bad loans to unqualified people until Democrats

Correlation is not the same as causation.

A different factor, not taken into account, is the rise of Collateralized debt obligations.   In other words, they sold more bad loans once they had the capability of passing the risk on to others rather than assuming it themselves.

Does this mean that loans were not given to people who couldn't afford them?

People not making that mortgage payment would be a direct cause.

My explanation without the jargon.

acrogodess
by on Dec. 30, 2012 at 11:05 AM
2 moms liked this
Funny, because we didn't take out loans we couldn't afford. Neither did my parents. It's called reading the fine print. It is also called personal responsibility. No one made those individuals take on debt they couldn't afford. That is all on them, not on the government or the banks.

Quoting gsprofval:

You are so correct! I witnessed it firsthand and it was very sad.


Quoting Aivlys_:

They sure did!, they made sure everyone and their mom can get a loan, regardless of income or credit worthiness!


Posted on CafeMom Mobile
gsprofval
by Gold Member on Dec. 30, 2012 at 11:09 AM
3 moms liked this

Unfortunately, at that time obama was the main person who pushed for EVERYONE, regardless of ability to pay or not, to be able to get a huge mortgage.

lylalane7275
by Silver Member on Dec. 30, 2012 at 11:10 AM
2 moms liked this

This exactly.  I remember working with people making around $30k a year being approved for $300k mortgages.  Their thought process was if they were approved, it must be okay.

Quoting acrogodess:

Funny, because we didn't take out loans we couldn't afford. Neither did my parents. It's called reading the fine print. It is also called personal responsibility. No one made those individuals take on debt they couldn't afford. That is all on them, not on the government or the banks.

Quoting gsprofval:

You are so correct! I witnessed it firsthand and it was very sad.


Quoting Aivlys_:

They sure did!, they made sure everyone and their mom can get a loan, regardless of income or credit worthiness!



Clairwil
by Platinum Member on Dec. 30, 2012 at 11:18 AM
2 moms liked this
Quoting acrogodess:

Funny, because we didn't take out loans we couldn't afford. Neither did my parents. It's called reading the fine print. It is also called personal responsibility. No one made those individuals take on debt they couldn't afford. That is all on them, not on the government or the banks. 

On an individual level, yes.

On a group level, you can predict in advance that a certain percentage of a particular group will be foolish and irresponsible.   The job of a bank is to make sure that risk isn't a systematic risk - that there isn't a single element which is going to cause all of the foolish borrowers to default AT THE SAME TIME.

I doubt people have become fundamentally less responsible since the 1960s.   What did change, perhaps, is how long it had been since a property downturn.   If the same market history had affected their parents' generation, those parents would probably have contained the same percentage of fools.

Clairwil
by Platinum Member on Dec. 30, 2012 at 11:19 AM
Quoting gsprofval:

at that time obama was the main person who pushed for EVERYONE, regardless of ability to pay or not, to be able to get a huge mortgage.

Evidence?

JustCJ
by on Dec. 30, 2012 at 11:19 AM

I agree it doesn't negate personal responsibility but come on...there should have been guidelines.

Quoting lylalane7275:

This exactly.  I remember working with people making around $30k a year being approved for $300k mortgages.  Their thought process was if they were approved, it must be okay.

Quoting acrogodess:

Funny, because we didn't take out loans we couldn't afford. Neither did my parents. It's called reading the fine print. It is also called personal responsibility. No one made those individuals take on debt they couldn't afford. That is all on them, not on the government or the banks.

Quoting gsprofval:

You are so correct! I witnessed it firsthand and it was very sad.


Quoting Aivlys_:

They sure did!, they made sure everyone and their mom can get a loan, regardless of income or credit worthiness!




JustCJ
by on Dec. 30, 2012 at 11:20 AM
1 mom liked this

I think she worked as a lender.

Quoting Clairwil:

Quoting gsprofval:

at that time obama was the main person who pushed for EVERYONE, regardless of ability to pay or not, to be able to get a huge mortgage.

Evidence?


acrogodess
by on Dec. 30, 2012 at 11:24 AM
1 mom liked this
It really is a shame. Granted, I have debt I can't afford, but that is student loan subsidized debt. It is in forbearance. It still ruins my credit though, but no one made me go to college. Kwim? I would never blame the government for my choice.

Quoting lylalane7275:

This exactly.  I remember working with people making around $30k a year being approved for $300k mortgages.  Their thought process was if they were approved, it must be okay.


Quoting acrogodess:

Funny, because we didn't take out loans we couldn't afford. Neither did my parents. It's called reading the fine print. It is also called personal responsibility. No one made those individuals take on debt they couldn't afford. That is all on them, not on the government or the banks.



Quoting gsprofval:

You are so correct! I witnessed it firsthand and it was very sad.



Quoting Aivlys_:

They sure did!, they made sure everyone and their mom can get a loan, regardless of income or credit worthiness!




Posted on CafeMom Mobile
JustCJ
by on Dec. 30, 2012 at 1:08 PM

So we can blame the newest rising gas prices on this administration? Good to know.

Quoting _Kissy_:

Housing didn't declare war, give out unpaid taxcuts, bail out wallstreet, drive up gas prices, outsource jobs, lay people off...

And 20 years of Republican presidents in the last 30 and they did nothing but seek and destroy.


Hope everyone has an inoffensive politically
correct seasonal period of celebratory behaviour with variations of
traditions & significance!

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