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Title: Happy 10th Birthday, Bush Tax Cuts! You've been a failure in every conceivable way
Source:
Slate
URL Source: http://www.slate.com/id/2296578
Published: Jun 10, 2011
Author: Annie Lowery
Post Date: 2011-06-10 10:59:53 by go65
Keywords: None
Views: 42596
Comments: 143
Unfortunately, the tax cuts never translated into robust economic growth, either. Indeed, the aughts saw the worst growth since World War II. From 2001 to 2007, annual GDP growth averaged just 2.4 percent per year, lower than in any other postwar business cycle. The contrast is starker still when judging against the previous decade. In real terms, GDP grew half as much from 2001 to 2010 as from 1991 to 2000.
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#25. To: go65 (#23)
There is just no enlightening a true statist.
war has to do something for entertainment. The voices in his head aren't speaking to him and his imaginary friends have found reasons not to come over anymore.
Now, I know Iām not going to change the minds of any of the True Believersā¦those who read all of Reverend Alās sermons, and say things like, āYou know, global warming can mean warmer OR colder, wetter OR drier, cloudier OR sunnier, windier OR calmer, ā¦ā. Can I get an āamenā??
I find it amusing and not surprising you liberal trolls monitor talk radio and probably take extensive notes. Nevertheless, there is no such thing as a budget surplus. Government doesn't make money. It confiscates it under the IRS. Common sense should tell you that. Oh, wait . . .
war has to do something for entertainment. The voices in his head aren't speaking to him and his imaginary friends have found reasons not to come over anymore.
You didn't answer my question.
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" That article blames the CRA for "lax lending standards" while offering absolutely no proof that it did. Meanwhile, time after time, you have been given empirical data that CRA had zipola to do with the financial crisis. Believe me, we all "get" that you hate ni**ers owning homes.
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" Weren’t the majority of the subprime loans made by mortgage service companies not subject to the CRA? This is true. But it is largely beside the point. A huge driver of the demand for subprime loans was the demand for CRA bonds. Banks operating under the CRA could meet their obligations by buying up CRA loans or MBS built from CRA loans. The CRA created a demand that the mortgage servicers were meeting. What's more, many smaller mortage service companies hoped to be acquired by larger banks. Increasing their CRA lending made them more attractive take-over targets. A study put out by the Treasury Department in 2000 found that the CRA was encouraging the mortgage servicers to provide loans to low-income borrowers, in part because the CRA loans had been so successful. Finally, the Clinton adminstration threatened to subject the mortgage companies to the CRA if they didn't comply voluntarily. They promptly agreed to increase their CRA-type lending in order to escape the kind of public scrutiny that comes with official CRA regulated status.
Now, I know Iām not going to change the minds of any of the True Believersā¦those who read all of Reverend Alās sermons, and say things like, āYou know, global warming can mean warmer OR colder, wetter OR drier, cloudier OR sunnier, windier OR calmer, ā¦ā. Can I get an āamenā??
sorry, i put facts/data/actual real-world experience ahead of ideology.
"Thats because your basically and idiot." I find that impossible to believe, simply because the real world doesn't work the way you wish to believe. Hence your constant on-line activism for the increasing communisation of this country, as well as a second regime for Barry Soetoro and his handlers.
war has to do something for entertainment. The voices in his head aren't speaking to him and his imaginary friends have found reasons not to come over anymore.
Chuckles...pure bullshit. There was no disclosure of the origin of the loans within a particular MBS. In other words, Paddy, you had 0 idea if a particular bundling contained a loan made under CRA guidelines. As long as a loan met the pooling requirements of FN/FM, it was in.
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" You hurl insults, I hurl examples/facts/figures. To each his own.
"Thats because your basically and idiot." Take it up with this guy. He's the author -- John Carney is a senior editor at CNBC.com, covering Wall Street, hedge funds, financial regulation and other business news. Contact: e-mail: john.carney@nbcuni.com
Now, I know Iām not going to change the minds of any of the True Believersā¦those who read all of Reverend Alās sermons, and say things like, āYou know, global warming can mean warmer OR colder, wetter OR drier, cloudier OR sunnier, windier OR calmer, ā¦ā. Can I get an āamenā??
I sold MB/CMO/CLO securites as an underwriter for 11 years, Paddy.
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" And if that is true, why would Countrywide be advertising as such: "The result of these efforts is an enormous pipeline of mortgages to low- and moderate-income buyers. With this pipeline, Countrywide Securities Corporation (CSC) can potentially help you meet your Community Reinvestment Act (CRA) goals by offering both whole loan and mortgage-backed securities that are eligible for CRA credit,”
Now, I know Iām not going to change the minds of any of the True Believersā¦those who read all of Reverend Alās sermons, and say things like, āYou know, global warming can mean warmer OR colder, wetter OR drier, cloudier OR sunnier, windier OR calmer, ā¦ā. Can I get an āamenā??
And very weak ones at that. Rudy's picture leaked out on the internet: America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" That's private label bundling of loans made to "low income" people, Paddy. The definition of "low income" was somewhat flexible to the private labels who would lend money to people who simply did not disclose their income.
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" Ans FNMA sure thinks there is "disclosure." Do you originate Community Reinvestment Act (CRA)-targeted mortgages or are you seeking to purchase a CRA-targeted investment? Fannie Mae can help you participate in our CRA-targeted Mortgage-Backed Securities (MBS). This MBS is an investment vehicle tailored specifically for depositories and other investors in community development. https://www.efanniemae.com/sf/ip/cra/mbs.jsp
Now, I know Iām not going to change the minds of any of the True Believersā¦those who read all of Reverend Alās sermons, and say things like, āYou know, global warming can mean warmer OR colder, wetter OR drier, cloudier OR sunnier, windier OR calmer, ā¦ā. Can I get an āamenā??
No, I hurl the truth learned from living in the real world and interacting with it.
war has to do something for entertainment. The voices in his head aren't speaking to him and his imaginary friends have found reasons not to come over anymore.
That is bundling facilitated by FNMA's Capital Markets group and FNMA lenders, Paddy, that target individuals loans, as opposed to loan pools, that meets the buyers specifications and are bundled into a security and sold as a private placement. That is not the type of general pool MBS that "failed". You're again running into the problem that I know what I am talking about and you don't.
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" Keep googling...
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" And you have proof the CRA-targeted MBS didn't fail or are not the ones that caused the problem?
Now, I know Iām not going to change the minds of any of the True Believersā¦those who read all of Reverend Alās sermons, and say things like, āYou know, global warming can mean warmer OR colder, wetter OR drier, cloudier OR sunnier, windier OR calmer, ā¦ā. Can I get an āamenā??
Interesting blurb here: -- Dale Westhoff is senior managing director of Bear, Stearns & Co. Inc., New York. He has been ranked No. 1 in prepayment analysis by Institutional Investor Institutional Investor Bear, Stearns pioneered and is the leading underwriter of CRA mortgage-backed securitizations. http://www.thefreelibrary.com/Packaging+CRA+loans+into+securities.-a020804893 -- So I take it this had nothing to with Bear Stearns' problems?
Now, I know Iām not going to change the minds of any of the True Believersā¦those who read all of Reverend Alās sermons, and say things like, āYou know, global warming can mean warmer OR colder, wetter OR drier, cloudier OR sunnier, windier OR calmer, ā¦ā. Can I get an āamenā??
The FRB analysis of bank mortgage portfolios revealed several truths: CRA loans performed well and did not see a significant increase in defaults. CRA loans accounted for only 1 in 4 sub prime loans made and the due diligence undertaken before the loans were made was well within the long established standards established for making the loans. CRA loans accounted for a single digit % of the total amount of outstanding mortgages.
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" Bear Stearns failed because of the increased margin requirements that were put on it by its counterparties because its private label ALT-A mortgages began to default and Bear Stearns could no longer meet its obligations and guarantees to both its funds and its correspondents. So the answer is correct, they had nothing to do with it.
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" So it all boils down to the GSEs role under the CRA. Gotcha --- By the end of 2008, Fannie and Freddie held or guaranteed approximately 10 million subprime and Alt-A mortgages and mortgage-backed securities (MBS)—risky loans with a total principal balance of $1.6 trillion. These are now defaulting at unprecedented rates, accounting for both their 2008 insolvency and their growing losses today. Since 2008, under government control, the two agencies have continued to buy dicey mortgages in order to stabilize housing prices. There is more to this ugly situation. New research by Edward Pinto, a former chief credit officer for Fannie Mae and a housing expert, has found that from the time Fannie and Freddie began buying risky loans as early as 1993, they routinely misrepresented the mortgages they were acquiring, reporting them as prime when they had characteristics that made them clearly subprime or Alt-A. In general, a subprime mortgage refers to the credit of the borrower. A FICO score of less than 660 is the dividing line between prime and subprime, but Fannie and Freddie were reporting these mortgages as prime, according to Mr. Pinto. Fannie has admitted this in a third-quarter 10-Q report in 2008. An Alt-A mortgage is one in which the quality of the mortgage or the underwriting was deficient; it might lack adequate documentation, have a low or no down payment, or in some other way be more likely than a prime mortgage to default. Fannie and Freddie were also reporting these mortgages as prime, according to Mr. Pinto. It is easy to see how this misrepresentation was a principal cause of the financial crisis. Market observers, rating agencies and investors were unaware of the number of subprime and Alt-A mortgages infecting the financial system in late 2006 and early 2007. Of the 26 million subprime and Alt-A loans outstanding in 2008, 10 million were held or guaranteed by Fannie and Freddie, 5.2 million by other government agencies, and 1.4 million were on the books of the four largest U.S. banks. In addition, about 7.7 million subprime and Alt-A housing loans were in mortgage pools supporting MBS issued by Wall Street banks—which had long before been driven out of the prime market by Fannie and Freddie's government-backed, low-cost funding. The vast majority of these MBS were rated AAA, because the rating agencies' models assumed that the losses that are incurred by subprime and Alt-A loans would be within the historical range for the number of high-risk loans known to be outstanding. But because of Fannie and Freddie's mislabeling, there were millions more high-risk loans outstanding. That meant default rates as well as the actual losses after foreclosure were going to be outside all prior experience. When these rates began to show up early in 2007, it was apparent something was seriously wrong with assumptions on which AAA ratings had been based. Losses, it was now certain, would invade the AAA tranches of the mortgage-backed securities outstanding. Investors, having lost confidence in the ratings, fled the MBS market and ultimately the market for all asset-backed securities. They have not yet returned. By the end of 2007, the MBS market collapsed entirely. Assets once carried at par on financial institutions' balance sheets could not be sold except at distress prices. This raised questions about the stability and even the solvency of most of the world's largest financial institutions. The first major victim was Bear Stearns, the smallest of the five major Wall Street investment banks but one invested heavily in risky MBS. The government rescue of Bear Stearns in March 2008 signaled that the U.S. government, and perhaps others, would stand behind other large financial institutions. The moral hazard this engendered was deadly when Lehman Brothers' solvency came under challenge. Spreads in the credit default swap market for Lehman, despite massive short-selling, showed very little alarm by investors until just before the fateful weekend of Sept. 13 and 14, when they blew out on fears that the firm might not be rescued.
Now, I know Iām not going to change the minds of any of the True Believersā¦those who read all of Reverend Alās sermons, and say things like, āYou know, global warming can mean warmer OR colder, wetter OR drier, cloudier OR sunnier, windier OR calmer, ā¦ā. Can I get an āamenā??
Fuck off, Paddy.
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" A budget surplus has nothing to do with whether one earns his money or steals it.
It is our responsibility to protect that child once that child’s born too. When we start debating a budget, let’s make sure we don’t cut 100,000 vaccines. Let’s make sure we’ve got health insurance. We seem to worship what we cannot see, but as soon as that baby’s born, oh no, we don’t want to be intrusive. Texas is going to shrink government until it fits inside a women’s uterus. Senator Leticia Van de Putte
It has everything to do with government stealing more than they claim they need from those who earn and therefore own the money.
war has to do something for entertainment. The voices in his head aren't speaking to him and his imaginary friends have found reasons not to come over anymore.
That's a lie. It was worse, when you strip away the government manipulation. But blaming the financial collapse on Herr Dumbass- much of a buffoon as he was- is akin to assigning the sinking of the Titanic on only one of the sailors... when there was plenty of blame to spread around. The reality that this is inevitable conclusion of a Ponzi scheme, concocted in 1912, at Jeckyll Island. And when it was put together, they knew that we'd reach this point, sooner or later. Well, we're at the end of the road... the banksters have robbed and pillaged the economy for every amount of capital value they can, and now they're intentionally tanking out the economy. Soon, they'll move on to rob another country (or maybe the entire world in one fell swoop, if the Euro doesn't implode too soon). Assigning this disaster to just Bush, Clinton, Obama or even Reagan, is a failure to understand what's really going on, or intentional obfuscation of the truth. In other words, you're either ignorant to reality, or a shill. Which is it?
List of those unable to think: Bumper sticker on DwarF's car: You've been asked to explain that chart several times Erica. You've yet to do so once.
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I don't think anyone would dispute the role of sub-prime lending in the mortgage meltdown, however as it has been painstakingly explained to you several times, these riskier loans were not made under the auspices of CRA. Furthermore the entire CRA loan program was such a small portion of the overall mortgage market that it is absurd to conclude that CRA had anything to do with the meltdown. There is an argument to be made that the GSEs loosened lending standards to help minority borrowers, and that the big banks were complicit in as much as they outsourced their due diligence to predatory mortgage brokers who conned uninformed borrowers to mistate their financial circumstances in order to qualify for loans they had no realistic ability to pay back. Sometimes these mortgage brokers were a subsidiary of the company which built the new homes and offered special financing packages on the inflated sale price. The mortgage rating agencies also played a role by failing to perform their fiduciary responsibility to properly rate the risk of these loans. The list of bad characters who participated in the real estate boom and bust is endless. The overarching theme in this tragedy is the FAILURE of market forces in a deregulated environment to work as advertised to prevent the financial meltdown. The obvious solution would be to reenact the strict regulations that prevented this type of crisis for over sixty years, which is exactly why a cabal of conservative bloggers first conspired to create the smear that CRA was to blame.
Weren’t the majority of the subprime loans made by mortgage service companies not subject to the CRA? This is true. But it is largely beside the point. A huge driver of the demand for subprime loans was the demand for CRA bonds. Banks operating under the CRA could meet their obligations by buying up CRA loans or MBS built from CRA loans. The CRA created a demand that the mortgage servicers were meeting. What's more, many smaller mortage service companies hoped to be acquired by larger banks. Increasing their CRA lending made them more attractive take-over targets. A study put out by the Treasury Department in 2000 found that the CRA was encouraging the mortgage servicers to provide loans to low-income borrowers, in part because the CRA loans had been so successful. Finally, the Clinton adminstration threatened to subject the mortgage companies to the CRA if they didn't comply voluntarily. They promptly agreed to increase their CRA-type lending in order to escape the kind of public scrutiny that comes with official CRA regulated status.
Now, I know Iām not going to change the minds of any of the True Believersā¦those who read all of Reverend Alās sermons, and say things like, āYou know, global warming can mean warmer OR colder, wetter OR drier, cloudier OR sunnier, windier OR calmer, ā¦ā. Can I get an āamenā??
There is the matter of debt that Clinton and Gore wanted to use the budget surplus to pay down.
It is our responsibility to protect that child once that child’s born too. When we start debating a budget, let’s make sure we don’t cut 100,000 vaccines. Let’s make sure we’ve got health insurance. We seem to worship what we cannot see, but as soon as that baby’s born, oh no, we don’t want to be intrusive. Texas is going to shrink government until it fits inside a women’s uterus. Senator Leticia Van de Putte
http://libertysflame.com/cgi-bin/readart.cgi?ArtNum=21121&Disp=0
Now, I know Iām not going to change the minds of any of the True Believersā¦those who read all of Reverend Alās sermons, and say things like, āYou know, global warming can mean warmer OR colder, wetter OR drier, cloudier OR sunnier, windier OR calmer, ā¦ā. Can I get an āamenā??
war has to do something for entertainment. The voices in his head aren't speaking to him and his imaginary friends have found reasons not to come over anymore.
This is true. Which means GAME OVER. CRA bonds, as was explained to you, were private placements and not sold on the general market. You HATE ni**ers Paddy...we get that. But it's also what makes you stupid.
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" NOw stomp your feet and hold your breath until your face turns blue, Rudy...
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" His name is Brian. Be nice.
You HATE ni**ers Paddy...we get that. But it's also what makes you stupid Have you gone into your 6 pack phase now? And as was explained to you is beside the point.
Now, I know Iām not going to change the minds of any of the True Believersā¦those who read all of Reverend Alās sermons, and say things like, āYou know, global warming can mean warmer OR colder, wetter OR drier, cloudier OR sunnier, windier OR calmer, ā¦ā. Can I get an āamenā??
It is your point. CRA loans were just not enough to cause the crisis. And the "fact" that private lenders were loopholing CRA regs reinforces my point that Booosh abdicated oversight.
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" Do you blame Bush for your diaper rash, too?
Now, I know Iām not going to change the minds of any of the True Believersā¦those who read all of Reverend Alās sermons, and say things like, āYou know, global warming can mean warmer OR colder, wetter OR drier, cloudier OR sunnier, windier OR calmer, ā¦ā. Can I get an āamenā??
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#26. To: war (#21)
His rebuttal to just about any economic point is "CRA!!!
#27. To: lucysmom (#19)
Yeah, that's what Rush said.
#28. To: Rudgear (#24)
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#29. To: no gnu taxes (#26)
(Edited)
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#30. To: war (#29)
#31. To: Rudgear (#25)
There is just no enlightening a true statist.
Badeye posted on 2011-04-29 10:30:22 ET
#32. To: go65 (#31)
#33. To: no gnu taxes (#30)
Banks operating under the CRA could meet their obligations by buying up CRA loans or MBS built from CRA loans.
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#34. To: Rudgear (#32)
I find that impossible to believe, simply because the real world doesn't work the way you wish to believe. Hence your constant on-line activism for the increasing communisation of this country, as well as a second regime for Barry Soetoro and his handlers.
Badeye posted on 2011-04-29 10:30:22 ET
#35. To: war (#33)
#36. To: no gnu taxes (#35)
(Edited)
Take it up with this guy. He's the author
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#37. To: war (#33)
#38. To: go65 (#34)
You hurl insults.
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#39. To: no gnu taxes (#37)
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#40. To: war (#33)
#41. To: go65 (#34)
#42. To: no gnu taxes (#40)
(Edited)
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#43. To: no gnu taxes (#40)
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#44. To: war (#42)
#45. To: war (#43)
#46. To: no gnu taxes (#44)
(Edited)
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#47. To: no gnu taxes (#45)
So I take it this had nothing to with Bear Stearns' problems?
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#48. To: war (#47)
#49. To: no gnu taxes (#48)
So it all boils down to the GSEs role under the CRA. Gotcha
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#50. To: Rudgear (#27)
Nevertheless, there is no such thing as a budget surplus. Government doesn't make money. It confiscates it under the IRS. Common sense should tell you that.
#51. To: lucysmom (#50)
#52. To: go65 (#0)
Indeed, the aughts saw the worst growth since World War II. From 2001 to 2007, annual GDP growth averaged just 2.4 percent per year
mcgowanjm, ferret mike, skippy, fartboy/yukko, white sands, bucky, lucys idiot mom, e_type_jackoff, go56, badlie, wreck, calCON, mininggold, war, Banjo Boris, Biff, Godwinson and meguro. If you're on the above list, you're too fucking stupid to hold a real conversation.
#53. To: Capitalist Eric (#52)
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#54. To: no gnu taxes, war (#48)
#55. To: Thunderbird (#54)
Furthermore the entire CRA loan program was such a small portion
#56. To: Rudgear (#51)
It has everything to do with government stealing more than they claim they need from those who earn and therefore own the money.
#57. To: Thunderbird (#54)
#58. To: lucysmom (#56)
There is the matter of debt that Clinton and Gore wanted to use the budget surplus to pay down.
#59. To: no gnu taxes (#55)
Furthermore the entire CRA loan program was such a small portion
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#60. To: Rudgear (#58)
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#61. To: war (#60)
#62. To: war (#59)
CRA bonds, as was explained to you, were private placements and not sold on the general market.
#63. To: no gnu taxes (#62)
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#64. To: war (#63)
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