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Thread: CNN Ratings Hit 20-Year Low...

  1. #676
    Champ dawg80 has a reputation beyond reputedawg80 has a reputation beyond reputedawg80 has a reputation beyond reputedawg80 has a reputation beyond reputedawg80 has a reputation beyond reputedawg80 has a reputation beyond reputedawg80 has a reputation beyond reputedawg80 has a reputation beyond reputedawg80 has a reputation beyond reputedawg80 has a reputation beyond reputedawg80 has a reputation beyond repute dawg80's Avatar
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    Re: CNN Ratings Hit 20-Year Low...

    Quote Originally Posted by Guisslapp View Post
    And also thanks for bringing up the 2008 collapse. The lessons we learned from that one only lasted 10 years and now Trump, with the help of Congressional Republicans, have rolled back a few of the safeguards.

    ”Midsized” regional banks (those with capital assets between 50B and 250B) will no longer have to hold as much capital to cover losses on their balance sheets. They will not be required to have plans in place to be safely dismantled if they failed. And they will have to take the Fed's bank health test only periodically, not once a year.

    The legislation also loosened regulations for mortgage lenders and change the rules for student loan defaults.

    Community banks with less than $10 billion in assets will no longer have to comply with the Volcker Rule, which bars financial institutions from making risky bets with money that is insured by taxpayers.
    I know this....the era of obummer with all the strict banking regs was beyond ridiculous. That is, in large measure, the very reason the economy was stagnant for 8 years. Banks, and other lenders have to be given some freedom to take some risks. Well, actually, in some cases there was practically no risk and still the bank couldn't finance the venture, due to the yoke of the stupid regulations.

    The Volcker Rules bars making "risky bets," you say? Hmmm...define "risky."

    Yep, that's what I thought...

    Point is, such decisions have got to be left to the lending institutions. Yeah, I understand those "risks" and because of that, I support limited guarantees. In fact, I have no problem making the lenders purchase private insurance to cover such "risks." Some, if not all, of that cost (the premiums) can be built into the cost of the loan to the borrower. This is done now re: SBA and USDA guaranteed loans. The borrower pays a little extra monthly to cover the guarantee, which is the same as an insurance policy for the lender.

    So, wow! ya mean that TWO taxpayer-funded federal agencies can engage in some "risky" lending because of an insurance policy, yet the obummer administration issued EO's forbidding private lenders to utilize the exact same provision in loans not involving direct taxpayer funds!? Nope! again, obummer and his ilk were all about one thing, and one thing only, destroying America by destroying its institutions. Certainly the private banking industry is evil and must be destroyed!

    And, I noticed you side-stepped the root cause of the mortgage crisis. Of course you did. Allow me to remind everyone, in this very brief historic overview...

    Carter first issued an EO during his term that made such risky mortgages possible. No one acted on it, as it was strictly voluntary.

    Klinton strengthened that policy, in 1996 I think it was, actually requiring lenders to build into their loan portfolios a percentage of such loans. But, there was "no teeth" in the order. No enforcement provision. So, lenders smartly said again....no thanks.

    In 2002 Congress...the 'craps, led by Maxine Waters (that should have been a red flag that this was a stupid idea) held hearings and attacked lenders, big banks and others for being racists since minorities were under-represented in securing home loans. There were threats of monetary fines and penalties. The lenders decided that risk, of fines, was less than actually making stupid loans.

    In 2004, Waters and her goofy gang, now joined by the junior senator from Illinois, obummer, were back for another round of hearings. This time, instead of wielding a stick, they presented a carrot. Go ahead and make risky loans (subprime) and if they default, the guvmint will bail you out. Freddie and Fannie had their charters altered, thanks in part to a Congressional edict, that would now allow them to support subprime lending. Bam! the genie was out of the bottle. The bankers said, "Let me get this straight. We can make loans to anyone and everyone, collect all those fees associated with making loans, and all those loans that default, you, Ms. Waters, and the Fed guvmint, will reimburse us for our losses?" YES! said Ms. Waters, now go out and make home loans!!!

    Hello!

  2. #677
    Dawg Adamant Argument Czar Guisslapp has a reputation beyond reputeGuisslapp has a reputation beyond reputeGuisslapp has a reputation beyond reputeGuisslapp has a reputation beyond reputeGuisslapp has a reputation beyond reputeGuisslapp has a reputation beyond reputeGuisslapp has a reputation beyond reputeGuisslapp has a reputation beyond reputeGuisslapp has a reputation beyond reputeGuisslapp has a reputation beyond reputeGuisslapp has a reputation beyond repute Guisslapp's Avatar
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    Re: CNN Ratings Hit 20-Year Low...

    Was it the sub-prime fraction of the total 7 trillion total US mortgage debt that was the problem or was it the 45 trillion dollars worth of undercapitalized insurance products (CDSs) behind these loans that were further leveraged and traded that caused the crisis?

  3. #678
    Champ dawg80 has a reputation beyond reputedawg80 has a reputation beyond reputedawg80 has a reputation beyond reputedawg80 has a reputation beyond reputedawg80 has a reputation beyond reputedawg80 has a reputation beyond reputedawg80 has a reputation beyond reputedawg80 has a reputation beyond reputedawg80 has a reputation beyond reputedawg80 has a reputation beyond reputedawg80 has a reputation beyond repute dawg80's Avatar
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    Re: CNN Ratings Hit 20-Year Low...

    Quote Originally Posted by Guisslapp View Post
    Was it the sub-prime fraction of the total 7 trillion total US mortgage debt that was the problem or was it the 45 trillion dollars worth of undercapitalized insurance products (CDSs) behind these loans that were further leveraged and traded that caused the crisis?
    $45 trillion, that much? Whoa!

    Anyway, none of this would have happened had Maxine Waters and her gang of morons not forced lenders into making bad loans in the first place. Whatever happened after that is irrelevant. As the attorney representing the industry, as a whole, said to the other Congressional idiots during those witch trials, motioning with his hand to indicate the bank CEOs, "these men are by far the smartest people in this room." He went on to say, that YOU, meaning Congress, forced them into this mess, and now you are mad when they took all those broken eggs and made omelettes.

    I have watched documentaries and read tons of articles on this whole mess. The root cause was Maxine Waters et al. NONE of this would have happened if not for that crap pushed on the banks in 2004. That is a fact.

  4. #679
    Dawg Adamant Argument Czar Guisslapp has a reputation beyond reputeGuisslapp has a reputation beyond reputeGuisslapp has a reputation beyond reputeGuisslapp has a reputation beyond reputeGuisslapp has a reputation beyond reputeGuisslapp has a reputation beyond reputeGuisslapp has a reputation beyond reputeGuisslapp has a reputation beyond reputeGuisslapp has a reputation beyond reputeGuisslapp has a reputation beyond reputeGuisslapp has a reputation beyond repute Guisslapp's Avatar
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    Re: CNN Ratings Hit 20-Year Low...

    Quote Originally Posted by dawg80 View Post
    $45 trillion, that much? Whoa!

    Anyway, none of this would have happened had Maxine Waters and her gang of morons not forced lenders into making bad loans in the first place. Whatever happened after that is irrelevant. As the attorney representing the industry, as a whole, said to the other Congressional idiots during those witch trials, motioning with his hand to indicate the bank CEOs, "these men are by far the smartest people in this room." He went on to say, that YOU, meaning Congress, forced them into this mess, and now you are mad when they took all those broken eggs and made omelettes.

    I have watched documentaries and read tons of articles on this whole mess. The root cause was Maxine Waters et al. NONE of this would have happened if not for that crap pushed on the banks in 2004. That is a fact.
    Nor would it had happened if these institutions weren’t allowed to make these hugely leveraged, risky side bets. That is what turned a small bubble into a collapse of the financial system. The actual bad mortgage debt was a small (a fraction of the 7 trillion), but when those failed and the side bets cost the institutions many magnitudes more than what the subprime debt amount that they overextended.

  5. #680
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    Re: CNN Ratings Hit 20-Year Low...

    There was a city in....Norway, I think....who invested everything they had, including their public employee pension fund, in those CDSs. They had dollar signs for eyeballs, and went for the higher risk/higher return deal. Terrible. That city was featured in one of the documentaries I saw. But, know what....I missed the part where someone put a gun to their head and made them do it.

    Actually, I just recalled that those subprime loans began in 2003, even before the 2004 carrot deal. It wasn't wide spread, because most banks (lenders) wanted no part of 'em. I remember asking my mortgage banker about them. "Where can I get one of those subprime loans?" He glared at me, first, he said THIS bank won't be engaging in those. And secondly, you don't qualify anyway.

    I thought "subprime" meant I could get a loan at a rate below the prime rate! Didn't make sense to me. Why would banks loan money at a rate lower than they paid to borrow money? Then I thought it meant the guvmint would make up the difference to the banks, if they would just loan money at next to nothing. Turns out, that was about what happened in the end. I couldn't qualify for a subprime loan because I was VERY PRIME. Credit score of 800+ and all of that. Glad I didn't qualify for a subprime loan!

    There was some fellow in either Arizona or Nevada, whichever, who recognized the potential early on. He was among the first to launch one of those "mortgage originator" firms and got filthy rich. He made something like $50 million in 8-10 months. The guvmint and others went after him in the wake of the crisis. But he won every court case because he did nothing wrong....well, nothing against the law anyway. He's retired on some tropical island to this day.

    GWB signed the change in charter for Freddie and Frannie into law. That was in 2004. What had been a mere trickle, and isolated, became a flood...a tsunami!

    People, like those in the Norway city, willingly bought those products. Some of us knew better...after just a little research. I don't feel sorry for 'em. But I do blame Maxine Waters et al.

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