competition is the absence
With all due respect, both parties were guilty of allowing the bankers to establish ponzi housing. Both parties were guilty of massive greed. Both parties answer to the international banker cartel orchestrated by the central banks. And the Republicans build debt through war, which is even more disgusting than Democrats and their spending.
Gary is wrong in that Republicans never "had control" over Fannie or Freddie, which have the largest number of defaults.Wonder what "debt through war" is all about when so many Democrats voted "yes" on Iraq and Afghanistan...Hmmm....
Gary, I would agree that both parties facilitated the public policy that led to the housing collapse. But the Democrats were right at the front of the parade with their willful defense of Fannie and Freddie, weakened credit standards for their target constituency, and the imposing of government housing quotas. And like Harrison pointed out, the Dems were quite content on voting for the Iraq war and all its funding when they thought it could benefit them with votes.Besides, your comment is a bit of a Red Herring in that it diverts from the failure of the current Democratic policy of massive government intervention to solve our economic woes. Republicans are far from perfect but at least they will slow down a continuation of a failed policy.Thanks for your comment.
VH, you need to understand that both parties are beholden to Basel 3. Essentially, Basel 3 has said that banks must have certain tier 1 and 2 levels. But Basel lies alot. So, the plan is to buy the Fannie and Freddie mortgage bonds, stuff them into essential tier 2 numbers, and then force the congress to make the guarantee of mortgages by Fannie and Freddie PERMANENT. It matters not which party is in control, this is the plan. Harrison, at the height of the bubble, Fannie and Freddie guarantees could have been stopped by the Bush admin and they weren't. It is pure politics to oppose Fannie and Freddie, and it will come to nothing because the powers behind government want certain returns. Fannie and Freddie did not initiate the no money down loans BTW. Investment bankers shadow banks like Indymac did that. One more point, it appears that investors will not invest in the 30 year mortgages unless the guarantee is made permanent. America has to decide if we want the 30 year or do we want to get rid of it and Fannie. I personally would like to see that, but it will NEVER happen. Check out the Basel links at my blog on the left as you scroll down. One article was published at Seeking Alpha.
"Fannie and Freddie did not initiate the no money down loans BTW. Investment bankers shadow banks like Indymac did that." No, but they created massive aggregate demand by buying tranches of them in the secondary market. Once these loans were off mortgage company books, the mortgage companies had more liquidity to go out and do more risky borrowing. After all, mortgage rates were low because of the Fed and the profit motive was high because of strong demand. It was a vicious circle. No other country in the world has this sort of perverse system.
Not trying to spam your blog, but if you are following the house/senate races on Intrade you should also check out http://electoralmap.netIt has maps and graphs of the betting data for house and senate, as well as the 2008 election results.
Thanks, Anon. That's a very good link.
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