In hindsight, who is most to blame for the Financial Crisis?

[Allan from Fallbrook]

[quote=briansd1]I think that people with lower economic wherewithal are more likely to default. But it doesn’t mean that they can’t be profitable customers.

I think that the CAR has merit because if a bank has a branch in East San Diego they should lend some money within that community to develop it.

It wouldn’t be right for the bank to take the deposits from residents of East San Diego to lend only to folks in La Jolla or Rancho Santa Fe, simply because those more affluent folks are less likely to default or more profitable.[/quote]

Brian: This is what I mean by tortured logic. You’re attempting to argue several different points, all in the same breath.

Let’s start off with the notion that you cannot legislate good behavior, nor is it the gubment’s job to do so. CRA is clearly in the business of legislating so-called good behavior.

Second point: Its not the gubment’s job to tell businesses how to operate. If a business is conducting its affairs according to the law, then how it runs its operations is its own affair.

Third point: If a bank decides to take in deposits from one area, but lend to another, they are well within their rights to do so, and they should be able to do so without government interference.

How on earth can you make the argument that the bank should violate good underwriting principles in order to help minority borrowers, then turn around and castigate lenders for doing the same thing during the subprime crisis? Again, you’re arguing contradictory points. On one hand, you’re saying that banks should violate good underwriting principles and lend to minorities, but, on the other hand, you’re saying that banks and lenders (such as Countrywide, New Century, etc) were clearly wrong to do so with subprime clients.

You’re trying to eat your cake and have it, too. While I understand you enjoy a certain moral elasticity, I’d love to hear your explanation for this one.

On a somewhat related point: Banks take deposits from certain areas and turn around lend to others all the time. Its what banks do. In the case of CRA, you have a well meaning piece of legislation that flies in the face of both common sense and sound business practices. I work with SBA 8(a) and HUBZone contractors and I will tell you that similar well meaning programs like these are gamed on a daily basis, with completely undeserving recipients making millions.

Of course, this is what happens when you bring in do-gooder pols with no real world experience and put them in charge. You know, like community organizers from one of the most corrupt cities in America.

[5yearwaiter]

Hello there brainsd1 and Allan – easy guys there is no need to blame among us. The system is well known to all of us. When housing became like a stock market game(from 2003) then I thought the results would be like one gain and other loser (like a speculation). But when this entire housing issue crackening our entire system then eventually our government has to do some justification(s). Whatever and whoever does… eventually this time losers are those who don’t even enter into this housing at all

[5yearwaiter]

Hello there brainsd1 and Allan – easy guys there is no need to blame among us. The system is well known to all of us. When housing became like a stock market game(from 2003) then I thought the results would be like one gain and other loser (like a speculation). But when this entire housing issue crackening our entire system then eventually our government has to do some justification(s). Whatever and whoever does… eventually this time losers are those who don’t even enter into this housing at all

[5yearwaiter]

Hello there brainsd1 and Allan – easy guys there is no need to blame among us. The system is well known to all of us. When housing became like a stock market game(from 2003) then I thought the results would be like one gain and other loser (like a speculation). But when this entire housing issue crackening our entire system then eventually our government has to do some justification(s). Whatever and whoever does… eventually this time losers are those who don’t even enter into this housing at all

[5yearwaiter]

Hello there brainsd1 and Allan – easy guys there is no need to blame among us. The system is well known to all of us. When housing became like a stock market game(from 2003) then I thought the results would be like one gain and other loser (like a speculation). But when this entire housing issue crackening our entire system then eventually our government has to do some justification(s). Whatever and whoever does… eventually this time losers are those who don’t even enter into this housing at all

[5yearwaiter]

Hello there brainsd1 and Allan – easy guys there is no need to blame among us. The system is well known to all of us. When housing became like a stock market game(from 2003) then I thought the results would be like one gain and other loser (like a speculation). But when this entire housing issue crackening our entire system then eventually our government has to do some justification(s). Whatever and whoever does… eventually this time losers are those who don’t even enter into this housing at all

[sdduuuude]

You guys need your own blog space, I think.

[sdduuuude]

You guys need your own blog space, I think.

[sdduuuude]

You guys need your own blog space, I think.

[sdduuuude]

You guys need your own blog space, I think.

[sdduuuude]

You guys need your own blog space, I think.

[equalizer]

[quote=Rich Toscano]I like sdduuuude’s answer, but I have to put Greenspam first and the ratings agencies second.

The agencies were the lynchpin to the whole mortgage crisis, so they bear huge responsibility there. However, Greenspam was asleep at the wheel for not one but two world-beating asset bubbles. No, scratch that — he wasn’t just asleep at the wheel, he was a cheerleader for both bubbles. And the mop-up from the first bubble basically created the environment that allowed the second and much worse bubble.

His “reign” was truly catastrophic and I just hope he clings to life for long enough to witness the final outcome of his legacy (the nigh-inevitable US govt funding crisis) and, if there is any justice, the resulting complete destruction of his reputation as a central banker.

Rich[/quote]
Here is a right wing DC lawyer’s take on Greenspan,etc. He wrote three major pieces of legislation that were enacted into law: the Anti-Tying Provision of the Bank Holding Company Act; the “Brooke Amendment” relating to public housing; and the national “Housing Allowance” that morphed into the Section 8 housing program.

These comments are not from an uneducated lunatic.

1. “What surprised me the most were senators and congressmen preying on young women.”

2. “Volcker seems to have thrown in the towel, and I am sorry about that because I have always admired and respected him greatly. In fact, if he had been Fed Chairman instead of Greenspan, I do not believe the credit crisis or the economic meltdown would have happened. Greenspan is the real culprit, who has admitted that he never saw the housing crisis coming”

3. “People are suffering in this country and around the world, and Greenspan is the person who caused all of this. In another country and in a different time, someone who did this would have been killed. I am surprised that Greenspan has any reputation at all, given the enormous human suffering that he is responsible for.”

“… Mr. Naegele also served as a Captain in the U.S. Army, assigned to the Defense Intelligence Agency at The Pentagon, where he received the Joint Service Commendation Medal”

http://seekingalpha.com/instablog/2951-ilene/31177-interview-with-timothy-d-naegele

[equalizer]

[quote=Rich Toscano]I like sdduuuude’s answer, but I have to put Greenspam first and the ratings agencies second.

The agencies were the lynchpin to the whole mortgage crisis, so they bear huge responsibility there. However, Greenspam was asleep at the wheel for not one but two world-beating asset bubbles. No, scratch that — he wasn’t just asleep at the wheel, he was a cheerleader for both bubbles. And the mop-up from the first bubble basically created the environment that allowed the second and much worse bubble.

His “reign” was truly catastrophic and I just hope he clings to life for long enough to witness the final outcome of his legacy (the nigh-inevitable US govt funding crisis) and, if there is any justice, the resulting complete destruction of his reputation as a central banker.

Rich[/quote]
Here is a right wing DC lawyer’s take on Greenspan,etc. He wrote three major pieces of legislation that were enacted into law: the Anti-Tying Provision of the Bank Holding Company Act; the “Brooke Amendment” relating to public housing; and the national “Housing Allowance” that morphed into the Section 8 housing program.

These comments are not from an uneducated lunatic.

1. “What surprised me the most were senators and congressmen preying on young women.”

2. “Volcker seems to have thrown in the towel, and I am sorry about that because I have always admired and respected him greatly. In fact, if he had been Fed Chairman instead of Greenspan, I do not believe the credit crisis or the economic meltdown would have happened. Greenspan is the real culprit, who has admitted that he never saw the housing crisis coming”

3. “People are suffering in this country and around the world, and Greenspan is the person who caused all of this. In another country and in a different time, someone who did this would have been killed. I am surprised that Greenspan has any reputation at all, given the enormous human suffering that he is responsible for.”

“… Mr. Naegele also served as a Captain in the U.S. Army, assigned to the Defense Intelligence Agency at The Pentagon, where he received the Joint Service Commendation Medal”

http://seekingalpha.com/instablog/2951-ilene/31177-interview-with-timothy-d-naegele

[equalizer]

[quote=Rich Toscano]I like sdduuuude’s answer, but I have to put Greenspam first and the ratings agencies second.

The agencies were the lynchpin to the whole mortgage crisis, so they bear huge responsibility there. However, Greenspam was asleep at the wheel for not one but two world-beating asset bubbles. No, scratch that — he wasn’t just asleep at the wheel, he was a cheerleader for both bubbles. And the mop-up from the first bubble basically created the environment that allowed the second and much worse bubble.

His “reign” was truly catastrophic and I just hope he clings to life for long enough to witness the final outcome of his legacy (the nigh-inevitable US govt funding crisis) and, if there is any justice, the resulting complete destruction of his reputation as a central banker.

Rich[/quote]
Here is a right wing DC lawyer’s take on Greenspan,etc. He wrote three major pieces of legislation that were enacted into law: the Anti-Tying Provision of the Bank Holding Company Act; the “Brooke Amendment” relating to public housing; and the national “Housing Allowance” that morphed into the Section 8 housing program.

These comments are not from an uneducated lunatic.

1. “What surprised me the most were senators and congressmen preying on young women.”

2. “Volcker seems to have thrown in the towel, and I am sorry about that because I have always admired and respected him greatly. In fact, if he had been Fed Chairman instead of Greenspan, I do not believe the credit crisis or the economic meltdown would have happened. Greenspan is the real culprit, who has admitted that he never saw the housing crisis coming”

3. “People are suffering in this country and around the world, and Greenspan is the person who caused all of this. In another country and in a different time, someone who did this would have been killed. I am surprised that Greenspan has any reputation at all, given the enormous human suffering that he is responsible for.”

“… Mr. Naegele also served as a Captain in the U.S. Army, assigned to the Defense Intelligence Agency at The Pentagon, where he received the Joint Service Commendation Medal”

http://seekingalpha.com/instablog/2951-ilene/31177-interview-with-timothy-d-naegele

[equalizer]

[quote=Rich Toscano]I like sdduuuude’s answer, but I have to put Greenspam first and the ratings agencies second.

The agencies were the lynchpin to the whole mortgage crisis, so they bear huge responsibility there. However, Greenspam was asleep at the wheel for not one but two world-beating asset bubbles. No, scratch that — he wasn’t just asleep at the wheel, he was a cheerleader for both bubbles. And the mop-up from the first bubble basically created the environment that allowed the second and much worse bubble.

His “reign” was truly catastrophic and I just hope he clings to life for long enough to witness the final outcome of his legacy (the nigh-inevitable US govt funding crisis) and, if there is any justice, the resulting complete destruction of his reputation as a central banker.

Rich[/quote]
Here is a right wing DC lawyer’s take on Greenspan,etc. He wrote three major pieces of legislation that were enacted into law: the Anti-Tying Provision of the Bank Holding Company Act; the “Brooke Amendment” relating to public housing; and the national “Housing Allowance” that morphed into the Section 8 housing program.

These comments are not from an uneducated lunatic.

1. “What surprised me the most were senators and congressmen preying on young women.”

2. “Volcker seems to have thrown in the towel, and I am sorry about that because I have always admired and respected him greatly. In fact, if he had been Fed Chairman instead of Greenspan, I do not believe the credit crisis or the economic meltdown would have happened. Greenspan is the real culprit, who has admitted that he never saw the housing crisis coming”

3. “People are suffering in this country and around the world, and Greenspan is the person who caused all of this. In another country and in a different time, someone who did this would have been killed. I am surprised that Greenspan has any reputation at all, given the enormous human suffering that he is responsible for.”

“… Mr. Naegele also served as a Captain in the U.S. Army, assigned to the Defense Intelligence Agency at The Pentagon, where he received the Joint Service Commendation Medal”

http://seekingalpha.com/instablog/2951-ilene/31177-interview-with-timothy-d-naegele

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