So Obama has suspended the laws of supply and demand? How about the laws of thermodynamics? Physics? They're inconvenient right now since they conflict with our appeal to emotion (these poor bastards never had a chance!), so we'll just neglect them? *head explodes*In a normal Economic climate, I would agree, but this is not Normal.
So Obama has suspended the laws of supply and demand? How about the laws of thermodynamics? Physics? They're inconvenient right now since they conflict with our appeal to emotion (these poor bastards never had a chance!), so we'll just neglect them? *head explodes*
/facepalm
the recession has suspended the dynamics that make up the economy. Come out of the shelter.
All of the rules that govern how I decide what to buy or sell no longer apply because we're in a recession? Why hasn't Obama informed me of this earlier? Here I am, trying to buy what I want based on what I think is a fair price for it, when I should be throwing my money around like a drunken sailor (or, in this case, like a POTUS)./facepalm
The Recession has suspended the Dynamics that make up the Economy. Come out of the Shelter.
All of the rules that govern how I decide what to buy or sell no longer apply because we're in a recession? Why hasn't Obama informed me of this earlier? Here I am, trying to buy what I want based on what I think is a fair price for it, when I should be throwing my money around like a drunken sailor (or, in this case, like a POTUS).
Still nothing in the legislation/regulation that required mortgage lenders to make those loans in that amount.
Because government programs and regulation caused banks to lend more aggressively, putting people in houses who never would have been able to afford them in the first place. Increased demand with relatively static supply causes prices to skyrocket.
One could say that CRA required a certain number of subprime mortgages. The federal government may not have outright required it, but they certainly enabled it by guaranteeing Fannie and Freddy.
One cannot deny that the government played a very large part in the housing price bubble.
This is typical Barry, if it doesn't work he will do it twice.
What a dumbass....
If $1.5 billion were being given to BigWig Bank, this thread would not exist and no one would care.
What were the root causes for this huge increase in housing prices? There are three significant reasons. First, the cost of money was at a historically low level. Interest rates, which had been as high as 16-18% in the late 1970’s and early 1980’s, were at 5% or lower. This inexpensive money had two impacts: (1) it allowed current home owners to buy a more expensive house than they could previously afford, which encouraged them to “trade up” and (2) it allowed people who previously could not afford a home to enter the housing market for the first time.
Secondly, because of the significant annual increases in U.S. housing prices, lenders became more complacent with their underwriting and lending standards. The rationale for the lowering of lending standards was that even if the loan did not perform in the future, double digit annual price appreciation ensured that the collateral would be worth more in subsequent months and years then it was at the time the loan was made. This was viewed almost as “loan insurance” by many lenders. Accordingly, many people were approved for loans that would have either been approved for a much lower amount in the past or even been denied a loan.
Third, for the first time the private sector, primarily Wall Street, became a major factor in the secondary mortgage market through securitization. This replenished mortgage lenders with additional funds to make more loans.
WTF does that have to do with anything? So times aren't normal. Are you really suggesting that the laws of economics do not hold during a recession? It's a yes or no question./facepalm x2
Are you dense? Srsly, these are not Normal times. Look around and see that You may be doing Ok, but a significant portion is not.
WTF does that have to do with anything? So times aren't normal. Are you really suggesting that the laws of economics do not hold during a recession? It's a yes or no question.
edit: Why can't lefties see that Obama claiming that these are such "abnormal times" is no different than Bush saying how we had to upend everything to fight terrorism? Anyone who believes either claim is an idiot.
By giving the money to people to pay their mortgages, it is being given to BigWig Bank.
The official report on the cause of the housing bubble from the Appraisal Foundation: http://http://www.appraisalfoundation.org/s_appraisal/bin.asp?CID=321&DID=1270&DOC=FILE.PDF
What were the root causes for this huge increase in housing prices? There are three significant reasons. First, the cost of money was at a historically low level. Interest rates, which had been as high as 16-18% in the late 1970s and early 1980s, were at 5% or lower. This inexpensive money had two impacts: (1) it allowed current home owners to buy a more expensive house than they could previously afford, which encouraged them to trade up and (2) it allowed people who previously could not afford a home to enter the housing market for the first time.
Secondly, because of the significant annual increases in U.S. housing prices, lenders became more complacent with their underwriting and lending standards. The rationale for the lowering of lending standards was that even if the loan did not perform in the future, double digit annual price appreciation ensured that the collateral would be worth more in subsequent months and years then it was at the time the loan was made. This was viewed almost as loan insurance by many lenders. Accordingly, many people were approved for loans that would have either been approved for a much lower amount in the past or even been denied a loan.
Third, for the first time the private sector, primarily Wall Street, became a major factor in the secondary mortgage market through securitization. This replenished mortgage lenders with additional funds to make more loans.
They do or do not hold? It's a very simple question with exactly one correct answer.Yes, they pretty much do. Open your eyes and see what's happening.
They do or do not hold? It's a very simple question with exactly one correct answer.
If you really believe that, then there's nothing anyone can say that will influence you because you are a mindless drone who will believe whatever your political heroes tell you. Damn them.I already answered your question. It is Yes, they do not Hold.
The whole reason the Recession is happening is because they stopped Holding. Until things are reorganized they will not hold.
If you really believe that, then there's nothing anyone can say that will influence you because you are a mindless drone who will believe whatever your political heroes tell you. Damn them.
And your acceptance of that is exactly why that's the way it is. Idiots like you who refuse to use your brain are the bane of any civilized society.Sorry, that's just the way it is. :shrug:
And your acceptance of that is exactly why that's the way it is. Idiots like you who refuse to use your brain are the bane of any civilized society.
You can't fix the laws of economics. The problem with idiots like you is that you think ANY change is better than no change. If the two of us walked to the edge of a cliff, and Obama told us to keep going and things will change, you would just walk right off the edge. I realize that I could get back to sanity by turning around and walking back down the way I came.What's broken needs fixed. Pretending all is well will not fix it. A Bane? Certainly not.
You can't fix the laws of economics. The problem with idiots like you is that you think ANY change is better than no change. If the two of us walked to the edge of a cliff, and Obama told us to keep going and things will change, you would just walk right off the edge. I realize that I could get back to sanity by turning around and walking back down the way I came.