Those people who always cry about govt intervention ought to listen a little to an expert like Bill Gross.
One of his key points is that interest rates would soar. And? Yes, they should. Interest rates should match the risk banks take by giving a loan. We've learned enough about the visible hand of government in free markets - haven't we?
So you oppose Bill Gross's prescription?
So this is his prescription?
"He suggested the administration push for the automatic refinancing of millions of Fannie Mae and Fannie Mac's borrowers at the lowest mortgage rates in decades.
That would give Americans more money, boost consumer spending by $50 billion to $60 billion and lift housing prices by as much as 10 percent, he said."
The link below suggests the worst is well behind us in terms of foreclosures, and employment is the key driver.
So do you oppose Bill Gross's prescriptions?
All of the above and the part that the headline of this thread describes?
By the way he is no Obama supporter. Still prefer to spout talking points and ignore the facts?
$150,000,000,000 dollars already. That's greater than the output of 21 States and can clean up CA's balance sheet 6X over.
At least Tim G. had it right, "we are paying for past sins over the years" -- yes sir, like these for example.
1,) In 1977, the Carter Administration and the United States Congress passed and signed the Community Reinvestment Act of 1977, or CRA. The CRA provided that federally insured banks, as a quid pro quo for being covered in the FDIC agreed to “help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound operations.” Essentially what the CRA was intended to do was to end the practice of redlining, where banks were willing to take deposits in certain areas but refuse lending in those same communities. That is to require banks to provide the same services to all who are equally situated and equally qualified in the communities in which they operate. Community Reinvestment Act of 1977 ("CRA"), 12 U.S.C. § 2901.
2,) In 1999, Fannie Mae came under pressure from the Clinton administration to expand mortgage loans to low and moderate income borrowers by increasing the ratios of their loan portfolios in distressed inner city areas designated in the CRA of 1977. Because of the increased ratio requirements, institutions in the primary mortgage market pressed Fannie Mae to ease credit requirements on the mortgages it was willing to purchase, enabling them to make loans to subprime borrowers at interest rates higher than conventional loans. Shareholders also pressured Fannie Mae to maintain its record profits.
3.) On September 10, 2003, the Bush Administration recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis. Under the plan, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae. The new agency would have the authority, which now rests with Congress, to set capital-reserve requirements for the company and to determine whether the company is adequately managing the risks of its portfolios. The New York Times reported that the plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac is broken. The Times also reported Democratic opposition to Bush's plan: "These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis," said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."
Suffice to say that I'm still mulling over his prescription.
Oh i see your still mullin over his prescriptions. Waiting to see if they jibe with your talking points (govt all bad. Fannie and freddie the cause of all problems. ) Its painful isnt when you cant call the guy an Obama socialist (just like the Fed President from St. Louis)
I will await your announcement.
P.S. We should all know there must be reform of the system on the govt side and the private side. Only there are some people who think its only the govt that is the problem. It defies all rationality.
Both are run by people.
You left out the part about Republicans and Bush opposing reform of the whole financial system.
There you go again thinking you fix fannie and freddie the way Republicans want to and all the housing problems would have been solved. Absolutely ridiculous.
Last edited by Havakasha; 08-17-2010 at 02:21 PM.
How does one confuse facts for talking points? LMFAO.
And don't put words into my mouth. The government isn't all bad, just a lot bad LOL. We need a strong military LOL, well maintained federal highways and national parks.... And of course we need a good federal court system to uphold the Constitution. Just to name a few.