Romney Newtered in South Carolina

[kochman]

It didn't "contribute" enough to even bother being mentioned. Not in the top 20 causes at the least.

If I said caused, let me reword... it was a catalyst for the inevitable.
When all those loans started defaulting, the market woke up and went south bad.
Before that, the flippers were happily flipping away.

It didn't cause it, but it exacerbated it when combined with subprime loans.

It has nothing to do with race... it has to do with giving loans beyond the ability of the purchaser to service... BOTH the mortgagor and mortgagee knew it wouldn't work. Both deluded themselves due to material want.

 

[Cutlass]

If I said caused, let me reword... it was a catalyst for the inevitable.
When all those loans started defaulting, the market woke up and went south bad.
Before that, the flippers were happily flipping away.

It didn't cause it, but it exacerbated it when combined with subprime loans.

It has nothing to do with race... it has to do with giving loans beyond the ability of the purchaser to service... BOTH the mortgagor and mortgagee knew it wouldn't work. Both deluded themselves due to material want.

None of which is the fault of the law.

 

[kochman]

None of which is the fault of the law.

The law pressured banks to give out loans which were to poor... in return for favorable treatment.

It encouraged giving out risky loans.

 

[Cutlass]

The law pressured banks to give out loans which were to poor... in return for favorable treatment.

It encouraged giving out risky loans.

Not one fraking word in the law in any way encouraged or forced any bank to make any risky loan. What people did outside the law has not one fraking thing to do with the law.

 

[kochman]

Not one fraking word in the law in any way encouraged or forced any bank to make any risky loan. What people did outside the law has not one fraking thing to do with the law.

It encouraged doing the wrong thing...
http://www.federalreserve.gov/newsevents/testimony/braunstein20070521a.htm
Unless you know more about it than she does.

The long and short of it is, if you didn't meet the quotas, you received negative sanctions... not to mention, several dem congressmen would decry you as "racist".

 

[RobAnybody]

The law, however, emphasizes that an institution's CRA activities should be undertaken in a safe and sound manner, and does not require institutions to make high-risk loans that may bring losses to the institution. An institution's CRA compliance record is taken into account by the banking regulatory agencies when the institution seeks to expand through merger, acquisition or branching. The law does not mandate any other penalties for non-compliance with the CRA.

The long and short of it is, if you didn't meet the quotas, you received negative sanctions... not to mention, several dem congressmen would decry you as "racist".

Do you have even 1 example of the bolded ever happening?

 

[kochman]

The law, however, emphasizes that an institution's CRA activities should be undertaken in a safe and sound manner, and does not require institutions to make high-risk loans that may bring losses to the institution. An institution's CRA compliance record is taken into account by the banking regulatory agencies when the institution seeks to expand through merger, acquisition or branching. The law does not mandate any other penalties for non-compliance with the CRA.

Oh! Wikipedia! It is always a trusted source... good grief...
Yeah, telling banks to lower their standards is not "high risk", depending on how we qualify "high risk" and "losses"...
I guess those 50% of loans that were CRA, that mainly failed... had ZERO to do with anything...

Link to video.

Anyhow... was it predatory lending? Or not? You can't say it was predatory lending that was at fault without considering what lead to the predatory lending, when before neighborhoods were "redlined", and not receiving any lending...

 

[Cutlass]

What led to predatory lending was profits without risk. Because the loan originators stood to lose absolutely nothing if the loans went bad, they simply had no reason to care how risky a loan was. And that was Wall St's fault.

 

[kochman]

What led to predatory lending was profits without risk. Because the loan originators stood to lose absolutely nothing if the loans went bad, they simply had no reason to care how risky a loan was. And that was Wall St's fault.

Yes, they had nothing to lose, because they were selling the mortgages to Countrywide, Fannie, Freddie, etc... who were then bundling them up with other mortgages to mitigate risk... there was tons of greed involved, tons... from lender and buyer...

However, CRA was a vehicle for making this possible (or else all those racist "rich white bankers" would never have been making these loans, because they didn't want to help anyone but themselves)... you had to maintain your CRA rating after all...

 

[Cutlass]

Yes, they had nothing to lose, because they were selling the mortgages to Countrywide, Fannie, Freddie, etc... who were then bundling them up with other mortgages to mitigate risk... there was tons of greed involved, tons... from lender and buyer...

However, CRA was a vehicle for making this possible (or else all those racist "rich white bankers" would never have been making these loans, because they didn't want to help anyone but themselves)... you had to maintain your CRA rating after all...

You are still pretending that a CRA loan equals an unsafe loan. And that just does not make sense. CRA loans are safer than loans made to wealthier and whiter people. The forecloser crisis is one of the middle class, not the poor.

 

[kochman]

You are still pretending that a CRA loan equals an unsafe loan. And that just does not make sense. CRA loans are safer than loans made to wealthier and whiter people. The forecloser crisis is one of the middle class, not the poor.

Any subprime loan was risky... CRA had a lot of subprime loans. That is a fact, not pretend.

Why do you keep bringing race into this, by the way? 72% of CRA loans were made to white people, by the way. This has nothing to do with race, and pushing it that was is petty.

 

[Cutlass]

CRA only exists because of racial discrimination. It's really the only issue the law addresses.

 

[downtown]

I think I would still put money on Mitt winning Florida.

bam!

i think that "space station" comment, and his terrible last debate, sunk the Newt ship in Florida. He's got a chance to rebound before Super Tuesday though if he can scrape together some money.

 

[NickyJ]

Downtown, can you tell me which horse will win the Kentucky Derby?

 

[Ajidica]

Downtown, can you tell me which horse will win the Kentucky Derby?

Not likely. DT only knows about the state of Romney's campaign because of his connection with the Mormon Mafia.

 

[kramerfan86]

Newt is just too much of a pompous blowhard and crybaby to go an extended time without inserting his foot into his mouth. Even if he sticks around for super tuesday I dont see him winning states outside of the really conservative deep south where they vote for him almost as much out of dislike for Romney as they do like for him.

 

[Cutlass]

bam!

i think that "space station" comment, and his terrible last debate, sunk the Newt ship in Florida. He's got a chance to rebound before Super Tuesday though if he can scrape together some money.

It wasn't Romney finally going on the attack?

 

[Zombie Samurai]

It's too bad, newt should lie down and allow Romney to focus on getting supreme leader Obama out of office.

 

[Antilogic]

It's too bad, newt should lie down and allow Romney to focus on getting supreme leader Obama out of office.

Welcome to the forums!

 

[Ajidica]

It's too bad, newt should lie down and allow Romney to focus on getting supreme leader Obama out of office.

I hope that doesn't happen, I won't get another chance to say "Mittens Newtered in bid to evict O'Bama from the White House".