We trotted that one out back during the fall presidential campaign. It fell on largely deaf ears, though what difference it makes now that we’re all sitting in one of the Titanic’s lifeboats, nervously eyeing each other, is beyond me 
BK
x2
.
Just think what a strong republican leader could have done back then. The Democrats are definitely complicit in this, but I find it amazing that the Republicans couldn’t have taken care of this issue. Either it wasn’t that important to them, or the leadership was weak. Both parties receive an F.
x2
How about Barney Frank demanding that those responsible for the failures of Fannie Mac be prosecuted? His name should be at the top of the docket.
Just think what a strong republican leader could have done back then. The Democrats are definitely complicit in this, but I find it amazing that the Republicans couldn’t have taken care of this issue. Either it wasn’t that important to them, or the leadership was weak. Both parties receive an F.
Totally agree. Now we and at least one generation after us are going to pay the price for this folly. And if what certain economists are saying is true, most of us can forget about recouping lost home equity for probably the next decade.
T.
BK,
You know both sides are to blame. The Republicans were in control of Congress from 1994 until 2006. And you know that all the laws and appropriations are made in Congress. Are the Dems to blame too? Abso-fucking-lutely! But, I ask Republicans to stop acting like innocent bystanders.
Stacy
Recouping lost home equity? I think it’s more important to have home values at a proper level than to recoup lost equity.
An “F”? Seriously WTF? This is CRIMINAL. Members of both parties should be doing the walk of shame right into a jail cell along with a few CEO’s, bankers and borrowers.
~Matt
Well that’s great, but totally misses the point that the real problem was excessive leverage brought about not by bad loans but by CDO’s that hid and magnified risk. 10 years of throwing away the safeguards put in place after the great depression have got us where we are today, not bad loans and the bursting of the housing bubble.
I notice that this leaves out Greenspan’s confession that the free market model failed. Also witness the market rally after Brenakes’s comments about increased regulation of financial markets and bringing back the uptick rule. Despite the protests of wing-nuts, Wall Street knows good medicine when it sees it.
The basic problem was a lack of ethics and personal responsibility of those granted fiduciary responsibility - which is NOT a right, but a trust.
Let’s not forget that Jeb Bush was a Lehman Brothers consultant for years before that train wreck, and Marvin Bush is a career hedge fund manager.
An “F”? Seriously WTF? This is CRIMINAL.
Nuke it and start over. Or maybe just hang’em… leaves a more lasting impression…
Let’s not forget that Barney “there is no problem with Fannie Mae, etc.” Frank has been the chairman of the House Financial Services Committee whose job it is to oversee the housing and banking industries since 2007.
Comforting to know that he is still there. More “change” that will help us in the future.
You know both sides are to blame. The Republicans were in control of Congress from 1994 until 2006. And you know that all the laws and appropriations are made in Congress. Are the Dems to blame too? Abso-fucking-lutely! But, I ask Republicans to stop acting like innocent bystanders.
Stacy
Just watched the video, and it is amazing that they are trying to pin this on the Dems. Pubs had total authority to deal with this for many years… but they didn’t. Frankly, I suspect corruption on all sides since any idiot could have seen this coming.
Uhhhh…well someone had to use leverage to purchase the trillion-plus dollars in “junk” AAA bonds Fannie and Freddie sold! A huge aspect of this problem is a quasi govt agency attempted to qualify people for loans based upon social justice rather than financial soundness. Yes, the bankers should have done more due diligence in packaging these products, but they did get the ratings. I think the heart of the problem is with the ratings agencies. If the products were properly rated, then they wouldn’t have been as marketable, and there wouldn’t have been as many bad loans to begin with, because the securitization market for mortgages would have been smaller. AIG wouldn’t have to pay out nearly as much for junk bonds going bad as they do when AAAs turn to junk.
Instead of more regulation, investors should demand more transparency. If the complex financial instruments can become less opaque, then you will see the market really fly. Don’t even rate the bonds. Just let the investors actually know what they are buying, and the market will sort it out.
Say what, Honky!
An “F”? Seriously WTF? This is CRIMINAL. Members of both parties should be doing the walk of shame right into a jail cell along with a few CEO’s, bankers and borrowers.
Hey, cut me some slack. An F is pretty bad. Many public schools don’t use it anymore. A lot have adopted the A,B,C,D,E scale, and some have even gone to A, B, C, “not yet.” Seriously, you don’t turn in any work and you fail to display any knowledge on the subject whatsoever, and you get a “not yet.” (fucking liberals!)
“Just think what a strong republican leader could have done back then.”
Strong…snicker snicker…Republican…hee hee…Leader? HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!
The party of cowards and liars.
Instead of more regulation, investors should demand more transparency.
Were you planning on writing a flowery letter to Citibank, etc, asking pretty-please for transparency? Maybe take the CFO to a nice dinner?
The party of cowards and liars.
Its actually funny that you say that. The democrats looked like that compared to the Republicans not too long ago. Its amazing how much things have shifted.
This would be funny if it wasn’t so tragic. It reminds me of the scene in “Blazing Saddles” where the governor (Mel Brooks) is told sbout the troubles in Rock Ridge and sternly declares “Gentlemen - we’ve got to protect our so-called jobs!”