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BOB/Everyone, please feel free to bleed RED on this and I will try to make the correctins so we can keep tabs on the RAT BASTARDS in DC that are selling us down the river...
Regulations flew out the window under the Clintoon admin amidst MUCH pressure from the Democratic Black Caucus to expand home ownership amongst the minorities… I was selling R.E. at the time and watched qualification on a First Time Home Buyers 90% LTV go right out the window and by 1999 ANYONE with a pulse could put their X on the loan docs ad get 110% LTV every day of the week… Investors were buying NEW homes as rentals as fast as the builders could crank them out and the banks were giving 100% LTV loans to the investors with little or no collateralization… I bailed out of the industry in 2000 and went back to the Tech sector…
From Forbes:
It is clear to anyone who has studied the financial crisis of 2008 that the private sector’s drive for short-term profit was behind it. More than 84 percent of the sub-prime mortgages in 2006 were issued by private lending. These private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year. Out of the top 25 subprime lenders in 2006, only one was subject to the usual mortgage laws and regulations. The nonbank underwriters made more than 12 million subprime mortgages with a value of nearly $2 trillion. The lenders who made these were exempt from federal regulations.
Also from Forbes:
It was primarily private lenders who relaxed standards: Private lenders not subject to congressional regulations collapsed lending standards. the GSEs. Conforming mortgages had rules that were less profitable than the newfangled loans. Private securitizers — competitors of Fannie and Freddie — grew from 10 percent of the market in 2002 to nearly 40 percent in 2006. As a percentage of all mortgage-backed securities, private securitization grew from 23 percent in 2003 to 56 percent in 2006.
• After the general election BUT before Bush/Cheney were sworn in I vividly remember Cheney warning of pending recession while Clintoon/GWhore were still doing the PUMP & DUMP on the state of the economy
• GW Bush tax cuts enacted in 2001 & 2003
• GW Bush tax cuts set to expire Dec 31 2012
• Bowles-Simpson formed, AKA - N.C.F.R.R
• February 7 2014 is the new DOOMSDAY where the DEBT CEILING will presumably be raised providing plenty of pork for all constituencies
Regulations flew out the window under the Clintoon admin amidst MUCH pressure from the Democratic Black Caucus to expand home ownership amongst the minorities… I was selling R.E. at the time and watched qualification on a First Time Home Buyers 90% LTV go right out the window and by 1999 ANYONE with a pulse could put their X on the loan docs ad get 110% LTV every day of the week… Investors were buying NEW homes as rentals as fast as the builders could crank them out and the banks were giving 100% LTV loans to the investors with little or no collateralization… I bailed out of the industry in 2000 and went back to the Tech sector…
From Forbes:
It is clear to anyone who has studied the financial crisis of 2008 that the private sector’s drive for short-term profit was behind it. More than 84 percent of the sub-prime mortgages in 2006 were issued by private lending. These private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year. Out of the top 25 subprime lenders in 2006, only one was subject to the usual mortgage laws and regulations. The nonbank underwriters made more than 12 million subprime mortgages with a value of nearly $2 trillion. The lenders who made these were exempt from federal regulations.
Also from Forbes:
It was primarily private lenders who relaxed standards: Private lenders not subject to congressional regulations collapsed lending standards. the GSEs. Conforming mortgages had rules that were less profitable than the newfangled loans. Private securitizers — competitors of Fannie and Freddie — grew from 10 percent of the market in 2002 to nearly 40 percent in 2006. As a percentage of all mortgage-backed securities, private securitization grew from 23 percent in 2003 to 56 percent in 2006.
• After the general election BUT before Bush/Cheney were sworn in I vividly remember Cheney warning of pending recession while Clintoon/GWhore were still doing the PUMP & DUMP on the state of the economy
• GW Bush tax cuts enacted in 2001 & 2003
• GW Bush tax cuts set to expire Dec 31 2012
• Bowles-Simpson formed, AKA - N.C.F.R.R
o First meeting April 2010
o Despite bipartisan support the plan was scrapped due to fears from both camps (cuts in tax rates/entitlements/social security)
o Simpson-Bowles was deemed “not serious” by some due to the level of cuts
• Budget Control act of 2011 (signed into law by Obama August 2011)o Was an agreement that was part of the Debt Ceiling increase
o Extended some of GW’s tax cuts
o Required the formation of the Join Select Committee on Deficit Reduction
o Option for a balanced budget amendment
o Increased the debt ceiling immediately by 400 billion
o An additional 500 billion was put at Obamas disposal
o The bill directly specified $917 billion of cuts over 10 years in exchange for the initial debt limit increase of $900 billion
o Created the “SEQUESTRATION” ENFORCEMENT TOOL
• Budget Sequestration – the “enforcement tool”o Was originally created in 1985 by Grahamm-Rudmann-Hollings
o Eventually replaced by PAYGO in 1990
o Recreated and signed into law as part of the 2011 Budget Controll Act of 2011
• Effects of Sequestration cuts were headed off :o From Jan 1 2013 to March 1 by the American taxypayer relief act of 2012
o Was supposed to be automatic for 1.2 trillion of PRE-identified cuts
o Would also result in an additional 1.2 trillion of cuts identified by the Joint Select Committee on Deficite Reduction
• Sequestration transparency act of 2012 was put in place and requires:o Obama to enact the sequestration / cuts at his discretion of the 1.2 trillion in cuts
o His words were as follows: "sequestration would be deeply destructive to national security... and core government functions". In a 400 page “memo” to congress
• The Federal Government shut down on Oct 1 of 2013o Due to the failure of congress to enact legislation to appropriate funds for 2014 and the federal government was already using “extraordinary measures” to fund daily operations
o The funding gap was due to the two houses not agreeing on the Continuing Resolution to bridge the funding gap (the Federal Gubment is FLAT BROKE - BUSTED)
o September 20th the Republican side of the house caved in and put a funding CR forward that the Dems liked
o The Senate (which includes the turncoat McConnel) stripped out the A.C.A. individual mandate extension and passed the funding CR, the House put the verbiage back in and passed it a second time. The Senate once again removed the A.C.A. verbiage and once again passed the funding CR but the House wouldn’t bite so the Gubment shutdown proceeds (on Oct 1)
o In parallel the A.C.A.’s October 1 “Exchange” started (well, was supposed to but the wheels fell off the website”
o Late on October 16th 2013 the House passes a modified version of the funding CR and kicks the can down the road (doesn’t address the debt ceiling increase).
o The House caved on the verbiage that would push out the INDIVIDUAL MANDATE to Jan 1 2015 from the pending date of Jan 1 2014.
o The House did put some verbiage into the funding CR for 2014 FY that requires income verification
• The Senate pulls an END AROUND using HR2775 to get around the requirement that as per the “origination clause”, all revenue bills must originate in the HOUSE and not the SENATE…o The HR2775 was originally drafted by the house in July 22 of 2013 to ensure that household incomes are verified and requires income verification before subsidies can be granted for health care subsidies
o The Senate (including turncoat McConnel) added the funding CR to the HR2775 and passed it and sent it back to the House for passage
o The Senate passed HR2775 81-18 and the house then passed on the same day 285-144 (specifics of these votes are forthcoming)
• January 15 2014 the funding CR expires• February 7 2014 is the new DOOMSDAY where the DEBT CEILING will presumably be raised providing plenty of pork for all constituencies
