Doesn't intern imply indentured servitude?

CDef

Orange Blooded [3590]

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A Government-Mandated Housing Bubble

Jul 26, 2015, 10:49 PM

http://www.forbes.com/2009/02/13/housing-bubble-subprime-opinions-contributors_0216_peter_wallison_edward_pinto.html

There is very little doubt that the underlying cause of the current credit crisis was a housing bubble. But the collapse of the bubble would not have led to a worldwide recession and credit crisis if almost 40% of all U.S. mortgages–25 million loans–were not of the low quality known as subprime or Alt-A.

In 1992, Congress gave a new affordable housing “mission” to Fannie and Freddie, and authorized the Department of Housing and Urban Development to define its scope through regulations.

Shortly thereafter, Fannie Mae, under Chairman Jim Johnson, made its first “trillion-dollar commitment” to increase financing for affordable housing. What this meant for the quality of the mortgages that Fannie–and later Freddie–would buy has not become clear until now.

On a parallel track was the Community Reinvestment Act. New CRA regulations in 1995 required banks to demonstrate that they were making mortgage loans to underserved communities, which inevitably included borrowers whose credit standing did not qualify them for a conventional mortgage loan.

To meet this new requirement, insured banks–like the GSEs–had to reduce the quality of the mortgages they would make or acquire. As the enforcers of CRA, the regulators themselves were co-opted into this process, approving lending practices that they would otherwise have scorned. The erosion of traditional mortgage standards had begun.

Where, then, did all the low-quality loans come from?

From 1994 to 2003, Fannie and Freddie’s purchases of mortgages, as a percentage of all mortgage originations, increased from 37% to an all-time high of 57%, effectively cornering the conventional conforming market. With leverage ratios that averaged 75-to-1, and funds raised with implicit government backing, the GSEs were pouring money into the housing market. This in itself would have driven the housing bubble.

But it also appears that, perhaps as early as 1993, Fannie Mae began to offer easy financing terms and lowered its loan standards in order to meet congressionally mandated affordable housing goals and fulfill the company’s trillion-dollar commitment.

...the fact that that Fannie and Freddie now hold 60% of all outstanding Alt-A loans provides a strong indication of the purchases they were making for many earlier years.

This set off a frenzy of subprime and Alt-A mortgage origination, in which–as incredible as it seems–Fannie and Freddie were competing with Wall Street and one another for low-quality loans. Even when they were not the purchasers, the GSEs were Wall Street’s biggest customers, often buying the AAA tranches of subprime and Alt-A pools that Wall Street put together. By 2007 they held $227 billion (one in six loans) in these nonprime pools, and approximately $1.6 trillion in low-quality loans altogether.

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Does the Affordable Health Care Law cover dementia? I ask this because Bernie seems to have forgotten where he is. This is America, and I refuse to pay taxes on my income unless we are at war with another nation. That's the law. I will keep every penny that I earn. Believe that! Congress hasn't declared war since WWII.. So therefore, there should be no more than a 1% income tax on any American... To even consider penalizing someone for success in the land of opportunity is absurd to say the least. If you are poor in America it is due to a couple of reasons.

1. You have no clue how to invest.

2. You have no clue how to manage your personal finances.

3. You have zero education nor desire to pursue any endeavor in life that would generate any sort of
wealth.

4. You have voted Democrat for 50 years or longer in hopes of finding a savior to build some non-existing utopia.

5. You have ended up in a situation beyond your control. ( This is why the Church exist and why people pay a tithe.)

Hypocrisy? Bernie Sanders wants minimum wage raised to $15 an hour BUT

Re: Hypocrisy? Bernie Sanders wants minimum wage raised to $15 an hour BUT

Re: Hypocrisy? Bernie Sanders wants minimum wage raised to $15 an hour BUT

Do interns generally get full pay?

I interned in college, and got full pay.

Is pointing out Democrat hypocrisy really newsworthy?***

Re: Is pointing out Democrat hypocrisy really newsworthy?***

Very few Capitol Hill interns even get paid

Re: Very few Capitol Hill interns even get paid

Re: Very few Capitol Hill interns even get paid

What a cheapskate. What's wrong with $25 an hour?***

Re: What a cheapskate. What's wrong with $25 an hour?***

As of 2013, he's one of only 35 that even pay interns...

Re: As of 2013, he's one of only 35 that even pay interns...

It's an internship vs. a full-time job... again, specious...***

Re: It's an internship vs. a full-time job... again, specious...***

Re: It's an internship vs. a full-time job... again, specious...***

65 senators say work for me and DON'T get paid. At least

Re: 65 senators say work for me and DON'T get paid. At least

"All minimum wage jobs" are NOT being paid for training.

Re: "All minimum wage jobs" are NOT being paid for training.

And Bernie is paying his 80% while most are scamming...***

No pay? Slavery!!!!***

Re: No pay? Slavery!!!!***

Who's the spinmaster...?***

Re: No pay? Slavery!!!!***

Sounds like those ingrates should just be thankful for what

Re: Sounds like those ingrates should just be thankful for what

Re: Sounds like those ingrates should just be thankful for what

"Your hypocisy is specious at best"

I've been associated with much worse... ;~)***

Who knew we could legislate economic prosperity?***

Wall Street... and they've paid and been paid well for it.***

Personal gain is not the same as economic prosperity.***

Nothing "personal" about the the Banksters, but your

The root cause of the rape was government, not the banks.***

Right. Bundling and leveraging derivatives had nothing to

What was bundled, and why?***

Mortgages... don't act dumb. Naive, maybe....***

Why were they bundled?***

To scam everybody else as to their value which was rated

The scam came from the government. You cannot allow people

It was ALL banks, not just the Freddies. They knew what

A Government-Mandated Housing Bubble

Re-read your last paragraph... explains it all.***

You clearly have not thought through what you just said.

Ask Iceland, etc. where they got theirs... I'm not denying

Does Obamacare Cover...

"LOST".... somewhere in the desert.... Maybe it's the heat?***

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