Mozilo of Countrywide and his board member Henry Cisneros (Clinton Cabinet secretary) campaigned long and hard to persuade regulators that CW's shoddy down payment and documentation standards were actually Fighting Racism By Closing Homeownership Gap: https://vdare.com/articles/countrywide-s-angelo-mozilo-he-warned-us-but-washington-didn-t-want-to-know …https://twitter.com/mtaibbi/status/1040742820385050624 …
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Oh wow look, empty political rhetoric from a president. That settles everything. It’s definitely black grocery workers’ faults the world economy collapsed in 2008. You’ve really sunk the final nail with this one.
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It wasn't empty rhetoric. GW Bush in 2002 repeatedly told his own federal regulators that imposing traditional credit standards on mortgage lenders for down payments and documentation worsened racial inequality in homeownership. White lenders like Mozilo & Arnall exploited this.
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Yep it was the “black part” of the MBS’s that REALLY messed everything up. I know the refrain. I’ll just forget that Republicans and neoliberals wanted and got deregulation for decades, I mean, why go there when you can tell us that one Miramar subdivision broke the world.
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Republicans like Bush & Rove used political correctness and the Fight Against Racial Inequality to cut traditional regulation of mortgage lending. Bush in 2002-2004 said old downpayment and documentation requirements keep Hispanics and blacks from getting enough mortgages.
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Fannie Mae and Freddie Mac inflate bubbles by rewarding malinvestment, the Federal Reserve buying mortgage backed securities almost guarantees housing will be a part of the next bubble
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“Malinvestment.” So you’re an Austrian. The only Malinvestment is the time youve wasted reading Peter Schiff screeds.
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Are some investments wise and some unwise? Or is Keynes correct that as long as velocity is high wise or unwise is immaterial? (alien invasion defense force, digging ditches with spoons, Tarp)?
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It’s really amusing to me that you think you can use Twitter to convince people about your superstitions (whoops I meant economics), when you are too chickenshit to even use your actual name. Good luck with hyperinflation, let me know how it pans out. Any day now, right?
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I don't think GW Bush 'launched' the housing bubble, but he did make it a LOT worse. If you look at housing prices relative to rents or relative to incomes, they started taking off in the second half the the 1990s under Clinton.
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If you look at charts that show the relationship between housing prices and rents, and housing prices and incomes, you see in the decades before the second half of 1990s that they stayed in a range. But under Clinton, housing prices took off much higher relative to other factors
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But GW Bush made things much, much worse.
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I thought that was
@BarackObama who did that????? :))Thanks. Twitter will use this to make your timeline better. UndoUndo
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