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Newmont Mining Corporation Message Board

  • juryman07 juryman07 Dec 1, 2008 1:33 PM Flag

    Republicans have caused another Depression

    Housing Bubble warnings were ignored to let their banking buddies make more money.

    In 2005 and 2006, "The Bush administration backed off proposed crackdowns on no-money-down, interest-only mortgages years before the economy collapsed, buckling to pressure from some of the same banks that have now failed. It ignored remarkably prescient warnings that foretold the financial meltdown, according to an Associated Press review of regulatory documents."


    "Politicians, lobbyists shielded financiers Lack of liability laws fueled firms' avarice"

    "While Wall Street financiers stoked today's financial meltdown with explosive investing in high-risk mortgage loans, politicians, federal officials and lobbyists shielded them from lawsuits that would have protected borrowers and tempered the frenzy.

    "A principle known as assignee liability would have allowed borrowers to sue anyone holding paper on their loan, from the originators who sold it to them to the Wall Street investment bankers who ultimately funded it.

    "Without the measure in place, Wall Street increased by eightfold its financing of subprime and nontraditional loans between 2001 and 2006, including mortgages in which borrowers with no proof of income, jobs or assets were encouraged by brokers to take out loans, according to statistics provided by mortgage trackers.

    The Bush administration and members of Congress -- including a key Republican subcommittee chairman who was later sent to prison for political corruption -- sided with lending-industry lobbyists and free marketers who hotly and successfully opposed blanket liability for Wall Street firms selling mortgage-backed securities, according to congressional testimony, other records and interviews."


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    • ... now, now, lyle baby !..... no need to go "pre-emptive" on us like your hero-nero.... ..... temper! temper! count to ten....and wonder of wonders.... a fair & balanced utopia for thee ....Praise the lord !


    • Let's put the blame where it really belongs. I think Jason Leavitt sums it up:

      Bill Clinton laid the foundation. Alan Greenspan greased the wheels. Then, extremely unscrupulous mortgage lenders and banks took full advantage of gullible, unsophisticated borrowers.

      By replacing Glass-Steagall with Gramm-Leach-Bliley, banks and investment brokers were permitted to consolidate, and the natural system of checks & balances was destroyed. Not to mention the conflicts of interest that were born. Yes, Greenspan aided the situation by lowering rates and keeping them low, and S&P encouraged risky loans by giving them AAA ratings, and many idiot Americans who thought prices would keep appreciating need to check themselves into gamblers anonymous, but if I had to go back to the beginning, to where this mess started, it would be with Bill Clinton’s signature on November 12, 1999.


      I might add, the American Worker Replacement Act of 1998, NAFTA, allowing China into the WTO and the free trade agreements didn't help any. The Telecommunications Act of 1996 killed the telecommunications industry.

    • Republican corporatism isn't a viable economic theory or even pro American. Corporations only care about the bottom line and will loot and sell out America without hesitation if given the opportunity, leaving only a devastated nation in their wake.

      • 1 Reply to rustybolt2000
      • There is nothing wrong with corporations, capitalism and free markets, Rusty. Don't get them confused with Big Business mutual back scratching with Big Government.

        Teddy Roosevelt had it right about Big Business. Break It Up. ALWAYS.

        Same thing goes for Big Government, too, of course. Basically the same principle. Concentration of power always corrupts.

        In our current case, Big Government said, "Loan to the unqualified," and so Big Business figured out a way to do it without the normal short term consequences, and Big Government looked the other way and let them do it.

    • Nice post. There are elements on the right who are still pushing the line that capitalism's failure was as a result of too much regulation. Government is by the corporate representatives for the benefit of the corporatations. The trick is to pretend that the corporates are for the people.

      >>>"These strict (state) assignee liability laws threaten the availability of credit, frankly, in the subprime market," Ney said as he opened a June 2004 hearing focused on the subject. "Acting as a usury cap on mortgage lending, these laws effectively prevent people from receiving mortgages."<<

      >>"There was a lot of legal talent hired by the industry to try to figure out ways to make sure that nobody along the chain (including Wall Street) had to suffer legal accountability," said Kathleen Keest, a former Iowa assistant attorney general who now studies lending activity for the Center for Responsible Lending.

      The battle for and against assignee liability was hotly waged starting in 2002 in Congress, state legislatures and city council chambers, though it received scant publicity. Some 20 states and a few cities passed anti-predatory lending laws that contained assignee liability provisions, but federal law and the federal agencies that charter banks and thrifts such as Washington Mutual shielded them from the state laws.<<

    • September 11, 2003

      The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.

      ''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people
      exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''.

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