Trump on Pace to Do What Obama Couldn’t

The Bush administration lied about that like everything else.

There was only one bill ever passed by the Republican controlled Congress. 90% of the Republicans supported it, as did a majority of the Democrats. It was supported by the Bush Administrations acting OFHEO head, who was responsible for F/F oversight. It provided stronger regulatory powers over F/F.

And it wasn't the Democrats that blocked it. It wasn't Barney Frank who blocked it. Bush killed it.

To paraphrase your own statement:

We can only wonder what difference it would have made had Bush not fought the reform of Fannie and Freddie.

Those are verifiable facts. Not some RW propaganda video. Sorry if the truth is inconsistent with the little RW propaganda world you live in.

 

The government influences, but doesn't control the economy.

People who advocate more and stronger regulation of the financial sector don't realize how intensely this sector actually is regulated.

In the "housing bubble" crisis many claim the high volume and poor quality of some mortgages sold 'bundled' as "mortgage-backed securities" was the source of the crash. Most realize promoting loans to risky borrowers will create a higher volume of poor quality mortgages, and easier access to credit will increase demand and hence housing prices will rise inflating that bubble. Rising property prices create a 'dynamic' where buyers purchase to sell, with easier credit more buyers entered this market.

Thirty or forty years ago, as I studied the mortgage-based US property system, it seemed remarkably sophisticated, very efficient, well-articulated, adjustable, reliable, capable of stimulating social development and responsive to regional idiosyncrasies. US mortgage-backed securities were once considered one of the safest investments available, those bundled mortgages (and sovereign debt) were basically the only instruments pension plans and other institutional investors purchased, they were practically guaranteed, the default rate on a thirty year mortgage was insignificant and property values gradually rose everywhere. A lot changed in 30-40 years, all sorts of 'exotic' mortgages developed to fuel the booming housing market; fixed, adjustable-rate, conventional, FHA, VA and USDA backed, 'jumbo' and Fannie-Freddy Mae conforming loans with a variety of combinations thereof emerged to accommodate the growing demand. Each of these mortgages is regulated in different ways, some require insurance (also regulated), some government agency-backed loans target specific markets and are less sensitive to external factors (like the housing boom). The bundling of mortages itself is regulated, each mortgage is graded based on the borrower's credit-worthiness, the value of the property, the term, timely payments and other factors, and the application of these valuations is regulated too. In most cases nobody from the bank is going out to check whether the borrower's house is properly maintained, has termites or has conforming plumbing, nobody is looking into the borrower's job tenure and employment prospects, whether they properly apply credit ratings is also well-regulated.

In this environment, with rising property prices:

See that giant blue peak? That's 2008! How concerned should a bank be (in around 2004) that a waiter (officially) earning maybe $25k/year can afford a million dollar home (that earns about $36k/year in revaluation)? For about 4 years that waiter's house would gain at least 14% in value (what was the mortgage rate)? Actually the bank would make more money if the waiter defaulted.

 

Are the Kochs jewish?

 

No idea.

 

I don't think they are Jewish, Koch is not a Jewish surname.

 

Then which jewish folks were you referring to?

 

Please explain to us how the U-3 is important when the Household Survey it is based on, is not?

 

Are you saying the Household Survey is not an IMPORTANT source of data?
Yes or no, please?

 

<Reply to Deleted>

Do you even know what the Household Survey is?

Yes or No, please?

 

So you do not even know what the Household Survey is (apparently)?

Noted.

Well, let's try something even easier. Do you even know what the U-3 is?

Yes or No, please.

 

These soundbites about what the growth rate was is silly. That Obama brought us out of the worst recession since the Great Depression
is what is noteworthy. If the growth rate was 2%, that is grand considering the catastrophe facing our country when Obama took office. Any growth should be more than acceptable, judging by the alternative. Out economy was tanking, the stock market was gyrating at 1000 points up and down in 30 second increments, investors lost everything and many committed suicide, unemployment was rampant and the frost was on the punkin'. He did put people back to work and set the stage for the boom of today. You all know--the boom
that Trump is taking credit for.

 

Fact is Obama never got 3% annual growth and is the first president in US history to earn that distinction.

 

And so far, Trump is running at only 2.1% GDP growth...which is much worse than Obama was.

https://tradingeconomics.com/united-states/gdp-growth

Oh, and the latest estimate for 3'rd quarter GDP growth (from the same group that the OP used) is only 2.2%.

https://www.frbatlanta.org/cqer/research/gdpnow.aspx

 

BTW, the same source that the OP used now states that the expected GDP growth for the 3'rd quarter is only 2.2%.

https://www.frbatlanta.org/cqer/research/gdpnow.aspx

If that turns out to be what it is...that would bring the average GDP growth under Trump (so far) as only 2.1%.

Even worse than Obama did.


Once again, I am neither Dem nor Rep.

 

Fact is that it took years for collapse to develop and years to climb out of it.

 

Mr. Frank headed up the financial services committee, and used his power to cajole Freddy and Fannie to support sub prime loans.
He played a major role in the collapse. Yes, they were in good condition as the sub prime crisis began to take shape.
And let's not forget the massive property flipping schemes that helped cause the collapse. My view is that collapses are
predictable when there is deregulation without proper management of the process. Trump may be leading us in that direction.

 

Quarterly GDP Growth under Obama topped %3 however the ANNUAL GDP growth never reached 3% . The American household Lost 16 TRILLION ! Yes let me repeat 16 Trillion during the financial crisis and Businesses about 12 trillion in lost output, even if Obama had super powers you don't recover from such a mess overnight I am surprised we did somewhat in 8 years and for Trump to tag onto the climbing success and claim credit for low employment and virtually everything is just laughable. Trump said he took over a Mess I guess Obama took over a Great beautiful booming economy I mean Give me a break this guy will over exaggerate every move he makes. if he could claim credit for going to the toilet he would ! He would say he took a very nice beautiful sh*t one that the world has never seen # MAGA

 

Utter nonsense. Frank was a minority member in the House. Republicans controlled the committees, the agenda, and what could come up for a vote during the entire time the housing bubble blew up to its absurd levels and strarted imploding. Republicans controlled the Senate. Republicans controlled the White House and Administration.

Frank didn't have the power to bring up a law on chewing gum for a vote, much less get it passed.

He did, however, support the only bill ever passed by a chamber of the Republican controlled House to increase regulation on F/F, which the Bush Administration killed.

And the fact that after 2003, the the bulk of subprimes were issued by private banks, which were raking in billions in fees.

And so why are you attributing the major role to a minority congressman? What about George "Mr. Ownership Society" Bush and the "business can regulate itself" Republicans who controlled the House and Senate -- the folks who managed the government during the entire time the housing bubble blew up it absurd levels and started crashing?

 

Even harder when the opposing party controlling the House imposes austerity for political purposes.

 

The collapse was virtually overnight when the housing bubble burst and Obama had the slowest recovery from such an event in history. In eight years he never once reached a 3% annual GDP and is the only president in US history to do that. Trump has been in office months not years and has already got the economy that was on its back up and running.

 

You act as though Obama is the first president to have to deal with an economic downturn. There's been many downturns before that were far worse and those presidents were able to get the economy up and running again with 3% GDP or better. Face facts,Obama's policies were an abject failure.

 

Mr Frank was the chairman of the Financial Services Committee. He had power. I agree with you about Bush and the Republicans.

 

Tell me what power Frank had as a minority member during the housing bubble. Thanks.

 

You have no idea how deep this recession was, and your statement about how long the recovery took makes no sense. It takes time, and if it is rushed, down you go. It doesn't matter that it took Obama longer--so what! Trump has been in office and has done nothing to bring the economy back.
It is too soon for him to have an influence. He is feeding off Obama, whose efforts turned the economy around. Trump is heading for an economic flop.

 

please don't disrupt the discussion with facts, because they tend to bounce off the foreheads of the respective partisan.