I've heard many right wing talk show hosts make the claim that the biggest reason for the housing bust, and subsequent fall of the US economy was primarily due to the Federal Government insisting bank lenders give loans to people who could not afford to pay them back.

However, if this is the case, then how can it be that while trying to sell a condo back in 2007, I had a buyer get denied a loan by a bank during the summer of 2007. There were also other potential buyers, who all of a sudden could not qualify for a loan to buy my condo.

How could they have been denied loans back in 2007 if supposedly the Federal Govt was forcing banks to lend to anyone who wanted a loan????

WERE THE LAWS CHANGED BY THEN?

IF NOT, IT SOUNDS TO ME LIKE THE BANKS DID NOT HAVE A GUN POINTED AT THEIR HEAD BY THE FED GOVT AFTER ALL!

IT SOUNDS TO ME LIKE THE BANKS SUDDENLY STARTED TO WISE UP AROUND THAT TIME!!

YOUR THOUGHTS?

JOHN

Comments

leighmf's picture
leighmf 9 years 10 weeks ago
#1

It is funny that what the right -wing is saying is partially true, but they don't know why. It is not "the government" but people inside the government who were placed in positions of trust and corrupted by the central bankers.

The scheduled takedown was planned for 2008, Indymac a herald. Money which had been sent out of the country in one form via the Dutch Antilles in 1997 started coming into the country in January 2007 as reassigned mortgages. http://www.ffiec.gov/nicpubweb/nicweb/NicHome.aspx

Wiki "Angelo R. Mozilo (born 1938 in New York City) was the chairman of the board and chief executive officer of Countrywide Financial until July 1, 2008 [1]. "

Personal note

Inc. in CO: STATE STREET SECURITIES, INC. Entity Number: C3043361 Date Filed: 7/1/2008 07/01/2008 Status: ACTIVE Jurisdiction: WYOMING Entity Address: 1131 W 6TH ST STE 210 : ONTARIO CA 91762 Agent : HUSSEIN WEHBE Address: 1131 W 6TH ST STE 210 Agent City, State, Zip: ONTARIO CA 91762;

Notice Wyoming, because we were set up by Casper-Jasper perps. See below, Indymac failed, 7/11/. State Street is our Cayman Islands connection. State Street distributes payouts.

continued "He is the son of a Bronx butcher. He received a Bachelor of Science degree from Fordham University in 1960 and holds an honorary Doctor of Laws degree from Pepperdine University.[citation needed] In 1969 he and David Loeb, who had already started a mortgage lending company, founded Countrywide Credit Industries in New York. They later moved the headquarters to Calabasas, California in Los Angeles County. Mozilo and Loeb also cofounded IndyMac Bank, which was founded as Countrywide Mortgage Investment, before being spun off as an independent bank in 1997. IndyMac collapsed and was seized by federal regulators on July 11, 2008.[2] Since Countrywide was listed on the NYSE in 1984, Mozilo has sold $406 million worth of its stock, mostly obtained through stock option grants. $129 million of this was realised in the 12 months ending August 2007.[3]" 7/11/2008; cf 711 Main Street Jasper, IN; Ewing & Kitty Carlyle.

2007-01-01 BROWN BROTHERS HARRIMAN TRUST COMPANY OF FLORIDA was acquired by BROWN BROTHERS HARRIMAN TRUST COMPANY, N.A..

2007-01-01 PPH MORTGAGE CO located at 3000 LEADENHALL ROAD, LEGAL, MOUNT LAUREL, NJ was established as a Domestic Entity Other.

In Fort Wayne so far, the court is finding that PPH has not proven its right to foreclose.

2007-01-03 B OF A ISSUANCE B.V. located at AMSTERDAM, 0, NETHERLANDS was established as a International Nonbank Sub of Domestic Entities.

2007-01-04 32 Court Street FIRST NATIONAL INSURANCE SERVICES was renamed to FIRST NATIONAL INSURANCE SERVICES, INC..

32 Court Street, Sullivan, IN Spank Spank- home of the Alanar Church of Christ Church Bond Pyramid of Indiana and GA.

2007-02-12 Institution is closed. (IDS/Amex/AIG) ALLEGHANY INVESTMENT SERVICES, INC. was renamed to ABN AMRO INVESTMENT FUND SERVICES, INC

This represents the return of the Van Sweringen Securities concealed since the 1930's in Ball Foundation and associated enterprises.

2007-02-22 EAST WEST MORTGAGE TRUST 2007-1 located at PASADENA, CA was established as a Domestic Entity Other.

Various bond layerers in WA are associated with this entity. They place funds electronically in 5-10 year tax exempt bonds around the country. Over the bonds are pyramided inflated mortgages and other junk.

2007-03-07 Institution is closed 1984-12-31 (Krupp) REPUBLIC FUNDING COMPANY was renamed to REPUBLIC MORTGAGE COMPANY.

Funds from Krupp/Republic Steel, Republic Film, snuck into American commerce beginning 1968.

2007-03-19 UBS REAL ESTATE OPPORTUNITY FUND III, L.L.C. located at NEW YORK, NY was established as a Domestic Entity Other.

And the Swiss guys, in the nice suits.

2007-08-28 UBS-WP X ACCESS FUND, L.L.C. located at NEW YORK, NY was established as a Domestic Entity Other.

2007-10-15 CREDIT SUISSE PRIVATE EQUITY OPPORTUNITIES FUND II, L.P. located at NEW YORK, NY was established as a Domestic Entity Other.

.....it just goes on and on to Bernie Madoff....

2008-02-12 CREDIT SUISSE/INDIANA VENTURE FUND, L.P. located at NEW YORK, NY was established as a Domestic Entity Other.

2008-03-31 UBS TRUST COMPANY, NATIONAL ASSOCIATION located at WILMINGTON, DE was established as a Domestic Entity Other.

2008-04-08 BEAR ATLAS HOLDINGS CORP. located at NEW YORK, NY was established as a Domestic Entity Other. 2008-12-31 Institution is closed.

Atlas Pipeline, Atlas Van Lines, Atlas Steel, Atlas Insurance, Atlas Petroleum, Atlas Oil.

2008-04-08 BEAR STEARNS FOCUSED OPPORTUNITIES FUND, L.P. located at NEW YORK, NY was established as a Domestic Entity Other. 2008-12-31 Institution is closed.

2008-09-30 DELAWARE LINCOLN VARIABLE INSURANCE PRODUCTS TRUST BOND FUND located at FORT WAYNE, IN was established as a Domestic Entity Other.

2008-09-30 BERNARD L MADOFF INVESTMENT SECURITIES INC located at NEW YORK, NY was established as a Domestic Entity Ot

All in bed together for the benefit of the inbred unregulated FRB and FDIC.

So, yeah. Ja!BA

makuck's picture
makuck 9 years 10 weeks ago
#2

I know a few real estate appraisers. Here's what happened in one case study.. my favorite, what happened with Vegas class A office space.

Year
2000: Developers in Vegas build class A office space when occupancy hits 85%, that has been the norm for decades. For most markets stabilized occupancy is 95%. But Vegas is highly speculative for obvious reasons. But post 2000 it became especially so when the top tax rate was dropped even further giving the rich more extra capital to speculate with. For a building that costs $200,000 to build people were paying $600,000. Appraisers were appraising those $200,000 buildings at $600,000. Banks were loaning $600,000 for $200,000 buildings. So speculative investors with extra capital because of law tax rates way overbuilt Vegas class A office space.

2008: Bubble bursts. A $200,000 building that a speculative investor paid $600,000, that was always worth $200,000 is now actually being appraised at $200,000. But banks wont loan even $200,000 because all of their bad loans went bust and they have no extra capital because of it. Class A office space now has 50% vacancy, because it was so overbuilt, and it's estimated there is a 20 year supply of class A office space (meaning none will have to be built for 20 years until it hits stabilized vacancy).

It's all chalked up to irrational exuberance basically, if you want a simplified version. Banks, real estate agents, and appraisers all thought a building that costs $200,000 to build was worth $600,000 just because that's what speculative investors were willing to pay for it. They were very wrong. There are other places where the commercial real estate bubble is on the brink and could literally pop any day because of speculative overbuilding.

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