Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: bentway who wrote (164514)	11/15/2008 11:31:41 AM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 306849

O'Neill (though I do like his books) is definitely an arch-conservative, to be sure. If you wanna trace back problems with RE lending, clearly the seminal event was widespread mortgage securitization, where lending origination reward became divergent with the risk posed by the decision. This started in a big way in the 80's (read Liar's Poker); it was widely supported subsequently by both parties. I've no doubt that ideologues wanna make political hay out of it but they're all fulla $hit. It wasn't left against right, it was the residential-industrial-political complex vs taxpayer/savers.

To: bentway who wrote (164514)	11/15/2008 2:42:20 PM
From: The Reaper	Respond to of 306849

The seeds were planted for this debacle back inthe 101st Congress in which the Dems held a 260-175 majority. The shift began in 1989, when Congress amended the Home Mortgage Disclosure Act to force banks to collect racial data on mortgage applicants. By 1991, critics were using that data to paint lenders as racist by showing that minority applicants were approved at far lower rates. In fact, they found a racial disparity only by ignoring relevant data on applicants' ability to make mortgage payments - such as their assets and credit history. In the span since 2001, there have been no less than 19 different bills proposed by Congress to tighten up the reigns on mortgage lending all of which were defeated. Most of Congress in the 2000's had a very slight Republican majority so I think that there's plenty of blame to be bestowed on both parties.