Who was responsible for the 2008 Housing Crash?
The people who bought the houses but couldn't afford them? The banks with their subprime loans? The govt for not regulating enough?
>>70631358
It was a combination of factors. Subprime mortgages was an element of it. A mass collapse of banks overseas brought fear into the property investment hivemind.
When that idea of a safe market is damaged and people lose faith, shit will hit the fan. The government upping interest rates played a role as well.
>>70631358
Yes
>>70631358
Western civilization for allowing usury.
The Jews, especially Milton Friedman.
I'd say at the lowest level it was the Banks who gave house mortgages to people who obviously couldn't afford them.
Banks bought mortgages because they thought they were safe investments. They got so used to doing this that they started to buy any and all mortgages without doing any kind of checks into whether the people who took out the mortgage were capable of repaying it.
Mortgage brokers got so accustomed to banks buying up all their mortgages that they took stopped bothering to check if people could afford them as they knew a bank would be along in days to buy it up, so they had no risk.
Eventually the entire banking sector was built upon millions of mortgages sold by mortgage brokers who didn't bother to check if people could afford them.
Most people buying these mortgages were told that property was such a good investment that they shouldn't worry if they cant afford it because their home will be worth 20% more in just two years so they can just refinance.
Some people with working class incomes ended up owning multiple properties. Many people in fact.
When the housing market slowed down, people began to realise that they couldn't refinance. Their homes were worth the same. Some even a little less. They began to default.
This turned into an absolute tide of mass mortgage defaults all over the country, causing banks to collapse as all of their trades were based on bundles of mortgages they'd bought up which were now worthless.
So who do you blame? Easy.
1) Mortgage Brokers
2) Banks
>>70632184
I think the government forced their hand on that one, if I remember right. The whole quagmire had multiple parties to blame, including those who took sub-prime mortgages themselves.
>>70632342
No they really, really didn't and anyone who tells you the government forced banks to buy shitty mortgages is a fucking retard.
>>70631358
It's complicated but:
>Politicians proceed with deregulation of the financial sector
>hedgeniggers are opportunists
>start sending out subprime mortgages to people who can't afford shit
>start approving literally every loan
>common citizens ignorant as always, buy into the program
>housing bubble bursts
>banks want their money back
>common citizens can't pay anything back
>people lose their homes
>hedgeniggers lose a ton of money
>didn't matter anyways because government bailed them out
>no one went to jail for this except one fall guy for one company
Two movies are absolutely mandatory for /pol/mericans
>Inside Job
>The Big Short
>>70632184
This and the banks were appraising house for ay more than they were worth and giving loans for that amount. I sold a house for way more than it was worth in an area before it popped and moved to the country. Fuck that. They are going to build build build, hyper inflate the value, demand drops, and boom your house isnt worth shit and people are selling and renting to mexicans to get by.
>>70631358
all of the above
>>70631719
BUMP!
>>70632338
Also don't forget the fact that mortgage brokers were incentivised to sell as many shitty mortgage plans as possible because their bonus'/financial rewards and based mostly on how many they sell, even if foreclosure is the conclusion.
>>70632025
/thread
>>70631358
Affordable housing legislation
Basically, Clinton refined existing non-discriminatory legislation that banks, who happily took in minority clients money, also needed to loan them money for houses.
The banks complied because it was the law, and they loans were federally guaranteed.
Banks then loaned lots of money to people who could never pay it back, or were high credit risks and simply would default.
This was exacerbated by new lending gimmicks like "interest only" loans and variable rate loans.
Basically, the time tested metrics for smart lending were thrown out the window, and high risk/high dollar loans became common.
When the financial world realized the issue, they bundled the shitty (but guaranteed) home loans and labeled them as great investments because, hey, real estate always appreciates, right?
At the end of the day, the borrowers debt became so massive that it couldn't be ignored by even the craftiest merchant, and it all fell apart.
>>70631358
the financial system itself
>>70631358
>The govt for not regulating enough?
The government for intervening too much, you retard.
government
>>70631358
Everybody who willingly participated.
>>70632432
Forgot to add:
Who to blame?
Well, everyone because every party fucked up.
>Politicians with deregulations
>banks for trying to manipulate & take advantage of people
>banks for approving loans to people who couldn't afford them
>realtors for sucking everyone in
>people for not reading their mortgage contract
>government for bailing out the banks
>>70632757
So that's why S&P were being incompetent leading up to 2008, and allowing mortgage ratings to be essentially bought by the banks? That emerged from "too much intervention," did it?
Rightio.
>>70631358
niggers and liberals
>>70632682
This.
>>70631358
ABCD_FGHI_KLMNOPQR_TUV_XYZ.
>>70631358
Bill Clinton.......
The Jews.
Look into Saul Alinsky and the Clintons.
>>70631358
>Who was responsible for the 2008 Housing Crash?
That was me.
Sorry guys. Won't happen again!
>>70633029
The samurai knows what's up
>>70631358
Jews and dumb goys that never learn and fell for the incredibly obvious and predictable jew usury.
Daily reminder that the economy was never fixed and that it will happen again soon.
>>70633211
The financial system is beyond fixing.
>>70631358
>The govt for not regulating enough?
You retard
The government FORCED banks to make bad loans because MUH RACCCISSMS
Then nigger being nigger bought shit they could not afford driving prices up
Banks being banks chopped up the bad loans and sold them off
It started with the Clinton administration via Janet Reno forcing banks to give people who could not afford them loans
>>70631358
the responsibility lies on all three: creditors, their customers and the state; creditors should've taken the losses resulting from their risks, customers from theirs; the state fucked up by providing incentives and a false sense of security to creditors; the state fucked up even further by socializing losses and allowing the culprits to carry on business as usual
Literally the base of economics, unlimited wants vs limited resources. The hyper retards who tried to buy a house that could never afford are just as much to blame for the collapse as the banks.
For college loans same situation, hyper retards majoring in useless things learning no marketable skills.
Banks
If a bank tells someone they can afford a loan, then people are going to take the loan.
>>70631358
>Who was responsible for the 2008 Housing Crash?
Greedy wall street bankers. We need more government control over the economy to prevent shit like this from happening again. People lost their homes and jobs and savings because of the demands of the wealthy. It's time we break up the banks and get government to make this country work again.
>>70633029
Kek
The nose fears the samurai
>>70631358
>>70633615
>here ur replie
>>70633304
One of the dirty secret is there were gangs of niggers gaming the system and making a tone of money
Tyrone buys a house for 80K with no intention of making payments.
Jamal buys they house from Tyrone for 120K with no intentions of making payments he and Tyrone split the 40K profit
Trayvone buys the house from Jamal for 160k with no intentions of making payments he and Jamal split the 40K profit.
and on and on
All the while houses are appraising for more and more because they are selling for more and more so normal people looking to buy a house are paying FAR more than it is worth.
>>70633572
I will agree that the banks are the most responsible. This is because most people are morons, and the banks took advantage of this. I will not agree that the people who were taken advantage share no responsibility. Buying a $500,000 house on a $40,000 salary under the assumption that housing prices will forever and always rise is just plain dumb. So is the government for bailing out the banks.
Let people live with the consequences of their actions, let TBTF banks fail and get rid of 90% of government, and a lot of problems will go away.
A crash happens when people think something is worth much more than it actually is. Sometimes its because people heavily over valued it, sometimes its becasue what value it did have is suddenly lost.
In the case of stock market crashes, people continuously pumping money into stocks raises their price way above their actual worth. When something happens to make people realize this, such as an economic hiccup, the price readjusts and the market crashes.
In this case, increased home buying, caused by both "American Dream" mentality and Fannie Mae/Freddie Mac programs led to an increase in the price of homes. The bundling of subprime mortgages and fraudulent rating by the rating agencies led to investment institutions thinking that these "bundles" were solid investments.
The market takes a hit, a homeowner cant pay their mortgage and they cant sell without writing off tens of thousands, the value of the subprime investments takes a hit, and then those two things are pretty much a feedback loop until the market hits bottom.
I figure this wouldn't have happened if the market was able to determine how much subprime loans were actually worth. Governmental incentives adjust the risk but they don't cover it up. Fraud on the part of the rating agencies prevented the market from reaching an intelligent valuation on subprime mortgages and created the bubble.
Basically, banks started pumping these mortgages together by the thousands, originally only allowing ones with good credit in.mbut eventually they let in people who had shitty credit and probably couldn't pay their mortage, and in 2007 when most of the adjustable rate mortgages kicked in, these massive bonds started to fail losing billions at a time.
>>70631358
All of the above except you have the regulation part backwards. The goverment's guarantee of loans and bailing out of failed "banks" is mostly to blame.
>>70632415
The government subsidied loans for poor people/minorities which certainly helped.
Freddy Mac and Fannie Mae bear the burden of blame. Greedy hedge fund owners, amoral mortgage lenders and idiot homeowners all played a part, but none of that would have come together if those two psuedo-governmenal agencies had done their job.
>>70633872
>In the case of stock market crashes, people continuously pumping money into stocks raises their price way above their actual worth. When something happens to make people realize this, such as an economic hiccup, the price readjusts and the market crashes.
Today, stocks are up because companies have been selling bonds to finance stock buybacks because it's good for bonuses. People aren't going to realize shit, shit will realize them in this case, when a few companies go bankrupt and the yields on bonds start getting bid way the fuck up, and that debt that those bonds represent can no longer be rolled over.
>>70631358
>The govt for not regulating enough?
:^)
Every economic disaster in the past 100 years has been due to over regulation.
>>70633872
Then senator Obama suing Citibank for not making bad loans in dying economic areas certainly didn't help.
>>70632415
Case Name
Buycks-Roberson v. Citibank Fed. Sav. Bank Fair Housing/Lending/Insurance
Docket / Court 94 C 4094 ( N.D. Ill. ) FH-IL-0011
State/Territory Illinois
Case Summary
Plaintiffs filed their class action lawsuit on July 6, 1994, alleging that Citibank had engaged in redlining practices in the Chicago metropolitan area in violation of the Equal Credit Opportunity Act (ECOA), 15 U.S.C. 1691; the Fair Housing Act, 42 U.S.C. 3601-3619; the Thirteenth Amendment to the U.S. Constitution; and 42 U.S.C. 1981, 1982. Plaintiffs alleged that the Defendant-bank rejected loan applications of minority applicants while approving loan applications filed by white applicants with similar financial characteristics and credit histories. Plaintiffs sought injunctive relief, actual damages, and punitive damages.
U.S. District Court Judge Ruben Castillo certified the Plaintiffs’ suit as a class action on June 30, 1995. Buycks-Roberson v. Citibank Fed. Sav. Bank, 162 F.R.D. 322 (N.D. Ill. 1995). Also on June 30, Judge Castillo granted Plaintiffs’ motion to compel discovery of a sample of Defendant-bank’s loan application files. Buycks-Roberson v. Citibank Fed. Sav. Bank, 162 F.R.D. 338 (N.D. Ill. 1995).
The parties voluntarily dismissed the case on May 12, 1998, pursuant to a settlement agreement.
Plaintiff’s Lawyers Alexis, Hilary I. (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Childers, Michael Allen (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Clayton, Fay (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Cummings, Jeffrey Irvine (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Love, Sara Norris (Virginia)
FH-IL-0011-9000
Miner, Judson Hirsch (Illinois)
FH-IL-0011-7500 | FH-IL-0011-9000
Obama, Barack H. (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Wickert, John Henry (Illinois)
FH-IL-0011-9000
>>70632445
THIS
I believe it's happening to my hometown now too :.(
all 3 but honestly mostly 1 and 2
>>70631358
Before blaming the banks for giving loans to people who they knew could never repay the loans (vast majority being minorities), you need to realize that banks were being blackmailed by pro-minority groups and liberal politicians, that if loans were NOT given to poor minorities that protests of racism and political investigations into the running of the company would be done. Progressive liberal are the ROOT cause of the 2008 Housing Crash.
Banks gave the loans to people unable to pay the money back. They bundled these bad loans with good loans and sold them mainly to foreigners. A big problem is that the rating companies (the bank paid them for a rating) that should have rated these loans as VERY poor, cheated and rated then as OK.
Eventually the shit hit the fan when the bad mortgages were not paid and foreclosures started. When a house is foreclosed, EVERY other house in the neighborhood gets revalued at a lower rate.
>>70633793
that was creditor's risk in not detecting fraudulent practice, I still don't see why banks weren't allowed to fail other than jewing the state into covering their asses
>>70631358
The Dumbfucks who traded actual houses for the Fed's Monopoly money.
>>70631358
iirc, banks had to be less discriminatory when it came to lending, leading to a fuck ton of financially risky people getting loans
>>70631719
Jewsury
>>70632682
If republicans take credit for the balancing of the budget, then it's the Republican's fault for affordable housing.
>>70634340
This image is a bit of a strawman though.
The blue collar guy would be the one to say, "I vote Republican because I don't want my grandkids to blame me for the same conditions I blame on mine."
>>70631358
Watch this.
http://putlocker.sr/watch-the-big-short-online-239200-putlocker.html
or this one
http://documentarylovers.com/film/inside-job/
I don't know if it's been mentioned I'm tired of slogging through bullshit misinformation to find the few posts worth reading here, but the credit rating agencies were basically bought off to give toxic assets a aaa+ rating even though they were shit allowing the problem to balloon to economy crashing size.
>>70633152
kek
>>70632962
I heard it was Eastern Europeans. And also banks who were lending irresponsibility to people who could never repay. They did this to increase their annual bonuses while simultaneously bringing down the whole system. The international financial system lacks sufficient liquidity for the volume of capital circulating. It means that it is fundamental unstable and susceptible to major crashes whenever something goes wrong. The people who oversee this unstable system are still in charge of Wall St hedge funds and major banks. They're supported by the center of both the Republican and Democrat parties. /Pol/ helps support this situation by continuing to blame minorities who have nothing to do with making this happen. Do you feel even a little bit bad, /pol/?
>>70634261
Certainly, but its important to recognize that Chicago has deeper issues with housing loans then just what happened prior to the recession. The city is pretty much the poster child for historic"redlining." Back during the new deal the federal government put together maps on where to lend aid. One of the actual criteria used by the federal government was how at risk a neighborhood was to "threat of infiltration of foreign-born, negro, or lower grade population."
Then you've got the issue of all the maps used for determining loan policy to neighborhoods are put together not just to avoid lending to hoodrats, but also to avoid lending to the uncle-toms who actually have jobs. Many banks kept using those maps even after it became illegal. Its probably one of the bigger reasons why America's black communities are still total shit today, you couldn't get a home or business loan in those neighborhoods no matter how hard you worked or well off you were, so all the blacks who actually had jobs fled the new ghettos and just left a stew of the laziest and least educated.
The thing about the Obama suit you aren't going to see in the blogosphere is that Citibank wasn't making decisions based on ability to pay loans, but instead explicitly off the race and neighborhood. It's loans to the dindus that crashed the economy, not just loans to black people.
