Patterico's Pontifications

9/27/2008

This Video Is An Excellent Compilation Of The History Of The Subprime Mortgage Crisis

Filed under: General — WLS @ 11:25 am

Posted by WLS:

Kudos to the person who produced it.

Spread it around.

51 Responses to “This Video Is An Excellent Compilation Of The History Of The Subprime Mortgage Crisis”

  1. Do you copy and paste all that stuff?

    ccoffer (471907)

  2. I wish McCain had watched it before last night’s debate! (BTW, I think you need to fix your embed code.)

    BNJ (497d2d)

  3. I think this will work, if not go to youtube and search “burning down the house”.

    http://www.youtube.com/watch?v=H5tZc8oH–oYouTube: Burning Down The House

    http://www.youtube.com/watch?v=H5tZc8oH–o

    aaron (678c76)

  4. WLS,

    You can preview things before you post them to see if the embeds work.

    If it’s not working, take the post down, fix it, and THEN put it up.

    Patterico (b1a292)

  5. Try this:

    “Burning Down The House: What Caused Our Economic Crisis?”

    http://www.youtube.com/watch?v=H5tZc8oH–o

    C. Norris (7d0f52)

  6. Someone tell me if the video is working.

    I can’t tell because I’m on a Treo.

    If it’s not, I’ll take the post down. Then I’ll explain to WLS how the “Preview Post” function works. And I’ll remind him of something else that we discussed privately that he seems to have forgotten about.

    Is the video working?

    Patterico (6a705c)

  7. The problem is that a two dashes are being turned into a long dash.

    jpm100 (b48b29)

  8. Patterico,

    I fixed it.

    DRJ (c953ab)

  9. This one is a perfect accompliment

    http://www.youtube.com/watch?v=_MGT_cSi7Rs

    Culled from the 2004 hearings on Fannie Mae and Freddie Mac

    Watch Maxine Waters praise Franklin Raines, watch Lacy Clay declare the hearings an exercise in “the political lynching of Franklin Raines”, watch Barney Frank say there is no safety or soundness problem, watch Frank Raines testify that houses are “riskless”

    Darleen (187edc)

  10. Money for Nothing A link to the video that was supposed to be embedded above. Audio is too loud (distracting from the information), but the first half is a pretty good summary. (The second half is campaign pap.)

    Al (b624ac)

  11. I have it posted on my blog, as well. Word Press is quirky about embedding videos. The moon must have been in the right aspect when I did it.

    I complimented the Times for an honest description of the negotiations this morning. The Washington Post, on the other hand, printed a lying piece right out of the Barney Frank playbook. If they persist in trying to make this a partisan issue, it may well sink the compromise. Pelosi and Reid can pass the Bush bill but then they know it would be the Democrat-Bush Plan.

    The Wall Street Journal had a good piece yesterday suggesting the Treasury buy preferred stock in the failing companies. That would put the taxpayers first for repayment. The column was by another guy named Paulson. Here is a summary. I can’t find the full article. This makes more sense.

    Mike K (155601)

  12. THAT’S IT! I’ve lived the CRA since acquiring my machine shops commercial property in 1979 and going on into income residential property. This law is to housing what JFK’s “Community Mental Health Centers Act of 1963″ was to the mentally ill!

    Darn good intentions followed by extremely tragic results.

    C. Norris (7d0f52)

  13. Mike K,

    I read that Buffett’s purchase of an interest in Goldman Sachs was a preferred stock purchase with a 10% dividend.

    DRJ (c953ab)

  14. Thanks for the link, Darlene. That video does, indeed, compliment the other. I hate. I really, really, hate to say it, but there are some racial overtones in this whole Fannie Mae and Freddie Mac messy business. One of my lending partners is black and he’s disgusted. And he’s simply indisgustable!

    C. Norris (7d0f52)

  15. Patterico, if you please, remove any of my posts that have a bad hyperlink. I’m not proud. No offense taken if you clean up your site.

    Regards, “Buck”

    C. Norris (7d0f52)

  16. BTW, impossible to pick a favorite, but Harper will always be at the top of my list.

    Dmac (e639cc)

  17. Whoops, wrong thread.

    Dmac (e639cc)

  18. Here is an explanation of one of Dodd’s “Easter eggs” hidden in the bailout bill. These people are shameless and crooked.

    Mike K (155601)

  19. True, Mike K. It didn’t take some politicians long to get over being stunned at the financial crisis and see it as an opportunity for more pork.

    I was never a big John McCain fan but his stand against pork is something I greatly admire.

    DRJ (c953ab)

  20. Ironic that according to the video the Democrats caused this mess and yet according to the MSM as of yesterday those same Democrats are now the saviors of it.

    Only the simple are deceived.

    ML (14488c)

  21. ML, and jharp. Of course, jharp still won’t watch it.

    SPQR (26be8b)

  22. SPQR

    I posted a link to the video here yesterday, I have seen it many times and agree with it.

    ML (14488c)

  23. Gingrich has some good suggestions but they will be passed by in the rush to bail out the crooks. I really wonder if it would be wiser for the House Republicans to hang tough and let Pelosi pass the bill or not. Paulson seems to be more concerned with his Goldman Sachs stock price than the country. There will be recriminations and I think the Republicans in the House and McCain are better off without their prints on this pig of a bill.

    One major problem is that a Republican vote to support this makes it impossible for MCain to run against Congress. They are a fat target. It would be a shame to let them off.

    Mike K (155601)

  24. Most of the subprime loans didn’t originate w/ banks that are governed by the CRA. I guess this is the GOP formula for faux-controversy: make a really stupid argument, get whiny when it’s not covered by the MSM, and then blame it all on liberal bias.

    I hope this one pans out for you, guys.

    jpe (6daccd)

  25. jpe, the question is not just who originated them, but also who guaranteed and securitized them.

    This is the core of the problem, whereas the horse manure Democrats are flinging about regarding repeal of Glass-Steagal has nothing to do with the core of the problem.

    SPQR (26be8b)

  26. Patterico — got pulled away by a minor crisis just as I put it up. Didn’t know there was a problem until now.

    WLS (c1b09d)

  27. “Most of the subprime loans didn’t originate w/ banks that are governed by the CRA.”

    jpe – Could you give us some back up for this statement. Early on CRA performance was held as a deal breaker for bank merger activity so for a while banks were probably leaders. Loan brokers and others may have overtaken them in more tecent years, but I haven’t seen much good data.

    daleyrocks (d9ec17)

  28. daleyrocks, jpe is deliberately obfuscating with the fact that loan origination moved over the last decade or so from banks to mortgage companies that immediately sell the loan to institutions like banks and Fannie Mae who repackage them.

    The underwriting criteria are then set by the institutions that are going to buy the loan from the originator.

    SPQR (26be8b)

  29. jpe seems to be ignorant about the facts of the crisis. Nancy Pelosi doesn’t seem any better and she may blow up the deal as she seems incapable of putting the country first. This is becoming a game of chicken but the mews media is part of the Democrat Party so the truth may not get out.

    Mike K (155601)

  30. C. Norris wrote: Thanks for the link, Darlene. That video does, indeed, compliment the other. I hate. I really, really, hate to say it, but there are some racial overtones in this whole Fannie Mae and Freddie Mac messy business. One of my lending partners is black and he’s disgusted. And he’s simply indisgustable!

    I also am black. It kills me when ostensibly successful black people turn out to be crooks, and the response from the race hustlers is, “Well, most crooks are white, so if you’re picking on a black crook, YOU’RE A RACIST!”

    I fear that the McCain camp is holding back on the pertinent facts because of race. It should be a priority to explain why government cannot accomplish noble goals backwards, i.e., trying to achieve “fairness” through regulations that have side effects that are detrimental to the economy. Obama is promising more of that recipe by jacking up capital gains taxes for the purpose of “fairness” regardless of the fact more tax revenue results from lower tax rates.

    L.N. Smithee (b18208)

  31. Jeff at http://www.proteinwisdom.com has a new embedded video of 2004 House hearings where criticism of Raines is called “a lynching” and where Raines says risk on single home loans is non existent

    SteveG (71dc6f)

  32. jpe wrote: Most of the subprime loans didn’t originate w/ banks that are governed by the CRA. I guess this is the GOP formula for faux-controversy: make a really stupid argument, get whiny when it’s not covered by the MSM, and then blame it all on liberal bias.

    You mean like the way the MSM didn’t cover the really stupid argument that deregulation and oversight are the same thing? That because McCain was generally free market, that means he didn’t think Fannie and Freddie should have been reigned in at the critical moment when some experts foresaw this crisis when Waters, Watt, Meeks, and Frank were implying those seeking oversight were trying to keep minorities down?

    Oh, the MSM did cover that stupid argument. I’m sorry, I forgot that meme favors Obama.

    L.N. Smithee (b18208)

  33. SteveG wrote: Jeff at http://www.proteinwisdom.com has a new embedded video of 2004 House hearings where criticism of Raines is called “a lynching” and where Raines says risk on single home loans is non existent.

    That video is linked by Darleen in #9.

    L.N. Smithee (b18208)

  34. There’s an interesting story on a private sector entity with a key role in the crisis now up on nytimes.com.

    Tim McGarry (9fe080)

  35. It is sounding from the reporting I’m seeing this weekend that the Democrats are blowing up the negotiations for a bailout package.

    This is the wonderful Democratic Congress that Harry Reid and Nancy Pelosi said was going to be so different. Reid and Pelosi couldn’t lead a one man band.

    SPQR (26be8b)

  36. LN Smithee

    Thanks.

    I got a little too disgusted.. stopped paying attention

    SteveG (71dc6f)

  37. SPQR

    Pelosi and Reid could pass this bill all by themselves and without the House Republicans.

    They don’t want to do that.

    But the House Republicans are refusing to be rolled..they do NOT want this bailout to include a slush fund for ACORN, La Raza and every other pet bolsheviks the Dems have infecting the country.

    Pelosi’s cry that the Republicans are not being patriotic is projection, clear and simple.

    Darleen (187edc)

  38. Darleen, she can’t pass the bill by herself because she is an incompetent House Speaker. Ditto Reid.

    SPQR (26be8b)

  39. Even if this bailout happens the “friends of friends” are going to rape, loot and plunder the assets. The government cannot do this without everyone trying to get their shot at the teat It is already stating with the ACORN pandering.

    When the Savings and Loan crisis hit and the RTC took over they screwed the people who were actually performing on their loans. My brother’s company had a loan that was current and they were making the payments. But the RTC said they were upside down (loan to neighborhood valuation) and said they had to pay down the loan. They couldn’t afford more than their actual obligated payments so the RTC called the loan and shut them down and took the property.

    Is there really a problem? Or is it mostly psychological? Why is this week any different than last week.

    I think the government taking some actual collateral from the institutions for some cash for liquidity might be smarter. The preferred stock option is one idea.

    Or just have the government buy some of the good loans to provide the cash and let the chips fall where they may with the institutions who hold the bad paper.

    There should also be a process to recover the exorbitant amounts of money paid to the executives who ran everything into the ground. Pension funds and local governments lost millions. They should file suit for failure to perform or something. If it isn’t currently allowed under the law they should pass a law and make it retroactive. All the FANNIE MAE, FREDDIE MAC, Lehman, etc, executives should forfeit 99% of everything they received. Leave them a little. Hell, throw in free health care and a FEMA trailer for them to live in.

    jeff (0b4552)

  40. The Curious Capitalist

    “Is McCain right about Fannie and Freddie?”

    Simple answer: No

    Fannie and Freddie were a problem, but not THE problem.

    Readnek (105b91)

  41. Yupp, great propaganda! Except for a lot of things.

    example, the present 700 billion buy out would buy all them poor people about 3 and a half million homes and then some…meaning the Wall Street Problem has little to do with Fannie Mae etc.

    another! Republicans demanded that that Fannie Mae be run as a private corporation, rather than a govt. agency. When it was govt. it ran well…but when it was made into a Wall street type of business it did the same as Wall Street…overleverageing.

    fact, the Fannie Mae thing’s was bailed out already…the present problem is entirely due to the private sector unregulated by Republican oversight.

    blaming it on poor people urged to buy by unscrupulous lenders (not the ‘secondary market’ as in Fannie Mae) was the cause…and you can bet most of those unscrupulous real estate agents, brokers, etc are overwhelmingly Republican.

    datadave (485d50)

  42. propaganda, nothing more.

    Fannie and Freddie has little to do with the overleveraged unregulated fiasco that’s coming to fruitition thanks to unethical loan sharks in all the financial sectors inc. credit cards, and esp. ‘hedge fund’ leverages of about 30 (sometimes 60) to one.

    daniel dopinski (485d50)

  43. Daniel Dopinski aka datadave:

    Please use a consistent identity. In other words, pick one name and use it, or you could be banned.

    DRJ (c953ab)

  44. datadave/dopinski, you plainly do not understand anything about the crisis. It has been tied directly to Democrat policies insisting that lenders loosen standards for loans. Bill Clinton is even on record admitting to pushing for it during his administration. Loosened standards that Democrats running Fannie Mae/Freddie Mac were responsible for.

    Another video compilation – this one has the CEO of Fannie Mae calling Democrats “their family” at Obama’s swearing-in in front of the Congressional Black Caucus.

    SPQR (26be8b)

  45. DataDave and Dopinski. You are right on. FM is one part of a crisis brought about by an ideological mindset or Post Cold War hyper-capitalist group hysteria more like it, that bordered on being a religion.

    It decreed:

    Government BAD, ALWAYS BAD!!

    Private sector GOOD, ALWAYS GOOD!!

    Regulations BAD, ALWAYS BAD!!

    Oversight ALWAYS BAD!!

    [Regulations and oversight stymie the natural wisdom and perfection of the FREE MARKET and an angel choir appears from behind the clouds led by St. Ronald Reagan smiling beatifically heralding endless prosperity and growth generated from the ether.]

    Less and less regulations, less and less taxes for the wealthy and super wealthy, so as to inspire more investment and savvy and genius of these Gods among us, will RAIN down to the lesser specimens.]

    …except of course it didn’t did it? Many CEO’s made more in a week, than many of their average salaried worker’s made in a year.

    Obscene outlandish numbers. $25 Million? $75 Million. Carly Fiorina made $42 Million for essentially coming close to destroying HP! And she’s a very very close adviser to McCain. These people made this money for hurting others.

    So to sum up: Who is the party that has drilled this message into the American Psyche and giving the Investment banks and Wall Street enough rope and deregulation to not only hang themselves, but the rest of the country, in a fit of greed and corruption and truly piggish behavior that’s close to killing the golden goose in an orgy of bad lending, bad borrowing on a fantastic scale, bad business ethics, bad faith practices, bad accounting, bad credit ratings, bad economic advice, bad gutted Bush crony governmental agencies (call this disaster an economic KAtrina is entirely correct), bad bad (non-existent) governmental oversight in the form of the GOP 109th Congress (also known as the Bush RUBBER STAMP Congress) and a White House with the power and votes to do anything it wanted to (and did) for six long years of incompetence and malfeasance and turning a blind eye…

    What that video amounts to is porn for Republicans and neoconservatives.

    Pass it on.

    Peter (e70d1c)

  46. Peter, in a brave but vain attempt at deflection, wrote:

    DataDave and Dopinski. You are right on. FM is one part of a crisis brought about by an ideological mindset or Post Cold War hyper-capitalist group hysteria more like it, that bordered on being a religion.

    Holy grasping at straws, Batman! So now that the same Dems that pulled the race card to block regulation are scrambling to mop up the mess Bush Admin officials and Republicans warned them about, you’re using the “The Devil Made Me Do It” defense on behalf of Fraudulent Franklin, et al?

    L-a-m-e.

    What that video amounts to is porn for Republicans and neoconservatives.

    Whatever, dude. What’s your point? Are you saying it’s factually inaccurate? I don’t think it is, and if you can prove otherwise, knock yourself out. But until then, the fact remains: just like in real porn, in that video you can see people actually getting screwed.

    L.N. Smithee (0931d2)

  47. Warner Music has killed the video on copyright grounds. I’m sure it was just that and had nothing to do with the video’s Republican slant.

    Kevin Murphy (805c5b)


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