Decline of the Middle Class

[vantexan]

Actually I think it was more than triple. Before the bill was passed the banks had to keep $3 out of every deposit and lend out the other $97.

I honestly can't remember what the new number was.

Banks need deposits on hand in order to borrow from the Federal Reserve. Actually it's based on checking accounts and liquidity. But it's a moot point. The banks made a huge amount of bad loans under pressure from Congressmen who threatened to put the screws to them if they didn't. It all came crashing down eventually. And liberals want to put the blame squarely on Bush for it. No matter what happens they'll always take the credit or shift the blame.

 

[IVE GOTTA PACKAGE 4U]

Banks need deposits on hand in order to borrow from the Federal Reserve. Actually it's based on checking accounts and liquidity. But it's a moot point. The banks made a huge amount of bad loans under pressure from Congressmen who threatened to put the screws to them if they didn't. It all came crashing down eventually. And liberals want to put the blame squarely on Bush for it. No matter what happens they'll always take the credit or shift the blame.

You can't create a fake economy by making questionable loans.

 

[DriveInDriveOut]

The idea that the banks didn't want to do what they did is delusional. So much kool-aid flowing around here. Deregulation caused the collapse. Republicans are great at revisionist history.

 

[vantexan]

You can't create a fake economy by making questionable loans.

Who's arguing that? Bush made tax cuts, the economy boomed, people were leary of putting money into the stock market so real estate took off, Congressmen put pressure on banks to let the little guy participate in the quickly rising equity, banks made millions of bad loans, Wall Street escalated it by creating derivatives based on those mortgages that few understood, tons of money poured in as greed escalated, then all those poor people started saying I can't afford this mortgage and mostly walked away when the market got so overheated there weren't enough buyers, it quickly escalated into possibly the biggest self inflicted financial disaster in the history of the world. And Obama said let's spend our way out of it and the national debt doubled(with Republican acquiescence!). And here we are today only Dems say it wasn't our fault and we should keep spending like nothing ever happened. Good luck with that!

 

[Meat]

The economy absolutely boomed under Bush.

Wasn’t there something, like, zero net job growth during the Bush years?

 

[burrheadd]

So you think being in debt right out of the box for 50k with a degree you probably will never use is good? I bet every car salesman in my town has a 4 year degree in some useless subject. I have no facts but I bet 3/4 of all people who graduate college end up in a job that has nothing to do with what they majored in (99 out of a 100 if you count a liberal arts degree)

Had a boss once that was music major
Playing the trumpet his specialty

He told us that at the PCM the first day he was there

I told him he should have thought that through a little better

 

[vantexan]

The idea that the banks didn't want to do what they did is delusional. So much kool-aid flowing around here. Deregulation caused the collapse. Republicans are great at revisionist history.

Who said they didn't? Investment bankers on Wall Street created the derivatives based on thousands of mortgages bundled together and then traded them thinking they'd cash in on the huge amount of money being invested on real estate. As I said, lots of players, but don't try to pin this on just Republicans. And you can take it up with the New York Times and others if you don't like it.

 

[vantexan]

Wasn’t there something, like, zero net job growth during the Bush years?

After the crash millions lost their jobs.

 

[floridays]

Actually I think it was more than triple. Before the bill was passed the banks had to keep $3 out of every deposit and lend out the other $97.

I honestly can't remember what the new number was.

Gumby, you're one of the last people I'd want to be mean to, but bank reserves have nothing to do with the mortgage division. We have a fractional system on deposits, meaning a financial institution must have the reserve amount on account at the end of a days business. That is when banks sell money each night to keep their books within the amount required by the Fed. That is where the fed funds rate comes from, there is a cost for moving these funds even if overnight. It is the Feds way of staving off a collapse of individual institutions if a run of withdrawls happens. Bank reserves and mortgage loans are different items. Again, I stand to be corrected by an accountant. Finance wasn't my major but between looking up skirts I tried to pay attention.

 

[IVE GOTTA PACKAGE 4U]

Who's arguing that? Bush made tax cuts, the economy boomed, people were leary of putting money into the stock market so real estate took off, Congressmen put pressure on banks to let the little guy participate in the quickly rising equity, banks made millions of bad loans, Wall Street escalated it by creating derivatives based on those mortgages that few understood, tons of money poured in as greed escalated, then all those poor people started saying I can't afford this mortgage and mostly walked away when the market got so overheated there weren't enough buyers, it quickly escalated into possibly the biggest self inflicted financial disaster in the history of the world. And Obama said let's spend our way out of it and the national debt doubled(with Republican acquiescence!). And here we are today only Dems say it wasn't our fault and we should keep spending like nothing ever happened. Good luck with that!

Blame the investment banks for being greedy and packaging bad loans


Bye bye Lehman brothers . And Citi Bank hasn't really recovered.

 

[vantexan]

Blame the investment banks for being greedy and packaging bad loans


Bye bye Lehman brothers . And Citi Bank hasn't really recovered.

Blame all of them including the man on the street. If you know you can't pay $1500 a month why are you getting a loan? People thought they'd get rich quick is why. Greed on every level screwed all of us.

 

[IVE GOTTA PACKAGE 4U]

Gumby, you're one of the last people I'd want to be mean to, but bank reserves have nothing to do with the mortgage division. We have a fractional system on deposits, meaning a financial institution must have the reserve amount on account at the end of a days business. That is when banks sell money each night to keep their books within the amount required by the Fed. That is where the fed funds rate comes from, there is a cost for moving these funds even if overnight. It is the Feds way of staving off a collapse of individual institutions if a run of withdrawls happens. Bank reserves and mortgage loans are different items. Again, I stand to be corrected by an accountant. Finance wasn't my major but between looking up skirts I tried to pay attention.

Wrong. The banks has to have a certain amount of reserves. Go look up Dood Frank
It went from lending out too much to not be able to lend out enough

 

[IVE GOTTA PACKAGE 4U]

Blame all of them including the man on the street. If you know you can't pay $1500 a month why are you getting a loan? People thought they'd get rich quick is why. Greed on every level screwed all of us.

Most definitely. The income loans along with banks lending a 125% of the value was to blame. Kinda like the great depression when you could borrow 90% on margin of your stock value

 

[vantexan]

Wrong. The banks has to have a certain amount of reserves. Go look up Dood Frank
It went from lending out too much to not be able to lend out enough

No, he's absolutely right although you're right too. In the end the taxpayer had to put up a huge sum to save the banking system.

 

[DriveInDriveOut]

Had a boss once that was music major
Playing the trumpet his specialty

He told us that at the PCM the first day he was there

I told him he should have thought that through a little better

I've got a family member that was a music major, makes good money as a recording engineer. Plenty of money to be made on the side too. Problem is it's a competitive industry.

 

[DriveInDriveOut]

The idea that the banks didn't want to do what they did is delusional.

Who said they didn't?

You did:

Democrats pushing banks to make loans to unqualified people.

Actually Frank and Dodd put pressure on banks to lend to the poor so that they could participate in the boom too. Millions of bad loans were made

The banks made a huge amount of bad loans under pressure from Congressmen who threatened to put the screws to them if they didn't.

Congressmen put pressure on banks to let the little guy participate in the quickly rising equity

 

[IVE GOTTA PACKAGE 4U]

No, he's absolutely right although you're right too. In the end the taxpayer had to put up a huge sum to save the banking system.

Don't forget about GM and AIG...

 

[floridays]

Wrong. The banks has to have a certain amount of reserves. Go look up Dood Frank
It went from lending out too much to not be able to lend out enough

I understand they have to have reserves, I will look it up. I don't think we are seeing eye to eye on what a reserve is. And I think your last sentence is actually the reverse of what Dodd- Frank did.

 

[floridays]

Blame the investment banks for being greedy and packaging bad loans


Bye bye Lehman brothers . And Citi Bank hasn't really recovered.

They were forced to make the loans Gumby. They had to package the ty mortgages and sell them as investments.

 

[IVE GOTTA PACKAGE 4U]

I understand they have to have reserves, I will look it up. I don't think we are seeing eye to eye on what a reserve is. And I think your last sentence is actually the reverse of what Dodd- Frank did.

I could be wrong it was a fecade or do ago

Please enlighten me.