tag:blogger.com,1999:blog-20692053.post4477123004654975751..comments2023-11-03T06:35:48.003-05:00Comments on Shark and Shepherd: Where do zombies come from?Rick Esenberghttp://www.blogger.com/profile/07280070509167910367noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-20692053.post-3443948829143201662014-06-01T21:28:01.492-05:002014-06-01T21:28:01.492-05:00The 2008 implosion in the housing market is the re...The 2008 implosion in the housing market is the result of liberal and conservative policies. Right on cue, the professor is up to his usual partisan tricks, with his two toadies in tow.<br /><br /><br />“These were policies that left-wing community organizers organizations and liberal politicians supported.”<br /><br />Had the professor done his research, he would have discovered that the legislation in question, the 1998 Gramm–Leach–Bliley Act, was sponsored by three Republicans and bi-partisan legislative and executive (Clinton, Bush Jr.) support. Perhaps more importantly, banks, brokerages, and insurance companies salivated at the financial prospects of being able to conduct “savings” and “investments” practices under one roof. Was this not the free market principles put into motion at its finest? Fannie Mae and Freddie Mac, seizing this new opportunity, put into place the structures to make it easier for mortgage brokers to eagerly create special loans for “at-risk” customers. It takes two to tango.<br /><br /><br />“Part of the problem is the government encouraged this type of lending. It threatened lenders with enforcement actions if they were "too strict" and imposed obligations to affirmatively further affordable housing.””<br /> <br />Absolutely! But who ultimately willingly offered those loans--ones that they long coveted to offer--despite the obvious red flags? Financial institutions.<br /><br />“Rise in individual home ownership = increased tax base for communities” was a rallying cry for liberals AND conservatives.<br /><br /><br />“Even when there was no legal requirement to provide affordable housing a lot of lenders found it expedient to accommodate organized pressure to make such loans - just as it is ofter easier today to pay tribute to activists for "sustainability" and "diversity."”<br /><br />“Organized pressure”? As I correctly noted, the legislation was DESIRED by lenders.<br /><br /><br />“And, while the housing collapse was limited to this segment of the market, it is in this segment of the market that a collapse in values is most likely to lead to houses that not literally no one wants.”<br /> <br />Professor, seriously? Are you that dense? The median value of Americans’ stake in their homes fell by 42 percent between 2007 and 2010, to $55,000. The poorest families endured the largest loss of wealth from the decline in real estate prices. <br /><br />But the housing crashed hardest for middle-class families in the surrounding environs of Phoenix, Las Vegas, and the metro areas of Florida, with nearly all of their assets liquidated.John Mitchellnoreply@blogger.comtag:blogger.com,1999:blog-20692053.post-13629582747748897602014-06-01T19:25:37.778-05:002014-06-01T19:25:37.778-05:00Do you recall when the City of Milwaukee played a ...Do you recall when the City of Milwaukee played a game of chicken against Jos. Schlitz Brewing Co.?<br /><br />Yah. It's like that.Dad29https://www.blogger.com/profile/08554276286736923821noreply@blogger.comtag:blogger.com,1999:blog-20692053.post-44948478430921147312014-06-01T07:23:46.007-05:002014-06-01T07:23:46.007-05:00I'd be interested in seeing if states with adm...I'd be interested in seeing if states with administrative foreclosure procedures have less of this problem.Tomhttps://www.blogger.com/profile/10287196327536226744noreply@blogger.comtag:blogger.com,1999:blog-20692053.post-77884020907282132522014-05-31T19:13:38.765-05:002014-05-31T19:13:38.765-05:00This comment has been removed by a blog administrator.Anonymousnoreply@blogger.com