Powered by Bravenet Bravenet Blog

Subscribe to Journal

Thursday, August 19th 2010

8:00 AM

A Lesson for the Tea Party About Blame for the Mortgage Crisis


Bookmark and Share

This article is not just for the Tea Party, but for the Tea Party logic that many have. The Tea Party states that the borrowers are at fault for our mortgage crisis, buying too much house, with too easy terms. The view of the Tea Party is that these people should have known better. I think we need to explore this idea further here.

First of all, there is some blame for some of the toxic loan customers. However, that blame needs to be shelled out carefully. We know that those who didn't speak a lot of English were thoroughly bamboozled. We know that many who did speak English were told that real estate always goes up and that you could refinance. David Lereah, who used to be the head of NAR was on CNBC almost daily pumping up the balloon of real estate appreciation. There was a Wall Street plan here.

So, what about the guy who saw the stack of papers at closing and saw the inflated numbers of his net worth or earnings? Didn't he bear a lot of responsibility? Maybe, and certainly red flags should have come up as the mortgage brokers were in a lie and that was going to be approved by the customer. However, there are mitigating reasons for lowering his blame. First, most people are not familiar with closings. You had real estate and broker people telling these customers that this inflation of numbers was ok because the lenders didn't care anymore.

And of course this was true. The big banks didn't care, and these brokers knew that the banks would take the mortgages. Well, how were the banks able to take ponzi, toxic mortgages that were full of a pack of lies? It is because they had swaps, a form of insurance, on all the loans. With the repeal of Glass-Steagall by Phil Gramm and a 90 to 8 vote of congress in 1999, came the ability of banks to merge with insurance entities.

The breakdown of this barrier allowed banks to insure each other! So, the banks really didn't care whether the loans were good or bad. They packaged them up, got the rating agencies to do what they were told and rated the mortgage bonds AAA, and the banks sold them to unsuspecting investors throughout the world, including to your counties and schools and cities.

So when we go back to determining the blame regarding the ponzi housing scheme, we can assign a small amount of blame to a few folks, but the lion's share of the blame, at least over 80 percent, goes to the planners and facilitators of the scam, the big banks themselves. Since the game was a giant ponzi, which worked until the crash, people have little blame if any and have the right to walk away from an obvious banking scam.

I understand that the no money down people with the oversized houses were arrogant, above you lowly renters who did the right thing, and who suffered the new owners' obnoxious behavior. But when educated people were fearing that if they didn't get on the escalator of rising prices, they would be shut out of the housing market forever, you know that these people had no clue a crash was coming. They had been thoroughly deceived by the banks and even the private Fed with the blessing of government; as Alan Greenspan in February, 2004 advocated that people deal with the lack of affordability by getting adjustable loans.

The government, through the private Fed bank, was in on it. Bush was in on it. None of them said this would cause a crash. But you can bet the bankers knew it would cause a crash. They understood both the psychology and the economics of this bubble. Money changers have always understood both of these attributes of bubbles. This is why there should be no shame in walking away from the ponzi. You may feel you should have known better and made a mistake, but the big bankers were engaged in criminal activity on a scale much larger than Madoff, yet without prosecution.

So, it is important to reign in the Tea Party reckless accusations. Put the blame where it belongs, onto the people who crafted the ponzi. If you are ever to understand the role of the banks properly, you will have to rebuke the Tea Party view or the Tea Party people will have to change their views.


Archive Link

30 total comments.

Posted by Audrey:

Hi, I ѡanted tօ drop yօu a line tօ ᴡelcome you and bravejournal.com tto join tһe industry's most financialply rewarding CBD Bombas de baño y jabón partne program.
Αѕ yoᥙ wilⅼ ϲertainly be aware, juѕt like
vaping Ьack in 2012, CBD industry һaѕ exploded. Ӏ
woսld like to invite yⲟu to beⅽome ouur affiliate andd
Ьegin profiting fгom yοur site.

Just CBD Affiliate Program

Ꭻust CBD ™ was founded on the grouns thаt CBD іs nature'ѕ secret wonder.

Browsing we foun tһat tһе CBD business ԝas systematically
misreprewented ɑnd beіng actuaⅼly benefited from. At Jusst CBD ™ օur team Ƅelieve thɑt
y᧐u havе tһe rigһt to know prercisely whаt iѕ within yoսr CBD goоds.
Іt is our objective ɑnd pledge to nevеr misstate
thе content օf our products. Wіth thе support of toр quality labs to examine oour ɡoods, ᴡe aгe confident thаt Just CBD
™ iss made witһ sector leading quality, honesty, ɑnd love.


We're committed tߋ our affiliates, so wwe make the effort to deliver еverything thеy require to bе lucrative.


Latеly, Juѕt CBD wɑs nothіng more than an idea.
Ԝe converted thɑt thouɡht іnto a industry-leading item іt
is riɡht now thfough oսr passion t᧐ spread thе wor
regаrding Just CBD items tһrough the web. We ɑre extremely enthusiastic аbout growing oour company and we LOVE nothing mire than aiding affiliates ⅾo the exact ѕame.



Join гight now at https://signup.cj.com/member/signup/publisher/?cid=5121792#/branded
Wednesday, November 25th 2020 @ 7:23 PM

Posted by essay writing:

Apprerciation to my father who told me about this
web site, this weblog is in fact amazing.
https://argumentativeresearch.com
essay writing
essay writing
https://argumentativeresearch.com https://argumentativeresearch.com
Tuesday, November 24th 2020 @ 10:15 AM

Posted by custom essay writing service:

It's very simple to find out any topic on net as compared to textbooks, as I found this article at thjs website.

https://writeargumentativeessay.com
custom essay writing service
custom essay writing service https://writeargumentativeessay.com
Tuesday, November 24th 2020 @ 6:02 AM

Posted by web page:

Peculiar article, just what I needed.
https://jerisi53f.medium.com/self-introduce-essay-34cd3adfa7ba
essay bot
web page https://jerisi53f.medium.com/self-introduce-essay-34cd3adfa7ba
Tuesday, November 24th 2020 @ 12:41 AM

Posted by web page:

Thanks a lot for sharing this with all folks you really recognize what you're speaking approximately!
Bookmarked. Please additionally seek advice from
my website =). We can have a link alternate arrangement between us
https://epvaitio.medium.com/hyphenated-american-essay-def8f146a2d6
write my custom paper
web page http://www.myroomessay.sitew.org/Page-2.b.htm
Monday, November 23rd 2020 @ 5:03 PM

Posted by writing an argumentative essay:

Hello, i think that i noticed you vijsited my blog
thus i came tto go back the favor?.I am trying to to find things to improove my site!I suppose its
ok to use some of your concepts!!
https://highqualitywritingservice.com/
wrjting an argummentative essay
writing an argumentative essay
https://highqualitywritingservice.com/ https://highqualitywritingservice.com/
Monday, November 23rd 2020 @ 4:38 PM

Posted by buy custom essay:

Hi! I'm at work browsing your blo from my nnew iphone 3gs!

Just wsnted to say I love reading through your blog and look forward to
all your posts! Carry on the fantastic work!
https://writeessayformoney.com
buy custom essay
buy custom essay
https://writeessayformoney.com https://writeessayformoney.com
Monday, November 23rd 2020 @ 7:18 AM

Posted by crise de ansiedade cid:

Você tem algum vídeo a respeito desse assunto? Eu gostaria de mais detalhes
. https://tinyurl.com/y3ddmtnh
Sunday, November 22nd 2020 @ 8:22 PM

Posted by oracao para ansiedade:

A ideia é muito interessante, achei Teu web site sem querer ao pesquisar disto o assunto na internet.
Afinal que agradável que achei, meus parabéns!

:-) https://tinyurl.com/y3ydj2jv
Sunday, November 22nd 2020 @ 7:32 PM

Posted by affordable paper writer:

I blog quite often and I seriously thank you for your information. This great article
has really peaked my interest. I will take a note of your website and keep checking
for new details about once per week. I opted inn for you Feed
as well.
https://salim8ubn96r.medium.com/why-would-a-writer-include-a-conclusion-in-an-essay-4d095c8a797d
affordable paper writer
affordable paper writer https://acreufe.medium.com/the-great-gatsby-analysis-essay-915e9d87eb5e
Saturday, November 21st 2020 @ 4:24 AM

Posted by essay writing service canada:

Hi there, just wanted to say, I enjoyed this post.
It was funny. Keep on posting!
http://es.knowledger.de/0748819/SuttonBonington
essay writing service canada
essay writing service canada
https://familypedia.wikia.org/wiki/Sutton_Bonington https://updowntoday.com/ru/sites/suttonbonington.org
Friday, November 20th 2020 @ 7:06 AM

Posted by buy an essay online cheap:

I do consider all of the concepts you've presented forr your post.
They're very convincig annd will certainly work.
Still, the posts are ttoo short forr newbies.
May you please lengthen them a little from subsequent time?

Thank you for the post.
https://works.bepress.com/topicstowriteapersonalresearchpaper/
buy an essay online cheap
buy an essay online cheap http://5fb0e0af0d0de.site123.me/blog/tips-for-writing-your-college-essay
Wednesday, November 18th 2020 @ 4:58 AM

Posted by write paper:

I think this is one of the most important informatiln for me.
And i am lad reading your article. But want to remnark oon some general
things, The websijte style is great, the articles is really nice : D.

Good job, cheers
https://blogs.music.indiana.edu/harveyphillips/resources/
write paper
write paper
https://www.landoverbaptist.net/ http://naijaehfhealth.blogspot.com/2017/05/
Wednesday, November 18th 2020 @ 1:56 AM

Posted by Johnie:

Greetings, There's no doubt that your blog may bbe having
browser comatibility issues.Whenever I take a look aat your
website inn Safari, it looks fine however, if
opening in I.E., it's got some overlaspping issues.
I just wanted to provide you with a quick heads up! Other than that,
excellent site!
https://www.twcenter.net/forums/showthread.php?648665-Some-unrelated-recent-military-procurment-storiess-since-I-am-getting-bored-of-Ukraine&p=15427360&viewfull=1
college admission essay writing service
college admision essay writing service (Johnie)
https://en.wikipediam.org/wiki/PTRS-41 https://www.wikizero.com/en/PTRS-41
Tuesday, November 17th 2020 @ 7:59 PM

Posted by top kratom vendors:

If you wish for to take mmuch from this piece of writing
then you have to apply such techniques to yoour won blog.


https://cbdwwwkratom.com/
top kratom vendors
top kratom vendors
https://cbdwwwkratom.com/ https://cbdwwwkratom.com/
Saturday, November 14th 2020 @ 3:21 AM

Posted by mazza:

bus navetta transfer Palermo Trapani
Tuesday, November 10th 2020 @ 7:16 AM

Posted by OMG카지노:

play casino games online:

https://www.bbdd66.com
https://www.bbdd66.com/theking
https://www.bbdd66.com/sands
https://www.bbdd66.com/first
https://www.bbdd66.com/yes
https://www.bbdd66.com/super
https://www.bbdd66.com/gatsby
https://www.bbdd66.com/33
https://www.bbdd66.com/world
https://www.bbdd66.com/merit

https://www.omgab.com
https://www.omgab.com/theking
https://www.omgab.com/sands
https://www.omgab.com/first
https://www.omgab.com/yes
https://www.omgab.com/super
https://www.omgab.com/gatsby
https://www.omgab.com/33
https://www.omgab.com/world
https://www.omgab.com/merit

https://www.omgqq.com
https://www.omgqq.com/thekingcasino
https://www.omgqq.com/sandscasino
https://www.omgqq.com/firstcasino
https://www.omgqq.com/yescasino
https://www.omgqq.com/supercasino
https://www.omgqq.com/gatsbycasino
https://www.omgqq.com/33casino
https://www.omgqq.com/worldcasino
https://www.omgqq.com/merit
Tuesday, November 10th 2020 @ 1:45 AM

Posted by خدمات پذیرش، ویزا، بورسیه و مهاجرت تحصیلی:

رگزاری جلسات توجیهی قبل از عزیمت دانشجو (Pre-Departure Briefing) قبل از شروع دوره به منظور آشنایی هر چه بیشتر با شرایط زندگی و تحصیل در کشورهای مذکور و همراهی دانشجو در تمام طول مدت تحصیل به منظور تغییر رشته یا دانشگاه محل تحصیل
Monday, October 26th 2020 @ 12:59 AM

Posted by مهاجرت به ترکیه از طریق تحصیل:

دانشگاه‌های ترکیه از اعتبار علمی بالایی در جهان برخوردارند و در صورتی که مدرک دانشگاهی از ترکیه داشته باشید، آینده بسیار روشنی در انتظار شما خواهد بود. یکی از شرایط تحصیل در ترکیه در سال 2021-2020، داشتن مدرک دیپلم متوسطه است. توجه داشته باشید، اکثر قریب به اتفاق دانشگاه‌های ترکیه، آزمون ورودی دارند و در صورت کسب نمره قبولی در آزمون ورودی، امکان ثبت نام در دانشگاه و تحصیل در ترکیه وجود دارد. هر دانشگاهی، آزمون ورودی جداگانه‌ای دارد و برای شرکت در این آزمون‌ها، محدودیت سنی وجود ندارد. به طور کلی، 2 بار در سال می‌توان برای تحصیل در ترکیه و اخذ پذیرش از دانشگاه‌های این کشور، اقدام کرد. دانشجویان باید در تاریخ مقرر، در رشته مورد نظر، ثبت نام کرده و در آزمون ورودی شرکت کنند. آزمون‌های ورودی به دو زبان انگلیسی و ترکی برگزار می‌شوند. آزمون زبان ترکی در ترکیه آزمون تومر و آزمون ورودی دانشگاه‌های ترکیه به زبان ترکی با عنوان YOS ترکیه و به زبان انگلیسی آزمونی با عنوان SAT ترکیه شناخته می‌شود. تحصیل در ترکیه به صورت رایگان از طریق دریافت بورسیه‌های تحصیلی به راحتی امکان‌پذیر است. این بورسیه‌ها به دانشجویان شایسته و ممتاز در مقاطع فوق لیسانس و دکتری اعطا می‌شود.
Monday, October 26th 2020 @ 12:56 AM

Posted by ali:

در اینجا پنج نکته سریع برای کمک به شما در ساخت یک کاتالوگ موثر آورده شده است:
دسترسی خریداران به شما را آسان کند. اطلاعات تماس خود را در هر صفحه از فهرست خود وارد کنید. ...
در توضیحات محصول خود دقیق باشید. ...
عکس های عالی محصول ضروری است. ...
عمر کاتالوگ خود را بیشتر کنید. ...
عملکرد بیش از مد.
نسخه کاتالوگ باید واضح ، مختصر ، خوانا به راحتی و بسته به دسته ، آموزشی یا حتی سرگرم کننده باشد. کاربر کاتالوگ باید بتواند تمام اطلاعات مورد نیاز برای تصمیم گیری در مورد خرید را پیدا کند ، . اطلاعات سفارش و قیمت گذاری باید در جداول خوانا ارائه شود
برای اطلاعات بیشتر به صفحه طراحی کاتالوگ مراجعه کنید.
Saturday, October 24th 2020 @ 7:29 AM

Posted by Stamping manufacturers in China:

The spot beside churlish-baptize is the pile Thesiss beside Backside intos Our kin Controls by hostiles of Herbert Spencer, a primary nineteenth cosmos scientist whoever demanding cultural likewise political theories influenced the picky chums of Alexander Berkman, Voltairine de Cleyre, Holly George, Emma Goldman, too Benjamin Profit. Stamping manufacturers in China
Friday, October 23rd 2020 @ 11:45 PM

Posted by نکات مهم در عکاسی صنعتی:

هر زمان که به یک نکته مفید عکاسی صنعتی فکر می کنم ، همیشه آن را برای بعد یادداشت می کنم. اکثر آنها قابل فراموشی هستند ، اما تعداد کمی از آنها آنقدر مهم هستند که سعی می کنم به آنها تا حد امکان به عکاس بگویم. درک این نکات عکاسی صنعتی به اندازه لقمه آسان است ، از روش دوربین مبتدی گرفته تا خلاقیت و ترکیب بندی را پوشش می دهد. اگر عکاسی را یاد می گیرید ، این لیست کارهایی را ارائه می دهد که می توانید در این راه برای شما مفید باشد.
با ترکیب خود کار کنید
برای گرفتن عکسهای جذاب ، باید با کاری که انجام می دهید مشغول باشید. فقط با حالت خودکار کار نکنید. در عوض ، در ترکیب خود فکر کنید و سعی کنید عکس های صنعتی خود را تا حد ممکن خوب کنید.

این کار با دانستن اصول چگونگی ساخت عکس های خوب شروع می شود. قسمتهای مهم سوژه خود را با لبه قاب خود قطع نکنید. افق های خود را در سطح قرار دهید و سعی کنید با تنظیم ترکیب ، حواس او را پرت کرده و از بین ببرید. ببینید آیا عکس شما حس تعادل و سادگی دارد. و اگر عکس در اولین تلاش شما خوب به نظر نمی رسد ، آزمایش را ادامه دهید تا آن را درست کنید.
برای اطلاعات بیشتر به صفحه عکاسی صنعتی مراجعه کنید.
Tuesday, October 20th 2020 @ 10:46 PM

Posted by Projeksiyon Lambaları:

Projeksiyon Lambaları
Wednesday, October 14th 2020 @ 3:46 AM

Posted by imran malik:

Tourmart
Srinagar Trip
Friday, October 9th 2020 @ 3:00 AM

Posted by Rodrick:

Heⅼlo, I ᴡanted to drop yⲟu a line to invitee уou and bravejournal.ⅽom too sign սp ѡith tһe industry's moѕt
procitable CBD affiliate program. Аs you ᴡill unquestionably be aware, juѕt lіke vaping ƅack in 2012, CBD
market hass blown ᥙp. I would likke tⲟ welcome yоu tо becοme ouг affiliate аnd start profiting fгom your internet site.



Just Aceite de vape CBD CBD Vape - Pina Colada Ice Affiliate Program

Juѕt CBD ™ waѕ established οn the grounds that CBD іs nature'ѕ secret phenomenon.
Lοoking around ᴡе found hat the CBD business was consistently misrepresented аnd being
definittely benefited fгom. At Јust CBD ™ ouг team ƅelieve tһat youu deserve tߋ кnow precisely ѡhat іs іnside your CBD ցoods.
Ӏt is ouг vision and commitment tօ nevеr
eνеr misrepresent the content of our gⲟods.
Ꮃith the assistance օf toр quality labs
tо check our items, we arе confident thɑt Just CBD ™ iis created with market leading һigh quality, integrity, ɑnd love.



We're devoted tо ouг affiliates, so we make the effort to
offer eѵery lіttle thіng they require tⲟ be prosperous.


ᒪately, Јust CBD ᴡas nothing more than an idea.
Ꮃe tᥙrned thɑt idea іnto ɑ industry-leading product іt is today through our
passion tо gеt thе word out with regards to Just CBD gοods throughh tthe internet.
Ꮤе are exceptionally enthusiastioc аbout growing
our company and we LOVE notһing more tһan assisting affiliates Ԁo the verу
sаme.

Join rigһt now att https://signup.cj.com/member/signup/publisher/?cid=5121792#/branded
Monday, September 28th 2020 @ 11:33 PM

Posted by ecoAvank:

[url=https://eco-corporation.ru][/url][/b]
Monday, September 28th 2020 @ 1:18 AM

Posted by buy bactrim online:

nice blog
Wednesday, September 23rd 2020 @ 2:19 AM

Posted by prescription dive mask australia:

Decree an unique to your pledge that proved vivacious for me. My ally plus i reform almost your blog in the consistent boulevard My accomplice furthermore i work stop up self supplement in ordinance to grin that nevertheless, in the genuine ineluctable consequently satisfied tendency upwards your position. My establishment is currently signatures on during using permit mimics My accomplice besides i attain too been looking at your blog to obtain a intelligent phase. prescription dive mask australia
Tuesday, September 22nd 2020 @ 2:43 AM

Posted by Anabia's Collection:

Anabia’s Collection is the ultimate online dress shopping store in Pakistan. It has an extensive range of lawn suits. The lawn suits are best for you to enjoy your scorching summers. They will surely let you feel comfortable yet trendy and beautiful.
Monday, September 21st 2020 @ 11:28 AM

Posted by kris:

very good article. Lots of useful information
Sunday, September 20th 2020 @ 9:43 AM

Post New Comment

No Smilies More Smilies »