Video: Financial crisis in 10 minutes or less

posted at 9:10 am on September 26, 2008 by Ed Morrissey

“Burning Down the House” has been floating around the Internet for a couple of days, a fast-moving slideshow that just comes under the 10-minute diktat of YouTube. It provides an interesting and even a detailed look at how the Community Reinvestment Act (CRA) got used in the late 1990s to push banks into sub-prime mortgages, and how that distorted the market and created the housing bubble:

A few clarifications should be made. This video lays all of the blame on Democrats, which is a natural reaction in an election year, but that lets a lot of Republicans off the hook. In 2003, the Bush administration tried to stop the runaway train of Fannie Mae and Freddie Mac, and Republicans controlled both chambers of Congress.  Democrats alone didn’t stop this.  No one filibustered the Bush administration’s bill in the Senate; it didn’t have the votes to pass anyway.  Likewise in 2006, when Chuck Hagel, John McCain, John Sununu, and Elizabeth Dole attempted to fix Fannie and Freddie, Republicans controlled Congress and did nothing to pass this bill.  Democrats blocked it, but without some help from Republicans, both efforts would have passed easily.

What this video does is show how obvious this problem should have been, especially when noting the price increases in housing as compared to inflation.  Why didn’t this generate more concern?  A lot of us had equity building in our own houses at fast rates, making us look like geniuses, and certainly keeping us too happy to complain about it.   Maybe we were just too happy to look behind the green curtain.

That’s why this isn’t just a Democratic Party problem.  They set the wheels in motion, but all of us should have known better.  Many of us benefited from the bubble, and now the bill has come due.  What we should demand is that the people who got us into this mess — Chris Dodd and Barney Frank in particular — recuse themselves from their committee assignments and stay out of the solution-making process.  And what we must demand is an end to government distortion of lending and investment markets to pick winners and losers.  No more GSEs, no more CRAs — just competent oversight and rational regulation.


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The GOP wants to LOAN the money to Wall St. and the democrats want to GIVE the money to Wall St.

That’s what it’s come down to.

Democrats have the votes to pass their plan but don’t want the blame.

roninacreage on September 26, 2008 at 9:14 AM

I like this one better:
http://docs.google.com/TeamPresent?docid=ddp4zq7n_0cdjsr4fn&skipauth=true&pli=1

Aristotle on September 26, 2008 at 9:15 AM

Chris Dodd and Barney Frank in particular — recuse themselves from their committee assignments and stay out of the solution-making process.

I’m all for that but how? They are elected by their states. Can we start a pressure on Reid and Pelosi? They really shouldn’t be doing any of the negotiating but they are!!!!

petunia on September 26, 2008 at 9:17 AM

roninacreage on September 26, 2008 at 9:14 AM

The democrats don’t want anything, they have no idea what they’re doing. If they did they’d vote decisively one way or another, not wait to see what the Republicans do so that they’re not the only ones taking a hit if the dice roll isn’t good.

Darth Executor on September 26, 2008 at 9:18 AM

How long before Google pulls it?

Nyog_of_the_Bog on September 26, 2008 at 9:18 AM

There’s no winning with the Dems. If you lend responsibly, you hate the poor and are racist. If you lend irresponsibly you’re a predatory lender and those with bad mortgages must be protected.

Paul-Cincy on September 26, 2008 at 9:19 AM

This is why I am eating iron nails when I see these two certified buffoons, Chris Dodd and Barney Frank, get up there and harp and moan who it is the REPUBLICANS who are destroying any chances to solve this mess and now the media is spinning like a top making the Republicans look like the bad guys here!’

BULL HOCKEY!!!

It’s the DEMOCRATS who caused this mess! It’s the DEMOCRATS who are destroying the nation!

pilamaye on September 26, 2008 at 9:20 AM

The revolution will be televised. On Fox.
[The other nets will be shut down or severely revamped.]

either orr on September 26, 2008 at 9:20 AM

Yes, all very true.

But why aren’t we hearing these themes, loud and clear, each and every day, from John McCain and Sarah Palin?

Sheesh, Palin could and should be a natural-born attack dog on this issue.

JudetheFossil on September 26, 2008 at 9:21 AM

Today’s Eeyore Scale of Doom reading: 9.3.

Akzed on September 26, 2008 at 9:22 AM

Let’s not forget that ANOTHER component that contributed to the housing bubble, was the “middle class” being suckered into believing that real estate was a viable alternative to the stock market, which had just stung many for the first time, with the collapse of the tech bubble.

singlemalt_18 on September 26, 2008 at 9:23 AM

Democrats guilty, as usual for all the usual greed, power and class warfare reasons. So when does that video of Gramm and McCain pushing banking and commodities trading de-regulation in 99 kick in? When does the video of Bush, McCain and the cheap labor/Chamber of Commerce cabal pushing low interest loans to illegals ( A huge and hidden story in the media) kick in? Everyone is guilty. There are no heroes in this story.

Fletch54 on September 26, 2008 at 9:26 AM

Thanks for this post, Ed. There is too much finger-pointing and not enough acceptance of responsibility.

Loxodonta on September 26, 2008 at 9:26 AM

Senate Banking Committee Chairman Christopher Dodd, D-Conn., said the White House meeting was thrown off course when participants were blindsided by a new “core agreement” that emerged in the meeting that not many had seen before.

NOT SEEN CHAIRMAN DODD OR NOT ALLOWED TO BE CONSIDERED?

When one Democrat leader was being interviewed on CNBC this morning, the question was asked, “what are your emails looking like on the support for this bailout?”. Answer: 50/50 —– 50% NO—-50% HELL NO

Unchecked Rumor: Democrats had inserted into the plan that 20% of the funds returned from the bailout would be allocated to a housing fund. And Acorn was mentioned as a benificerary in this??????

The “Deal” that never was…..

Rovin on September 26, 2008 at 9:27 AM

Aristotle on September 26, 2008 at 9:15 AM

It’s been a few month’s since I saw that. If only the genius’ on Capitol Hill watched that Power Point presentation, maybe we wouldn’t be so deep in this mess.

Lance Murdock on September 26, 2008 at 9:29 AM

There is no accountability. I am willing to bet that if republicans were the main culprit, the democRATS would hold hearings. Since they are the main group to blame, Dodd and Frank are working around the clock to save their asses.
Like the cockroaches they are they get attracted to a bad bill and add ridiculous things to this bailout including funding for ACORN. I am hoping the republicans will eliminate this bill.

jencab on September 26, 2008 at 9:30 AM

LOL. Video: Obama guilty of “Hope-o-crisy”.

Paul-Cincy on September 26, 2008 at 9:32 AM

The market just opened down 110 in 30 seconds.

forest on September 26, 2008 at 9:32 AM

This one too needs buzzing too!

Nyog_of_the_Bog on September 26, 2008 at 9:32 AM

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

Thought I’d start by posting it here.

TheSitRep on September 26, 2008 at 9:33 AM

The GOP wants to LOAN the money to Wall St. and the democrats want to GIVE the money to Wall St.

That’s what it’s come down to.

Democrats have the votes to pass their plan but don’t want the blame.

roninacreage on September 26, 2008 at 9:14 AM

There is a simple reason for this. The the govt makes loans, the underlying bad loans still technically go into default and all of the outstanding credit default swaps come due. If the govt buys the debt (loans), then the loans are satisfied and those holding the default swaps are off the hook. THAT IS WHY AND THAT IS WHAT IT IS ABOUT. The loans will keep the bank in business but the entity supporting the credit default swap will go under big time.

CC

CapedConservative on September 26, 2008 at 9:33 AM

Dammit, the market is in freefall.

lodge on September 26, 2008 at 9:37 AM

Ed, since your putting some of the blame on the republicans, anychance you can name names? I’d like to help throw these bums out of congress too.

John Doe on September 26, 2008 at 9:37 AM

Please send this to video everyone you know and rate the video on Youtube so that we can increase its visibility. We need to get the truth out and this is one way to do our part.

TheBigOldDog on September 26, 2008 at 9:38 AM

A lot of us had equity building in our own houses at fast rates, making us look like geniuses, and certainly keeping us too happy to complain about it. Maybe we were just too happy to look behind the green curtain.

Bubbles may be apparent to those who observe from a distance, but never to those who participate. It’s like driving over a mountain. You don’t see the mountain until you reach the valley and look in the rear view mirror.

RedWinged Blackbird on September 26, 2008 at 9:40 AM

Dammit, the market is in freefall.

lodge on September 26, 2008 at 9:37 AM

You ain’t seen nothin’ yet. Make sure you’ve all reviewed whatever accounts you have and have done whatever you can to protect money you’ll need – better safe than sorry.

TheBigOldDog on September 26, 2008 at 9:40 AM

The President is on the air in a minute!

canopfor on September 26, 2008 at 9:40 AM

With my vast expertise, and for those who haven’t yet read the entire Paulson plan, I have condensed it for you:

There are some very important things to consider, not only in regards to WaMu but to pretty much every financial institution: localized value-market liquidity.

The fundamentals of sounds financial policy should be based on mutually agreed parameters of volumized focus which take into account not only strategic asset variables, but also contract funding and distributive analysis. The management of said policy parameters need not be researched according to corporate limitations but rather part and parcel of a more distinct regimen of heirarchal institutional advising.

If a particular financial establishment provides performance documents which highlight limited indemnification against liabilities, classic-case investment individuals should be aware that entering into exposure contracts that countervale diminished execution qualities do so at enhanced risk for unsecured gratuitites. Banks with unaffilitated fund arrangements and initial margin counterparties are those with accounting derivatives and aggregated variation loan exemptions.

Me? I’m building a bunker and planning on shooting anyone who enters my yard.

Bishop on September 26, 2008 at 9:41 AM

My main concern in all this hullaballoo is what is Congress going to do when they realize (all of a sudden) that GASP! Social Security and Medicare are unsustainable, too big to fail, and going bankrupt.

If this is an emergency here, I can imagine that it will be cataclysmic then. And of course, the same grandstanding politicians ‘saving us’ now are going to claim to ‘save us’ then. And we’ll pull out sound bites of Republicans saying that it is unsustainable . . . likely even one of McCain right after granting all these benefits to illegals.

We need another Boston Tea Party. The people who got us into this mess (Congress) are not going to ‘save us’. Congress reminds me of the firefighter who started fires on purpose so that they could have something to do and possibly be a hero putting out the fire that they started.

ThackerAgency on September 26, 2008 at 9:44 AM

EXPOSURE! Just in time!

Monas on September 26, 2008 at 9:45 AM

Politicians rely on an ignorant electorate to get them elected. This is a two edged sword. They promise a chicken in every pot and home for every citizen. They get us on the teat of entitlements. It is only our ignorance that believes that this is a free lunch. Then when it’s time to fix the failed policies, they don’t have the will to do it. They know that we are addicted to the teat and can’t ween us from it without losing their jobs. People don’t understand the complexities of the problem and expect congress to use the same failed ideologies to fix the problem. We want them to move us from one teat to another. But congress now knows the teat has dried up and all they can do is start pointing their fingers and running for the hills.

To watch Dodd and Frank have the unmitigated gall to show their faces and act like they are going to save us, is the epitome of elitism and arrogance.

Those who propagated this problem, congress, lenders, corporations, and yes, ESPECIALLY American citizens who got THEMSELVES into mortgages they couldn’t afford, they all need to suffer the consequences of their greed and ignorance.

Then, and only then, will Americans start educating themselves on the issues instead of following the centuries old concept of the free lunch that has been proven unsustainable since the beginning of time.

csdeven on September 26, 2008 at 9:45 AM

I like this one better:
http://docs.google.com/TeamPresent?docid=ddp4zq7n_0cdjsr4fn&skipauth=true&pli=1

Aristotle on September 26, 2008 at 9:15 AM

Yep, pretty funny. The ending sums it all up perfectly.

LastRick on September 26, 2008 at 9:45 AM

What we should demand is that the people who got us into this mess — Chris Dodd and Barney Frank in particular — recuse themselves from their committee assignments and stay out of the solution-making process.

Rather than a recusal, they should be hauled away in handcuffs.

Rovin on September 26, 2008 at 9:52 AM

“There’s no winning with the Dems. If you lend responsibly, you hate the poor and are racist. If you lend irresponsibly you’re a predatory lender and those with bad mortgages must be protected.

Paul-Cincy on September 26, 2008 at 9:19 AM”

Paul summed up our overall problem very well!!

Star20 on September 26, 2008 at 9:56 AM

When Todd and Frank speak, I don’t listen. These people are trying to cover their a**es. Name names of those that have the responsibility for this. We will hear nothing about this from the MSM. They are covering their political buddies’ a**es.
We are going to get a bailout deal. The issue is what kind of deal we are going to get. Loan them the money but taxpayers don’t need to own these sub, sub, sub prime loans. What do we pay for them, what are they worth. If they are bankrupt owning them then what about us?

d1carter on September 26, 2008 at 10:00 AM

I like this one better:
http://docs.google.com/TeamPresent?docid=ddp4zq7n_0cdjsr4fn&skipauth=true&pli=1

Aristotle on September 26, 2008 at 9:15 AM

That captures it perfectly. Who created it? It needs to be put into a video along with the theme to The Sting and put on YouTube.

TheBigOldDog on September 26, 2008 at 10:00 AM

It may not be 100% the fault of the Dems… but when it’s a party line type of vote on the horizon, with a handful of Republicans defecting to vote with the Dems, it’s still essentially the Dems = wrong, Republicans = right, as a general rule on this issue, especially as it pertains to Bush and McCain.

As for this, Ed:

Many of us benefited from the bubble, and now the bill has come due.

I think you meant to say this:
http://www.youtube.com/watch?v=PC9yQROZ1YQ

RightWinged on September 26, 2008 at 10:05 AM

Holy crap! Bob Corker R-TN just said McCain should not have come back! He was for the bill and so were a good number of nutjobs in the Senate! I hope someone replaces this moron in TN. This is just ridiculous that we cannot stay on message that this bill was full of DEMOCRATIC EXCREMENT!!!!!!!!!!!!

Harry Reid is up next. When is someone from OUR side going to get in front?

freeus on September 26, 2008 at 10:09 AM

I like this one better:
http://docs.google.com/TeamPresent?docid=ddp4zq7n_0cdjsr4fn&skipauth=true&pli=1

Aristotle on September 26, 2008 at 9:15 AM

That captures it perfectly. Who created it? It needs to be put into a video along with the theme to The Sting and put on YouTube.-TheBigOldDog

It’s on youtube with audio added.

heroyalwhyness on September 26, 2008 at 10:09 AM

Democrats always add some Republicans to the mix, makes it taste bi-partisan, but it always has that long lasting Democrappy taste, which sticks to the roof of your mouth.

tarpon on September 26, 2008 at 10:09 AM


Holy crap! Bob Corker R-TN just said McCain should not have come back

Saw that too. What a ficking spineless dumbass.

John Doe on September 26, 2008 at 10:15 AM

Corker: NO MCCAIN! ME ME ME ME ME!!!

fossten on September 26, 2008 at 10:23 AM

I wish some of you would wake up and smell the damn coffee..

This is pure propaganda bullshit.

Look the graphics at 1:50 and 2:14.. they tell the sad, sad tale.

The Subprime studity wasn’t in 1999… it EXPLODED in 2003, 2004, 2005.

The guy who did this slideshow moves the graphics so fast, he hopes you won’t notice he is full of crap.

The case this guy makes is that the bubble started after the CRA so therefore the CRA must be to blame. That JUST AS STUPID as saying that it happened while Bush was in office so it must be his fault. (Once a again…) Correlation does not imply causation.

What else might have cause the housing bubble? The bulk of the housing bubble occurred in California in the late 1990′s… Can we think of any other bubbles in California in the late 1990s??? hmmm think, think, think…

OH YEAH… The dotcom bubble.

People thought money grew on trees so they bought bigger and bigger houses for more and more money… THAT is what pushed up house prices, especially in California. That is why they broke lose of inflation…

I remember my sister buying a house just outside SF in 1998… They had to bid on houses because valuations where rising so fast they changed week to week. (Aren’t any of you old enough to remember this? really?)

We (that means you too) got addicted to ever increasing real estate prices and the bubble lasted a few more years until it popped.

If you want to know who is to blame for this mess, you need read no further than Jack Welch, former CEO of GE who hit the nail on the head.

Welch said mortgage lenders, legislators, investment bankers and others are all to blame for the crisis, which stemmed from easy credit and investors’ appetite for yield.

“The problem was money didn’t cost anything,” Welch said. “People took swings.”

He likened the crisis to Agatha Christie’s “Murder on the Orient Express,” in which all the suspects turn out to be guilty; but he singled out the role of investment banks in the crisis.

“We have to look at the damn investment bankers,” he said. “They’re playing with other people’s money. The only penalty was a cut in their bonus, not their head.”

Everyone (including you the consumer) paid a part in this… while subprimes get the blame look up what HELOCs are doing…

You all need to wake and smell the coffee. 2 guys in Washington (no matter which party) didn’t bring this down on the world… Grow up people.

You remember BDS… many of you are suffering from the opposite affliction. And you’re making Hotair sound like DU but on the right. Bleck.

Diogenes of Sinope on September 26, 2008 at 10:28 AM

BTW, like I said above, look at the graphics at 1:50 and 2:14 before you reply… This is pure propaganda.

Diogenes of Sinope on September 26, 2008 at 10:31 AM

In an ideal world there would be no inflation. Homes values would slowly depreciate due to age, condition, neighborhood factors, etc. We bought the lie when our society decided everyone was living in a perpetual money machine.

The buyout is designed to put everyone back on the Good Ship Barney.

T J Green on September 26, 2008 at 10:32 AM

Ed,

Take it from someone who was there. I was a mortgage industry lobbyist from 1995 until 6 weeks ago. I was intimately involved with all of the housing legislation and attempts to regulate Fannie and Freddie.

The Republicans did have nominal control of Congress for most of this time, but as we have seen the last 2 years, it is the minority in the Senate that controls what legislation gets passed. And it was very clear that Paul Sarbanes and the Senate Democrats were going to block any GSE legislation. (Somebody really needs to haul Paul Sarbanes out of whatever hole he is hiding in, because a huge portion of the blame for this mess belongs to him.) Republicans were not interested in wasting time pursuing kamikaze legislation and then getting tagged by Democrats as being “against affordable housing.”

When Jim Leach chaired the House Banking Committee in 1996, he made a tiny attempt at imposing a transaction fee on Fannie and Freddie. Jim Johnson went ballistic and brought the big guns out to call it a “tax on homeownership” and kill it before Leach could even get it into a bill. Stuff like this happened over and over.

In 2004, Richard Baker held hearings after the OFHEO report nailed Fannie for its accounting fraud. He got the list of executives and bonuses. Frank Raines threatened to sue him if he released it. He did it anyway. I’ve never seen anyone as pissed off as Baker was that day. He railed against Fannie and Freddie for yars, held hearng after hearing, and the Democrats just laughed at him and called him a crank. Baker finally got fed up and left Congress, which is a shame.

Barney Frank likes to take credit for “finally getting a GSE bill passed” right after he took over as Chairman of the Committee. But the bill was written 18 months before he took over. Republicans wanted it but they also knew the Senate was not going to pass anything. Mike Oxley was not interested in getting something through the House only to see it die in the Senate. Barney was more willing to do that.

The other fact is that the House bill that Democrats did allow to pass was languishing in the Senate this year, because Chris Dodd was more interested in blaming the Bush Administration and the Fed for the subprime mess than actually doing something about it. This bill still would not have passed, excpet that Democrats decided they needed an emergency housing bill to help homeowners avoid foreclsure, and Republicans insisted on attaching the GSE bill to it. Had this not happened, the government would not have had the authority to take over Fannie and Freddie or to force them to do anything to clean up their balance sheets. Instead, the Treasury would have been forced to back up all of Fannie and Freddie debt – which exceeds 3 trillion dollars. It would have dwarfed the $700 billion bailout we are now arguing over.

Republicans also tried to impose some stronger regulation of subprime mortgage lending, beginning in 2000. Democrats aso killed these bills because they preempted state laws and Democrats wanted their state AGs to be able to sue lenders. The lack of uniform national standards and federal regulation directly led to the rise of the so-called monoline subprime lenders like Ameriquest and New Century, and the massive expansion of Countrywide, which produced most of the toxic paper that has given the financial system a heart attack.

So yes, this IS the Democrats’ fault. They blocked national standards for subprime lending and they blocked serious regulation of Fannie Mae and Freddie Mac.

rockmom on September 26, 2008 at 10:35 AM

Within a generation, if this kinda socialism continues, can we anticipate one or more states seceding?

I think secession would actually be better for say a state like Texas or other red states.

Wouldn’t it be better in the long-run for the USA to split along socialist/capitalist lines? It might work out better. The blue states could go more secular and socialist, while the red states could pass a religious freedom amendment, eliminate the corporate tax, cut regulation and attract foreign investments by the boatload.

I’m trying to get the chatter going for my new novel “Separate, But not Equal”. :)

Sapwolf on September 26, 2008 at 10:37 AM

About seven minutes too long.

Angry Dumbo on September 26, 2008 at 10:38 AM

Oh, there is plenty of blame to go around for how this game was played but I want to hold the inventors of this game responsible as well. When was sub prime and it’s derivatives born? If the players are going to have to pay for this, I think the inventors need to pay as well.

d1carter on September 26, 2008 at 10:48 AM

I vote for rockmom to go to Washington and state the facts as clearely and cogently as she has here, on CSPAN. Then lets see if the MSM dares to continue providing cover for Barney Frank, Chris Dodd, and Charles Schumer the way they are so far (with the possible exception of FNC). We really need to expose the internal rot of socialism for what it is, and what it’s doing to our country.

Webrider on September 26, 2008 at 11:09 AM

The Subprime studity wasn’t in 1999… it EXPLODED in 2003, 2004, 2005.
Diogenes of Sinope on September 26, 2008 at 10:28 AM

What are you talking about? The trend in house price inflation starts around 97, accelerates in 98 and 99, and shoots right through to tech crash without even noticing.

Count to 10 on September 26, 2008 at 11:26 AM

Illegal immigration and NAFTA kept wages from rising while
Greenspan and Bernacke kept interest rates from rising. Both items were huge factors in the credit crunch.

angelat0763 on September 26, 2008 at 11:32 AM

Why didn’t this generate more concern?

It did, Ed. Everyone I know over the age of 40, or a realtor, saw this coming. We kept saying, don’t borrow more than you can afford now, don’t get a balloon payment loan–because when this thing blows, it ain’t gonna be pretty.

PattyJ on September 26, 2008 at 11:35 AM

Angry Dumbo on September 26, 2008 at 10:38 AM

Yea, that reminds me it was the 3 minute attention span of the people that contributed to this too…

CBarker on September 26, 2008 at 11:36 AM

Look, the main issue here is to push back against the stupid knee jerk reaction that this is a failure of capitalism or a Republican lack of regulation, but a case of over regulation.
If we can’t even do that, we are going to get a “hair of the dog that bit you” solution that makes things even worse.

The fact of the matter is that the world’s capital has been flowing to the US for decades because we offer good return on investments (a trade deficit is equivalent to a foreign investment surplus). If those investors take their money elsewhere, we will see an economic slowdown. It is clear that we have “squandered” much of past investment on luxury houses (which aren’t productive).
We’ll see how things play out. But we should learn from this (again) that wealth redistribution hurts us all.

Count to 10 on September 26, 2008 at 11:36 AM

Has everyone posting here contacted their representatives to demand the dissolution of Fannie mae and Freddie Mac, and to require that any new legislation insure the gov’t stays completely out of the morgage and housing industries?

Please do. By close of business Friday, everyone should take the time to call your reps and let them know exactly what we expect.

They are listening now, it is an election year, put it to them.

paulsur on September 26, 2008 at 11:37 AM

CRA, yeah.

Here’s a graphic I created for a post I wrote Sunday. Apropos.

Use it if you like.

Serr8d on September 26, 2008 at 11:40 AM

Oh, and before someone calls RACISM!!, the source image for that graphic..

Serr8d on September 26, 2008 at 11:44 AM

I just e-mailed the author of the video and asked him for a cut without the “McCain/Palin” campaign ad part at the end… make it look a little less partisan for sharing with the unwashed liberals. He wrote back and told me to stay tuned….

ErikTheRed on September 26, 2008 at 1:45 PM

Republicans were not interested in wasting time pursuing kamikaze legislation and then getting tagged by Democrats as being “against affordable housing.
rockmom on September 26, 2008 at 10:35 AM

Thanks for pointing this out. It is politically unfeasible to oppose “affordable housing” as doing so invariably leaves one open to charges of “racism”. Very few people, politicians (or businesses) are willing to risk having their reputations smeared in this manner.

So yeah, I agree that this subprime fiasco is the Democrat’s fault because race-baiting is what they do.

Buy Danish on September 26, 2008 at 2:00 PM

I’ve worked in banking–setting up the loan processing systems. When someone explained a set of products to me, I said, “Really? You actually sell those? Do they ever go bad?”

The person looked down her nose at me as if I was too dumb to grasp the sheer brilliance of the products she was describing.

Apparently the market was too dumb too.

And the products she was describing?

ARMS
No Interest
No Income Verification

You get the picture…

I understood the products alright–I understood them to be stupid. What I didn’t understand was WHY a bank would sell them. Learning about the CRA helps me understand why.

Montana on September 26, 2008 at 2:10 PM

I am a Tennessean and I called Bob Corker’s offices on Wednesday (ALL OF THEM) and talked to someone in every single office. (Nashville, Memphis, Jackson, Chattanooga, DC, etc) and voiced my concern over this deal. I also expressed my utter frustration with the system and let it be known LOUD AND CLEAR that I am SICK of the frickin’ partisanship and SICK of our elected leaders voting based on THEIR BEST INTEREST and not in the interest of their constituents.

He was a better option that Harold Ford, Jr (so I thought) but I held my nose to vote for him.

This whole thing ticks me off!

unmeritedfavor on September 26, 2008 at 3:10 PM

Republicans controlled both chambers of Congress.

Those Republicans have already been punished, remember? They’re not “off the hook,” they’re out of a job. Now it’s time to send the bankers and their pet Democrats to prison and make usury illegal in the U.S.

As our own government has demonstrated, endlessly borrowing rather than spending within ones means is a ruinous policy. Send usurers scurrying back into the shadows with racketeers, abortionists, and other such scum.

TMK on September 26, 2008 at 4:11 PM

Go here if you want to help get this video viral…

http://burninghouse.wikispaces.com/

ninjapirate on September 26, 2008 at 5:49 PM

Hold On Ed, They were held the position to do something about it they were elected to do something about it. You really think John Q Public could have stopped this? Really while we can’t even secure our borders and ports and that is while we are all jumping up and down, Democrats, Republicans and Independents. I didn’t see any huge equity build up in my House. I am in Texas, in a so called recession proof area. Lord Hear My Prayer.

Dr Evil on September 26, 2008 at 7:10 PM