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Related: About this forum"CUT IT OUT" HILLARY BLAMED HOMEOWNERS FOR 2008 FINANCIAL CRISIS "Should Have Known"
Last edited Fri Apr 22, 2016, 09:28 AM - Edit history (2)
According to Hillary Clinton, if you were a victim of the foreclosure crisis, it was probably your fault.
The only problem with that argument is that its not even close to factually correct.
Clinton in 2007: Homeowners should have known they were getting in over their heads
When Clinton ran for president during her second term as New Yorks U.S. Senator, she gave a tepid speech at the NASDAQ headquarters on December 5, 2007 before the financial crisis reached a boiling point about reforming Wall Streets housing loan practices, largely excusing financial criminals for their behavior.>Now these economic problems are certainly not all Wall Streets fault not by a long shot, Clinton said early in the speech. Clintons NASDAQ address amounted to essentially asking the financiers assembled to take voluntary action or else she would consider legislation to stop banks from kicking families out of their homes. But early on in the speech, Clinton placed equal blame for the subprime mortgage crisis on low-income homeowners alongside Wall Street.
Homebuyers who paid extra fees to avoid documenting their income should have known they were getting in over their heads, Clinton said.
One YouTube user found video of the statement and put it side-by-side with her claim at the first Democratic debate in which she said she went to Wall Street before the crisis and told them to cut it out."
To her credit, Hillary Clinton did indeed give several detailed speeches criticizing Wall Street for the dishonest practices that led to the boom and burst of the subprime mortgage bubble. She also put forth a concrete proposal to crack down on predatory lending, although that bill died before even going to a committee vote. Clinton is a great orator and knows how to make a convincing argument to a captive audience. But what the former New York U.S. Senator says shell do is different than what shes actually done when given the opportunity.
-Banks, not homeowners, caused financial crisis- Out of all 50 states, Hillary Clintons constituents in NEW YORK were some of the hardest hit by the foreclosure crisis. The U.S. Department of Justices $13 billion mortgage fraud settlement with JP Morgan set aside an entire $1 billion in restitution just for New York homeowners, out of a total $4 billion allocated for consumer relief. The bank was sued for selling mortgage-backed securities to investors, knowing full well the investments were bogus.
-In 2014, Bank of America paid a larger $16 billion settlement for committing the same crime in the years leading up to the financial meltdown. While Bear Stearns helped package mortgage-backed securities for JP Morgan, Bank of Americas partner-in-crime in peddling bogus securities was Merrill Lynch. Out of the $16.65 billion, $300 million was set aside for New York homeowners. The loans Hillary Clinton referred to in her December 2007 speech, in which potential home buyers pay extra fees to not disclose their income, accounted for 40 percent of new mortgages between 2006 and 2007, according to Forbes. But unlike Clinton, financial experts put 90 percent of the responsibility for the housing crash on the backs of Wall Street banks. The subprime mortgage bubble was built as Bank of America and JP Morgan gave out home loans with no underwriting, meaning homeowners werent required to prove they could pay back the loans. This means, effectively, the banks knew the loans were destined for foreclosure before a loan was even granted.
In one instance, a JP Morgan home loan officer admitted to making up an applicants income level to make the income-to-loan ratio work. One applicant emailed Marc Bristol, a senior home loan officer for JP Morgan, telling him he had concern about the applicants income listed on the official mortgage loan application: I do not make $34,000 a month or anything close to this figure. I am not comfortable signing a document with a number I can not document in some form. Bristol responded by acting as if inflating the applicants income was standard procedure: This is a stated-income deal. We had to state an amount that will be consistent through each deal. There are certain ratios that have to be met for income to debt. With [property 1] AND [property 2] AND taxes and insurance on your current, this is the figure that made the ratios fit.
-Besides, nobody forced the banks to make those loans in the first place: People shouldnt be sympathetic to banks that effectively say: Hey, we knew the applicants were lying and wouldnt be able to repay the loans. We didnt care because we didnt hold onto the loans. We offloaded the risk to investors through the securitization process. But so what? Blame the deadbeat borrowers for the volume of foreclosures today. When those homeowners went into foreclosure, the banks then refused to accurately modify mortgages, dooming families to eventual homelessness. These banks then bundled these bogus home loans, had them securitized by Bear Stearns and Merrill Lynch and rated AAA by the top ratings agencies, then turned them over to investors and ensured stockowners that they were making a solid investment, pocketing the profits and inflating the bubble they knew would eventually burst.
-Tough talk and soft treatment from Senator Hillary Clinton
As the Daily Beast pointed out, Clintons tough talk doesnt jibe with her Senate record. When a sweeping housing reform passed the Senate in 2008, it did so without Clintons leadership. Senator Clinton didnt even vote in favor of a bipartisan bill that would have repealed the carried-interest tax loophole often exploited by hedge fund managers and Wall Street executives, something shes campaigned on as recently as last year. One reason Hillary Clinton makes tough talk about the financial firms but stops short of meaningful action might be due to her representing the same Wall Street banks that played a major role in the financial crisis as New Yorks junior U.S. Senator. In addition to being former constituents of hers, JP Morgan and Bank of America are also some of Hillary Clintons main campaign donors. Throughout the course of her political career, JP Morgan contributed nearly $700,000 to her campaign war chest, making them her 4th-largest all-time donor. After Clinton left the State Department, she was paid $225,000 by Bank of America for just one speech. Bear Stearns contributed approximately $50,000 to Clintons campaign between 1999 and 2004. Merrill Lynch gave over $33,000 in that same time cycle.
If you plan on voting in the Democratic primary and you want a candidate to be tough on Wall Street, its important to compare Hillary Clintons words to her legislative record and her campaign finance filings before making your decision.
http://usuncut.com/politics/video-surfaces-of-hillary-clinton-blaming-homeowners-for-financial-crisis/
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"CUT IT OUT" HILLARY BLAMED HOMEOWNERS FOR 2008 FINANCIAL CRISIS "Should Have Known" (Original Post)
appalachiablue
Apr 2016
OP
It's true at least to some degree. They didn't call them "liars' loans" for nothing.
PSPS
Apr 2016
#1
'Liars Loans' is the absolute truth. They all knew, Wall Street banks, Investment Firms,
appalachiablue
Apr 2016
#2
PSPS
(13,600 posts)1. It's true at least to some degree. They didn't call them "liars' loans" for nothing.
appalachiablue
(41,143 posts)2. 'Liars Loans' is the absolute truth. They all knew, Wall Street banks, Investment Firms,
the Regulators, S & P, Fannie & Freddie, Mortgage and Insurance Companies, Realtors and more. It was very profitable for the groups that benefitted from the mass fraud.