Understanding the Stimulus Bill

**SapiensErus** · 02-20-09, 10:21 PM

Originally Posted by WileECyte

Originally Posted by jmw_man

You say that the Govt told the banks to make risky loans, I'd like to learn more about this so where can I read up on this?

"Community Reinvestment Act" passed in 1977 by Jimmy Carter and the Democrats

http://en.wikipedia.org/wiki/Community_Reinvestment_Act

Strengthened in 1995 by... Bill Clinton and the Democrats

http://en.wikipedia.org/wiki/Communi...y_changes_1995

It basically forced lenders to start issuing sub-prime loans.

And then in 2005, under republican control, the CRA was modified to allow "small" and "medium sized" banks to issue loans as if they were larger institutions ("large" banks). That is, they were allowed to loan more money than they could cover. Nice timing there too eh? 2005...

http://en.wikipedia.org/wiki/Communi...y_changes_2005

**WileECyte** · 02-20-09, 10:42 PM

Originally Posted by SoySoldier

And then in 2005, under republican control, the CRA was modified to allow "small" and "medium sized" banks to issue loans as if they were larger institutions ("large" banks). That is, they were allowed to loan more money than they could cover. Nice timing there too eh? 2005...

http://en.wikipedia.org/wiki/Communi...y_changes_2005

The recommendations came from the Board of Governors of the Federal Reserve and the FDIC, not the President, unlike the changes in 1995.

The Republicans tried several times to introduce legislation to try and regulate the housing/mortgage industry and it was shot down by the Democrats.

The Bush Administration tried to regulate things in 2003:

http://query.nytimes.com/gst/fullpag...5AC0A9659C8B63

In 2005, 4 Republicans introduced a bill...

http://www.govtrack.us/congress/bill.xpd?bill=s109-190

Cock blocked again in 2007 by the Democrats:

http://www.govtrack.us/congress/bill.xpd?bill=s110-1100

**Blakeman** · 02-21-09, 08:21 AM

Both parties are at fault as this has been a long time coming. Playing the blame game does nothing but look at the past, when we should be concerned with what is happening now and what might happen in the near future. Is all of this spending going to really help, or are we just delaying the inevitable.

**BruceBloodMaster** · 02-21-09, 08:29 AM

Thanks for posting the above WileECyte by the time I got back to this thread you already posted !
Read all you can don't depend on the Media .......they are just feeding us All BS !
Barney Frank and Chris Dodd are the Most responsible out of all the people in Govt. Why you ask?? Because they are Head of the Banking Committee. Leahy wants to bring Cheney up on charges of War Crimes ?? They should charge ALL of the Congress for Dereliction of Duty. They ALL swore an oath to Protect and Defend the Constitution........the way I see it they are ALL derelict !! FIRE THE WHOLE LOT !!

**Blakeman** · 02-21-09, 08:34 AM

Originally Posted by BruceBloodMaster

Thanks for posting the above WileECyte by the time I got back to this thread you already posted !
Read all you can don't depend on the Media .......they are just feeding us All BS !
Barney Frank and Chris Dodd are the Most responsible out of all the people in Govt. Why you ask?? Because they are Head of the Banking Committee. Leahy wants to bring Cheney up on charges of War Crimes ?? They should charge ALL of the Congress for Dereliction of Duty. They ALL swore an oath to Protect and Defend the Constitution........the way I see it they are ALL derelict !! FIRE THE WHOLE LOT !!

You aren't the only one who feels this way, many folks that I talk to feel there should be a reformat of government keeping the constitution/bill of rights and working from there. With government so corrupt in all parties there is only so much folks can take before something has to happen.

**WileECyte** · 02-21-09, 08:56 AM

Originally Posted by BruceBloodMaster

Thanks for posting the above WileECyte by the time I got back to this thread you already posted !
Read all you can don't depend on the Media .......they are just feeding us All BS !
Barney Frank and Chris Dodd are the Most responsible out of all the people in Govt. Why you ask?? Because they are Head of the Banking Committee. Leahy wants to bring Cheney up on charges of War Crimes ?? They should charge ALL of the Congress for Dereliction of Duty. They ALL swore an oath to Protect and Defend the Constitution........the way I see it they are ALL derelict !! FIRE THE WHOLE LOT !!

It's funny that Obama was selling that things would change in Washington under his administration. So far, I've seen irresponsible spending, and a stable of advisors who were all smack dab in the middle of the housing crisis.

He tabbed Jim Johnson as a key political advisor to vet Vice Presidential candidates during his campaign. Who's Jim Johnson? He was managing directory of Lehman Brothers from 1985 - 1990. Remember them? They're now bankrupt. CEO of Fannie Mae 1991 - 1998... There's a whole lot of controversy surrounding him and he eventually quit.

Who does President Obama go to for advise on the housing issues? Franklin Raines? Who's Franklin Raines? He was with the Carter administration when the CRA was first enacted, and was Vice Chairman of Fannie Mae from 1991 - 1996. He took over as Director of OMB for Clinton and then ascended to CEO of Fannie Mae after Jim Johnson left.

Both Raines and Johnson resigned from Fannie Mae after the GAO found accounting regularities. They both received WAY more compensation than was on the books and both took large golden parachutes from Fannie Mae.

Change? The only thing that has changed is the face, but the names remain the same.

**Firedog911** · 02-21-09, 09:17 AM

Originally Posted by WileECyte

It's funny that Obama was selling that things would change in Washington under his administration. So far, I've seen irresponsible spending, and a stable of advisors who were all smack dab in the middle of the housing crisis.

He tabbed Jim Johnson as a key political advisor to vet Vice Presidential candidates during his campaign. Who's Jim Johnson? He was managing directory of Lehman Brothers from 1985 - 1990. Remember them? They're now bankrupt. CEO of Fannie Mae 1991 - 1998... There's a whole lot of controversy surrounding him and he eventually quit.

Who does President Obama go to for advise on the housing issues? Franklin Raines? Who's Franklin Raines? He was with the Carter administration when the CRA was first enacted, and was Vice Chairman of Fannie Mae from 1991 - 1996. He took over as Director of OMB for Clinton and then ascended to CEO of Fannie Mae after Jim Johnson left.

Both Raines and Johnson resigned from Fannie Mae after the GAO found accounting regularities. They both received WAY more compensation than was on the books and both took large golden parachutes from Fannie Mae.

Change? The only thing that has changed is the face, but the names remain the same.

That is why they call you "SUPER GENIUS".

**MotoZ** · 02-21-09, 05:54 PM

Originally Posted by WileECyte

Shortly after class, an economics student approaches his economics professor and says, "I don't understand this stimulus bill. Can you explain it to me?"

The professor replied, "I don't have any time to explain it at my office, but if you come over to my house on Saturday and help me with my weekend project, I'll be glad to explain it to you." The student agreed.

At the agreed-upon time, the student showed up at the professor's house. The professor stated that the weekend project involved his backyard pool. They both went out back to the pool, and the professor handed the student a bucket.

Demonstrating with his own bucket, the professor said, "First, go over to the deep end, and fill your bucket with as much water as you can." The student did as he was instructed.

The professor then continued, "Follow me over to the shallow end, and then dump all the water from your bucket into it." The student was naturally confused, but did as he was told.

The professor then explained they were going to do this many more times, and began walking back to the deep end of the pool.

The confused student asked, "Excuse me, but why are we doing this?" The professor matter-of-factly stated that he was trying to make the shallow end much deeper.

The student didn't think the economics professor was serious, but figured that he would find out the real story soon enough.

However, after the 6th trip between the shallow end and the deep end, the student began to become worried that his economics professor had gone mad.

The student finally replied, "All we're doing is wasting valuable time and effort on unproductive pursuits.

Even worse, when this process is all over, everything will be at the same level it was before, so all you'll really have accomplished is the destruction of what could have been truly productive action!"

The professor put down his bucket and replied with a smile, "Congratulations. You now understand the stimulus bill."

The professor reminds me of w4j and his avatars. Some professor.

Now what? Do I get banned for disrespecting a holier than thou high admin?

**SapiensErus** · 02-21-09, 06:05 PM

Has someone been drinking moonshine again? You hillbilly!

**MotoZ** · 02-21-09, 06:30 PM

Moonshine? Nevah! I'm a beer man.

But seriously though, w4j is one of my favorite enemies in the forums. He and I have several unfinished arguments - abortion is the oldest one.

My biggest beef with w4j is that spinning dog avatar that he had. It was is if God put us on Earth to jack each other off. I can't go for that.