The Simple Arithmetic of the Mortgage Crisis Debunks Right Wing Media Narratives

[Wetzelbill]

The Simple Arithmetic of the Mortgage Crisis Debunks Right Wing Media Narratives

Five months ago, when the world trembled at the specter of a global financial meltdown, Rep. Darrell Issa of California ran on to Hardball to deliver a "f____-you" to his constituents. They live in San Diego and Riverside County, Ground Zero in the foreclosure crisis.

Explaining why he worked to defeat the bipartisan bailout deal intended to stabilize the mortgage markets, Issa, who had previously voted against laws to curtail predatory lending, blamed the Treasury Secretary. "You know, in fairness to Hank Paulson, I don't know him well, but I know enough he's not a banker, he's comparatively a day trader," said Issa. "We need him to get bankers to say how you stabilize long-term assets and stop treating it like it's Goldman Sachs." Issa's poison darts foreshadowed the current rhetoric of Newt Gingrich, who rails against the "Bush-Obama continuity in economic policy."

Why do fabulists like Issa can get traction in the media? One reason is that many talking heads still lack a command of the basic data. So much coverage of the financial crisis remains fragmentary, vague and anecdotal. For businessmen, the narrative is always framed by the numbers, the bottom line. There's no way around it. If we want to grasp how we got in this mess we need to look at some numbers.

Here are the salient numbers, simplified in a user-friendly format, that get to the heart of the matter.

They explain the year-old diagnosis rendered by a Presidential Task Force headed by Hank Paulson:

"The turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for US subprime mortgages, beginning in late 2004 and extending into early 2007."

Why would subprime mortgages unravel the entire system? First of all...


http://www.huffingtonpost.com/david-fiderer/the-simple-arithmetic-of_b_173204.html

[Lasher]

1. Very good and well sourced.

I saved this one for future reference. :thumbsup:

[Wetzelbill]

2. kick

[SoCalDem]

3. No no no no.. It was Fannie & Freddie...& ACORN

& illeeeeeeegals ...and Bill Clinton & Jimmy Carter..but NOT Reagan , Bush1 & Bush, the lesser..

How dare they try to confuse the issue with facts & stuff:)

[Wetzelbill]

4. well yes, them too

Mostly them. :)