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Thread: Why the Government shouldn't have the Power

  1. #1
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    Default Why the Government shouldn't have the Power

    Interesting read... they were warned and did nothing... Why should they control anything?

    February 2, 2010 08:38 AM EST by Elizabeth MacDonald

    Housing Red Flags Ignored

    One of the nation’s biggest mortgage industry players repeatedly warned the Federal Reserve, the Federal Deposit Insurance Corp. and other bank regulators during the housing bubble that the U.S. faced an imminent housing crash.
    The trade group also mapped out the 15 states which faced "sudden increases in foreclosures" and "a downward spiral," including California, Florida and Nevada.
    But bank regulators not only ignored the group's warnings, top Fed officials also went on the airwaves to say the economy was "building on a sturdy foundation" and a housing crash was "unlikely."
    The letters, obtained by Fox Business, were sent in 2005 and 2006 before the housing bubble burst.
    As it pleaded with bank regulators to stop subprime lending abuses, the Mortgage Insurance Companies of America [MICA] pointed out the red flags in analysis from the bank regulators' own staffers as well as the likes of Bear Stearns and Lehman Brothers.
    But the fact that these lengthy warnings did not compel bank regulators to act raises serious policy questions for Congress and the White House, as they move to make the Federal Reserve the systemic risk regulator, when the Fed didn’t act to stop the biggest systemic risk of all.
    The new revelations also may make it harder for Federal Reserve chairman Ben Bernanke to battle Congressional curbs on the Fed's authority over the banking system, and moves by members of Congress to have the Fed’s monetary policies audited.
    Disturbing Concerns Raised
    Mortgage insurance companies cover lenders' loan losses when they go bad; borrowers pay for the insurance. MICA counts as its members AIG United Guaranty, Genworth Mortgage Insurance Corp., PMI Mortgage Insurance Co., United Guaranty, and Mortgage Guaranty Insurance.
    Mortgage insurers are “deeply concerned about increased mortgage market fragility, which, combined with growing bank portfolios in high-risk products, pose serious potential problems that could occur with dramatic suddenness,” warned Suzanne Hutchinson, top executive at the Mortgage Insurance Companies of America, in 2005.


    Read more: http://emac.blogs.foxbusiness.com/20...#ixzz0eP5iE5R6
    There Is No Second Place Winner ...even if your not brusque and merely informative.

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    Quote Originally Posted by daddybo View Post
    Interesting read... they were warned and did nothing... Why should they control anything?

    February 2, 2010 08:38 AM EST by Elizabeth MacDonald

    Housing Red Flags Ignored

    One of the nation’s biggest mortgage industry players repeatedly warned the Federal Reserve, the Federal Deposit Insurance Corp. and other bank regulators during the housing bubble that the U.S. faced an imminent housing crash.
    The trade group also mapped out the 15 states which faced "sudden increases in foreclosures" and "a downward spiral," including California, Florida and Nevada.
    But bank regulators not only ignored the group's warnings, top Fed officials also went on the airwaves to say the economy was "building on a sturdy foundation" and a housing crash was "unlikely."
    The letters, obtained by Fox Business, were sent in 2005 and 2006 before the housing bubble burst.
    As it pleaded with bank regulators to stop subprime lending abuses, the Mortgage Insurance Companies of America [MICA] pointed out the red flags in analysis from the bank regulators' own staffers as well as the likes of Bear Stearns and Lehman Brothers.
    But the fact that these lengthy warnings did not compel bank regulators to act raises serious policy questions for Congress and the White House, as they move to make the Federal Reserve the systemic risk regulator, when the Fed didn’t act to stop the biggest systemic risk of all.
    The new revelations also may make it harder for Federal Reserve chairman Ben Bernanke to battle Congressional curbs on the Fed's authority over the banking system, and moves by members of Congress to have the Fed’s monetary policies audited.
    Disturbing Concerns Raised
    Mortgage insurance companies cover lenders' loan losses when they go bad; borrowers pay for the insurance. MICA counts as its members AIG United Guaranty, Genworth Mortgage Insurance Corp., PMI Mortgage Insurance Co., United Guaranty, and Mortgage Guaranty Insurance.
    Mortgage insurers are “deeply concerned about increased mortgage market fragility, which, combined with growing bank portfolios in high-risk products, pose serious potential problems that could occur with dramatic suddenness,” warned Suzanne Hutchinson, top executive at the Mortgage Insurance Companies of America, in 2005.


    Read more: http://emac.blogs.foxbusiness.com/20...#ixzz0eP5iE5R6
    You're right. Government does what government wants to do, common sense be d#mned! Just look at the current administration, going full steam ahead with initiatives that nobody wants. Warning after warning ignored. God help us if government gets the power. Our founding fathers were not so dumb as modern progressives make them out to be.
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