Who Really Caused The Mortgage Mess? Mayor Bloomberg Knows. So Do I.

Well an interesting turn of events has occurred. New York Mayor Bloomberg has spoken the truth as to the cause of the mortgage market meltdown and is now being rebuffed by many a former sycophant and pundit who offered him more than support in the form of political cover. As this truth telling impacted the legitimacy of the “Occupy Group” well it became time to trash Mr. Mayor.

My take on the Mayor is he is a wealthy opportunist but nobody’s fool. Maybe opportunist is not a fair assessment but let us have a look. A lifelong Democrat who opted to switch party affiliation in order to run for Mayor. I guess his $20 odd billion was beginning to bore the man and he needed more attention or just wanted to push New Yorkers around. (Especially you dastardly smokers) After two terms had expired he bribed, err excuse me he got an exemption to run for a third term. The man built a fine business but I leave it to your respective judgment to determine his motives.

So what did Mr. Mayor say? Well apparently he is at his wits end over these boy/girl scouts camping out in a N.Y. park hurting commerce and exhausting police resources among other offenses. They do play a mean bongo when not toking a bong however. In other words a mess. So the Mayor pointed out that it was not Wall street who created the mortgage mess which created the balance of the meltdown. As an industry veteran of 29 years I concur wholeheartedly with the mayor.

The reality is it all started at FNMA and FREDDIE in the latter 90’s and was dictated by political leaders such as President Clinton and Barney Frank. They were just buying votes with someone else’s easy money and perhaps good intentions. They altered the lending policies which had served us well to that point. This is in fact the genesis. Pressure was routinely applied to make these substandard loans. Kind of like what the S&L’s did in the 80’s. Same result. Of course once Wall Street realized there was fee income to be made, they joined the party and the old Guru of Guru’s, Dr. Greenspan encouraged the music to play on to keep the game going so as to not implode on his watch. I heard him advise many a lender to get more creative in its loan programs. With my own ears!

So the Mayor had the temerity to disclose this and suggest the protesters head to Washington and sleep, I mean protest there. That makes sense to me. That is where the blame lies. Make no mistake and if you choose not to believe as your ideology will not allow it, then it is just being dishonest intellectually.

So now the usual right wing bashers are on the attack of a left winger. You either drink their kool aid or you suffer their wrath. Disgusting. What happened to tolerance on the left. From my perspective they have zero tolerance for an apostate. Veer 1% away from orthodoxy and you are of no use to them. How quaint.

Article first published as <a href=’http://technorati.com/business/finance/article/who-really-caused-the-mortgage-mess/’>Who Really Caused The Mortgage Mess? Mayor Bloomberg Knows. So Do I.</a> on Technorati.


2 responses to “Who Really Caused The Mortgage Mess? Mayor Bloomberg Knows. So Do I.

  1. As far as I know Bush said “every American should be a homeowner”, big, big, big mistake. He initiated the substandard loans, people who couldn’t afford the home became homeowners, went crazy upgrading their homes, used their homes as an ATM machine, every tom, dick, and harry became a realtor, made insane amounts of money, the bubble is
    getting bigger and bigger, then Wallstreet started selling these bundled loans globally, the bubble starts to burst hence, U.S., Greece, Italy, etc. scenarios presently, it’s all due to GREED, GREED, GREED! I can just hear Bush with that horrible chuckle of his “heh, heh, heh” as he was vacating the White House.

    • Sorry to tell you this having been in the business for 30 years and watching every step of the way, but it started long before Bush was in the White House. And to be fair, all Presidents say that we need more homeowners. After all it is the american dream no? If you want to assign blame this is the correct order, 1)Clinton 2) Raines 3) Frank 4) Cuomo 5) Dodd 6) Greenspan. They initiated the subprime era and fueled it. In fact as early as 2001 I have heard Bush quotes stating we should reign in Fannie and Freddie. Another fact, Ronald Reagan attempted to hold the line on Fannie as well but the Dems would not allow it. I agree Wall St. bundled the paper and sold it, however the Feds issued a AAA stamp on the junk. The ultimate blame lies in DC. By the way and by your own words, big blame goes to every Tom, Dick and Mary you mentioned who all took advantage of the easy money as well as we homeowners who bit off more than we needed. Anyway my comment where regarding why the left is pounding their favorite Mayor (Mr. Bloomberg) for speaking the truth which is as I have outlined it. Nothing whatsoever about Bush as he had no hand in this.

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