• #5
    Stop prolonging the myth that the 2008 financial meltdown was started by big banks. It was started ten years earlier when "progressive" housing policies were ushered in under both political parties in collusion with several industries hoping to cage the real estate golden goose, but killed it
    instead. It was justified out of "fairness" to increase the rate of home ownership from 50% up to 70%+, because Clinton and HUD Sec. Andrew Cuomo, and Fannie-Freddie backed relaxing mortgage loan qualification process. Washington simply didn't want to keep building more public housing, and knew by pushing more construction it'd help the economy overcome the impending tech bubble burst. When that happened, real estate was backed as the "one true safe investment"-- until it too bubbled up with fraudulent loans.
    Credit unions made housing loans, too, backed by national loan guarantee politics.
  • #16
    It's not a myth, but you're point is often overlooked. it seems like people want to support one side over another so when a full picture is offered people get uncomfortable. the WHOLE thing is corrupt to the toilets, thank you for adding another dimension of it. i just made a post about the banks getting ready for my deregulation, which will be a major problem since this specific one is going to be a whopper. it's going to allow them to use public money to gamble on the market, without permission. I'm frightened at this one. sorry im not trying to turn around what you said, i just think that this whole picture is getting really ugly.
    have you ever seen arrested development? there is a part in the new season where they discuss how loaners would lone money to people and manipulate them into thinking they had the right stuff for loans... but all they were doing was endorsing fraud on an already tenuous situation. i voted on this one YES, but that's only because it seemed to be a smaller cog in the over all larger machine of screwing americans.
  • #31
    @Paultron it's a tangly web we can sum up to politics infecting the real estate industry. Both the right and left working in concert.
    Same thing as in healthcare and higher ed industries. That's the surest way to make more bubbles.
  • #36
    It was both.
    Everyone wanted to promote home ownership, left and right.
    But the banks, recently deregulated, that began to pump up their profits with derivatives, things like bonds backed by mortgages.
    The error was in thinking that if you put a lot of shaky loans into one portfolio, it reduces the risk. It doesn't, it only reduces the variability.
    When the housing market began to fade, the risk became apparent.
    But rather than suck up the losses themselves, the banks sold the bonds backed by those shaky mortgages to pension plans and other institutional investors.
    Who then got slaughtered.
  • #20
    The banks position essentially boil down to even if it was my fault, they should suffer the same consequences. For the ignorant, savings and loan companies were not credit unions. I am not aware of a single credit union ever failing.
  • #32
    Agreed. And a GREED. I smell a bit of jealousy from BOA and fellow ilk. CU's do business on the upside and all banks know is how to ass rape someone over fees and charges. A bit harsh but there it is.
  • #34
    @jond414 BECAUSE OF DODD FRANK! They did not fail. They closed. They decided not to stay in business. It did not say any of their customers lost as much as a penny. I read the article and understood it. You may have read the article, but clearly you did not understand it.
  • #3
    The ONLY real way to assign the correct doses of blame for the crisis is to backtrack where ALL of the suspect loans ORIGINATED.

    To date I don't know if anyone has done this or if it is even POSSIBLE.

    It's a GIANT bowl of spaghetti, now try finding the end of one string...IMPOSSIBLE.

    The bottom line is the banks got REALLY GREEDY.

    Sure, you had folks signing off on loans they KNEW they could not afford but NO ONE forced the banks to approve those loans either.
  • #4
    gov was involved,and from what ive read is pushing for it once again.

    has to be a dem thing signing what you have not read or know whats all in it.
  • #6
    THE banks knew they were making bad loans. the industry even had a name for them. THe Banks calle dthem Liar laons. This is just a TINY part of what caused the problem.

    Due to DEREGULATION, banks were able to bundle the bad mortgages with the good onbes and sell them as a new derivative calls Mortgage Backed Securities. The worst part is that the rating agencies knew these were risky investments and gave them a AAA rating anyhow. That alone should be subject to prosecution.

    Repubs Gutted the investigative arm of the SEC, defunded it, and have refused to appoint approve a director. THey dont want the SEC to have regulator enforcement power, so nobody have gone to jail over this mess at all!
  • #9
    Yes, you are most likely referring to the community reinvestment act.

    There has been MUCH discussion about the role, IF any, CRA played in the crisis.

    Some say it played a LARGE role, others say not so much.

    But the wording contained within CRA specifically says banks are to stay within "safe lending practices".(basically saying that banks aren't being forced to lend to folks with RISKY credit)

    Overall, I do not support the idea of legislation that leans on lending institutions to give loans to high risk customers.
  • #17
    @tomincali you mean like the Patriot Act? don't be a partisan idiot. both sides are guilty of kneejerking on their own agendas rather than representing you
  • #23
    Remember the big Saving and Loan failure? And who wound up paying for it? If we had send the ones that caused it to prison for a few years,maybe then the banks,and Wall Street would have thought twice before getting in the mess they did.If knowing you ARE going to prison,instead of taxpayers having to bail you out,and the CEO's still getting paid outrageous salary's,just might have stopped some of it.Or then again,they just would have covered their crimes up a lot better.
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  • #21
    I've been a Credit Union member for many years...I also have high confidence in my investment firm. These folks are very accommodating and don't charge me out the ying-yang for every little thing. I enjoy great credit card and debit card services and, if I ever want it, I can get great loan rates.
  • #18
    is that a good thing? local means they were left out of the horrible "old boys club" so i guess they conducted business as it should be? what's the story on that? im curious.
  • #19
    They were local and not attached to that mess. Yes they did do business the right way and are still here. I bank at one and belong to a credit union too and would never change unless they got into this.
  • #39
    The banks were forced to make the bad loans by the democrats.

    The mortgage failure was their creation.
    It did not happen by accident.
  • #33
    Credit unions do not belong to the elite cabal that runs this country ( some might say into the ground ) and that establishment does not like anyone out of the loop because they're more difficult to control. If you like this elite running things than you will dislike credit unions. If you're like me and hate dictatorships, you'll love them. It's as simple as that and isn't about convincing anybody that I'm right, its about choosing sides.
  • #29
    Been a CU member since I opened my first account many years ago, aside from one or two hiccups, never had any problems. If I needed help, the staff was/is friendly and knowledgeable...can't say that about many places anymore.
  • #22
    I don't see what the big deal is. Banks (corporations) are people, their money is speech, and when corporations start lobbying their servants in congress to have their competition put out of business, well hey that's capitalism.
  • #15
    remember what happened to the savings and loans when they offered a safe alternative to predatory capitalist bankers and Wall Street thieves.
  • #14
    just the heads up guys. for all you democrats and republicans i caught wind of something, they want to deregulate the banks again once they get the government running again. the vote was something like 53 to 6. so BOTH democrats and republicans want to gamble with YOUR money on derivatives. this is why when i say left or right politics... i cringe. i try not to, and we all feel shamed for falling into this ploy to believe that there is two options. a snake with two heads is what the american two party system is.
  • #12
    I've never had WORSE customer service than I did at the credit union I had a loan with. On the other hand, the folks at US Bank have been absolutely great. THAT's what's important to me, not who may or may not have had a hand in the crisis.
  • #8
    Been a Navy Federal Credit Union member since boot camp in 69. If only the clowns in DC would run Social Security with the same astuteness, morals and ethics.