Biden to recreate housing bubble that launched the great recession: In sweeping change, will ban medical debt from credit reports

CdnFox · June 12, 2024

In sweeping change, Biden administration to ban medical debt from credit reports - ABC News (go.com)

In a sweeping change that could improve millions of Americans' ability to own a home or buy a car, the Biden administration on Tuesday proposed a rule to ban medical debt from credit reports.

The rule, announced by Vice President Kamala Harris and Consumer Financial Protection Bureau Director Rohit Chopra, comes as President Joe Biden beefs up his efforts to persuade Americans his administration is lowering costs, a chief concern for voters in the upcoming election.

So just as a primer for those who weren't around the last time, this is exactly the idea that Clinton had. Clinton and the democrats felt that everybody deserved a home whether they could afford it or not and change the rules so that people who would not normally be able to apply for a loan suddenly qualified.

This led to a temporary housing boom which caused people to buy homes they couldn't afford with the idea of selling them for a profit before they couldn't afford it anymore. Which work great right until the housing market crashed as a result of the bubble and that was the 2009 recession which affected the entire world.

Biden is going to attempt a miniature version of that. He's going to artificially lower the amount of debt that lower income people have and people without medical coverage at work so that it makes it much easier for them to qualify for a home they might not be able to afford if the true calculation was used.

And just like last time it will lead to a housing bubble and a crash.

I hope to hell that America is smarter this time and rejects this notion entirely. The last recession was a pretty bad one. The American economy already has significant cracks

robosmith · June 12, 2024

You don't know jack about what "launched the great recession."

Just check the record of Bush's artificially low interest rates long AFTER the economy had recovered and the deregulation of debt bundling known as "credit default swaps." Duh

Credit default swaps played a large role in the financial crisis of 2008 for many of the same reasons described above. Large banks which traded in CDS's were forced to declare bankruptcy when a large number of the underlying credit instruments defaulted at once, sending shockwaves throughout the United States economy.

credit default swap | Wex - Law.Cornell.Edu

image.png.db0fca793eef8704bdb3da6ed23adbe1.png

LII / Legal Information Institute

https://www.law.cornell.edu › Wex

CdnFox · June 12, 2024

7 minutes ago, robosmith said:

You don't know jack about what "launched the great recession."

Just check the record of Bush's artificially low interest rates long AFTER the economy had recovered and the deregulation of debt bundling known as "credit default swaps." Duh

Credit default swaps played a large role in the financial crisis of 2008 for many of the same reasons described above. Large banks which traded in CDS's were forced to declare bankruptcy when a large number of the underlying credit instruments defaulted at once, sending shockwaves throughout the United States economy.

credit default swap | Wex - Law.Cornell.Edu

LII / Legal Information Institute

https://www.law.cornell.edu › Wex

Sorry kid, i know a lot better than you

Bush tried to reign in the democrats like crazy but he couldn't. And bush couldn't just raise the interest rates, that would create a host of additional problems and cause a crash even faster.

Even Clinton knew he had screwed up royally and tried to get the democrats to back down on the changes before he left office but they absolutely wouldn't.

The whole Fannie Mae and Freddie Mac disaster was 100% the democrats. They created the entire subprime mortgage mess and by the time bush got in it was way too late to do anything. It would have been like the guy who stepped on the mine and knows as soon as he moves his foot it's going to go off. And of course it did.

The interest rates were higher than than they are now (excluding the last few biden inflation years), but the problem was people were allowed to borrow who didn't even have a job as long as they were promising to look for one. People were qualifying for homes that they simply could not afford because under the democrats rules banks with lend them money for a year below the regular interest rates. So they could afford it as long as they flipped it in that time.

When the market crashed nobody could flip anything and the entire world faced a devastating economic disaster.

Except Canada. We felt it but we had Stephen Harper, a powerful conservative economist as prime minister and he pulled a number of tricks to help us get through without suffering like you did.

Edited June 12, 2024 by CdnFox

CdnFox · June 12, 2024

8 minutes ago, robosmith said:

You don't know jack about what "launched the great recession."

Just check the record of Bush's artificially low interest rates long AFTER the economy had recovered and the deregulation of debt bundling known as "credit default swaps." Duh

Credit default swaps played a large role in the financial crisis of 2008 for many of the same reasons described above. Large banks which traded in CDS's were forced to declare bankruptcy when a large number of the underlying credit instruments defaulted at once, sending shockwaves throughout the United States economy.

credit default swap | Wex - Law.Cornell.Edu

LII / Legal Information Institute

https://www.law.cornell.edu › Wex

Oh also what a shame! You finally worked up the courage to talk to me again after that much therapy and you still managed to be wrong

robosmith · June 12, 2024

55 minutes ago, CdnFox said:

Sorry kid, i know a lot better than you

Bush tried to reign in the democrats like crazy but he couldn't. And bush couldn't just raise the interest rates, that would create a host of additional problems and cause a crash even faster.

Even Clinton knew he had screwed up royally and tried to get the democrats to back down on the changes before he left office but they absolutely wouldn't.

The whole Fannie Mae and Freddie Mac disaster was 100% the democrats. They created the entire subprime mortgage mess and by the time bush got in it was way too late to do anything. It would have been like the guy who stepped on the mine and knows as soon as he moves his foot it's going to go off. And of course it did.

The interest rates were higher than than they are now (excluding the last few biden inflation years), but the problem was people were allowed to borrow who didn't even have a job as long as they were promising to look for one. People were qualifying for homes that they simply could not afford because under the democrats rules banks with lend them money for a year below the regular interest rates. So they could afford it as long as they flipped it in that time.

When the market crashed nobody could flip anything and the entire world faced a devastating economic disaster.

Except Canada. We felt it but we had Stephen Harper, a powerful conservative economist as prime minister and he pulled a number of tricks to help us get through without suffering like you did.

Yes, Clinton did deregulate the CDS market, but Bush did NOTHING to correct that because he was benefiting from the economy flying and Rove had sold him on "the permanent Republican majority," which turned into the disaster.

You may believe it's unfair, but Bush was IN CHARGE when everything fell apart. Blame is at least 80% on Bush.

CdnFox · June 12, 2024

22 minutes ago, robosmith said:

Yes, Clinton did deregulate the CDS market, but Bush did NOTHING to correct that because he was benefiting from the economy flying

Nope. He tried but the dems blocked him. More than once. (twice as i recall but i'd have to look it up) And he knew he was going to be in trouble and spoke of the housing bubble.

Like i said if we're being fair to clinton he saw things were going too far before he left and tried to rein things back in but it was a very popular policy with many dems and many americans and there was just no support.

By the time there might have been support it was way too late, the bubble was there and there was no soft landing option available.

The whole issue started because it was popular and desirable to make sure everyone could afford a home. Noble idea i think we can all agree. BUT - whenever you do that you are very likely going to wind up with a bubble if you do it by making it easier for people to qualify.

Biden is looking at doing that again and it would be very bad. I know you support him but if he does manage to win you should be writing every congressperson you can find and telling them to stop him from actually doing it.