Who Really Drove the Economy Into the Ditch?
Joseph N. Fried examines the factors leading to the financial crisis of 2007/8 and the mess it's put us in today. Although he analyzes the transgressions of Wall Street, the author also presents a wide variety of factors — including some that originated in the governmental sector and others that originated in the private sector. The book includes several rarely mentioned contributing factors such as the detrimental impact of automated underwriting systems that were heavily promoted by Fannie Mae and Freddie Mac. This is an opinionated book with an attitude. However, the author, a CPA and MBA, presents economic information in a conversational tone and meticulously backs up his views with references, charts, and quotes. Joseph N. Fried has published several books with Algora, explaining financial controversies and challenges for the general reader. Here, he highlights eye-popping aspects of the recent financial circus including: Drive-by house appraisals; the impact of hundreds of local housing programs funded by HUD; state governments, and housing advocacy groups; false delinquency statistics put forth by Fannie Mae and Freddie Mac; 'silent second' and 'piggyback loans'.
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FF pushed the new automated systems with gusto
Mechanics of mortgage loan securitization
Securitization is not needed but it is here to stay
Mortgage brokers and nonbanks were responsible for predatory lending
FF were indirectly responsible for predatory lending
Regulatory efforts with respect to predatory lending
Automation and subprime dont mix
Push enough subprime and some will slip through
Risky riskbased pricing
Fannie and Freddie misconstrued the warning signs
Lending on the basis of Zillow estimates
The many problems of the Automated Valuation Models
A Full Monty
The sound of silence
Down payments are gifted
What did FF think of down payment corruption assistance?
The real reason we lack affordable homes
Once a crook always a crook
Like Sinatra they did it their way
What were the real delinquency rates?
More creative accounting
Smoke and mirrors
Pauls Principle explained
What are subprime loans?
The junk loan orgy
FF paid top dollar for subprime
Purchases of subprime were leveraged
The Fannie and Freddie apologists and their logic errors
A man completely vindicated
Fannie and Freddie promoted brokers over banks
They got cozy with subprime aggregators
They were cheerleaders for subprime
FF designed the subprime loans of private lenders
Fannie and Freddie misled the market about subprime
FF redefined conforming to include subprime
The GSEs fought predatory lending laws
A brief history of FF subprime and politics
What is the Community Reinvestment Act and how did it change?
The government refuses to produce reliable CRA data
What is the best estimate of CRAs impact on the crisis?
What torture teaches us about the CRA
The deflation argument
Exactly when did the housing bubble start?
Can the US Federal reserve cause a worldwide bubble?
Fed policy doesnt affect longterm rates?
monetary policy and subprime
Transcripts show a clueless Federal Reserve
A brief history of securitization
Was our 40year securitization experiment a success?
The two most notorious investments
The credit rating process was no secret
The Levin hearings produce useful data and smoke
The rating agencies made many mistakes
A very tepid defense of the rating agencies
The future of rating agencies
What are Credit Default Swaps CDS?
The early controversy regarding CDS derivatives and regulation
Credit Default Swaps and the Commodity Futures Modernization Act
Are credit default swaps beneficial or harmful?
A brief marktomarket history
The pros and cons of marktomarket
The normal traditional short sale
The naked short sale
Naked and ugly
The naked shorts regulatory smackdown
Regulation SHO and the Uptick Rule
MERS the system designed to track loan ownership interests
Real cases that will break your heart
The 25 billion solution
The Consolidated Supervised Entity program
The driveby professors
Did the SEC fail? If so why?
Was the nonrecourse lending a cause of the crisis?
The ethics and psychology of the strategic default
Nonrecourse lending bad public policy
Did broccoli cause the mortgage meltdown?
The truth about deficits
Was the problem deregulation regulation or something else?
The mixed record of the Bush Administration
Class warfare politics
The dog who did not bark
Terror by mid Night
Affordable Gold 100s not cigarettes but nearly as deadly
Conservative wisdom from Canada??
The government and its advocacy of affordable housing
Theyre still pushing deadbeat loans
Dont be tricked by a bogus definition of subprime
Affordable housing policies led to highpriced home foreclosures
Dont be confused by misleading statistics
Business and liberalism are not mutually exclusive
A lemon is a lemon no matter how it is financed
Other editions - View all
accounting activists affordable housing Alt-A loans analysts appraisal assets automated underwriting billion Bush Calomiris capital reserve cause Chapter Clinton Community Reinvestment Act companies Countrywide CRA loans credit default swaps deficits delinquency rates deregulation documentation economists emphasis added).2 entities estimate factors Fannie and Freddie Fannie mae Fannie’s Federal Reserve FICo scores financial crisis foreclosure Freddie mac Freddie’s funds Greenspan GSEs Homeownership housing bubble Ibid impact income increase interest rates investment banks investors legislation Loan Prospector mae and Freddie ment mERS mortgage brokers mortgage fraud mortgage Lending mortgage loans mortgage-backed securities NACA naked short selling neighborhoods noted obama payment percent policies predatory lending President prime programs promoted purchases rating agencies regulators reported risk risky RmBS securitization Strategy subprime borrowers subprime lending subprime loans subprime market subprime mortgage tranches trillion underwriting standards Wall Street Wallison