Brown People to Blame for financial meltdown

[Cancel 2016.2]

Furthermore, WTF is mortgage insurance for? Why isn't anyone pressuring these mortgage companies to pay out?

THAT is a very good question.

 

[TRGLDTE]

That was a few years ago.

What about McCain claiming the economy was sound last week?

The majority of the economy is sound. We have not had a quarter of negative GDP growth (yet).

The banks are failing because of mark-to-market accounting. The true value of the underlying asset is not fully represented in the value of the bond. For example, the bonds that Merrill held were trading at <20% of face. Considering the worst case scenario, the true value of the properties underlying, even with failures and large declines, was ~75% of face. Fifty percent of the value of the bonds disappeared because of the way the regs (SarbOx) required the bonds to be carried on the books.

In the aftermath of the Great Depression, the Federal Government made money from holding onto the mortgages it had taken from failed banks. I think we are going to see a replay.

 

[LadyT]

The majority of the economy is sound. We have not had a quarter of negative GDP growth (yet).

The banks are failing because of mark-to-market accounting. The true value of the underlying asset is not fully represented in the value of the bond. For example, the bonds that Merrill held were trading at <20% of face. Considering the worst case scenario, the true value of the properties underlying, even with failures and large declines, was ~75% of face. Fifty percent of the value of the bonds disappeared because of the way the regs (SarbOx) required the bonds to be carried on the books.

In the aftermath of the Great Depression, the Federal Government made money from holding onto the mortgages it had taken from failed banks. I think we are going to see a replay.

Right it had nothing to do with the fact that they were irresponsibly giving away mortgages.

It must be the fact that we require them to accurately value and report their assets.

Blaming brown people better suits you.

 

[LadyT]

THAT is a very good question.

I know.

I sent it to my senators.

 

[Cancel 2016.2]

I know.

I sent it to my senators.

LOL... I did that right after I read your question.

It is one that should be answered.

I am slightly annoyed at myself that I hadn't thought of that before.... had to have a libural suggest it... AND a gurrrll libural at that. Shame on freak.

 

[NOVA]

....even though the left is trying with all the might of the liberal media to blame de-regulation, its nice to see quite a few of the posters get it...


Just as was first reported at the beginning of this financial mess....

relaxed standards for borrowing in general and mortgages, primarily for minority and low income mortgages is the major cause of this financial meltdown....not the sole cause, but the major cause....

and Democrats are responsible for these relaxed standards....
calling any bank that demanded a credit check, or reasonable down payment, or asked for proof of income, etc. .....racist banks....

In 2005, Barney Frank got FHA to give loans of 125%....meaning the buyer had to risk absolutely no money of his own to acquire proberty...
FHA financed the entire cost of home, closing cost, and related legal fees for unqualified buyers.....to live there free and default with no cost to themselves....

 

[TRGLDTE]

Right it had nothing to do with the fact that they were irresponsibly giving away mortgages.

It must be the fact that we require them to accurately value and report their assets.

Blaming brown people better suits you.

Try reading for content. I thought you were more intelligent than this.

 

[LadyT]

LOL... I did that right after I read your question.

It is one that should be answered.

I am slightly annoyed at myself that I hadn't thought of that before.... had to have a libural suggest it... AND a gurrrll libural at that. Shame on freak.

That's because a) women are smarter and b) liberals are smarter. Of course you couldn't come up with it on your own.


This entire gift horse is going into the hands of big business and we're going to be left in tent cities.

 

[LadyT]

Try reading for content. I thought you were more intelligent than this.

Try not to be so one sided in your assertions. I already know you're not intelligent enough to do that though.

 

[Cancel7]

That's because a) women are smarter and b) liberals are smarter. Of course you couldn't come up with it on your own.


This entire gift horse is going into the hands of big business and we're going to be left in tent cities.

Well, Tiana has finally summed up this whole thread, and I agree on every point, especially A and B, but also just as much on her final point. IN other words, I could not agree more that women are smarter than men, SF can’t think of much on his own (before he masturbates, he probably purchases sexual fantasies from college kids looking to make a buck), the rich are looting the treasury, and the rest of us will end up in tent cities, sooner or later.

 

[Cancel 2016.2]

That's because a) women are smarter and b) liberals are smarter. Of course you couldn't come up with it on your own.


This entire gift horse is going into the hands of big business and we're going to be left in tent cities.

LOL.... I guess I walked right into that one... well played.

As for the gift horse part...I will disagree (though the following depends on the price they pay for this debt), while it will certainly help the investment firms and banks release debt, it will also benefit the taxpayers. This will make them money in the long run and it will should help to slow down the foreclosures. Not to mention stopping the financial collapse that would otherwise follow.

 

[Cancel 2016.2]

Well, Tiana has finally summed up this whole thread, and I agree on every point, especially A and B, but also just as much on her final point. IN other words, I could not agree more that women are smarter than men, SF can’t think of much on his own (before he masturbates, he probably purchases sexual fantasies from college kids looking to make a buck), the rich are looting the treasury, and the rest of us will end up in tent cities, sooner or later.

ROFLMAO... that was quite funny.

 

[LadyT]

Well, Tiana has finally summed up this whole thread, and I agree on every point, especially A and B, but also just as much on her final point. IN other words, I could not agree more that women are smarter than men........the rich are looting the treasury, and the rest of us will end up in tent cities, sooner or later.

Well, I've always agreed with you on that. I just think that there are borrowers that share the blame as well.

 

[Socrtease]

I don't care if you say I'm not smart but I'm an asshole because frannie and freddie made more aggressive loans in an attempt to get more people home ownership?

Calling someone an asshole is an easy seque (sp?) to a gay comment.

Actually calling someone a Trojan fan is an easy segue to a gay comment. Too easy actually.

 

[LadyT]

LOL.... I guess I walked right into that one... well played.

because you are a conservative man. Inferior in every way.

As for the gift horse part...I will disagree (though the following depends on the price they pay for this debt), while it will certainly help the investment firms and banks release debt, it will also benefit the taxpayers. This will make them money in the long run and it will should help to slow down the foreclosures. Not to mention stopping the financial collapse that would otherwise follow.

I'm not a strict constructionist or anyting but is this even constitutional?

http://www.nysun.com/opinion/unconstitutional-bailout/82095/

 

[KingCondanomation]

Yes, in a perfect - but impossible - Libertarian world we could always say that people will behave rationally. That's not human nature.

Are they going to behave more rationally and responsibly by having government bail them out and take responsibility for them?

This is the eternal fallacy haunting all leftist dogma.
It is simply not possible for people to ever become more responsible and self-dependent by making them increasingly dependent on the responsibility of government.

 

[Kamala Trump]

LOL.... I guess I walked right into that one... well played.

As for the gift horse part...I will disagree (though the following depends on the price they pay for this debt), while it will certainly help the investment firms and banks release debt, it will also benefit the taxpayers. This will make them money in the long run and it will should help to slow down the foreclosures. Not to mention stopping the financial collapse that would otherwise follow.

Bullfucking shit. If they could make money a private entity would have bought them.

No matter how many times you say them, lies don't become true.

 

[LadyT]

Bullfucking shit. If they could make money a private entity would have bought them.

No matter how many times you say them, lies don't become true.

I have to agree with A$$munch on this one.

if the price was right and this was sucha buying opportunity, an entity would have bought it.

We're gonna get screwed. is it possible that we may not? Yes. Middle earth faeries are also possible. Just bend over and prepare for the hot rod iron known as "the Fed" that will likely follow.

 

[KingCondanomation]

I have to agree with A$$munch on this one.

if the price was right and this was sucha buying opportunity, an entity would have bought it.

We're gonna get screwed. is it possible that we may not? Yes. Middle earth faeries are also possible. Just bend over and prepare for the hot rod iron known as "the Fed" that will likely follow.

One part I mistrust is guys like Watermark just putting their faith in it because Greenspan/Bernanke gave their nod of agreement, yet part of the problem was Greenspan/Bernanke running the fed and following a policy of strictly low interest rates which only encouraged more borrowing.
They were already wrong once, they are not infallible.

 

[Cancel 2016.2]

I have to agree with A$$munch on this one.

if the price was right and this was sucha buying opportunity, an entity would have bought it.

We're gonna get screwed. is it possible that we may not? Yes. Middle earth faeries are also possible. Just bend over and prepare for the hot rod iron known as "the Fed" that will likely follow.

Assmunch continues to ignore the problem in his line of 'thinking' (by the way... you just agreed with asshat... that should tell you something).... the Treasury has the TIME and RESOURCES to unwind this debt. Most private firms do not. Those that do... will participate in the auctions.

Just because the ability to make money exists doesn't mean it isn't without great risk. That risk is reduced by the Treasury holding it because they have the TIME to ride it out should they need to. Very few investors are going to wait 10-20 years for this to payoff.

Side note... the initial vote just failed to pass this bill in the house.