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Old 09-26-2018, 11:28 AM
 
1,461 posts, read 331,260 times
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Quote:
Originally Posted by mathjak107 View Post
all markets run on fear ,greed and perception -those are all human characteristics
I agree.

In order to be successful to the magnitude that would take you several standard deviations higher than the mean income for your area, you must deny yourself so many impulses and gut feelings that any John Everyman would swear you were inhuman, lifeless, and cold.

I believe this is why the wealthy are seen as out of touch with the rest of us. In a way, they do not react in the same way to stimuli - or at all - therefore cannot empathize with someone who has a knee-jerk reaction by the same stimulus.

This keeps each group on their respective side of the fence and preserves the adversarial "us vs. them" mentality.
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Old 09-26-2018, 03:30 PM
 
Location: London
3,885 posts, read 3,324,690 times
Reputation: 1638
Quote:
Originally Posted by Mircea View Post
That wasn't the cause of the crash.
The root was speculation in land. If the biggest bank in the world collapses it should not make the system crash. The bad loans being sold on (sub prime, otherwise bad risk) were predominately speculation in land.
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Old 09-30-2018, 10:19 AM
 
6,997 posts, read 6,635,326 times
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The bubble was caused by unprecedented leverage facilitated by mortgages and low interest rates. Borrowers didn't have to supply a downpayment and didn't have to show the necessary income to qualify for a mortgage. In some cases, they were given cash back from buying a home.

The bubble probably wouldn't have been as severe if not for the number of subprime mortgage originations exploding after 2003. They were historically around 6 percent of total mortgage originiations for many years, then immediately tripled to 20 percent for the next three years. That coincides with the federal banking regulators issuing a regulatory letter blocking the enforcement of predatory consumer lending laws by states' attorney generals. That and the creation of third-party downpayment assistance schemes, again approved by federal regulators at the urging of the FIRE industry, was primarily responsible for the subprime mortgage bubble.
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Old 10-01-2018, 08:45 AM
 
2,732 posts, read 1,212,659 times
Reputation: 2089
Quote:
Originally Posted by lchoro View Post
The bubble was caused by unprecedented leverage facilitated by mortgages and low interest rates. Borrowers didn't have to supply a downpayment and didn't have to show the necessary income to qualify for a mortgage. In some cases, they were given cash back from buying a home.

The bubble probably wouldn't have been as severe if not for the number of subprime mortgage originations exploding after 2003. They were historically around 6 percent of total mortgage originiations for many years, then immediately tripled to 20 percent for the next three years. That coincides with the federal banking regulators issuing a regulatory letter blocking the enforcement of predatory consumer lending laws by states' attorney generals. That and the creation of third-party downpayment assistance schemes, again approved by federal regulators at the urging of the FIRE industry, was primarily responsible for the subprime mortgage bubble.
Add to that there was a President who dreamt every one should own a home.
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Old 10-02-2018, 02:59 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
20,792 posts, read 37,464,612 times
Reputation: 20814
LAND (as in bare / unimproved DIRT) was inconsequential to 2008 financial crisis in USA.

Overvaluation of IMPROVEMENTS and leverage based on bogus valuation was one of MANY ingredients in the recipe.

Bare land / dirt is not 'mortgagable' / very difficult to lend / speculate / capture investors.

Different meanings for LAND... I presume.

(I was very EZ able to retain ALL my land (including speculation property (dirt)) through the crisis, cuz it was PAID for and the banks weren't calling many LAND notes due!).

interesting dynamic that led to serious degradation in regulation and 'Quality of borrower'. and the banks played right into it and gladly raped the consumers.
"Add to that there was a President who dreamt every one should own a home."

There was / is a LOT of evil in the finance world. The serfs get trampled (continually).

Looks like Phase 2 is positioning itself.
Prepare to be raped (again).
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