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Interesting use of the word 'inconvenient' from some one who makes a living, 'investing' in the housing market. They believed they had a shot at it and they took a risk. Same as you, when you began; knowing the risks and believing in yourself that you could handle it. However, not every one's investment proved to be sound, so they made a decision. Ethically, that is not as bad as the one knowing when they walk into the lending institution, their annual salary, plus credit history is a shamble, but they (made a promise knowing they can not make good on their word) sign the promissory note anyway.
at ticking people off.
Many of these people were ignorant of the decisions they were making they should have know better, the lenders knew the risks of lending to these people which also included many middle class people. The lenders knew these people would never be able to pay back their loans and that was fine as long as the home prices increased.
You see the exact same thing in car loans present day, they know these companies know won't pay back their loans.
Many of these people were ignorant of the decisions they were making they should have know better, the lenders knew the risks of lending to these people which also included many middle class people. The lenders knew these people would never be able to pay back their loans and that was fine as long as the home prices increased.
You see the exact same thing in car loans present day, they know these companies know won't pay back their loans.
Ignorance is no excuse.
The car dealer and the lenders are in the business of making money. There is money to be made in repo of cars and houses, as they just flip the merchandise back out again and collect the down payment, one more time. Do that often enough, one car or house can put a substantial amount of cash in one's pocket. So what? They're going to turn some one down, because their stupid. Actually they are counting on the person being stupid, so as they can make money off (the down payment strategy) of 'em.
There's money to be made in the debt market for companies in the market for buying up debt and collecting.
I'm not in business finance, so I do not know all the ends and outs of this business. I just remember listening to a radio program, that talked about it. Though I really wasn't interested in what they had to say, just know they spoke of buying and selling of debt as an investment strategy.
Be that as it may, a person should know their income well enough to know what they can and can not do, long before they attempt to do it any way.
Of course one could argue, if one doesn't take that risk, that leap of faith, the person will never reach success. I almost made that jump off a tall building. I stressed. I learned my limits and I learned I'm not a risk taker. So sue me. Some folks are risk takers my hats off to those who are. Just don't going crying foul play, to the government or lender or business sales person, when they land on their butt.
Wall Street didn't drive the mortgage market. Fannie and Freddie did. And they were hell-bent on buying subprime mortgages from originators to meet their Affordable Lending Goals mandate (see the Fannie Mae document I posted). And then they issued those mortgages in MBS and sold them to Wall Street, foreign governments, and financial institutions and investors worldwide without disclosing the fact that they contained subprime mortgages.
Congress drove the mortgage market. The kicker was the huge amount of little to no down payment mortgages. Without them bypassing the free market in housing, the boom/bust doesn't happen. They were the cause, everything else is just a symptom.
The car dealer and the lenders are in the business of making money. There is money to be made in repo of cars and houses, as they just flip the merchandise back out again and collect the down payment, one more time. Do that often enough, one car or house can put a substantial amount of cash in one's pocket. So what? They're going to turn some one down, because their stupid. Actually they are counting on the person being stupid, so as they can make money off (the down payment strategy) of 'em.
There's money to be made in the debt market for companies in the market for buying up debt and collecting.
I'm not in business finance, so I do not know all the ends and outs of this business. I just remember listening to a radio program, that talked about it. Though I really wasn't interested in what they had to say, just know they spoke of buying and selling of debt as an investment strategy.
Be that as it may, a person should know their income well enough to know what they can and can not do, long before they attempt to do it any way.
Of course one could argue, if one doesn't take that risk, that leap of faith, the person will never reach success. I almost made that jump off a tall building. I stressed. I learned my limits and I learned I'm not a risk taker. So sue me. Some folks are risk takers my hats off to those who are. Just don't going crying foul play, to the government or lender or business sales person, when they land on their butt.
Good businesses don't provide loans to someone that is incapable of paying back a loan, these bad loans were then moved to banks and others as fast as they could because they knew they would fail. Eventually taxpayers were on the short end, the banks that thought they were getting investment grade instruments were getting junk.
Businesses in the mortgage and banking industry are in fact held to standards that is the reason for the court settlements, their actions went far beyond "making money". Yes the buyers should have know but the people who do this for a living knew exactly what they were doing, they wanted no part of those loans especially when the market turned down.
here we ago with another "its george bush's fault" thread!
Why dont you go after the liberals who decided to sue the banks ( Obama when he as in congress) because they would not offer loans to low income people who could not afford them? why don't you go after barney frank for lying to the finance committee(I think it was this one) and stating that there is no looming financial crisis after bush II said that we will have a collapse if nothing is done about these loans.
I dont remember the GOP saying we have to give loans away to people who could not afford it.
Quote:
Originally Posted by Brian32332
A lot of people not just one political party or a group of investors but everyone who supported the change. In 2002 President George W. Bush called on Congress to create a $200 million American Dream Down-Payment Fund. It was almost a kind of wealth redistribution plan supported by both parties. Bottom line is it didn't work and was the major cause of the real estate collapse in 2008. I feel that in the media there is a lot of information that isn't reported and the republican party is the one that is quick to blame on many matters like this. Who do you think is to blame?
here we ago with another "its george bush's fault" thread!
Why dont you go after the liberals who decided to sue the banks ( Obama when he as in congress) because they would not offer loans to low income people who could not afford them? why don't you go after barney frank for lying to the finance committee(I think it was this one) and stating that there is no looming financial crisis after bush II said that we will have a collapse if nothing is done about these loans.
I dont remember the GOP saying we have to give loans away to people who could not afford it.
No not a GW thread.
The issue was charging minorities a higher rate or refusing to provide them loans while white applicants of equal standing were given lower rates.
The issue was charging minorities a higher rate or refusing to provide them loans while white applicants of equal standing were given lower rates.
The issue was granting five year sub-prime notes to people who did not qualify; REGARDLESS of race.
People taking gold plated equity out of their paid off home and using one of those stupid notes to go out and buy a high dollar motorhome or other stupid, depreciating value toy while making minimal payments on that note only to have it come due after five years.
When faced with the much higher interest rate and sometimes triple monthly payment they realized they now had to dump the moho on a flooded market of used toys to make those payments or face losing the home they'd owned debt free just five years prior.
That speaks to the stupidity of the borrowers firstly and the maleficence of the lenders lastly.
Franks et-al, need tar and feathering for tinkering with something they knew absolutely nothing about.
Following the money trail will reveal that self-absorbed boob living the life today on the pay-backs he received for that little maneuver.
These clowns get elected having nothing in their quiver but a fast running mouth and end up millionaires while you folks just keep on letting it happen, indeed even aspiring to be just like them.
One thing that does have an influence? Money. While the opinions of the bottom 90% of income earners in America have a “statistically non-significant impact,” Economic elites, business interests, and people who can afford lobbyists still carry major influence.
I'd say it was the bottom 99% of income earners. It's a small circle at the top.
Good businesses don't provide loans to someone that is incapable of paying back a loan, these bad loans were then moved to banks and others as fast as they could because they knew they would fail. Eventually taxpayers were on the short end, the banks that thought they were getting investment grade instruments were getting junk.
Businesses in the mortgage and banking industry are in fact held to standards that is the reason for the court settlements, their actions went far beyond "making money". Yes the buyers should have know but the people who do this for a living knew exactly what they were doing, they wanted no part of those loans especially when the market turned down.
Tax payers are always on the short end of the stick. They pay for the existence of people on welfare and to bail out banks who were forced to make loans to people who couldn't afford the mortgage. As always, people wanting something they did nothing to earn and we, the tax payer are forced to pay for it.
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