Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I've been reading and looking for someone to point out that so many of you have only blamed government government government. You seem to have forgotten about the private sub-prime loan operations that pulled dirty tricks with loan applications (want details?) and helped applicants "misrepresent" their financial situation, and those who then created derivatives to bet on those loans failing.
Really? It was everyone else, huh? The Federal Reserve had to create $2 Trillion in QE to buy Fannie- and Freddie-issued MBS, NOT private sector-issued MBS.
Follow the money... the federal government is to blame on this. Even Barney Frank (former US Representative and Ranking member of the House Financial Committee) finally admitted it:
Quote:
Asked about the government's affordable housing goals compelling Fannie Mae and Freddie Mac before the crisis to devote more than half their portfolios to riskier nonprime mortgages for low-income borrowers, Frank blurted out: "No more goals, no more telling the private sector how to invest in the housing market.
"Barney," Liesman asked, "are you suggesting that the goals of Fannie Mae and Freddie Mac, the concept of promoting homeownership, was something that contributed to the crisis?
Informed Consent, you're not acknowledging that it was the obscene derivatives
that balooned the crisis, not fallen mortgages. When AIG went belly-up on its
Credit Default Swap obligations, the FED had no business bailing them out
just so Goldman Sachs could get paid.
This is an issue where the banks, insurance co's and brokerage banks (thanks
to suspension of Glass-Steagall) all wanted their damn money, and they got it
despite the fact that they gambled like drunken sailors, and lost.. then we
were forced to make them whole. It's disgusting and you should stop making
excuses for it, or I don't think very many people here will respect your shilling
for an immoral oligarchy that should continue to be treated as special when
average people pay the price.
Informed Consent, you're not acknowledging that it was the obscene derivatives
that balooned the crisis, not fallen mortgages.
The Federal Reserve didn't create $2 Trillion in QE to buy derivatives. They created it to buy Fannie and Freddie MBS. Why? Because at that point the MBS have matured (paid off) and the derivatives on which they're based are no longer a problem. The Federal Reserve is just going to let those $2 Trillion in Fannie and Freddie MBS roll off their balance sheet as they mature, paid or not. Meanwhile, $2 Trillion in QE was artificially injected into the economy, taxpayers are paying the interest on that $2 Trillion in additional debt (US Treasury Bonds were likely created to finance that $2 Trillion in Fannie and Freddie MBS purchases), and the $2 Trillion in artificial QE injected into the economy has devalued the US $.
This is an issue where the banks, insurance co's and brokerage banks (thanks
to suspension of Glass-Steagall) all wanted their damn money, and they got it
despite the fact that they gambled like drunken sailors, and lost..
Nope. Even Barney Frank finally admitted the truth:
Quote:
"Asked about the government's affordable housing goals compelling Fannie Mae and Freddie Mac before the crisis to devote more than half their portfolios to riskier nonprime mortgages for low-income borrowers, Frank blurted out: "No more goals, no more telling the private sector how to invest in the housing market.
"Barney," Liesman asked, "are you suggesting that the goals of Fannie Mae and Freddie Mac, the concept of promoting homeownership, was something that contributed to the crisis?
Let that sink in... "No more telling the private sector how to invest in the housing market."
"Telling"...
Without that government-forced significant reduction in lending standards to meet HUD's Affordable Lending goals, none of the rest would have followed.
Want to learn more about it? Read the Clinton/Cisneros-era HUD documents. At least 50% of the Trillions of dollars worth of mortgages Fannie and Freddie bought and bundled into MBS they then subsequently sold to worldwide investors had to be made to disadvantaged borrowers:
Incorrect. The mortgage holder has a lien on the property. They do NOT have Title to the property. That's exactly why tens of thousands of Americans 5+ years behind on their mortgage payments got free homes and were able to retain ownership of their homes when the statute of limitations on foreclosure expired.
No, you are incorrect.
The reason why foreclosures were not done was partially explained in my previous post. It was impossible to legally foreclose, because the mortgage was sold to multiple entities. Many foreclosures did take place as the home buyers were unaware of the legal requirements pertaining to such foreclosure, so they didn't challenge it, and courts turned a blind eye, and approved the foreclosures in spite of the law..
No, I am not incorrect. I'm 100% correct. It's exactly why once the statute of limitations had expired, a home cannot be foreclosed upon. The mortgagee doesn't own the property; they only have a lien on it. The same is true for automobile loans, as well. The truth is in the Title. Owners are a completely different legal entity than lienholders.
Check out the far worse income equality in socialism and communism. Tyrants in power (government elite class) and a few wealthy get it all.
Everyone else is poor and if you can buy property it is a 100 year multigenerational loan.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.