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saying Wall Street banks which securitized the bad loans, KNEW they were bad. Banks putting together the derivatives had due diligence committees examining these loans which knew that 28% of them did not meet underwriting standards. But the banks sold them anyway and sold short against them. Of course, we've all known this forever - but they need to go through the process.
Maria Bartoromo also on C-Span today STILL doesn't get it. Played down the unemployment problem, saying it was mostly financial people who lost their jobs and were hurt because of this. She is married to the son of one of the Wisdom Tree mutual fund founders. They are sloshing around in so much money they haven't a clue and never will have.
I like to think - silly me - that SOMEDAY someone is going jail and is going to pay $500 billion in fines for the damage caused and lose everything they have.
When pigs fly.
Last edited by Ariadne22; 10-24-2010 at 11:53 AM..
how the taxpayer will eventually be the ones who pay for the criminal banking establishment. Meanwhile the bankers avoid responsibility and continue to live like kings.
Easily could have been avoided if the gov would not start a bailout business. When there is no bailouts, banks have to be more responsible.
If you go into a casino and you know all of your losses are not your responsibility, what stops you? nothing. When you know YOU have to cover your losses, then you are more careful what you get yourself into.
Where in the world did we see money from the poor (taxpayers) were giving to the rich (banks) ?
Soon China's banks we will ask us to change the pledge of allegiance; just take replace 'United States of America' with 'China' instead.
When they showed that the banks grabbed someone's wrist and forced them to sign up for a loan they couldn't afford I'll agree.
So, you're saying the banks did the honest and ethical thing by knowingly creating and selling fraudulent securities. The guys doing the securitization were not the loan originators - they were the investors who, when they realized their investments were bad, sold these bad investments around the world anyway. Wonder what would have happened if they had refused to buy these loans? Why didn't they?
I agree, the govt shares plenty of the blame for allowing no doc loans, etc. I sold real estate for many years and, although I was no longer in the business at the time, couldn't believe the crap that was going on. I, agree, the guy earning $25,000 can't pay his rent much less a mortgage, taxes and maintenance on a $400,000 home. That was predatory lending coupled with lack of personal responsibility on the part of the borrower.
But the securitization of these bad loans was what put us over the cliff. And the guys doing the securitization are REALLY SMART. So, while there is a lot of blame to go around, the buck stops with them. They were selling fraudulent investments and they KNEW it. And they even bet against these investments, and made double the profit. That's called gaming the system.
And, they still have all their money. Mozila was just fined $45Mill - when he earned about $700Mill - big deal. None of the guys at the end of this fraud have been brought to account, yet. And, when they are, they, too, will get off with a slap on the wrist - because - after all - they are the Masters of the Universe.
Last edited by Ariadne22; 10-24-2010 at 01:53 PM..
Most of the people that I know that lost thier houses did so because they gambled heavily or overspent and drained their equity over and over and then hit a rough employment patch and had no savings to rely upon. In a few cases, catastrophic illness without health insurance was the culprit.
Banks facilitated greed, was this guy ripped off or gullible? Nope.
I know some friends that did this too on a smaller scale and are now forced to rent their extra properties they were thinking of flipping for a fast buck.
I DO agree heavily with your comments about the government. Remember too that the old tighter lending restrictions were attacked as racist 10 years ago as well.
I think the man losing 9 houses was riding on the Greed Train. The same train that crashed and burned...the same train the banks and ( some ) realtors rode on . ( No offense to honest , ethical realtors )
He bought 2 houses in 2004 and should have stopped there. He likely made some money or got a taste of the future money he thought he would make.
Friend of mine ( her friend ) bought 3 houses with the same idea , lost all 3 and filed BK.
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