Is it me? (Orlando, Kissimmee, Meadow Woods: apartment complexes, foreclosed, HOA)

[Granny Sue]

Originally Posted by ucfjtm

Government-backed agencies Fannie Mae and Freddie Mac didn't encourage sub prime lending? The Community Reinvestment Act of 1995 didn't encourage sub prime lending? Please. Government involvement caused the problem.. banks don't just give out risky loans for the fun of it.

You can't blame it all in the Government. That's the easy way out. We all the "the nasty government is responsible for every thing that goes wrong."

People's greed also had ALOT to do with it.

OrlFlaUsa is abolutely correct. It takes two to tango.

[g0gat0rs]

Originally Posted by chopchop0

lol @ all the sheeple that ignore the puppet master FED that dangled easy money to banks and potential homeowners during the last decade.

Originally Posted by OrlFlaUsa

It was clearly a joint effort aka it took two to tango.

Originally Posted by knowledgeiskey

I don't think the fed encouraged sub prime lending and derivatives. Those were all on the banks.

Originally Posted by ucfjtm

Government-backed agencies Fannie Mae and Freddie Mac didn't encourage sub prime lending? The Community Reinvestment Act of 1995 didn't encourage sub prime lending? Please. Government involvement caused the problem.. banks don't just give out risky loans for the fun of it.

This is what happened in simple terms.

Big banks(boa, wells fargo,etc) knew that giving out irresponsible mortgages to people w/little to no credit w/no money down w/balloon/variable interest would cause housing crisis. They gave out mortgages in hopes of smaller banks following the lead. Smaller banks give out irresponsible mortgages. Big banks smiling. Bubble pops. Smaller banks close in the thousands across the country because they don't have the capital to withstand the defaults. Where will you go if your small bank closes? To the wells or boa across the street. Banks work by essentially taking your money and using it to make more money.

Thousands of banks closed X # of customers that still need banking = big bank

That's just one of the many aspects of why the banks orchestrated the rise and fall of housing. Much more sinister reasons but only the ones capable of thinking on their own will understand so no point of posting it here.

[chopchop0]

Originally Posted by g0gat0rs

This is what happened in simple terms.

Big banks(boa, wells fargo,etc) knew that giving out irresponsible mortgages to people w/little to no credit w/no money down w/balloon/variable interest would cause housing crisis. They gave out mortgages in hopes of smaller banks following the lead. Smaller banks give out irresponsible mortgages. Big banks smiling. Bubble pops. Smaller banks close in the thousands across the country because they don't have the capital to withstand the defaults. Where will you go if your small bank closes? To the wells or boa across the street. Banks work by essentially taking your money and using it to make more money.

Thousands of banks closed X # of customers that still need banking = big bank

That's just one of the many aspects of why the banks orchestrated the rise and fall of housing. Much more sinister reasons but only the ones capable of thinking on their own will understand so no point of posting it here.

Um banks were incentivized to do so with an easy money policy from the Fed and Fannie and Freddie as a government guarantor of the mortgage market. You completely ignore the role of government and the fed in your explanation of what happened. They got to privatize the profits and socialize the losses.

[sp2007]

All I know is that the market completely died in Orlando, so it made it impossible to to sell and buy when we moved out of state. Unfortunately for us, the new state still has barely felt the recession. And my former home is now worth roughly 45% what it was worth in 2006, and 2/3 of what I paid for it 10+ years ago.

And all the houses around my former home would probably be characterized as getting ghetto now. Very sad.

[g0gat0rs]

Originally Posted by chopchop0

Um banks were incentivized to do so with an easy money policy from the Fed and Fannie and Freddie as a government guarantor of the mortgage market. You completely ignore the role of government and the fed in your explanation of what happened. They got to privatize the profits and socialize the losses.

(Huge Sigh)

I bet you think that the Federal Reserve is a government entity.

That's 1 of 100+ reasons why the big banks did what they did. The government does as told by its bosses(banks).

[chopchop0]

Originally Posted by g0gat0rs

(Huge Sigh)

I bet you think that the Federal Reserve is a government entity.

That's 1 of 100+ reasons why the big banks did what they did. The government does as told by its bosses(banks).

The government created GSEs like Fannie and Freddie, not the federal reserve.

[knowledgeiskey]

Originally Posted by chopchop0

The government created GSEs like Fannie and Freddie, not the federal reserve.

Fannie and Freddie only held a fraction of sub prime assets. Majority of toxic assets were handled by private institutions.

[ucfjtm]

Originally Posted by chopchop0

Um banks were incentivized to do so with an easy money policy from the Fed and Fannie and Freddie as a government guarantor of the mortgage market. You completely ignore the role of government and the fed in your explanation of what happened. They got to privatize the profits and socialize the losses.

Exactly this. Without the government backing the subprime loans, there's no way in hell banks would be willing to take on investments with such high risk. Fannie Mae and Freddie Mac, along with the CRA 1977/1995 is what got the ball rolling. Clinton's repeal of the Glass-Steagall Act in 1999 just made it easier for banks to sell off the risky investments. The bubble started and got rolling due to government intervention and the push for 'everyone to own a home.' The bubble continued to grow when certain lenders decided they didn't want to be holding on to these mortgages and started packaging and selling them off as MBS.

People solely blaming banks and not the government for their role in how the housing bubble got going are like the people who think it's no fault of the parents when the kid doesn't behave in school. The government set the rules and got the bubble going.

[chopchop0]

Originally Posted by knowledgeiskey

Fannie and Freddie only held a fraction of sub prime assets. Majority of toxic assets were handled by private institutions.

If by fraction, you mean "42%" or "$2 trillion" then you're correct

GSEs Held $2 Trillion in Subprime Loans at Height of Financial Crisis

Remember these organizations were a buyer of last resort for mortgages.

[knowledgeiskey]

Originally Posted by chopchop0

If by fraction, you mean "42%" or "$2 trillion" then you're correct

GSEs Held $2 Trillion in Subprime Loans at Height of Financial Crisis

Remember these organizations were a buyer of last resort for mortgages.

Still proves my point.

Most sub prime lending were perpetuated by the private banking system.