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Seems to me that the loans made to minorities are still being paid.
Not all of them, but it would again be correct to state that, as a group, these loans have performed better than industry averages. Just as it would be correct to state that ITN-mortgages -- the vast majority of which have been issued to illegal aliens -- are continuing to perform considerably better than mortgage loans extended to US citizens. It is apparently easy for pliable minds to be convinced by the nefarious that low- and moderate-income people are all a bunch of deadbeats and unemployed welfare cheats. The facts of the matter stand in stark contrast to that manufactured stereotype.
Quote:
Originally Posted by GregW
The loans made to main stream majorities for multi house specualtion are the bad deals.
The bad paper was actually pushed into more or less a cross-section of the economic strata that exist below the top tiers. Based on the successes of CRA financing, the GSE's had certainly expanded their role in supporting mortgage loans into minority and other low- and moderate-income communities, but the bulk of their operations was still within more traditional markets. The Wall Streeters wanted the GSE's pushed out of as much of ALL of that as possible, since their fantastic profits depended on pushing out all manner of derivatives that couldn't be produced unless there was an abundant supply of original mortgage paper available to work from. From the Wall Street perspective, the GSE's were simply horning in on their act and thereby costing them money. They wanted a stop put to that, and the administration was willing if not just plain eager to help them out with that...
CRA = Community Reinvestment Act...the 1977 law that outlawed redlining (not lending to people who lived in certain areas simply on the basis of their address) and mandated that deposit-taking, FDIC-insured banks and Savings & Loans had to lend back at minimum levels into the communities they took deposits from. Reagan and Bush-41 never enforced the law. Clinton did by threatening to withhold federal approval for mergers and interstate banking agreements if CRA standards were not met. Bush-43 returned to not enforcing the law in 2001, meaning that the bulk of all CRA-mandated lending occurred between 1993 and 2000.
GSE = Government Sponsored Enterprise. The term in today's context refers to Fannie Mae and Freddie Mac, and to a lesser degree, the 12 Federal Home Loan Banks. These are federally charered corporations that intend to support the efficiency of mortgage credit markets through serving as guarantors or purchasers of private mortgages that conform to certain standards. There are other GSE's also (TVA is one), but they aren't really a part of the current debate.
Last edited by saganista; 02-02-2009 at 08:46 AM..
I have posted Spitzer's article from the Washington Post several times on these boards. Very disappointing that he was so negligent in protecting his privacy and position in government. Wall Street hated him because he was cracking down on the SOB's. The timing of his getting caught in the act and the meltdown on Wall Street was not coincidental.
When you can state your own income and possible assets the size of the house and actual income or class have little or nothing to do with getting into trouble. All the good stuff was taken up and then they moved on down the line to keep business rolling and profits high. If you think you can control people who capitalize on such things look at the following reply by those same people. They are now posturing to get into the re-fi and other areas and surely are looking for a niche. A little market fluctuation won't stop most capitalist. A fail proof system is only fail proof till someone better than the designer comes along. Then the regulators regulate and the capitalist innovate. Being a capitalist however has nothing to do with D or R beside your name. I think you might find many Richie Rich's on both sides of the isle.
Hmmm, we are on page 2 and only one person has put any blame for this mess on the consumer.
You know, speculators on real-estate, people that bought monster houses and then racked up credit cards etc. on the *equity* then walked away. There were shady loans, bad business practices etc. but from what I've seen the biggest offender was the US consumer.
You CANNOT have freedom without responsibility.
I got my loan, I live within my means....I pay my bills. I do without things I would *like* to have so that I can afford the things I *need* to have.
There are so many examples in the media:
Example 1: Woman in FL that had an original mortgage of 150k and an ending mortgage of 400k because she kept refinancing her credit cards into her mortgage over the years.
Example 2: Immigrant family in San Fran...all 4 family members had jobs, ate sack lunches, walked to work or took public transportation...worked extra hours....they are making their mortgage payment just fine.
Well it was definitely events that required a successive order. Those loans would have never been possible if the actors had not found a route to pass through more and more toxic loans. In turn they would not have been able to pass those loans if there was no one there to take on the loan.
Yep, they made him visit his hooker girlfriend on a regular basis.
You really do not get it? Okay let me explain...
Spitzer was feared and hated by Wall Street because of his aggressive investigations into their "predatory" practices. They were hunting for any piece of dirt that they could get on him to stop his exposing and halting their despicable ethics. Unfortunately, he gave them something to cut his throat with. As glad as Wall Street and the administration were to finally have something to pin on him, that is how unhappy and disappointed New Yorkers were to have Spitzer have to resign. He won his landslide victory to become New York governor in 2006 after eight years as the state’s attorney-general.
Now, do you actually think that Spitzer's hiring a prostitute was anyone's business but his and his family's? C'mon, we had a White House that gave press passes to male prostitutes (Jeff Gannon). Sexually deviant and promiscuous behavior is rampant in Washington, so give me a break! Well, it was all that the enemies of Spitzer needed to bring him down. Shame, because Spitzer had his eye on running for POTUS down the road. Difficult to understand why he would have let this happen.
"Eliot Spitzer was going against the most powerful people in this nation. The big investment bankers that helped bring on this sub prime mortgage problem. He was going to bring them to court. He also blamed Ben Bernanke and the Bush Administration for helping them to get away with this. His problems are the Justice Departments gift to Wall Street Bankers. This is an abuse of power."
Interesting to note that the article he wrote for The Washington Post came out right after he got caught...
Spitzer was feared and hated by Wall Street because of his aggressive investigations into their "predatory" practices. They were hunting for any piece of dirt that they could get on him to stop his exposing and halting their despicable ethics. Unfortunately, he gave them something to cut his throat with. As glad as Wall Street and the administration were to finally have something to pin on him, that is how unhappy and disappointed New Yorkers were to have Spitzer have to resign. He won his landslide victory to become New York governor in 2006 after eight years as the state’s attorney-general.
Now, do you actually think that Spitzer's hiring a prostitute was anyone's business but his and his family's? C'mon, we had a White House that gave press passes to male prostitutes (Jeff Gannon). Sexually deviant and promiscuous behavior is rampant in Washington, so give me a break! Well, it was all that the enemies of Spitzer needed to bring him down. Shame, because Spitzer had his eye on running for POTUS down the road. Difficult to understand why he would have let this happen.
"Eliot Spitzer was going against the most powerful people in this nation. The big investment bankers that helped bring on this sub prime mortgage problem. He was going to bring them to court. He also blamed Ben Bernanke and the Bush Administration for helping them to get away with this. His problems are the Justice Departments gift to Wall Street Bankers. This is an abuse of power."
Interesting to note that the article he wrote for The Washington Post came out right after he got caught...
LOL....there were plenty of people that hated spitzer. One of his tactics was to go after indiscretions in people's personal lives in order to strong arm them in public cases. Sure he made enemies....but to draw a clear line that it was due to the mortgage mess and not his various other entanglements is not clear.
It's like saying that Dr. King was assassinated because he was going to start being more vocal about vietnam and not because some racist didn't like his anti-segregation and other actions.
Spitzer picked some powerful enemies. They responded. Now who do we have to take up Spitzer's quest?
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