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 agree we should not bail out the banks who offered these loans knowing these people would not be able to afford them in a few years.
Oh, if the economics of this crisis were as simple as some folks pretend it to be. The banks we are talking about aren't the Bailey Building & Loan Association where George knew the credit worthiness of his clients. In today's Wonderful Life, mortgage loans issued by groups like Country Wide are then bundled and sold as mortgage back securities, bonds, which are sold on the open market or as part of a larger investment fund and while these bonds are rated based upon the credit worthiness of the mortgagee, the level of knowledge is solely based upon the bond issuer, if at all. And even in the case of low rated bonds, an investor can hedge his investment by paying into a credit defaut swap. The problem is, the entire system is based upon trust. Trust that the original loan granter is fully aware of the homebuyers ability to pay, trust that the assigned rating that the bond is given is correct and trust that the collateral backing all of these financial instruments is where it is suppose to be.
So, who are you going to lay fault on? At what stage in these myriad transactions does the fiduciary responsibility lie?
Oh, if the economics of this crisis were as simple as some folks pretend it to be. The banks we are talking about aren't the Bailey Building & Loan Association where George knew the credit worthiness of his clients. In today's Wonderful Life, mortgage loans issued by groups like Country Wide are then bundled and sold as mortgage back securities, bonds, which are sold on the open market or as part of a larger investment fund and while these bonds are rated based upon the credit worthiness of the mortgagee, the level of knowledge is solely based upon the bond issuer, if at all. And even in the case of low rated bonds, an investor can hedge his investment by paying into a credit defaut swap. The problem is, the entire system is based upon trust. Trust that the original loan granter is fully aware of the homebuyers ability to pay, trust that the assigned rating that the bond is given is correct and trust that the collateral backing all of these financial instruments is where it is suppose to be.
So, who are you going to lay fault on? At what stage in these myriad transactions does the fiduciary responsibility lie?
According to my 68-year old mortgage loan officer friend - with whom I was visiting yesterday about buying another house - the core of the problem began to take shape in '96 & '97, and really picked up steam in about 1999, and has been a train-wreck waiting to happen since then.
Now it has happened, and there's going to be no easy way out, and no quick fix. And we're deluded to think that we're going to find answers from the government - especially in light of the fact that it was government policies that have been behind this debacle the whole time.
3. Stress personal responsibility by letting people - and corporations - who have made bad choices FAIL. - The people who were stupid enough to buy houses that were hundreds of thousands of dollars more than they could afford DESERVE to lose those houses. - The mortgage brokerages that pushed said people to take those idiotic mortgage loans that they KNEW would ruin them after 3 yhears DESERVE to be run out of business.
A lot of these "stupid people" were sold down the river by the banks, who promised them they couldn't go wrong taking out these mortgages. I would favor some help to let them keep their houses. Vacant homes don't do anyone's property values any good.
According to my 68-year old mortgage loan officer friend - with whom I was visiting yesterday about buying another house - the core of the problem began to take shape in '96 & '97, and really picked up steam in about 1999, and has been a train-wreck waiting to happen since then.
The dates, how convenient.
"Now it has happened, and there's going to be no easy way out, and no quick fix."
Ah, a place for common agreement.
"we're deluded to think that we're going to find answers from the government"
I knew it wouldn't last... I think that one is deluded in thinking that all the answers will be found inside of government or outside of government. But the height of delusion is the believe that there has to be a private/public resolution with the understanding that government involvement does make one run off to the hills screaming the "Commie's are coming."
Quote:
especially in light of the fact that it was government policies that have been behind this debacle the whole time.
I keep hearing this, the government invented default credit swaps?
Coming off a shellacking at the polls in November, the plurality of GOP voters (43%) say their party has been too moderate over the past eight years, and 55% think it should become more like Alaska Governor Sarah Palin in the future, according to a new Rasmussen Reports national telephone survey.
Rasmussen Reportsâ„¢: The Most Comprehensive Public Opinion Site. (http://www.rasmussenreports.com/public_content/politics/general_politics/republicans_like_gop_s_conservative_direction_demo crats_don_t - broken link)
If they follow the Palin path, the GOP will become a party incapable of pulling more than 25% in a national election. They'll end up almost disappearing like the conservative party of Canada did a few years back.
A lot of these "stupid people" were sold down the river by the banks, who promised them they couldn't go wrong taking out these mortgages. I would favor some help to let them keep their houses. Vacant homes don't do anyone's property values any good.
...and 10 years from now these same people will be in the same predicament.
When will people learn that we cannot live beyond our means, no matter what the 25-year old mortgage "expert" in the little cubicle, in the suite, at the end of the strip mall tells us?
The most powerful teacher is having to deal with our own mistakes. Americans have obviously forgotten that.
I for one am so embarassed at how the republican party and it's supporters have handled our loss of power in this country. You would think we see the writing on the wall that Americans are tired of what we are living in and focus on ways to make our party a better party for America in 2012. But no, we are more focuses on throwing dirt around and digging into conspiracies about Ice Storm relief in Kentucky! Are we serious? Is this what our party has become? I go to my local republican breakfast and I see a bunch of old men who are grumpy and set in thier ways. They dont want to change...why? Lets look at the American people and find out what we need to do to become the great party we once were and not the whining, crying, sore losers we look like right now!
I dont think republicans need to change. I believe republicans needs to get back to basics. Small gov and tax cuts.
it is pitiful that Obama beat republicans on tax cuts when democrats are known for tax increase
Dont get to caught up in this " change" crap because Obama is proving he cant change how Washington works
I dont think republicans need to change. I believe republicans needs to get back to basics. Small gov and tax cuts.
it is pitiful that Obama beat republicans on tax cuts when democrats are known for tax increase
Dont get to caught up in this " change" crap because Obama is proving he cant change how Washington works
But he can and did change how the American people voted.
Anyone who voted and felt like there was going to be a sweeping change and things were about to be peachy was and is a fool. It will take DECADES for change of that magnitude to occur if it ever happens. I'm looking at the call for accounatability but all his appointees have tax issues, his anti lobbiest theme but his under sec for DOD is a lobbiest. Same old Washington.
The more I think about it the more I think we may be in need of a third party.
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.
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.
