Posted on 01/31/2009 9:23:40 PM PST by STARWISE
The Wall Street crowd that packed into the ballroom of the fancy Times Square hotel didn't know what was about to hit it.
As the bankers and analysts sliced into their grilled beef tenderloin and chicken, Sheila Bair stepped up to the microphone and told them off.
Too many people couldn't make their mortgage payments, she said.
The mortgage industry was sitting on a ticking time bomb and just didn't get it.
Pick up the phone, she said, and talk to borrowers.
"The sense of hostility from that audience was overwhelming," said Howard Glaser, a Washington-based mortgage industry consultant who sat at Bair's table that day in October 2007.
"I thought they were literally going to throw their desserts at her."
(Excerpt) Read more at news.yahoo.com ...
The Government forced loans to bad lenders under Deval Patrick. So, yeah, those bad risks who had no business buying a house are not making their mortgage payments.
Foreclose and kick the bums out: take the hit. They're not going to turn into good debtors anytime soon.
She sounds like a decent person. We should demonize her...
When are you clowns going to stop pushing that line of BS.
OK, here’s ANOTHER line of BS you’re gonna like even less.
In a column on the financial melt-down published around 11/30/08, New York Times columnist Thomas “The Earth is Flat” Friedman treated readers to yet more classic MISinformation so typical of the soon-to-be-bankrupt Times. Could their long history of historical revisionism be the reason they’re in trouble? But that’s a topic for another post.
Friedman portrayed the greedy bankers and Wall Streeters as the villains.
Yes, many of them may have gamed “the system,” bundling this “junk” into “derivatives” even PhDs in economics didn’t understand.
But if that “system” hadn’t been created in the first instance, the gaming would not have even been possible. Friedman conveniently failed to mention that the system was a creature of the 1977 Jimmy Carter sponsored “Community Reinvestment Act.”
Allegedly designed to make the American Dream of home ownership available to all, it was expanded in the Clinton years to include even those with virtually no prospect of repaying. Lenders who refused to “get with the program” were threatened with loss of their charters.
Until it unraveled, it was a brilliant Democrat vote-buying scheme.
And as it unraveled, Barney Frank, Chris Dodd, et al stood silently by and watched. These clowns are either too stupid to hold public office or the new poster boys for UNINTENDED CONSEQUENCES.
For all the pain they have caused with their idiocy, these alleged “leaders” should be hauled into a courtroom and tried. If found guilty, I think public hangings are in order.
Bin Laden and his ilk have long sought to bring this country down economically. With that job now done by Frank, Dodd, Reid, Carter, Clinton, et al, the Islamofascists can now devote themselves to full time bomb building.
And for those who think I exaggerate, here is some of the rare wisdom offered by a former President (with whom I have many problems but at least got THIS part right):
“At what point shall we expect the approach of danger? By what means shall we fortify against it? Shall we expect some transatlantic giant to step the ocean and crush us at one blow? Never! All the armies of Europe, Asia and Africa combined with all the treasure of the earth (our own excepted) in their military chest, with a Bonaparte for a commander, could not take a drink from the Ohio or make a track on the Blue Ridge in a trial of a thousand years.
“At what point, then, is the approach of danger to be expected? I answer, if it ever reach us it must spring up amongst us; it cannot come from abroad. If destruction be our lot we must ourselves be its author and finisher. As a nation of freemen, we must live through all time, or die by suicide.”
Abraham Lincoln, 1837
Re: Post 5
Outstanding!
So which unqualified buyer is responsible for repackaging mortgages and reselling them ad nauseum?
#5 EXCELLENT!!
> She sounds like a decent person.
Are you sure? An interesting line from the article was this: “The bad bank, if adopted, might be run by Bair’s agency, the FDIC.”
Basically you have a government bureaucrat who thinks she knows everything and should get more power. I see nothing decent or, unfortunately, surprising.
Since they were reselling, who was doing the BUYING?
Fanny. Freddie. Up to about 130 to 1 leverage, because the government said it was OK. That would be Barney Frank and his ilk, who encouraged them to do even more, so that Frank Raines and HIS ilk could keep paying themselves million and even 10's of millions of dollars in bonuses.
Ever hear of NINJA mortgages? (No Income / No Job / No Assets) The people loaning the money were wrong. And the people APPLYING for these mortgages were wrong. The rating agencies that turned their eyes away were wrong.
Yeah that post makes me wet with denial as well.
Barney Frank and Dodd both should be in jail IMHO... but that said I think they are both stupid and crooks, Dodd is why we should get away from son following father in this business of politics... Look at the list and where it is gotten us... from the Dodds, the Gores, and many more.
Actually most of them are still employed. 9 out of 10 actually.
http://www.freerepublic.com/focus/f-news/2176028/posts
So have you ever heard of the commissions and bonuses issued for selling these ninja loans?
ever heard of morally bankrupt behaviour.
Post #5,,,,,BEST POST OF THE DAY!!!
This part stuck out as just all too true:
Bin Laden and his ilk have long sought to bring this country down economically. With that job now done by Frank, Dodd, Reid, Carter, Clinton, et al, the Islamofascists can now devote themselves to full time bomb building.It's coming.
My you have a way with words.
Yeah. No mercy for them. Unemployed to a forced vacation. Now they have time figure out how to spend the money they made soliciting and writing those bad loans.
In 2 or 3 years they will be just about out of the money and ready to go back to “work”.
> Slightly more decent then the average bureaucratic numskulls?
I am not even prepared to give her that much. Purchasing defaulted mortgages by the government is a terrible idea. It was terrible when McCain proposed it and it is terrible today. Who will price these assets? Who picks which assets get bought? What will the government do with these assets and with the people who reside in the property and do not pay mortgages? This is an inane idea and it says nothing good about the Republicans who propose it.
So what do you think the answer is? Shoulld we continue to line the pockets of wall street bankers for no reason.
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