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To: Hydroshock
Turmoil they created by poor lending standards and making loans that were by any stretch of smart banking standard insane. Like I said they stood in line to make the profits, therefore let them eat the losses...

What you are saying is in large measure correct, but incomplete. Lenders made loans for which a market existed. If a broker closed a transaction, followed the rules and delivered the client, they are in the clear financially for past loans. They undoubtedly feel a pinch now, which will have the effect of what the industry calls "cleaning out the garbage."

Everyone else along the path, I think, will suffer. Borrowers who took out mortgages they should not have will suffer financially. The lenders who underwrote those loans will get tagged with loans they can't sell or have to buy back because of contract conditions. The ultimate buyer of those notes will take a hit on returns, perhaps even a loss. Everyone earning a fee to move the process will take a hit to their personal reputation.

All that said, I see no reason for any kind of bailout. Foolish behavior should have unpleasant consequences. That includes the borrowers.

55 posted on 08/08/2007 10:48:26 AM PDT by gogeo (Democrats want to support the troops without actually being helpful to them.)
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To: gogeo

Agreed.


62 posted on 08/08/2007 11:23:34 AM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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