Ping!
super subprime?
I’m sure there are a few responsible people out there that have always done the right thing by making their payments, that are seeing all of the bailouts of the irresponsible, and in their own way they are saying “screw it”.
It’s all about LTV and debt service coverage. Credit history provides little more useful credit information than a magic eight ball, except insofar as such information provides insight into current debt service coverage.
It’s not the borrowers (and really not so much the loans that were made), it’s housing prices and the job market.
Houses were priced way above historic norms. A good percentage of people (regardless of FICO score) who bought homes the last 15 years were pretty much maxing themselves out financially to afford the payments. An illness, a pay-cut, or a layoff and the house goes into foreclosure.
Add that to a job market that’s been soft since the outsourcing boom started, and now growing unemployment. Hard to make the mortgage when you’re not pulling a paycheck.
Things are going to continue getting worse until the job market gains some stability and/or real-estate prices come down to fall more in line with wages. Bank losses are going to be in the trillions.
In a nutshell they (the FReepers) lay out the gist of the entire scenario we are seeing unravel a once sound economy. Anyone remember Hydro-shock> Both he and I saw this coming in mid 2005.
I wish all of them good luck in the coming future in regards to the crap we are trying advert.
The goobermint backed lawyer infested global Ponzi scheme for the funding (theft) of taxpayers' monies with social smokescreens with that of ACORN, Fannie/Freedie, the CRA, blind eyes to illegal immigration to hand out liar loans, etc. have now come to full light if one is honest and keen enough to the the elitist thiefs' bet. I honestly feel terrible for the sheer numbers of good honest hard working Americans now upside down with their mortgages who traded up, bought for the first time or moved due job relocation, etc., in the recent goobermint created housing bubble.
What is even more amazing is the LSM and politiicans' silence of exactly how all this is directly tied into the globally unregulated derivatives market meltdown, commodities (oil) futures price manipulation from last summer (18 mo before that too), and hedge funds melting down, many of which had goobermint employees retirement monies invested. What is even more amazing is the nod given to borrow (leverage) further investments at 30 to 80 to 1 on the collateral called liar loans.
Pretty slick how the elites put all this into place so the cream ('investment') money could be skimmed right off the top.
What is even more amazing is that the Fed Chairman and Sec. of the Treasury came from institutions that were smack dab in the middle of this con.
Dims in NC just raised taxes yesterday starting with their favorite: Sin Taxes. Still no acknowledgment of what is actually going to have to be down to stabilize the economy from the rip off and that is slash goobermint spending.
Economically speaking, things shot up quickly from 2004-1st qtr 2007, then the bubble burst. Trouble is no one thought of bring a parachute as the rocket quit working at the outer bounds of the ionosphere and we've got a long ways to fall now.
Here’s another fun story. Was talking to someone about his attempts to refinance his house. Wells Fargo ( who he has his mortgage with ) kept asking him if he wanted to do everything else but that. He got to the bottom of it when they told him that their office only handles subprime loans. That was this week.
When you subsidize stupidity you get more of it. Why not default if the will be carried by some other moron (ie you & me).
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