This isn’t legal.....
I also hope thye just hand over Fannie and Freddie to the RTC and dissolve the entire thing.
I am big free enterprise guy but lets face it- Management in America is becoming more and more incompetent. In most industries who cares, that is the risk the investor takes if it is so lazy not to evaluate its executives. But in the financial industry, there is very little room for error. Think about it, only a small percentage of loans (single low digit) in just the mortgage portfolios are bad, and the whole damn world is in turmoil.
We need to get back to the late 1980's and 1990's when the FDIC, OCC, FED and the Banks were only taking the best talent. Clinton got in and turned good credit regulators into Community Reinvestment Auditor and they all left. Bank's kicked all their credit guys out and brought in Sales people who did not know a debit from a credit.
Congress allowed banks to get bigger and into non-banking activities. The idea was if they got big enough, they could not fail. Now it turns out they can fail and we can’t allow them to fail. Guess who gets to pay for that strategy?
Rush played a clip from the former AIG CEO who said that regulation is not a substitution for good management- I agree! Having a friend fairly high up at Citi can tell you they had no idea how exposed they were to sub prime mortgages.
Congress is constitutionally charged to maintain a stable currency. We need to get back to the days when bankers were respected members of the community and understood they played a role in the public trust of the economy.
bump
Basic problem; there is way too much leverage in the system. Much too much. I'm not sure if anyone knows how much. The bubble will burst. It's just a question of when.
As I feared, the snowball has been pushed down the mountain. I noticed on FOX that the big three automakers are looking for a gov’t handout.
Now that the precedent has been set, taxpayers will be on the hook to bail out all the Fortune 100 companies because they are “too big to fail”.
Posted on Saturday, September 01, 2007 8:22:34 PM by CutePuppy
Investors played a big role in pumping up home prices during the housing boom. Now, they account for an outsize proportion of loan defaults, mortgage bankers and builders say.
A survey by the Mortgage Bankers Association found that mortgages on properties that aren't occupied by the owner -- mostly investment homes -- account for between 21% and 32% of the defaults on prime-quality home loans in Arizona, California, Florida and Nevada, states where overdue payments are mounting fast.
Home Loans to Illegal Immigrants Sturdy But Show Some Cracks
The Washington Times ^ | 10-6-07 | Miriam Jordan
Posted on Wednesday, October 17, 2007 12:30:51 PM by JZelle
Despite the downturn of the mortgage market, a type of home loan has remained surprisingly sturdy: one extended to illegal immigrants.
Home Loans for Illegal Immigrants [no Social Security number? No legal residency? No Problem!]
ABC30.com ^ | November 19, 2005
Posted on Sunday, November 20, 2005 8:23:27 AM by John Jorsett
For many, it's the American dream: owning a home. With the recent spike in housing costs, it's become more difficult for many Valley families to qualify for a home loan. But some local banks are giving out loans, and they don't even require a social security number.
More articles of this type are available via Google Search: immigrants home loans.
You know, there was a book I read once, that is decried as total tinfoil bull scat, that describes what is going on right now in detail.
“The Creature from Jekyll Island”... Seems we have just nationalized our housing and finance industry.
So are we international or national socialists? I suspect I know.
What's that saying? "Freedom ends with a thunderous applause"
BOHICA.
The government does not have unlimited funds and we already have a monster debt and gigantic deficits. How in the world can we keep dropping tens or hundreds of billions on a seemingly daily basis to try to prop up the market?
Hair of the dog, nothing more. The government needs a 12-step program to purge all of this BS, not another short-term “fix”.
When admitting that there is a problem, an unstated requirement in the process is that one actually note the problem itself. Here, the government is essentially saying that the problem is “not enough alcohol” and is going to sell a kidney to get enough booze to prevent the hangover for ‘just a while longer’.
As always with national socialism in its various incarnations, political “necessities” are camouflaged as “economic necessities”. When short-term politics trumps long-term economics, our sole consolation is the stale Keynesian platitude that “in the long run, we are all dead”. We are enslaving our grandchildren before they are even conceived.
Obviously no lessons were learned from RTC and how we should of never let it happen again.
So let’s say Uncle Sugar opens a new Resolution Trust whose mission is to buy up all of the bad mortgage paper that’s out there and supposedly driving this crisis.
Then what?
The bottom line is that someone is going to have to eventually buy all of those foreclosed and defaulted properties (at something approaching a real market value) in order for this whole mess to begin to end.
But who is supposed to buy those homes?? The people who just defaulted on their mortgage?? Correct me if I’m wrong, but if it takes 10 years or so for a default/foreclosure to drop off a credit report, and word is that the banks are tightening up lending practices, so will we have to wait for the next generation to get old enough to afford a house??