Posted on 09/27/2008 7:10:23 AM PDT by Dawnsblood
Sorry, this is from the CEO of BB&T.
Isn’t it true that unregulated mortgage companies originated a lot of these bad loans? I read elsewhere only the banks really are governed by the gov’t lending preferences. Or did Fannie and Freddie require people who sold things to them to play too?
if you havent seen this video please take a minute to see this - send the link to everyone you know - the liberal news media is covering this up....
http://www.youtube.com/watch?v=_MGT_cSi7Rs
Goodness!
Sensibleness on the topic.
What a surprise!
Since Freddie and Fannie had 50% of the mortgage market in the US..we couldn’t have a problem without them.
I talked to the investment people of a major, well-run life insurance company (yes, you’ve heard of them) a few years back. They saw that mortgage thing heading for the proverbial iceberg event a decade ago, and therefore stayed away from mortgages.
In some ways, this is the “GM Syndrome” (my terms) all over again. The market paid GM very well for those gas-guzzling SUVs (average $5k in profit, some as high as $15k in profit, per vehicle!), but when the market suddenly shifted then everyone criticized them for not making Prius hybrid cars.
In the same way, the market paid banks and institutions very well for doing what everyone wanted them to do, namely make it easier for people to buy their first house. Now that full force of gravity has taken effect, everyone is piling on with blame.
13. The primary beneficiaries of the proposed rescue are Goldman Sachs and Morgan Stanley. The Treasury has a number of smart individuals, including Hank Paulson. However, Treasury is totally dominated by Wall Street investment bankers. They do not have knowledge of the commercial banking industry. Therefore, they can not be relied on to objectively assess all the implications of government policy on all financial intermediaries. The decision to protect the money funds is a clear example of a material lack of insight into the risk to the total financial system.”
I would agree as far as it goes, however to this point JPM has benefitted a great deal with a fire sale purchase of Bear with Government guarantees and able to pick over the assets of Lehman and WaMU. JPM also has 9 trillion in credit derivatives on their balance sheet which they’ll unload a great deal of under the Paulson plan. JPM along with Goldman appears to be the two firms through which the PPT conduct much of their operation.
A lot of the manipulation of the commodities, (oil to a lesser degree as it’s a little more difficult to control) and precious metals in particular appears to run through these two.
Warren Buffet must have known how bad things were with the big guys, because he made a major buy in regional banks this spring. They went down for a while, but have come up nicely as people realize the difference between investment banks (in trouble) and savings banks (mostly in decent shape). Since most people have insurance on their deposits (up to $100,000 per account) they have no need to panic.
Regarding the push to get lower income people into housing, I don’t think there was any requirement to offer people teaser rate ARMS and then jump them up to market without making sure the borrowers understood the economic consequences. One fellow in trouble reported that he asked for a fixed rate he could afford, but the agent insisted on pushing him into an ARM and a balloon. He could have afforded the fixed rate, but the balloon killed him. These agents were only interested in their commissions, and the heck with the clients. “There ought to be a law.”
Predatory agency. THanks.
It’s fascinating . . . a C2C guest noted that $100 Billion would
PAY OFF
all the problem mortgages . . .
so somethings very screwy . . . no surprise in that.
Blasphemy!
10. The proposed bankruptcy "cram down" will severely negatively impact mortgage markets and will damage well run institutions. This will provide an incentive for homeowners who are able to pay their mortgages, but have a loss in their house, to take bankruptcy and force losses on banks. (Banks would not have received the gains had the houses appreciated.) This will substantially increase the risk in mortgage lending and make mortgage pricing much higher in the future.
Major ‘Earmark’ in Democrat Bailout Agreement
(URGENT must read -ACORN and more)
Blogs 4 McCain | 25 September 2008 | Bill Smith
Posted on 09/26/2008 4:04:56 AM PDT by SE Mom
http://www.freerepublic.com/focus/f-news/2090926/posts
The Democratic ACORN bailout; Update: Video added
(Hidden in the Paulson Recovery Plan?)
Hot Air | 7:55 am on September 26, 2008 | Ed Morrissey
Posted on 09/26/2008 6:11:36 AM PDT by Ernest_at_the_Beach
http://www.freerepublic.com/focus/f-news/2091002/posts
Tell Congress & President Bush:
NOT ONE PENNY FOR ACORN! PHONE FAX WRITE NOW!
various
Posted on 09/26/2008 1:33:36 PM PDT by cgk
http://www.freerepublic.com/focus/f-news/2091322/posts
Paulson-Cantor Plan Is a Win-Win for Taxpayers
National Review | September 26, 2008 | Larry Kudlow
Posted on 09/26/2008 2:38:35 PM PDT by MeanWestTexan
http://www.freerepublic.com/focus/f-news/2091360/posts
President Bush to speak on economy- LIVE
FOX | 27 September 2008
Posted on 09/27/2008 7:07:30 AM PDT by SE Mom
http://www.freerepublic.com/focus/f-news/2091737/posts
Forceful Rebuke of Bailout Plan on House Floor (Wow)
Rep. McCotter (R-Mich)
Posted on 09/25/2008 7:59:36 PM PDT by quesney
http://www.freerepublic.com/focus/f-news/2090788/posts
Rep. Jim DeMint just on Fox & Friends - Dems to pass bill without Repub support
Fox | September 26, 2008 | Jim DeMint
Posted on 09/27/2008 5:40:17 AM PDT by stockpirate
http://www.freerepublic.com/focus/f-news/2091695/posts
Well put.
Wow, thanks!
Buffet supports who for the presidency?
Words To Give You Pause On Today’s Economy
(Can we both fix the economy and punish....)
Flopping Aces | Sept 25, 2008 Sep | Curt
Posted on 09/26/2008 7:53:08 AM PDT by Ernest_at_the_Beach
http://www.freerepublic.com/focus/f-news/2091091/posts
This whole Buffet thing bothers me. There was too much fanfare and a very quick announcement of this investment. I believe this was more a political than economic move as Buffet over the years appears to have become more political with a distinctive liberal flavor.
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