As I read more and more stories about these foreclosure “victims”, I become angrier and angrier that the responsible among us (as well as our children and grandchildren) will be forced to pay for these idiots’ greed, stupidity and excess.
Yep I know what you mean we paid off our mortgage in the 1990’s. Never wanted to get a refinance or take out a home equity loan! These idiots have ruined for us! They also caused this mortgage mess with the home flippers!
How the Toxic Mortgage Scam works:
1. After the Dot.com Bubble burst, investors, not satisfied with slow stock market gains and not satisfied with low interest rates wanted higher returns on their investments.
2. Mortgage Backed Securities looked like a good investment vehicle and they became a hot seller on Wall Street. Mutual funds, pension funds, foreign investors .... they were all eager to buy Mortgage Backed Securities. The more Mortgage Backed Securities loan brokers sold, the more money loan brokers made.
3. One small problem, however. THE SUPPLY OF CREDIT-WORTHY BORROWERS WAS RUNNING OUT. Few credit-worthy borrowers = Few good quality mortgages = Few Mortgage Backed Securities to sell = Fewer profits to be made.
4. What to do?
Easy:
"Forget about 'credit-worthy'. Those pigeons on Wall Street will buy ANY Mortgage Backed Securities we sell. If we put up rotting meat labelled 'Mortgage Backed Securities' for sale, those pigeons will buy the rotted meat from us! If the pigeons die from our rotted meat, we don't care. All we care about is making as much money as we can regardless of the legality of our actions!"
The new business model was: Find an unlimited supply of borrowers with a pulse regardless of ability to repay = Write out an unlimited supply of mortgages to these deadbeats = Bundle up this financial equivalent of tainted meat into an unlimited supply of Mortgage Backed Securities to sell to the pigeons on Wall Street = Rake in an unlimited supply of profits even in we poison the lifeblood of America's economy.
In the Toxic Mortgage Scam, the Wall Street investors (America's mutual funds, America's pension funds, America's individual investors, America's banks) were the "pigeons", the "marks", the "suckers" that were sold that poisonous tainted meat. The so-called "house buyers" were nothing more than the rotted meat used in the scam.
The new twist is that Obama wants our tax dollars to rescue the rotted meat.
Me too! I am so sick of these f***ing IDIOTS and their pitiful sob stories about how “they didn’t know” they were signing for adjustable rate mortgages. They can all go pound sand. I feel no obligation to help their sorry, no-contract readin’, bailout grubbin’ asses.
Me too! I am so sick of these f***ing IDIOTS and their pitiful sob stories about how “they didn’t know” they were signing for adjustable rate mortgages. They can all go pound sand. I feel no obligation to help their sorry, no-contract readin’, bailout grubbin’ asses.
it’s called, “redistribution”.