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To: adm5

Moral hazard - people will be more tempted to not live up to their obligations...

and, in the future, who in their right mind would lend mortgage money to anyone who just might not EVER be collectible?


10 posted on 10/05/2010 7:03:03 AM PDT by MrB (The difference between a (de)humanist and a Satanist is that the latter knows who he's working for.)
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To: MrB
who in their right mind would lend mortgage money??

There are plenty of regional/local banks and credit unions that made mortgage loans to creditworthy buyers with down payments, and held the loans themselves. By and large they are doing ok.

It's the international investment banks that bought big bowls of mortgage souffles that are in trouble.

Or rather, it's us taxpayers who in trouble, since it's the big banks who have the Bush/Paulson/Obama/Geithner blackmail photos stashed away.

17 posted on 10/05/2010 7:37:08 AM PDT by Notary Sojac ("Goldman Sachs" is to "US economy" as "lamprey" is to "lake trout")
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To: MrB
[Moral hazard - people will be more tempted to not live up to their obligations]

Uhuh. And now they can just smoke "medical" dope in California, Colorado, etc - and avoid thinking about it.

The process of subversion continues... while predators hidden in the tall grass sniff the air and patiently wait.
22 posted on 10/05/2010 8:10:34 AM PDT by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
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To: MrB

“money to anyone who just might not EVER be collectible?”

Not a bad thing. Then more people won’t get loans they cannot repay.


43 posted on 10/05/2010 3:13:27 PM PDT by Niuhuru (The Internet is the digital AIDS; adapting and successfully destroying the MSM host.)
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