[Polybius]

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.

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.

[Mark was here]

LOL. The bigger they are, the harder they fall. These jerks went from “sophisticated investors” to “Pigeons”. These Wall Street Bozo's don't deserve a bail out, they need their a** kicked.

[Wooly]

The best thing that they could do to resolve all of this is quit trying and let the market take care of it, On my street, six months ago there were 4 out of 7 houses that were foreclosed. All of the families that bought them, took out seconds to buy cars, motorcycles and other toys. In each case none of the families had the income to be in this neighborhood and the end came fast. Now there are no empty houses on the street and the people who moved in are very responsible with the incomes to support their home ownership.
However if they allowed the market to correct itself, they would be able to secure power for a longtime. So I hope Obama the Great, Nancy the First, Harry the Highest, and Barney the Fierce along with their court of many jesters keep it up and going down.
Just remember it has only been a months, but I have heard reporters make the comment that it seems like years. He is getting old fast and I figure that some of the solicitations for campaign donations are not being returned.

[tcrlaf]

Yet, you don’t take in to account the MASSIVE inner-city mortgage fraud schemes that set this off in the first place.

In some cases, single schemes involved 500+ homes, OR MORE...

Last summer, it was stated that 40% (FORTY PERCENT!!!) of Repos in some (Democrat-run) cities involved mortgage fraud.

When the basic asset is exposed to be so weak, Democrats are scooping money out BY THE BUCKETS from perpetuating, condoning, and financing the frauds, and Republicans were too afraid of the media reaction to stop it, YOU HAVE A RECIPE FOR DISASTER....