Posted on 03/23/2009 6:16:12 AM PDT by dennisw
Agreed. This is a lame attempt to change the subject back to those greedy wall street types now that the fact that the govt was primarily responsible for this mess is starting to resonate. Cause and effect are turned upside down here.
The *blame it all on government* crowd have tunnel vision. Wall Street gets most of the blame and government stooges get the rest. Maybe 40%. And count GW and Chris Cox as stooges for their regime of non-regulation and non-enforcement (Like Madoff)
What did Chris Dodd get? A preferential mortgage for Angelo Mozilo? Chicken feed compared to what Wall Street Wizards got and are getting now from taxpayers via bailouts
I don't know where this was happening, but thru my own experience taking loans over the past 15 years they want all that stuff plus a healthy credit rating. And yes they checked to verify. The problem I saw was once I was verified they tried to push far more money than I needed or wanted, not many would have declined the offer as it was presented. I knew better.
Clintons Community Reinvestment Act.
Because the loans were "for the poor and minotiries" and backed by the Feds (taxpayers), the banks had to comply or be accused of discrimination.
Organizations like Move On, ACORN, and ACLU harassed any bank who refused to comply. The left wing activist groups actively recruited people to buy homes they could not afford, because "the rich" would eventually have to pay them off by law.
The fake housing loans used up the reserves because the people who took out these loans couldn't repay them. Without the reserves, the banks couldn't give out any more loans for anything else. By law, the bank MUST have a certain amount of money in the reserves as a back up system.
The entire housing bubble crash led to the crash of everything else. It was welfare ruin amok.
Not around here they didn’t ... There are plenty of legal actions by the state against just what I cited in my post.
Yes, I have someone on the inside in the mortgage business locally.
Some banks did not do mortgage loans for reasons of the lax rules for borrowers.
“Would it have been so bad if Goldman and AIG went under?”
Goldman NO, AIG, I don’t know. I do know that I will never believe the people that run these companies are worth the money they receive. They are the equivalent of the guys that put lug nuts on cars in Detroit.
THe value of an Ivy League education in the business category has been proven.
We cannot starve the government when it has the ability to print as many dollars as it wants. The FED will replace lost tax revenue with the printing press and destroy the value of the dollar.
What the article really says, is that morals matter — and when powerful people lack morals, lots of people get hurt.
Wall street doesn’t have a 20 trillion dollar noose around our necks.
Not only did the CRA crash the banks, but the housing stocks were useless because they had no value once the banks crashed. That crashed the stock market. After that, Oboma went after the market and everyone else fled.
Good next time you talk to them ask, how much they would inflate the assessed value of the properties being mortgaged?
Silly that some people think Wall Street employs capitalists.
A capitalist is someone who puts their own capital at risk.
The lying, cheating, thieving, communists on Wall Street are not capitalists.
If you were dealing with a bank they had a list of home appraisers that had to be used. If you did not use those appraisers who gave the desired result, they there was no loan.
U.S. stock futures up on Geithner's bad bank plan
By Steve Goldstein, MarketWatch
Did you read the article? I’m not a financial wizard, but I have to say that this article is the first READABLE one to lay out this mess in an understandable format.
It may have leanings to blame big rich wall street bankers, but it also offers very good evidence, IMO, to blame them. Goldman-Sachs has fingerprints all over this and people in position to make it happen just as stated here.
I believe you that Rollingstone is in general not worthy even of fish-wrap. I can’t see the wrong in this article though. Please feel free to rebut and show me and others where it’s wrong. I for one want to know.
It's in the very first paragraph.
Had the democrats not gotten involved in banking and "free welfare homes for the poor and minorities", none of the could have happened. It was the government backed (taxpayer guaranteed) loans that started it all.
You're attacking the symptom, and totally ignoring the disease that started the plague.
Yes, Wall Street took advantage of their gift, so did the left wing activists, so did the left wing politicians, but it was the governments legislation that allowed it to happen. They decided they were going to take from those according to their ability and give to those according to their need.
Here is a link to a post I just put up. It explains ADDI 2003.
My wife worked at a real estate company as an agent until 2005.
Good next time you talk to them ask, how much they would inflate the assessed value of the properties being mortgaged?
The answer to the question is it was rampant, locally the appraisers were in on the gig.
Exactly, they had to lie about the value to get the loans thru. Any wonder how the massive bubble was created when people began believing their homes were actually worth 2-3 times their actual value.
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