Because you have to appeal to the masses to remain in/be elected to public office.... Most people are losers, therefore they are the ones that must be appeased. Sad but true.
No, actually, I have been in my home for 21 years, and haven't had any financing on it for many years. Rather, I am a private mortgage lender, and have been so off and on for 20 years. Unlike commercial lenders recently, I never lend more than about 70% loan to value. As a result, I have never taken a loss on a secured loan. I have no sympathy for the 0 down, etc. lenders. But, having said that, if these lenders want to re-negotiate their loan terms, I don't give a damn as long as tax dollars or government guarantees are not a part of the mix. I'm also in the process of developing some waterfront property I bought recently. So, I guess I also have a selfish interest in seeing a healthy real estate market. http://elitetrader.com/vb/showthread.php?s=&postid=1405091&highlight=island#post1405091
The government really will make things worse by having to set guidelines for who qualifies for the assclown bailouts. Fraud up the ass will take place in hiding assets etc to qualify for these bailouts. I really only see losers here with this idea except for one group. Lawyers will make money on both sides of the debate. You will have the people claiming predatory lending seek counsel. You will also have class action lawsuits by borrowers who followed the rules and are now getting raped and unable to get their rate lowered for being financially smart. Great time to be a lawyer.
Lewis's post was a bit simplistic. Does he expect that the Goldman Sachs of the world did not know the risk. What a horseshit conclusion. Whoever got stuck with those loans in the US knew the risks. How could anyone sell 100% (or more) LTV loans - give 2-5% to the loan broker and expect to get paid pack. They were selling suicide pills to the borrowers and their shareholders. In the finest tradition of LTCM and Victor Neiderhoffer they made bets where they could make large short term profits and bonuses. Knowing that their shareholders and investors would eventually suffer or lose everything. Wallstreet has a taste for short term bonuses and long term screwjobs. They are addicts just waiting for their next victims. What will be the next game they rig. And when can I put on my ratio back spreads.
Yep just like those massive Hurricane Katrina relief frauds they uncovered about a year after the fact. They had people claiming their dogs, cats, birds, dead relatives, nonexistent people, all kinds of stuff. It was wild. The basic program was giving $2K cash card to people.....I work at a bank, so you should have seen how much money Footlocker and Victoria's Secret made in that 1-2 month period. CRAZY. I saw the transactions myself. I forgot how many billions the GUMMINT got screwed out of....BUT YET these EXACT same people are running around on TV with Jessie Jackson saying the GUMMINT left em high and dry with no aid. AHAHAHAHAAHAHA yep there will be fraud and lots of it man.
All this time I thought I was irrespnsible because i was a daytrader. Now I feel better and am actually going to put that on my resume should I ever need it. Thanks
Careful, your jealousy is showing. If you want to wager some cash about my ownership of the island, post it here. Any amount in excess of $10,000 is OK with me.