MTV is to blame everyone wants to be on Cribs It's all Clinton's fault for repealing Glass Steigel, Greenspan's fault for creating cheap money, and your local mortgage crook for duping Shanequa Jones
Thanks Compulsive for a "common sense" answer. It truly amazes me when someone has to ask for the answer to an obvious question and people really don't know. (no offense thread starter) When idiots in the banking industry aren't punished for their obvious stupidity . . . history is bound to repeat itself.
I'll give you an example of how vicious the, and I'll separate them from the legit short seller, let's say the short / distort crowd is: We finally have some US Senators who see the job destruction, and we have their attention. They are trying to stop the shorting into secondaries - that type of illegal activity. These bastardsare so vicious, they have obviously retained one 'Arturo Bris' got him in the Wall St. Journal, got some other academics to quote his work, and now, we have to go back with more data. What do you people want? Every thing at zero? Do you think that 'free market' means 'free for all market?" What we need is the DOJ to start jailing these guys on charges and convict them to stop this nonsense. Someone here accused me of 'not being in the business.' I was. But this isn't a business, which is why I got out. It's one big extortion scheme. No one can look at what UBS did? No one can see the companies destroyed, the jobs lost? The pilfering of the Treasury? I guess not. But we'll win. We'll win or we'll all be eating dirt here pretty quickly.
Basically that's it in a nutshell. Though you left out Phil Gramm sponsered the repeal of Glass-Steagall. Then the banks started "investing" again and created all these nice derivatives to get coked-up on. Plus they were allowed to pump up their leverage for a bigger high. After that, it's just detail. Subprime this time, next time whatever is most easily gamed. It's not the circus, it's who brings the circus to town that matters.
"People with bad credit histories should have just as nice a house as anybody else" - G.W. Bush Youtube: 2002 Bush speech promoting home loans for minorities with bad credit. http://www.youtube.com/watch?v=eW9viaJatpo And Whitey pays to clean up the mess. Any questions?
I can just see Steven Spielberg with his blockbusting movie called " The country that embraced Sodom and Gomorrah" with George W. in a red suit with forked tail and a Moses look-alike calling down hail and brimstone on the greedy & the gullible. Oh boy should run for years as a timely reminder
I worked at a subprime mortgage company for three months, and I have to say that the fault falls equally in my eyes between both the mortgage company and the consumer. When I started there, we offered HELOCs to people for the purpose of debt consolidation. It was helpful to them because it lowered their monthly debt obligation by paying off their insanely high cc bills which literally take as long to pay off as a mortgage when you are only making the minimum payment. Even with the rate on their HELOC being 10% and higher. Where these people began running into trouble, is that instead of cutting up those credit cards that we would pay off, they ran them all back up to the max. So they fell into an even bigger monthly debt obligation. The subprime mortgage company is unable to stop them from using those cards again. However, we would get people coming back to refi again and pull any new equity they had over the past couple of months. I literally couldn't believe that in the time I was there, I would get a client returning to do another refi. I quit the company because it didn't seem right. That, and the fees were ridiculous that they were charging the consumer. I went to work with a friend that owned his own mortgage company and decided to deal only with A paper borrowers which was nice because they understood how borrowing money works. I would still get people that wanted to buy outside of what was reasonable for them financially. When I told them this, I wouldn't get the business, and I know they went and found someone that would make it happen for them. I'm sure plenty of these people are the ones getting foreclosed on. It seems to me that there is equal blame to go around in this situation.
The buyers are solely responsible. They remain on the hook for the loans they default on. Just because the banks get bailed out does not mean the loan is closed. More profit for the banks. Blaming the lenders is like me selling you on MSFT at 50 because I showed you how you could buy it at 50 and even set you up with a broker to do it. But YOU pushed the buy button, and YOU alone are responsible for losing half of your savings that you decided to foolishly invest. BUYER BEWARE Too bad the taxpayers don't get the houses whose loans have been called, foreclosed or otherwise defaulted on. If you read the plan, the bailout is NOT for the reduction in price to liquidate the RE assets. The bailout is for the WHOLE cost of the assets, BEFORE the profit from the asset sales are considered. The fuckers get their money back TWICE. The bankers and politicians are the ones who legally raped the taxpayers with this. They get paid TWICE... from selling the asset AND from the bailout. No surprise about either profession, eh? Bottom line: Buyers were foolish but everyone else will pay for their foolishness. SOCIALISM couldn't be simpler. I hate the Fed and it's buddies in the big banks. There should be a civil war over their fiat money. But you sheeple will just bend over with a smile because you believe 'that's the way it is.'
if you sold me MSFT @ $50 with no money and the stock goes to $15...... who fault is it when i dont pay you??? p.s. it is the consumers fault for what they got themselves into; it is the lenders fault for getting the rest of the world involved. If joey six pack who makes $15k a year can now buy a mansion with no money down 9 out of 10 people will bite....its human nature