you're paying for this schoolbus drivers $800k house

Discussion in 'Economics' started by empee, Feb 24, 2009.

  1. You're right, except the bankers were smarter. There is something you can still lose even with 0% no money down loans, aka the financial crisis and bank bailouts robbing you of future income and making this country become a banana economy.
     
    #11     Feb 24, 2009
  2. that is the point i was trying to make.

    blaming a guy who has no risk on taking a loan ( no net worth) is ridiculous

    what does he care if he fails or not. The people that get hurt are the banks all the unnecessary risk in a lot of these cases were taking by the banks

    but guys with no net worth or negative net worth have nothing to lose if the economy tanks

    but the banks didn't care either as long as a greater fool bought it from them
     
    #12     Feb 24, 2009
  3. gnome

    gnome

    I don't think that's quite right.

    Bankers who made the loans (1) were forced to by Congress, and (2) knew they could offload ANY mortgage loan to Fannie/Freddie (Congress made that mandatory, too).

    Therefore, bankers not only didn't need to be concerned about "prudent underwriting", they were DISCOURAGED from doing so. And that was the Congress' fault... specifically, the 1999 DemoCraps who initiated Afirmative Action Lending.
     
    #13     Feb 24, 2009
  4. [OTE]Quote from gnome:

    I don't think that's quite right.

    Bankers who made the loans (1) were forced to by Congress, and (2) knew they could offload ANY mortgage loan to Fannie/Freddie (Congress made that mandatory, too).

    Therefore, bankers not only didn't need to be concerned about "prudent underwriting", they were DISCOURAGED from doing so. And that was the Congress' fault... specifically, the 1999 DemoCraps who initiated Afirmative Action Lending.
    [/QUOTE]


    ok i guess bankers don't have lobbyist or contribute to campaigns on both sides. they have no influence on the laws that are passed.
    most bills concerning certain industries are written by the lobbyest .
     
    #14     Feb 24, 2009
  5. Allen3

    Allen3

    Disturbing. It breaks my heart that this is what has become of America. Common sense is completely gone from the public square. I gotta stop being pulled into watching this crap. It ruins my whole day. Disgusting.
     
    #15     Feb 24, 2009
  6. gnome

    gnome



    What do you mean? Mortgage loan granters were in the cat bird seat... could make a loan to ANYBODY who could fog a mirror, then offload it to Fannie/Freddie. No moral concerns (Congress mandated that), no financial concerns as the loan would soon be somebody else's problem...


    [/QUOTE]
     
    #16     Feb 24, 2009
  7. gnome

    gnome

    You're right of course. American "leaders" [cough, cough] are F'in UP, and half of ET thinks they're doing the right thing.
     
    #17     Feb 24, 2009
  8. #18     Feb 24, 2009
  9. [/B][/QUOTE]


    you got it

    lenders wanted and congress gave it to them

    to imply that lenders were victim's of laws that were past is naive
     
    #19     Feb 24, 2009
  10. jaley

    jaley

    The US government is completely corrupt and Americans aren't going to do shit about it until the nation turns into a 3rd world country
     
    #20     Feb 24, 2009