So this guy stands in the midst of Wall Street and rants about having to bail out his neighbors who may have lost their jobs as a result of the same criminals on Wall Street who were just bailed out. Are you confused yet? I want my money back.
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#50 Bushed says nothing
>>
Your perverted lifestyle seems to be getting in the way of you being able to raise a decent argument. On the other hand who cares what you think.
“Yep, the banks knew what they were doing, exactly what the Community Reinvestment Act told them to do. Make loans to people that couldn’t afford to buy a house but no, the Liberals thought that everyone had some “right” to buy a house.”
Typical Ron Paul/Libertarian nonsense.
1). No bank was *forced* to change any
of their regulatory oversight mechanisms to make any loans.
2). All of the current data indicates that it is a pathetically
small percentage of the
foreclosure rates that are made up of “risky” loans.
Its always a case that if money and wealth come easily its not appreciated nearly as much as if a person had to work for it
Bunch of spoiled brat crybabies who had an easy time shoveling away other people’s money with little work on their part
It can be said of many people in the financial field that they have little scruples
Perhaps now you will have to work for your money and earn your wealth
The community reinvestment act was passed in 1977. Logic dictates that if it was so poisonous to the housing market, why would it take 23 years to do so? Because it had nothing to do with it. What killed America was the GOP bill Gramm-Leach-Bliley act that essentially got rid of Glass-Steagall and opened the door for lenders to go wild and unregulated.
I guess the most similar event that occurred was the Reagan deregulation of the formerly stable Savings & Loan industry. Not long after his executive order was signed, the S&L industry imploded due to a deregulatory environment that allowed them to give loans to just about anybody with little or no standards.
The GOP deregulation monkeys have destroyed this country.
I agree with Santelli. If you buy a house that you cannot afford then you lose it. Period. Tough. This has nothing to do with bankers or mortgage brokers or anyone else except the buyer. If you screw up why should the government bail you out. What is wrong with personal responsibility. Obama has no clue about personal responsibility and has to come down to reality and the American way. I am glad that he had the guts to talk about this on CNBC.
You really read 70 posts on this? You think there’s anything new to be said? The demand for mortgage-backed securities drove relaxation of lending standards, “flip this house” drove fantasies of easy money, there’s blame on the borrowers and lenders side for this Ponzi scheme, and on the regulators who ignored warnings from competent observers perhaps hoping they too could cash in before the crash. Now we play blame game because no one but Uncle Sam has a big enough credit card to avoid a crushing recession? Anything intelligent to say, or just quoting talking points some more?
Thought so.
Sigh, what I am going to say is not going to be popular. But, their should have been no bailout for the lenders or the borrowers.
Many of the banks that made stupid loans would have gone into bankruptcy. What do you suppose would happen to all those loans? Well the good ones that the borrowers can actually afford would have been bought by other banks, the bad ones would not be.
Yes, some people would lose their homes because of this. In the end though, those people would be able to get into an apartment, or a smaller house that they could actually afford long term. In the end, in a few years, smaller banks would spring up to replace the ones that went out of business, hopefully though they will have learned the lessons of the previous banks and actually make good decisions in the future. The free market would have worked the way it should have. It may not have been fun for everyone, and some individuals and banks would have been ruined. But in the end the whole would have been better off.
However, that did not happen, and will not happen. Instead lawyers turned politicians decided that they knew better than the free market, and that the banks were “too big to fail”, and that the government should borrow against the tax payers to save private companies that made bad economic decisions, and once they opened that door, every other large business that’s made bad decisions came a running with their hands out.
The presidency changed political hands, and those same lawyers got even more power in congress. Somewhere these people relized that this crisis that they made worse, could be used to buy even more political power, and rammed though a bill designed to do just that. Of course, it was called something else.
And here we are, things are getting worse. Government who spent their way into this problem, seems to think that they can spend their way out of it.
At some point the credit that the rest of the world has giving to the US tax payers will dry up. When that happens things will get bad. But we will not be alone, we will take most of the civilized world with us.
Very few commentators are able to stay in touch with the common man as well as Rick Santelli. There on the bond trading floor in Chicago, he really has his finger on the pulse of the country.
And those of you who advocate declaring America a bailout-free zone simply have no idea of what you’re really asking for. I only say that because it really is impossible to predict what will happen when true financial panic becomes widespread, and that’s exactly what we’re looking at without bailouts. I can almost guarantee that you’d be begging for the good old days when your biggest gripes were expensive gasoline or disappointing results from the “No Child Left Behind” program.
Financial collapse begets chaos, and chaos isn’t as much fun as you may think. In this case the chaos would be worldwide, and a surprising number of people seem to think that the good ol’ USA may have started this mess. Just be careful what you wish for.
The right wing nuts are still in denial that they lost the election.
The CRA did NOT force banks to give loans to unqualified people. What it did was force banks to stop discriminating against people and areas. If the property was worth it, the bank was not allowed to say no if they would have given a same mortgages in a different locality. CRA mortgages have been more successful than other mortgages and have done a lot to rebuild inner cities.
It was not the sub-prime mortgages that caused the crash. It was the number of people that lost their jobs, as companies rushed to source to China, and could no longer afford the payments. This quickly escalated into a recession.
My mortgage is in good shape. I’m ahead on my payments and chipping away at the balance. Just before Christmas we had to turn down a job offer for my wife that would have been a real boon. We can’t sell our house because there just aren’t any buyers and can’t afford to buy somewhere else and hold two mortgages.
Our area currently has an “official” unemployment rate of 12%. Most people around here think it is closer to 25%. Yes, we could blame them and say it is their fault they were laid off. Yet, when it come time to collect the taxes and our country and School come up short, … Then there are the demands put on the local services.
Enough, all you Leibertarians sit on your thumbs and rotate. That is the best way you could exercise your brains.
WELL, lets see about the housing BOOM/BUST.
Giving loans/mortgages at 8% that after 10 year go to 18%??
WHOSE IDEA WAS THIS??
Get a few under middle class BUYING into it at 8%, and then it GOES UP to 18%?? SO WHAT you can afford 8%, and 18% will cripple you.
AND guess what happened.
Those folks could JUST MAKE 8% payments, and NOT get ahead of the payments. 18% hit at 10 years and WIPED them out..
LET them all fail..
THEY didnt want the regulations..
THEY said to all the politicians, WE CAN GOVERN OURSELVES..(lobbyists, gotta love them)
LET THEM.
LET THEM FAIL..
THE NEW ones that pop up will be MORE educated and KNOW the problems..OR DIE trying.
How much does the average trader on the Chicago floor make? Anyone? Anyone? Fuck all of those creeps . . .Kudlow, Cramer, Santelli . . . Fuck them all. None of them were able to predict the collapse. Why would I listen to them now?
#74, ECA,
If they fail and more people lose their homes, that will totally kill any value in my home. At a certain point when the mortgage owed is more than the value of the house, I will be dinged for PMI.
Right now, we couldn’t sell our house if we tried. There are no buyers and with the number of others selling through desperation, the prices have been very deflated.
The tightening of the money markets has hurt a lot of local businesses. One brass company closed a little before Christmas. One morning the Bank called to say that the inventory, bought with credit, was now worth a lot less than when it was bought. The company had to make up the difference within three days. There was no money for the payroll or, even worse, payroll taxes.
That is not an isolated story. It has happened several times. When those laid off employees want to sell their homes, they can’t. They owe more than what they are worth and no one wants them anyway.
Can’t blame the buyer.
Do you know how complicated loan process, APR and all that crap is to first time buyer?
Loan agent sell the loan, he’s expert.
The alphabet soup of new financial instruments that have proliferated the last few years, many of which have been described as so complex only MBAs can understand them, remind me of nothing so much as the scene in Paper Moon where con man Moses Pray (Ryan O’Neal) keeps complicating the change-making process with the drugstore clerk until he has rooked him out of ten dollars or so. As soon as I started hearing about some of these scheme, I wanted nothing more than to grab my wallet and run in the opposite direction. Unfortunately, I didn’t run far enough…
(I don’t know if Mars would have been far enough!)
76
QUOTE:
Right now, we couldn’t sell our house if we tried. There are no buyers and with the number of others selling through desperation, the prices have been very deflated.
UM,,not that you CANT sell your home, its that YOU WONT sell it at this price..
I can see where it HURT the metal fabrication when the Price dropped..
BUT, WHAT LARGE corp is depending on STOCKS for PUSH there market share? THEY SHOULDNT..
WHat BANK gives out MORE then it HAS?? they SHOULDNT..
I posted awhile back a funny little fact.
They the current amount of PAPER money in the USA to BACK sales is only 20%, the REST is just NUMBERS being swapped back and forth.
We are in the virtual MARKET/BANKING..and the only ones that CANT do it, is the POOR and middle classes. IF most of these corps HAD to come up with MONEY and hand it to you…THEY COULDNT.
If we Pulled our money OUT of the system…Do you KNOW HOW FAR it would fall??
ALL the corps and rich would file INSTANTLY Bankruptcy..Just to save there BUTS and hold onto what they have.
#63 – it was worth reading down to your post. thank you for putting my own thoughts into words
#81, ECA,
No, it’s that we can’t sell. If we reduced the price to where someone would buy, we would be selling for less than we owe. The mortgage holder would demand the difference and that is money we don’t have. As long as we make our payments, the Mortgage company doesn’t care so much about the value and won’t push it.
That is the biggest reason right now why the mortgages companies will “work” with someone in default. They know if they foreclose they won’t get their money back. They are hoping that keeping people in their homes will mean they don’t lose their investment.
83,
very true, and the FARTHER we go in the hole, the CHEAPER the bank will settle for..
Dont sign anything until its in the toilet and being FLUSHED..
remember when CC cards were 10% + the yearly FED?? and most cards were 18%..
and the FED dropped the rate, and the CC corps DIDNT..