Page 2 of 2 FirstFirst 12
Results 10 to 16 of 16

Thread: A small group of people made billions of $$$ on mortgage bust

  1. #10

    Default Re: A small group of people made billions of $$$ on mortgage bust

    Our monetary system is known as a fiat system. Our currency has value because the government has said so and we believe them. If one day, we decided not to believe them, our currency would be worthless. But, the US economy is so strong, even now, that moving away from the dollar is too costly to do.

  2. #11

    Default Re: A small group of people made billions of $$$ on mortgage bust

    There is a lot of blame to go around on this one including my own profession of appraising.
    The common thread here I believe was ignoring the long term over the short term.

    Loan Originators (often Mortage Brokers) cared for nothing more than getting the loan made and could care less if it went south in 6 months because they had sold the paper by that time.

    Realtors just wanted bigger and bigger commissons.

    Appraisers just wanted to keep clients happy.

    Institutional lenders (those that bought the loans <the paper>) werent looking any farther than the next quarter of the next year at the longest. They just couldnt imagine real estate actually declining. I actually had some of these folks tell me that they werent really worried that an apprisal may be inflated because statistics told them that borrowers rarely defaulted in the first two years and by then the market value will cover the loan. And lets not forget some of the loans that were being pushed 90%, 95%, 100%, even 125% loans! Because they all KNEW the markets would keep going up up up.

    The federal government put pressure on lenders to PROVE they werent "redlining" so lenders became more aggressive in areas that demanded more caution. This meant more under collateralized loans many of which were ARMs.

    And let us not forget..........

    Borrowers. Yes, the so-called "victims" in this travesty. Easy money it was. Literally little or nothing down! Did they really need 2500sf and not 1500-2000sf? Did they really think that historically low rates wouldnt go up on their ARMs? I cant begin to tell you how many were "Cash Out Refinances" that eliminated whatever equity had been built up, often to pay credit cards because people had no self control when it came to spending money they never really had.

    To point to one group at the exclusion of all the rest will only serve to perpetuate the problem.

  3. #12

    Default Re: A small group of people made billions of $$$ on mortgage bust

    Our currency has value because the government has said so and we believe them.

    Perfectly said. If both sides of the transaction agree on the relative value of the currency, then that's all you need.

  4. #13

    Default Re: A small group of people made billions of $$$ on mortgage bust

    Quote Originally Posted by Flop The Nuts View Post
    Our currency has value because the government has said so and we believe them.

    Perfectly said. If both sides of the transaction agree on the relative value of the currency, then that's all you need.
    The problem is......

    ...the perception of the value of our currency is going down. Quickly.

  5. #14
    Olympic Champ r.payton@att.net's Avatar
    Join Date
    Mar 2008
    Location
    Danville .Indiana
    Posts
    8,718

    Default Re: A small group of people made billions of $$$ on mortgage bust

    Quote Originally Posted by Tight-Waist View Post
    The problem is......

    ...the perception of the value of our currency is going down. Quickly.

    Inthe last year or two we/ve lost something like 20% on the pound and 5% on the euro .

    I bought some DMSO on the net last year and it cost me around $20.00-last week it would have cost me $31.00-aqctually a little over 15 lbs.
    there is a site entitled xchange which shows you what a dolar compares to a lb or a euro.

  6. #15
    Olympic Champ r.payton@att.net's Avatar
    Join Date
    Mar 2008
    Location
    Danville .Indiana
    Posts
    8,718

    Default Re: A small group of people made billions of $$$ on mortgage bust

    Quote Originally Posted by ODH View Post
    I always heard Joe Kennedy made his fortune bootlegging during prohibition.
    You are both right .

  7. #16

    Default Re: A small group of people made billions of $$$ on mortgage bust

    Quote Originally Posted by ODH View Post
    I always heard Joe Kennedy made his fortune bootlegging during prohibition.

    It wasnt just that it was in banking as well. He was a bank regulator and would find out which ones were in trouble and then tighten down on them until they were forced to sell cheap to Kennnedy's friends who then sold him ceep shares in the new bank.

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •