Forum Post: So the people who signed the sub-prime mortgage contracts aren't responsible for reading what they were getting into?
Posted 13 years ago on Nov. 6, 2011, 9:58 a.m. EST by hillary
(252)
This content is user submitted and not an official statement
This is mostly for CMT & tulcak.
Really? Are we trying to create a society of irresponsible people? Should the state be responsible if you decided to have a child but now hate them and want to "return" them?
Can you see that making thinks easy (like mortgages) just makes the greedy (and perhaps uneducated) take advantage of a situation WITHOUT SEEKING OUTSIDE COUNCIL? People who know they are inept should see help. Have we not always said that with doctors as well? Why is this different?
FREEDOM TAKES WORK.
"you decided to have a child but now hate them and want to "return" them?"
I wish someone would return you to wherever it is you came from
Thanks for twisting the metaphor.
PS: Look up metaphor if you have to.
If Big Sophisticated Banks, Mutual Funds, Insurance companies were not able to figure out the risks with buying these Financially "Innovative" products, the average person doesn't stand a chance.
They did that's why the problem didn't exists prior to ~1999. It was authorized by the govt to promote housing for minorities. Bank didn't want ANY of it until they were allowed to formulate products derived from these mortgages to compensate for the potential bad debts. Otherwise you'd still have minorities cramped onto single-room apts.
The Community Reinvestment Act was enacted in 1977. Why did it take 40 years to collapse the economy? Because it didn't. You really need to educate yourself. Rush Limbaugh is not a reliable source of information.
1999 was the repeal of the Glass Steagall act. This allowed banks to merge with investment companies. Glass Steagall was enacted in 1933 in response to the Great Depression, which was caused by rampant speculation by unregulated banking and investment companies.
They are in the camp of if I tell a lie enough times people will accept it as the truth. It is amazing how the sheeple of the right gobble up anything fed to them by the likes of Limbaugh, Beck and for the younger sheeple Alex Jones.
Wrong on the first part.
Please get smarter before spewing propaganda you can't back up.
"every empirical study that has looked at CRA loans has concluded that they were safer than subprime mortgages that were purely profit driven, and CRA loans accounted for a tiny fraction of total subprime mortgages."
http://en.wikipedia.org/wiki/Community_Reinvestment_Act
Hillary and her ilk are pathetic. If its not mentioned by some liar on TV or radio, then, to her, it is invalid (propaganda). They have no capacity to think critically and research anything new for themselves. They are truly the lazy ones.
Let's face it. It all really started after WWII when the government starting subsidizing those VA loans with only 3% down to returning veterans and the FHA loans for others at 5% down. Before then, you has to put 20% or more down to buy a home. Everybody moved out of their crappy apartments in the cities, moved out to the newly created suburbs and bought/borrow to buy a car
It didn't help when this Communistic movie "It's a wonderful life" came out and basically made landlords into greedy Mr. Potters and extolled the virtue of home ownership.
Learn your history and think for yourself; don't just repeat talking points from overpaid jackasses.
Problem was the housing bubble that Greenspan should-have seen and triple-A ratings on the junk mortgages (liar loans) sold as collateralized debt obligations to unwitting buyers.
I agree. Every time I hear him described as a brilliant man I get sick to stomach thinking that they knew about the bubble .....
I wonder if there was ever a study of how much it would cost to renegotiate the principal of all the loans and how much that would help? As for the CDOs, AAA-ratings and liar loans, those ppl should be in jail and the CDOs never should have existed. Greenspan is #1 criminal.
Yes to all that.
Of course, all are responsible for their own actions and choices. However, who can resist a sure bet? "Housing prices never fall," remember? "The worst that can happen is that you might have to sell it for a profit." "You can always renegotiate the mortgage." That was the schpiel.
Behind your post is the supposition that unqualified subprime mortgage buyers crashed the world economy. That's just stupid. First there weren't enough of them. But more important, the engine driving the mortgage collapse (and the crash of the world economy) was not the number of foolish buyers, but the psychotic creation of a "risk free" economy and removing the risk from the lenders. By securitizing and slicing up the mortgages (mortgage backed securities) the financiers believed they were reducing the risk to zero. Mortgage lenders had no reason to scrutinize the borrowers -- they made their money no matter what. So naturally they become predatory lenders vacuuming up as many borrowers as possible -- it wan't their risk.
Add on top of this the insane derivatives market (sidebet gambling, no need to be a stakeholder) and Wall St. and the financiers crashed the world economy.
You seem very naive and childish, but thanks for playing.
Odd that I never challenged the financial market's responsibility as well but thanks for being obtuse (look it up).
People also didn't plan on banks playing poker with their money and wiping out 401k's, sky rocketing secondary market rates (which they didn't even know existed), and destroying; home equity, ability to repay (read jobs), etc.
From someone in the business at the time... Everyone shares blame. I know some people will think I'm an asshole for saying that but it is true. What happened is that people bought into the bullshit and the banks intentionally allowed it to happen.
Many people in the business at the time questioned underwriting guidelines and mortgage products that were horrible and the average consumer did NOT understand. These types of loans were meant for investors, as they posed serious risk and were NOT meant to be consumer. I personally had loans that were absolutely insane; horrible rate, negative amortization, outrageous fees. I was told to shut up and take a pay check or walk. I walked and now when I see hundreds of for sale signs and sky high unemployment, I know I did the right thing leaving to go back to school.
There are always people who want to use "protest" as an excuse to be irresponsible.
If they did not read the contract they deserve what they get, If they failed to plan they deserve what they get.
So work. No ones stopping you.
[Removed]
exactly. a pure free market system is the only way.
Exactly. For lack of a better word, greed is good.
failed regulation was part of the problem.
To be fair, we had regulation but it was relaxed to give minorities a chance to own homes.
Read about the Community Reinvestment Act (1977) before you parrot Limbaugh and Beck.
NO, this video explains the situation in excruciating detail.
http://www.youtube.com/watch?v=sdyC1BrQd6g
-PS ...I DO NOT want to have sex with you!
I'm burning incense in my tent thinking about you .....
For you.
And tulcak, you still don't understand that the intent was to give minorities access to homes. They screamed for it, they got it. Nobody thought that some many would be so damn irresponsible but hey, it's the society we created....
False. The housing bubble was created by unregulated banks and investment companies. When the bubble burst, they were on the hook for billions, so they made it easy to sell the properties by giving anyone loans.
Why would a bank or mortgage company willingly give money to somebody who was unqualified ("no income verification")? To pass the risk and responsibility to somebody else.
Then they packaged loans they knew were toxic, bribed the rating agencies and dump the faux AAA securities, often on their own clients. Then we gave them another trillion dollars to play with, which both you and I are on the hook for.
Actually, it's just you now, because I'm not playing anymore.
Make up whatever story that makes you sleep at nite....
Ignore the truth at your own expense.
Unless of course you have some documented factual information that contradicts what I have posted ... which I would like to see. I am always looking to broaden my perspective.
Count on it Mister.
Great, where is it?
You will have a grand post with all the links that will seek to correct your world view and make you thank me for opening up your mind.