Forum Post: The absolute truth about subprime. This is what really happened. Hey Oprah! I'm letting your cat out of the bag. DEAL WITH IT.
Posted 13 years ago on Oct. 20, 2011, 3:29 a.m. EST by Mcc
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Don't believe what the conservatives say about the CRA, subprime, or the housing market.
This is what really happened:
The first subprime loans were issued in 1994. It was a gimmick to sell more homes, artificially inflate the market, sell more homes at higher profits, foreclose on those who could not pay when the ARM rates readjusted, take their homes leaving them with nothing to show for their payments, resell the homes at a higher profit and so on. It was a cruel and calculated plan to sell more homes and artificially inflate the market. Those loans were incredibly profitable for well over a decade before the house of cards finally collapsed. In the meantime, bankers got richer along with the richest one percent who made off with higher dividends. It was a sham.
The biggest player in the game was Countrywide. Endorsed by Oprah Winfrey, Ellen Degeneres, and Dr Phil. If you have their shows from '04' to '06' on tape, watch them again. All three were paid millions specifically to endorse Countrywide by name. The biggest subprime player in the game. They issued more ARM loans than anyone else. Foreclosing on those who could not make their monthy payments when the rates suddenly went through the roof. It was a cruel and calculated plan to sell more homes, artificially inflate the market, foreclose, and resell for a higher profit. The sham worked like a charm for 12 years before the house of cards finally fell in.
Oprah, Ellen, and Dr Phil were paid millions for their endorsements. Ch'Ching!
This is a free site. Its free speech and I speak the ugly truth. Of course, Oprah, Ellen, and Dr Phil will move Heaven and Earth to shut me up. We'll see.
Supplementary reading on the false CRA meme:
http://www.ritholtz.com/blog/2009/06/100000-cra-challenge/
All television personalities are corporate spokesmen to some extent. If they are paid to say a particular toothbrush is great, they will. I am sure Oprah, Ellen, and Dr. Phil enthusiastically promoted the plan to, "house more Americans," as it was undoubtedly sold to them. They weren't the only ones who bought the con, by the way.
I am not a big fan of daytime talk since I work, but I really don't hold them responsible to the extent that you apparently do. I mean just since they promoted the banks, you think its best to go after them before the banks?
Sounds more likely that you just don't like Oprah, Ellen and Dr. Phil.
I'm really fed up with the sell-out on TV. I've noticed what you say about paid spokesmen. Personally, I think a savvy media mogul/executive like Oprah must have known the subprime strategy by '04' when I saw her plug it for her ignorant fans. The same goes for Ellen and Dr Phil. Predatory lending was a common term by then. When I finally gave it some thought, it took me all but 5 minutes to see the subprime strategy. Especially after I learned of the time frame and the enormous profits made on subprime for all those years. And I've never claimed to be more intelligent than Oprah, Ellen, or Phil. I suppose we can disagree on their ultimate level of responsibility. I just believe that paid spokesmen have a moral responsibility to their audience. To be real. To be truthful. Especially when that audience is in love with the spokesmen. And their pay. My God. Hundreds of millions every year just to dumb down their fans and plug every actor, singer, show, and product under the sun. Believe me, I despise Wall Street ethics. But I won't make any excuses for sold out TV personalities who pass themselves off as heroes when they are nothing but salesmen.
I hear ya.
I knew it! Oprah got fat on stolen money!