Forum Post: The Federal Reserve and Wall Street Mortgage Derivative Makers Caused this MESS!
Posted 13 years ago on Oct. 9, 2011, 8:05 p.m. EST by FedWallFedWell
(59)
This content is user submitted and not an official statement
The Federal Reserve and its member banks through its reckless raising of the interest rates in '03 to '06 after lowering in '01 was negligent for not taking into consideration all of the adjustable rate (millions of mortgages) mortgages that would go from 1 percent to almost 7 percent because of their actions and inaction. A 200k home went from 200 a month teaser rate to 1400 per month...this predatory lending was deceptive and The Federal Reserve privy to the numbers of such mortgages was reckless in raising rates 17 times in a row...thereby causing unrest and disrupting the real estate market and financial system. Meanwhile Wall Street Schemers sliced and diced risky mortgages into triple A loan packages and double and triple insured them know they were at risk for default.
And to think people believe we need more deregulation of the markets, AKA " the Free Market" as Paul freaks like to put it.
What about the people that took a gamble on adjustable rates (term self explanatory as they were "adjustable") Seems taking responsibility for ones actions have gone out the window in this country. We have turned into a nation of complainers and whiners..
What about the people that took a gamble on adjustable rates (term self explanatory as they were "adjustable") Seems taking responsibility for ones actions have gone out the window in this country. We have turned into a nation of complainers and whiners..
So they got punished along with the whole class, everyone...every country, world financial markets....do the means justify the end?...the financial markets have been crippled...unemployment hovering at 10 percent, eroding tax bases everywhere because of foreclosures. Only greed can rationalized the increase in interest rates....an out of control greedy Federal Reserve Banking system and an out of control greedy Wall Street.
Another perspective that includes all of the players that together caused the crisis.
http://www.freedomworks.org/crisis
Wow! Great...thanks for adding this valuable info to this discussion!
Interestingly, the Obama administration seems to have learned nothing from the recent crisis and is working to once again to push banks into making questionable loans.
http://www.openmarket.org/2011/08/31/obama-justice-department-forces-banks-to-make-risky-loans-planting-the-seeds-of-a-future-financial-crisis/
I agree and they should be forced to pay back the Billions that they made writing toxic motgages and selling these packaged assets. The money should be used to create jobs!
Yes! Jobs for the people. I wonder how many 50k to 75k modest jobs could have been created with the trillions given to the banks and the profits made by The Federal Reserve not to mention the double and triple insurance reaped by the Wall Street Schemers for repackaging mortgages.
After the cold war was won in 1989 both the former Soviet Union and the US had many scientists and physicists who could no longer find employment in the defense industry,.. so the mathematics wizards migrated to the "prop" (proprietary) trading desks of wall street and developed derivatives and an alphabet soup of financial products (MBS, CDO, etc), unfortunately in the process, they built a "Doomsday Machine" (Peter Sellers), and now the problem is, how do we defuse the ticking bomb that is at the heart of the global economy (600 trillion of high explosive derivatives).
Wow! I'm near speechless at the ease with which you explained this. Thank you for this valuable insight!
What is it that we are fighting for? The end of Capitalism? American communism? What is with all of the isms?
Let me tell you what I am fighting for. I am fighting for a global economy that is based on all of the natural resources of the planet. I am fighting for a true democracy that is detached from profit-seeking institutions. I am fighting for the principals that America was truly founded upon; not the principals that Michelle Bachman, John Boehner, or Barack Obama understand. I lump all current politicians into one category: evil. Lacking morals. Lacking conscience.
I understand our problems to be so immense that if a true progressive took office he would not muffle them, nor elongate their existence. I do not believe that Barack Obama is fighting for the populous.
I come to bury Caesar, not to praise him.
Viva la Resistance!
Project Earth: A Resource Based Economy Explained http://www.youtube.com/watch?v=XDhSgCsD_x8
Wow!!! Great....thanks for adding this info to discussion...I suspected this...something like a poison pill for the financial system as you have described. So what's the remedy? Put stops in place, claw back PROFITS from this evil exploitation?
The Wall Street Mortgage Derivative Makers and The Federal Reserve Banks Caused this MESS! (User Submitted)
Posted Oct. 9, 2011, 8:05 p.m. EST (1 second ago) by FedWallFedWell
The Federal Reserve and its member banks through its reckless raising of the interest rates in '03 to '06 after lowering in '01 was negligent for not taking into consideration all of the adjustable rate (millions of mortgages) mortgages that would go from 1 percent to almost 7 percent because of their actions and inaction. A 200k home went from $200 a month to service at teaser rate to $1400 per month...this predatory lending was deceptive and The Federal Reserve privy to the numbers of such mortgages was reckless in raising rates 17 times in a row...thereby causing unrest and disrupting the real estate market and financial system. Meanwhile Wall Street Schemers sliced and diced risky adjustable mortgages into triple A loan packages and double and triple insured them know they were at risk for default. WHAT IF THEY DID NOT RAISE RATES???? Very few mortgage defaults would have occurred.