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Politics : GOPwinger Lies/Distortions/Omissions/Perversions of Truth
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To: HPilot who wrote (142748)10/23/2008 1:57:55 PM
From: Lizzie Tudor  Read Replies (1) of 173976
 
Look Hugh, 50 million first mortgages and 1.7 million defaults are govt figures as of about 2 weeks ago. Do you own research if you want. that article I posted was a little old but had the same basic numbers.

The point is a 2% mortgage default rate should never be enough to destroy a banking system. The issue is obviously leverage due to swaps. It isn't the bad debt thats the problem its the 50 trillion in SWAPS sold against that debt that can bring the house down. Thats why Paulson can't allow any more BKs, not that the debt is bad its the swaps.

So please quit arguing that giving loans to POOR PEOPLE is the issue here. With a 2% default rate, it can't be the issue. that is obvious to all.

But even beyond that, I will say the banks created toxic loans to give to said poor people which should not have been created. I am a landlord and I have people that have rented from me for years- these people would be fine risks with a fair loan package. But this type of person was not offered a fair loan, he was offered a scam toxic loan with a Libor adjust in the FINE PRINT. If I did that as a landlord I would create short term gains and long term problems for myself so I dont' do it. Banks should behave the same but did not.
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