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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (80272)	3/23/2007 2:55:01 PM
From: 5thGrader	Read Replies (1) \| Respond to of 110194

One possible answer is such a high percentage of loans made in recent years were outside of federal jurisdiction, FDIC, OTC, OCC and should have been monitored more closely by the states. Senator Dodd brought up HOEPA (Home Owners Equity Protection Act))rules, legislation that has been around since 1994 - from what he was saying they had the authority to do something for a long time, laziness, corruption, whatever the issue - nothing got done. bankersonline.com Bankers had some info in 2002, if Dodd is correct. Here is the section that could have saved a lot of people perhaps - loan officers needed to make sure these people were not getting into things they could not repay - simple really eh? law.cornell.edu (h) Prohibition on extending credit without regard to payment ability of consumer A creditor shall not engage in a pattern or practice of extending credit to consumers under mortgages referred to in section 1602 (aa) of this title based on the consumers’ collateral without regard to the consumers’ repayment ability, including the consumers’ current and expected income, current obligations, and employment. Everyone looked the other way for years even as Fannie Mae imploded and FHA/VA financing became an afterthought but why? I remember jim rogers bowtie spinning uncontrollably he was so angry at fannie mae accounting shenanigans - haha. Have you heard of the fannie mae american dream commitment? Fannie Mae has pledged through its American Dream Commitment to expand access to homeownership for millions of first-time home buyers; help raise the minority homeownership rate to 55 percent; make homeownership and rental housing a success for millions of families at risk of losing their homes; and expand the supply of affordable housing where it is needed most. rctimes.com This guy thinks we should help the poor people and bail then out - you tell me Vosilla, can I go up on your taxes a bit but keep the poor people pacified? Or would you rather 2.2 million people go to the street, you keep your money, but soon a guy with a towel on his head shoots you dead? Be honest, wouldn't you rather live and pay taxes than die? I mean sure ben franklin is rolling in his grave - but honestly I don't see you or russ winter or michael shedlock picking up a gun and fighting off the poor people who will be coming for you if you don't pacify them with some of your wealth. Do we help them more by giving them a free house or by giving them a good education? How does the old saying go, build a man a fire and he is warm for the night, but teach him to set himself on fire and he is warm for the rest of his life eh? haha - I think the bankers helped these poor dumb buckwheats set themself on fire! I think the gubbment is gonna appease these families so they don't go out and cause anarchy and chaos and shoot you up in the gardens mall while you are having a starbucks - I think you will get to pay for that luxury of not getting shot up from an angry poor person through erosion of your wealth in whatever form. Inflation, taxation - whatever. This could have easily been nibbed in the bud in early 2005 by just eliminating the toxic ARM's and zero down yet the mantra pushed by too many mortgage brokers and realtors in our bubble markets during that time was zero down, easy qualify, 1% pay rate and double digit appreciation for years to come will make you rich.. If you listen to senator dodd and the others, they come down hard on bernanke who was advocating stepping up these alternative loans back in 2004 and then come down hard on his predecessor for also backing alternative loans and then saying later oops! WATCH OUT! SPANKY AND BUCKWHEAT GOT A GUN!