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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (23402)	10/2/2007 3:27:57 PM
From: energyplay	Read Replies (3) \| Respond to of 217835

When the more realistic and cautious people stopped buying houses, the real estate people and mortgage brokers wanted to stay in business, so they lowered standards and wrote loans to the 'prey' that they previously declined. They advertised and marketed these loans to unqualified people, accepted appraisals of property that ranged from optimistic to absurd, etc. They stretched the truth in enough places to add up to a big lie. When mortgage ads showed up on TV about 10 years ago, they were usually on news programs, the financial channels, and serious dramatic shows like "The West Wing". The were next to ads for Lexus, Mercedes-Benz, home computers, online travel sights, etc. This changed over the last few years. When a mortgage company is running ads for "no money down" mortgages on the daytime TV talk shows like Ricki Lake, Jerry Springer, and the soap operas, they are going after less qualified people. When they run ads on MTV, and the next ad is for a bail bond service, or no money down used cars... Then other people bought the loans, packaged them together, got the lazy rating agencies to stamp AA on some of the loans, and then sold the loans to another group thousands of miles away. The packaged loans were sold to some degree on the basis that these loans were like the loans for 5 or more years ago, which are being paid off according to models. *** The US has more than a little bandido culture. *** Note who got stuck - Germany Deustsch Bank SHORTED sub-pirme Smaller Banks were long Greater China Hong Kong flat didn't buy Taiwan Long sub prime loans New York Smart hedge funds short housing, sub prime Other hedge funds long sub prime