Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: energyplay who wrote (23422)	10/2/2007 5:15:19 PM
From: Elroy Jetson	Respond to of 218922

That's a nice summary.

To: energyplay who wrote (23422)	10/2/2007 5:50:45 PM
From: Snowshoe	Respond to of 218922

>>the real estate people and mortgage brokers wanted to stay in business<< In 2002 I dealt with a high-volume real estate agent husband/wife team in Arizona. They had just lost a bundle in the Nasdaq tech bubble, and were postponing retirement to recover their finances. In retrospect, I wonder if a lot of other real estate types were in the same situation? "Please dear God, just give me one more real estate boom. I promise not to screw it up this time..."

To: energyplay who wrote (23422)	10/2/2007 6:17:21 PM
From: arun gera	Read Replies (1) \| Respond to of 218922

>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.> This must be other way around. The loans package mechanism was built first then the mortgage companies went and sold it. I recall meeting a banker acquaintance in 1991 who was talking about how banks were putting priority on risk management and he was put in charge of that. Then in the 15 years after that I saw many young men and women who were attending seminars by major banks where minorities were guided in the direction of converting all their loans into home equity loans. These youngsters were made into instant financial planners (they had neither experience and understanding of financial concepts); although their best sell was their friendliness. Till a year ago, these seminars were held on one of the floors in my office building, and I bumped into many well dressed minority middle class folks (both influencers and the influenced). Now I don't see them in the elevator any more. I think that the banking industry converted their high risk loans (the ones without collateral) into sub-prime loans backed by some collateral, and took part of the risky loans out of their books. -Arun