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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: SilentZ who wrote (423651)	10/8/2008 8:23:06 AM
From: Brumar89	1 Recommendation Read Replies (3) \| Respond to of 1572099

We should give people mortgages they can't handle because of the borrowers race? We should set goals for banks on how many such mortgages they should write? We should coerce Fannie Mae and Freddie Mac to buy, securitize, and guarantee these subprime mortgages so the lenders don't get stuck holding them? When the major market makers of mortgage securities standards go down, other lenders will follow both to be competitive and get on the gravy train - after all they can pass off the risky loans to other companies who'll bundle and securitize them. Then bad mortgages will spread throughout the financial system. Then when the real estate market turns down and interest rates turn up, which is bound to happen eventually, mortgage defaults will proliferate. The losses to the holders and guarantors of the subprime mortgages will mount and eventually wipe out their capital causing failure of major financial firms. Gee, you think something like that could happen? It did.