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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (37284)	10/9/2008 2:34:01 PM
From: koan	Respond to of 149317

yes, up here "outside the country"-lol, every loan had to have insurance against default (PMI) unless you put at least 20% down. And the PMI was pretty expensive. Some loans cold get rid of PMI when 20% equity was acheived and some could not. The last couple of years the banks started substituting second deeds of trust for 20% to get rid of the PMI and make more money for the banks. That way it was tax deductable and a little less costly I think. The first (80%) might be at 6% and the second would be at say 8.5%. So all of the loans were pretty well protected. The only loans not needing PMI were VA loans. We still have 3% loans with PMI, but also have more points and one needs higher credit scores.

To: Lizzie Tudor who wrote (37284)	10/9/2008 3:30:11 PM
From: Little Joe	Read Replies (1) \| Respond to of 149317

There is a lot of truth in what you say, but either he was in over his head (meaning not up to the job) or he understood the risks and chose to gamble. I suspect the latter, you have to believe he uderstood the risks on these exotic derivatives. They have been discussed in detail on Mish's thread for at least a year, and Mish doesn't make 90 Million. I come back to my point the government is so corrupt, dishonest and inept we need to abolish both parties and start over. Little joe