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

To: Brumar89 who wrote (436699)	11/25/2008 3:25:58 PM
From: tejek	Read Replies (1) \| Respond to of 1574273

The securitization of sub. mort. would not have been a problem if the loans had not been subprime. I can't believe you wrote that. Yes, its true. But so what? You said this: "Nevertheless the securitization of subprime mortgages began under Clinton as I indicated. And it was never a good idea." That comment suggests that you think sec. is a bad idea. Write more clearly your intent and I won't misunderstand. The vast majority of the loans were written under Bush. It was during this time that normal and recommended underwriting procedures were suspended. No, normal underwriting procedures were changed and standards lowered back during the time when subprime loans began being securitized. It is correct to say the practices continued under Bush and that over time the number of subprime mortgages grew. YES, HAD THEY BEEN WRITTEN UNDER CLINTON, DEFAULTS WOULD HAVE STARTED RISING IN 2000, A YEAR AFTER THE INTEREST RATE RESETS. Loans made during the Clinton era would be considered 'seasoned' by this time. Once a mortgagee has been paying off a loan for more then a couple of years, they have a vested interest in the property and do everything they can to prevent foreclosure. Usually when it does happen, the economy has soured and they lose their job suddenly and can't make their payments. Yes, 'seasoned' loans go bad too. Particularly when the economy turns down, interest rates reset upward, and real estate prices begin falling. BUT THE ECONOMY DID NOT TURN DOWN UNTIL THIS PAST SPRING/SUMMER. SO THE DEFAULTS AND FORECLOSURES THAT STARTED IN 2007 FOR THE MOST PART WERE NOT DUE TO THE BAD ECONOMY. Thats why the subprime mortgage problem that had been building for so long, became a problem that had to be dealt with recently. Pretending that the subprime loans made under one President or another were 'okay' is nothing but projection of partisan spin. OH SHIT! YOU DON'T KNOW WHAT THE HELL YOU ARE SAYING. The bad loans were written because they knew the Bush administration was not paying any attention and doing none of its fudiciary regulation; that in fact, the Bushies could care less what they were doing. Well, the documented fact that the Bush administration made (unsuccessful) efforts to reform oversight of the mortgage industry show they did care. They simply didn't push hard enough. BS. SAVE YOUR SPIN FOR RNC MEETINGS.