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

To: tejek who wrote (436745)	11/25/2008 4:23:24 PM
From: Brumar89	Read Replies (1) \| Respond to of 1574356

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. Yes, securitization of subprime mortgages was a bad idea. I had no idea this wasn't clear to you. ------------------------------------------------------- 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. Adjustable rate mortgages are usually fixed for 3-5 years and then reset (either annually or on some other interval) to something like the LIBOR plus some premium, though there may be caps on how much it can change at any one point. Different mortgages are different. There was nothing magic about the year 2000. A borrower could usually refinance or even sell the house if he was unable to handle the reset mortgage payment until the real estate bubble burst. After the real estate market broke, a lot of borrowers in many parts of the country found themselves with a mortgage greater than the market value of their home - therefore refinancing or selling was no longer a way out. A key factor in when defaults started rising was thus after the real estate crash. -------------------------------- 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. Notice I said "and real estate prices begin falling" above. also see the previous paragraph. ------------------------------- 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. I provided evidence the Bush administration did make unsuccessful efforts to reform the system. They didn't push hard enough to make anything happen. Meanwhile many Congressional Democrats were pushing hard against tightening regulation in the mortgage field. I posted proof of this too. Here are links again so anyone can see I back up the things I claim: gatewaypundit.blogspot.com youtube.com