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

To: J_F_Shepard who wrote (588891)	10/5/2010 10:36:39 PM
From: steve harris	Read Replies (1) \| Respond to of 1577894

Old news Shep. You should quit while you're behind, you're just digging the hole deeper. nypost.com sistertoldjah.com

To: J_F_Shepard who wrote (588891)	10/6/2010 4:05:44 AM
From: Tenchusatsu	Respond to of 1577894

Shep, > I've always wondered why a bank would give 300-400K loans to people they KNEW couldn't pay for them... Possibly to fill up mortgage derivatives, insure them via AIG, then sell them off. > But Obama never said what you said he did....you admit that? A lot of his Democrat buddies were right on board with the sub-prime craze, encouraging lenders to approve mortgages to disadvantaged minorities. Everyone thought it was a good idea at the time. Obama is just acknowledging that. Tenchusatsu

To: J_F_Shepard who wrote (588891)	10/6/2010 6:32:13 AM
From: Brumar89	Respond to of 1577894

I acknowledge Obama thought it started as a good idea .... As to what motivated lenders, I think the heavy government involvement brought with it a 'moral hazard' element, a belief the government wanted this and would step in eventually if there were problems.

To: J_F_Shepard who wrote (588891)	10/6/2010 9:44:51 AM
From: bentway	Read Replies (2) \| Respond to of 1577894

"I've always wondered why a bank would give 300-400K loans to people they KNEW couldn't pay for them" It's all been laid out: Flaky mortgage originator writes a mortgage to a guy who qualifies with a pulse. In less than a week, he's pocketed his bite and he's sold the mortgage to: Fannie Mae or Freddy Mac or A big Investment Bank, that packages the crap mortgages with some good ones and sells the MBS (mortgage backed security) to some huge hedge fund, an Icelandic village retirement fund, the CA public employees retirement fund, some big investor somewhere. They all think that the MBS's are as safe as American houses! So does the big Investment Bank, who offers "insurance" with NO backing. Some of the investors buy this product too. These MBS's sold like hotcakes. The big IB's sent the word down, WRITE MORE MORTGAGES! ..and look what happened!