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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (73343)	4/19/2011 3:48:14 PM
From: Maurice Winn	1 Recommendation Read Replies (1) \| Respond to of 217713

When the chimps take over the running of the zoo, of course things get bad. <"freedom, self-determination, private property protection, sanctity of contracts, voluntary interaction and exchange without approval" Let's see how those intangibles fare after the bottom unglue from the sides of the barrel, amigo! > VVV are not found in chimp cages. Meanwhile, the USA government is reinventing the mortgage wheel. For centuries, lenders have considered it to be a good idea to check that borrowers could repay loans. Lenders who got that wrong lost their money if there were not good assets backing the mortgage. It's called shutting the stable door after the horse has bolted. <On Tuesday April 19, 2011, 11:25 am EDT By Dave Clarke WASHINGTON (Reuters) - Lenders would be required to make sure prospective borrowers have the ability to repay their mortgages before giving them a loan, under a proposal released by the Federal Reserve on Tuesday. The rule, which is required by the Dodd-Frank financial reform law, is intended to tighten lending standards and combat home lending abuses that contributed to the 2007-2009 financial crisis. The rule would establish minimum underwriting standards for most mortgages and lenders could be sued by the borrower if they do not take the proper steps to check a borrowers ability to repay the loan. The law does provide protections from this type of liability if a loan meets the specific standards that are part of a "qualified mortgage." ... continued... > The government lumbers into gear, 8 years too late. Not that they needed to do anything then. Our great and estimable idol Alan Green$pan KBE was right that lenders can be expected to look after their own interests; he was shocked that they did not. That doesn't mean he was wrong, just that so many of them played chicken with dodgy mortgages and got caught. The politicians rescued too many. The shareholders should have been wiped out and their creditors given a haircut. Barclays was happy to buy Lehman Brothers and I was keen to own something like Citicorp. I would have bid $1000 for the assets. Heck, maybe $10,000. Next time there is a crunch, Americans might get annoyed if another $trillion or so is transferred to the likes of Goldman Sachs. It's surprising they accepted it. Warren Buffett had a few $billion and could have bid even more than I would have done. He did and picked up quite a chunk of Wells Fargo and made some good loans here and there. Mqurice