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Shakedown - Subprime jitters are spreading
The Economist. ^ | Mar 14th 2007

Posted on 03/15/2007 7:35:10 PM PDT by M. Espinola

click here to read article


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1 posted on 03/15/2007 7:35:16 PM PDT by M. Espinola
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To: M. Espinola

But does it shrink your carbon footprint?


2 posted on 03/15/2007 7:37:08 PM PDT by neodad (USS Vincennes (CG-49) Freedom's Fortress)
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To: M. Espinola

AAAH!

The sky is falling!


3 posted on 03/15/2007 7:39:47 PM PDT by gonewt
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To: neodad

Yes, if you stay home and don't buy anything you have greatly shrunk your carbon footprint, unless you burn the furniture for heat.


4 posted on 03/15/2007 7:43:53 PM PDT by Sender (Try to look unimportant; they may be low on ammo.)
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To: M. Espinola

I wouldn't lend these people (FICO<500) money to buy a Tootsie roll, yet these mortgage companies did so.


5 posted on 03/15/2007 7:55:29 PM PDT by El Conservador ("The world needs to be reminded that all human ills are not curable by legislation" - Warren Harding)
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To: gonewt
"AAAH! The sky is falling!"

You think this news is a joke?

6 posted on 03/15/2007 8:00:36 PM PDT by M. Espinola (Freedom is never free)
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To: M. Espinola

It's not a joke, but it IS the marketplace serving up just desserts.


7 posted on 03/15/2007 8:06:13 PM PDT by Nervous Tick
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To: El Conservador
Note the date of the linked news below.

Home Equity Lending Abuses in the Subprime Mortgage Industry. March 16th, 1998

"The subprime mortgage market has flourished because such lending has been profitable.."

The problem is the entire nation will have to pay.

8 posted on 03/15/2007 8:16:21 PM PDT by M. Espinola (Freedom is never free)
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To: Nervous Tick
"It's not a joke, but it IS the marketplace serving up just desserts."

That's true. It's only the beginning.

9 posted on 03/15/2007 8:17:58 PM PDT by M. Espinola (Freedom is never free)
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To: ex-Texan

((Ping))


10 posted on 03/15/2007 8:18:56 PM PDT by M. Espinola (Freedom is never free)
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To: M. Espinola
"As America’s housing market rose, lenders began offering ever-more exotic loan forms to entice new entrants into the housing market: adjustable-rate loans with introductory “teaser” rates; interest only loans; even mortgages in which the minimum monthly payment was less than the accrued interest. Naturally, many of the borrowers attracted to these were people who could not afford a higher monthly payment."

Those mortgages all have an address. And the dirty little secret that all the power brokers from the White House down to your local bank won't tell you is that all too many of those addresses are the residences of illegal aliens who banks and mortgage lenders have snuggled up to in order to get the hispanic business and the profits from the high interest rates.

Check out these loans and you will find a lot have no SS number or a fake one, or just a tax number, and they have multiple unrelated names to qualify for the predatory loans. If you cross check, you will find those same names or SS numbers show up on multiple mortgages. There are plenty of studies showing that these loans are going to minorities. A map of the areas with highest default rates closely matches the enclaves of illegal aliens.

This game is going to play out real bad and a lot of fingers will be pointing to escape the blame themselves. Nobody will go to jail, but we taxpayers are going to pay horribly for the bailout, bigger than the S&L one of the 80's. And the word won't get out until after amnesty is passed.

I guess you could say "they're doing the foreclosures Americans won't do"

11 posted on 03/15/2007 8:25:03 PM PDT by oldbill
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To: M. Espinola
That's true. It's only the beginning.

Exotic loans with a rapidly inflating housing industry had to come to a close some day. It's like a real estate ponzai scheme.

12 posted on 03/15/2007 8:25:42 PM PDT by doc30 (Democrats are to morals what an Etch-A-Sketch is to Art.)
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To: M. Espinola

The joke is on the people who think this is going to turn into a bloodbath. Besides, there is no news in the article. Everything in it has been known for a week. It's just the Economist piling on.


13 posted on 03/15/2007 8:28:05 PM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: M. Espinola
The Keating Five (or Keating Five Scandal) refers to a Congressional scandal related to the collapse of most of the Savings and Loan institutions in the United States in the late 1980s.

Been there, done that...
And the big wheel keeps right on turning.

Regards,
GtG

14 posted on 03/15/2007 8:30:35 PM PDT by Gandalf_The_Gray (I live in my own little world, I like it 'cuz they know me here.)
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save


15 posted on 03/15/2007 8:39:30 PM PDT by krunkygirl
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To: oldbill
"Check out these loans and you will find a lot have no SS number or a fake one, or just a tax number, and they have multiple unrelated names to qualify for the predatory loans."

Nothing a class-action lawsuit against lending institutions can't fix. There is a monopoly here in L.A. of also owning construction companies. It can work out this way. It is a slavery system. They own the places that a bunch of illegal aliens live in so that they work on the cheap and live like rats. Like a concentration camp.

There are billionaires and everything they own that can be taken down in this way. With discovery.

16 posted on 03/15/2007 8:58:27 PM PDT by BobS
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To: Moonman62
Do you believe there is a risk of further adverse market trends resulting from the subprime lender problem spilling over to major banks?
17 posted on 03/15/2007 9:02:42 PM PDT by M. Espinola (Freedom is never free)
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To: oldbill

The economic points you have posted are ones which can not be ignored.


18 posted on 03/15/2007 9:05:49 PM PDT by M. Espinola (Freedom is never free)
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To: doc30
"It's like a real estate ponzai scheme."

Well stated.

19 posted on 03/15/2007 9:07:18 PM PDT by M. Espinola (Freedom is never free)
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To: M. Espinola
Liberals can't wait to bring back soup kitchen lines and public tents.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

20 posted on 03/15/2007 9:09:33 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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