Thanks Fee, and I take the admonition that we learn from China to heart, as it relates to these matters.
I must say that when your federal government demands lending institutions make unsound loans and those lending institutions get creative to avoid the down side of complying with it and the courts, I have a very dim view of thinking we should back the government and the courts as they try to make a case against the lending institutions.
This government is very good at pitting us against Capitalists, and making us think they’re doing us any favors along the way.
Hey ONE!
All that stuff you just wrote, it was GOOD STUFF.
And I agree with you!
Gov required bankers to make subprime loans to people of color that were discriminated against in the past by red lining. Fed had a good case during Clinton admin. Black guy with same income, credit history and assets were denied loans. If charge is untrue, bankers should have taken the case to court, but they did not. Clinton advocated subprime loans as a solution, but problem with subprime is it is financially unsound and high risk. Dems screwed up the system by trying to bend rules on lending to make up for past social injustice. Pres Clinton offer to mitigate bankers mortgage risks by offering Freddie Mac and Fannie Mae buy all the mortgage notes after the banks held the notes for six months. Here is where the bankers are guilty of economic sabotage. Freddie Mac and Fannie Mae did not carefully review the mortgage notes they brought from the mortgage bankers. When the mortgage bankers discovered this gov oversight, they decided to earn as much points and fees from loans they originate in the six month period and they did this by waiving conventional safeguards and encouraging borrowers to borrow more then they can afford by making up borrowers credit history, income and asset data. Larger the loans, larger the fees and points, aned in six months dump it on the gov (and you the taxpayer). In essence bankers encouraged liar loans. Here is the difference between liar loans and subprime loans. Subprime loans are marked so the investor knows it is high risk if they chose to buy the note at discount. Liar loans are packaged as good AAA rated conventional loans when they were actually junk financial investments. These toxic assets played a major role in imploding the US as well as the world financial system. We are lucky the world has not held the US responsible for the mess. Fed gov is responsible for the unsound subprime loans but lying bankers were responsible for the more damaging liar loans. Too many freepers have too much faith and trust in capitalists. Who sold military technology to China - Lora (corporate capitalists), who loves Obamacare - five major Healthcare Management and Insurance companies who even made sure they get a bailout clause wrote a law forcing Americans to buy their products (looks like corporate capitalists to me), US has real unemployment of 17 to 23 percent, guess who is advocating legalizing illegal immigrants and more H-1B workers (countries normally cut down immigration during recessions) - Chamber of Commerce (corporate capitalists), who advocate unconditional raising of US debt limit - Wall Street bankers (corporate capitalists). I think by now you get my point. Big gov and big business is the enemy of America.