Posted on 08/09/2007 6:33:05 AM PDT by Hydroshock
Chuckie gets all his $$ contributions from the industry. He will bail them out but label it a “a bailout for the poor homeowners”.
Typical
Hypocrites
What else is new.
So what ? Who got hurt ? Bear Sterns investors took that hit. Those folks signed “big boy” letters and knew their risks.
Heck, a small business owner faces risks every day too - look at the success vs failure statistics.
No, subprime defaults will hurt, but you can’t ameliorate stupidity and greed. Maybe next time those so greedy for big gains will think a bit more about the risks they take on. There’s a reason bonds have ratings, you know, and you ignore them at your peril.
How many time have you heard a Christian condemn a person to hell? Of course it’s an impossibility for a person to do so but I am curious to know where you heard such a condemnation take place.
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The writer probably did not mean that someone literally used the words,”I condemn you to hell”. Unfortunately, many who profess Christianity claim to know that certain persons are in hell or even that certain persons are going to hell as well as claiming to know exactly what will and will not result in being sent to hell.
Speaking as one who was brought up as a Southern Baptist and still is a member of a Southern Baptist church, such behaviour seems to me to reek of the worst kind of arrogance.
Even so, that still means you favor government intervention, and you do know it will harm the financial sector.
Nominal "Christians" do it right here on FR every day. These types apparently adopted their chosen religion solely because it allows them to feel morally superior to others...and to claim that God is always ready to smite people they don't like. ;)
Bonfire of the homebuilders
By rushing into lending, homebuilders helped fuel the housing crisis http://www.msnbc.msn.com/id/20145724/
As all written offers are presented to the listing agent on behalf of the sellers, I was in a position to see what loan programs were the most popular.
The vast majority of the loans were 100% LTV.
IOW, many buyers opted to skip the entry level property and jumped up to the move-up market...with the rationale that appreciation would enable them to refinance better terms.
Many self-employed buyers also used 'stated income' programs aka liar loans, because in the 'old days', lenders would only use your adjusted gross (taxable) income and not the gross income.
This explains your post here...many buyers are caught in a downturn or stagnant market with their interest rates adjusting...buyers with decent credit who just gambled...and lost.
It’s the WAY people are saying it, and the lack of any sort of constructive criticizm about it.
I am infavor fo rh fed leaving the rate alone or maybe raising it a quarter point between now and the 1st quarter 2008. Let the market shack out, then see.
Right - and a lot of the M & A activity was based on very unrealistic prices due to readily available cheap credit. A business looking to expand, with sound financials, will get credit - it might just be a bit more expensive.
The M & As that make financial sense will still occur.
The thing none of us like is that the “takeover premium” on dozens of companies’ stocks will go away, making the bull market a lot less bullish.
We are seeing markets reacting to the speculative excesses. Its sad that people purchased homes beyond their ability to pay, if rates adjusted upward.
Its sad that people lost small fortunes in the Nasdaq insanity of the late 90s, too.
I’d rather the government stay out of it, other than protecting against fraudulent lending and ensuring adequate disclosure of terms.
I have an ARM, vintage 2004, and the disclosure was abundantly clear that the rates could rise, and even gave examples of what monthly payments would be under different rates.
Like I said, you favor government intervention.
I believe the “normal” rate is a bit over 2%. If companies can’t cover this type of exposure, they should not be in the subprime business.
Oh that’s right, they are now “getting out” of it, either thru defaults or not offering new subprime loans.
Maybe they’ll stop lending to illegals while they’re at it.
Ah, but the ratings are far from infallible. There have been many, sudden, multinotch downgrades of AAA rated CDOs with subprime mortgage assets as underlying securities. The rating agencies have come under severe criticism, again, for reacting after the fact.
Like after Enron and Orange County, when they filed for bankruptcy.
Let me clear on this. I feel bad for the folks who are going to lose their homes. And to be crystal clear, they’re somewhat abstract to me. I don’t know any of them, so my sympathy for them is somewhat vague and generalized.
However, there is nothing vague and generalized about the danger this whole debacle poses to our economy and that scares the beejeezus outta me.
And you aren’t? You are the one screaming to lower rates to save the financial sector from all the bad loans they made. Well they made teh loans, they stood to make teh profits, let them take the losses. That is capitalism Bub.
“It’s the WAY people are saying it, and the lack of any sort of constructive criticizm about it.”
I’d agree, but any sort of constructive criticism is a bit late for those who have defaulted. You can only hope that those people will have learned a lesson.
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