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Here was the start of the melt down

Discussion in 'Uncategorized Threads' started by nipper, Oct 10, 2008.

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  1. nipper

    nipper TS Member

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    and this matters how?? were are still losing mega $$??


    Bill
     
  2. Dove Commander

    Dove Commander TS Member

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    nipper, with your attitude, you deserve to lose your butt. Some people never learn.
     
  3. nipper

    nipper TS Member

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    i have 2 pension funds and a 401 k harde har har. i bet you dont

    Bill
     
  4. Dahaub

    Dahaub Active Member

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    I thought we were told that although the Fannie and Freddie was a big deal that stuff was covered by the first bail out of the AIG. The deal that has the market in it's grip now is the credit crisis of banks being able to lend to banks. Is this also because of the Fannie May and Freddie Mac? Dan
     
  5. Dove Commander

    Dove Commander TS Member

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    Nip, hope you have personal control of those accounts. My accounts? Lets say I won't trade with you.
     
  6. Dove Commander

    Dove Commander TS Member

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    Dahaub! You've have just discovered why government should not get involved in our economy. Congratulations, you are now a Republican!
     
  7. birdogs

    birdogs TS Member

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    What is wore is that we infected the entire world with this problem.
     
  8. cubancigar2000

    cubancigar2000 Well-Known Member

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    I really don't know why people respond to people like Nipper?? He is a lot of hot air that means nothing, ignore the a-- hole
     
  9. b12

    b12 Well-Known Member

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    The very start of the melt down is enegry. When the people started to decide wether to buy gas and food or pay the house payment things began to go sour. No matter how much money the gov. throws at the problem it will not be fixed until they solve the enegry problem which is buying forigen oil that we do not need. We are told that we purchase 70% of our oil from OPEC. That is very true what is not being told is the we really don't need to purchase any if we use our own. Their is enough of our own to take care of us. We may need to pay the high prices but the greenback stays right here not over their where we pay for all their free education, healthcare. Willie
     
  10. bigdogtx

    bigdogtx Well-Known Member

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    Here is more ammo against hussein, but dumbos won't beleive it. We need some repercussions on congress.
     
  11. halfmile

    halfmile Well-Known Member

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    Well, you got the year right, but not the cause.

    Repeal of the Glass-Steagall act on November 4th, 1999 (an act which was designed to prevent bank failures ) allowed the mrtgage business to balloon.

    The social ramifications were that plenty of money was available to write mortgages for low income and ethnic people who otherwise could not get loans, usually because of ability to pay or credit history.

    As a matter of fact, Janet Reno promised to prosecute any institution that denied minority or low income people mortgages.

    Once the restrictions on combining investment and commercial banking were removed, writers of these toilet paper mortgages were able to bundle them into MBS (Mortgage Backed Securities) and further along, CDO's (Collateralized Debt Obligations) The original lender had no problem writing them, since they would not have to collect them.

    I personally feel the problem could have been averted temporarily if only the lending institutions would have relaxed on the ARM resetting procedure, but the greedy bastards wouldn't let go. The appalling size of consumer debt to me spells trouble even if the mortgage crisis had not appeared on our doorstep.

    I have to state also that there was a relaxation of moral standards that was contributory, the idea of being honorable and paying your debts was replaced with Easy Bankruptcy and credit card shuffling.

    A friend in the rental business is getting back a tenant who had bought a home, and survived the original rest to 7 & 1/2 per cent, but when it went to 10 she could not afford the payment any more. It just wasn't worth the stress.

    We are just a couple bites into this onion, more is on the horizon. How many people out of work are going to pay on their credit cards? Already we see the dirty tricks the lenders play, with shifting pay dates and horrendous late fees. Balances are high and the clothing or electronic toys are long gone. Does the debtor buy groceries, or make the payment?

    The American people are not going to like the next few years.

    HM
     
  12. pendennis

    pendennis Well-Known Member

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    Halfmile, a great deal of the ARM adjustment problems came about when Alan Greenspan advised people to get ARM's when interest rate forecasts were trending upward.

    The Community Reinvestment Act, enforced by Reno, started this problem, and as you rightly mention, the original mortgage brokers, like Countrywide, knew they wouldn't be holding anything in due course. They knew that FM/FM would be the holders, so they took the money and ran.

    There is also a lot of blame to be laid at the feet of the regulators at the Fed, FDIC, Treasury, SEC, Congress, and others, for turning a blind eye to the morons who all jumped in the same pool of investments and didn't police themselves.

    There really needs to be a special Federal prosecutor who can put these a$$holes in jail, and take all their money.

    Dennis
     
  13. JBrooks

    JBrooks TS Member

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    For our more erudite readers.
     
  14. halfmile

    halfmile Well-Known Member

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    He did it.

    HM
     
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