Sandhusker said:What got us into this mess was excessive spending, which is one of the reasons that I don't understand why the libs think the way out is record spending....
One wonders doesn't one...how some people got the excessive mounts of money to spend on things,likes HOMES,hmmmm could it be the banks and bank managers gave money to people that couldn't NEVER afford to pay for these excesses?????????????Sandhusker said:What got us into this mess was excessive spending, which is one of the reasons that I don't understand why the libs think the way out is record spending....
hmmmm could it be the banks and bank managers gave money to people that couldn't NEVER afford to pay for these excesses
Mrs.Greg said:One wonders doesn't one...how some people got the excessive mounts of money to spend on things,likes HOMES,hmmmm could it be the banks and bank managers gave money to people that couldn't NEVER afford to pay for these excesses?????????????Sandhusker said:What got us into this mess was excessive spending, which is one of the reasons that I don't understand why the libs think the way out is record spending....
Maybe a change to a socialist country's way of banking...I hear Canada's banking system is the best in the world.... :wink:Oldtimer said:Mrs.Greg said:One wonders doesn't one...how some people got the excessive mounts of money to spend on things,likes HOMES,hmmmm could it be the banks and bank managers gave money to people that couldn't NEVER afford to pay for these excesses?????????????Sandhusker said:What got us into this mess was excessive spending, which is one of the reasons that I don't understand why the libs think the way out is record spending....
Sure did....And since they changed the laws/rules so the Banks/Lenders could swap away those loans- not keeping any of the risk of the loan (skin in the game)- and were making money servicing these loans- and their brokers were getting commissions/bonus's on how many loans they handed out- they never even tried to verify credit ratings- or whether people could pay for them-- instead actually pushing higher priced loans/homes (bigger commission for the broker :roll: ) on people...
And the sad thing is that from the testimony coming out, some of the CEO's knew this was a practice happening in the lending world- and said nothing- putting GREED over ETHICS.....
Mrs.Greg said:One wonders doesn't one...how some people got the excessive mounts of money to spend on things,likes HOMES,hmmmm could it be the banks and bank managers gave money to people that couldn't NEVER afford to pay for these excesses?????????????Sandhusker said:What got us into this mess was excessive spending, which is one of the reasons that I don't understand why the libs think the way out is record spending....
Mrs.Greg said:Maybe a change to a socialist country's way of banking...I hear Canada's banking system is the best in the world.... :wink:Oldtimer said:Mrs.Greg said:One wonders doesn't one...how some people got the excessive mounts of money to spend on things,likes HOMES,hmmmm could it be the banks and bank managers gave money to people that couldn't NEVER afford to pay for these excesses?????????????
Sure did....And since they changed the laws/rules so the Banks/Lenders could swap away those loans- not keeping any of the risk of the loan (skin in the game)- and were making money servicing these loans- and their brokers were getting commissions/bonus's on how many loans they handed out- they never even tried to verify credit ratings- or whether people could pay for them-- instead actually pushing higher priced loans/homes (bigger commission for the broker :roll: ) on people...
And the sad thing is that from the testimony coming out, some of the CEO's knew this was a practice happening in the lending world- and said nothing- putting GREED over ETHICS.....
Seriously though that is disgusting OT...giving out and pushing higher loans to people who can't afford the homes just to make their own money,now these homes are abandoned. I know a number of Canadians that are taking advantage of this and buying vacation homes in the US,my sister being one of them.
Its going to be a long time before folks trust a banker or Wallstreet financier again......
reader (the Second) said:Sandhusker said:Mrs.Greg said:One wonders doesn't one...how some people got the excessive mounts of money to spend on things,likes HOMES,hmmmm could it be the banks and bank managers gave money to people that couldn't NEVER afford to pay for these excesses?????????????
It all started with banks having to comply with CRA requirements that forced them to make loans they normally wouldn't make following time-tested underwriting. These CRA requirements were put in place by the liberals because, even though making good loans is how banks make their money, everybody knows that bankers are racists and will turn down a good loan if the applicants are minorities.
Following up on the notion that minorities needed housing, even if tested underwriting showed they could not afford it and would only get themselves in trouble, the liberals loosened up Fannie and Freddie and told mortgage makers that they would buy those loans from them. Don't worry about the fact that common sense says they're bad loans, just make them and we'll take them. People like Country Wide took full advantage of this and helped set up millions for failure by putting them in unrealistic mortgages. In order to keep the gravy train rolling, they bribed liberals like Chris Dodd and Barak Obama to thwart any reform that Republicans were calling for.
So, Mrs. Greg, you notice how this all comes back to liberals? You don't have to wonder what created the system that caused all the excesses and failures, it was liberals.
Poor bankers... led into penury by the evil government :wink: It had NOTHING to do with their greed and their desire to give credit to more and more people, even people who could not repay their debts lol??!
hypocritexposer said:Can anybody explain to me how you get rich by giving money to those that cannot repay it?
Oldtimer said:hypocritexposer said:Can anybody explain to me how you get rich by giving money to those that cannot repay it?
When you take those bad loans that you make- package them in a package of loans- get a rating company to rate them much higher than they are/should be- trade off the loan to an investment firm, keeping no risk to your own lending company- and then take all the closing costs/fees plus servicing fees - and WALLAH- you got legalized theft....
And with many of these bankers/brokers getting commissions and bonus's for the more of this junk they could peddle-it just promotes GREED over ETHICS....
hypocritexposer said:And these banks' balance sheets are in what kind of shape now? Where are they getting the money they lost?
Sandhusker said:Oldtimer said:hypocritexposer said:Can anybody explain to me how you get rich by giving money to those that cannot repay it?
When you take those bad loans that you make- package them in a package of loans- get a rating company to rate them much higher than they are/should be- trade off the loan to an investment firm, keeping no risk to your own lending company- and then take all the closing costs/fees plus servicing fees - and WALLAH- you got legalized theft....
And with many of these bankers/brokers getting commissions and bonus's for the more of this junk they could peddle-it just promotes GREED over ETHICS....
Yep, and when Republicans tried to step in and shut down the hub, the Democrats, led by Chris Dodd with a Country Wide bribe in his pocket, treatened a fillibuster.
VanC said:Sandhusker said:Oldtimer said:When you take those bad loans that you make- package them in a package of loans- get a rating company to rate them much higher than they are/should be- trade off the loan to an investment firm, keeping no risk to your own lending company- and then take all the closing costs/fees plus servicing fees - and WALLAH- you got legalized theft....
And with many of these bankers/brokers getting commissions and bonus's for the more of this junk they could peddle-it just promotes GREED over ETHICS....
Yep, and when Republicans tried to step in and shut down the hub, the Democrats, led by Chris Dodd with a Country Wide bribe in his pocket, treatened a fillibuster.
That's correct, and your post about how it all started with the Community Reinvestment Act was also right on the money. Why is that so hard for some people to grasp?