I hereby resign from the Republicrat party....
09-04-2008, 07:32 PM
#101
3.0 BAR
Join Date: Jul 2003
Posts: 6,449
Re: I hereby resign from the Republicrat party....
Originally Posted by jay
The sub prime bubble was caused by Glass-Steagall being revoked during the Clinton years when he signed the Gramm-Leach-Bliley Act into law.
And anyone who claims they "know" what the actual reason is sure to be completely full of ----. The greatest thing about a problem like the one that happen in our nation and others with the housing market is that no one can possibly be blamed...so the people that did cause it in part or otherwise are the ones that made money and then got out when it was time to crumble.
Our government SHOULD conduct a proper investigation in what actually happened and who is actually to blame. Somehow if that happened I would guess they would either be investigating themselves or somehow find a way to blame it on Osama and go into Iran to find him.
09-04-2008, 07:46 PM
#102
0.0 BAR
Join Date: Dec 2002
Posts: 0
Re: I hereby resign from the Republicrat party....
Chris,
Yes the banking sector and heads of government allowed this to happen but so did the American consumer. Unlike wars this was a choice of the American people has well. Anyone who bought on a prime loan knew what was going to happen after 2-3 years. I live in the number one area in the country in foreclosures/home value loss the Sacramento Valley. Homes were well into the 400k+range for a typical 3 bdrm home. The average income is well below that of someone being able to afford a 400k home.
If a consumer beliefs they will double their income by the time doomsday of the loan comes(Actually paying for the home) they deserve everything their getting in return which really they didnt loss anything. Whats the difference between someone with a prime loan and renting? Neither has ever invested a dime into the property to attain ownership. Its like crying about turning in your leased vehicle.
All sides are guilty of the problem. Not owning up to the responsibility is something that government and banking wont do but the public who used these loans can atleast admit the made foolish mistakes and they too are to blame. Yet, the masses of them want government to save them from something they have never paid into.
Yes the banking sector and heads of government allowed this to happen but so did the American consumer. Unlike wars this was a choice of the American people has well. Anyone who bought on a prime loan knew what was going to happen after 2-3 years. I live in the number one area in the country in foreclosures/home value loss the Sacramento Valley. Homes were well into the 400k+range for a typical 3 bdrm home. The average income is well below that of someone being able to afford a 400k home.
If a consumer beliefs they will double their income by the time doomsday of the loan comes(Actually paying for the home) they deserve everything their getting in return which really they didnt loss anything. Whats the difference between someone with a prime loan and renting? Neither has ever invested a dime into the property to attain ownership. Its like crying about turning in your leased vehicle.
All sides are guilty of the problem. Not owning up to the responsibility is something that government and banking wont do but the public who used these loans can atleast admit the made foolish mistakes and they too are to blame. Yet, the masses of them want government to save them from something they have never paid into.
09-04-2008, 11:42 PM
#103
3.0 BAR
Join Date: Oct 2005
Posts: 9,282
Re: I hereby resign from the Republicrat party....
Originally Posted by xenocron
And anyone who claims they "know" what the actual reason is sure to be completely full of ----. The greatest thing about a problem like the one that happen in our nation and others with the housing market is that no one can possibly be blamed...so the people that did cause it in part or otherwise are the ones that made money and then got out when it was time to crumble.
09-04-2008, 11:47 PM
#104
0.0 BAR
Join Date: Sep 2003
Posts: 0
Re: I hereby resign from the Republicrat party....
Originally Posted by jay
That's like saying you can't find why a car engine failed because it's a whole engine and it's too much to understand
Sub prime hilarity: http://docs.google.com/TeamPresent?d...&skipauth=true
09-04-2008, 11:55 PM
#105
3.0 BAR
Join Date: Oct 2005
Posts: 9,282
Re: I hereby resign from the Republicrat party....
Originally Posted by bigwig
You're retarded. A more fair comparison would be if you had an engine within and engine sharing an engine within an engine tied to another engine all run by one big engine.
Sub prime hilarity: http://docs.google.com/TeamPresent?d...&skipauth=true
Sub prime hilarity: http://docs.google.com/TeamPresent?d...&skipauth=true
Repealing Glass Steagall aloud for the creation of SIV's.
look here.
once you understand what a SIV is, we'll move on to our next lesson.
09-05-2008, 01:15 AM
#107
3.0 BAR
Join Date: Jul 2003
Posts: 6,449
Re: I hereby resign from the Republicrat party....
I agree that people need to responsible for their own finances, I bought a house recently, got approved for MUCH more than I should have and could have afforded, so I purchased what I knew I could afford. Banks were GIVING away money. We kept asking, how did we get approved for this much? They kept saying, dont worry about it...
However dangling that much dough in front of the average consumer is like fishing for Alcoholics with a keg of Budweiser. The people who did the dangling are fully responsible in my eyes and should be held accountable, but alas we know they won't.
However dangling that much dough in front of the average consumer is like fishing for Alcoholics with a keg of Budweiser. The people who did the dangling are fully responsible in my eyes and should be held accountable, but alas we know they won't.
Originally Posted by chris
Chris,
Yes the banking sector and heads of government allowed this to happen but so did the American consumer. Unlike wars this was a choice of the American people has well. Anyone who bought on a prime loan knew what was going to happen after 2-3 years. I live in the number one area in the country in foreclosures/home value loss the Sacramento Valley. Homes were well into the 400k+range for a typical 3 bdrm home. The average income is well below that of someone being able to afford a 400k home.
If a consumer beliefs they will double their income by the time doomsday of the loan comes(Actually paying for the home) they deserve everything their getting in return which really they didnt loss anything. Whats the difference between someone with a prime loan and renting? Neither has ever invested a dime into the property to attain ownership. Its like crying about turning in your leased vehicle.
All sides are guilty of the problem. Not owning up to the responsibility is something that government and banking wont do but the public who used these loans can atleast admit the made foolish mistakes and they too are to blame. Yet, the masses of them want government to save them from something they have never paid into.
Yes the banking sector and heads of government allowed this to happen but so did the American consumer. Unlike wars this was a choice of the American people has well. Anyone who bought on a prime loan knew what was going to happen after 2-3 years. I live in the number one area in the country in foreclosures/home value loss the Sacramento Valley. Homes were well into the 400k+range for a typical 3 bdrm home. The average income is well below that of someone being able to afford a 400k home.
If a consumer beliefs they will double their income by the time doomsday of the loan comes(Actually paying for the home) they deserve everything their getting in return which really they didnt loss anything. Whats the difference between someone with a prime loan and renting? Neither has ever invested a dime into the property to attain ownership. Its like crying about turning in your leased vehicle.
All sides are guilty of the problem. Not owning up to the responsibility is something that government and banking wont do but the public who used these loans can atleast admit the made foolish mistakes and they too are to blame. Yet, the masses of them want government to save them from something they have never paid into.
09-05-2008, 01:41 AM
#108
3.0 BAR
Join Date: Jul 2003
Posts: 6,449
Re: I hereby resign from the Republicrat party....
Originally Posted by jay
It's not that complicated. That, or you're too simple to understand it.
Repealing Glass Steagall aloud for the creation of SIV's.
look here.
once you understand what a SIV is, we'll move on to our next lesson.
Repealing Glass Steagall aloud for the creation of SIV's.
look here.
once you understand what a SIV is, we'll move on to our next lesson.
That showed how risk-averse CP investors had become even though SIVs contain minimal sub-prime exposure and as yet had suffered no losses through bad bonds. It's a matter of debate, however, whether this risk aversion was a matter of prudence or misunderstanding of the CP market.
Several SIVs -- most notably Cheyne -- have fallen victim to the liquidity crisis. Others are believed to be receiving support from their sponsoring banks. It is notable that even among "failed" SIVs there have still been no losses to CP investors.
Several SIVs -- most notably Cheyne -- have fallen victim to the liquidity crisis. Others are believed to be receiving support from their sponsoring banks. It is notable that even among "failed" SIVs there have still been no losses to CP investors.
09-05-2008, 03:24 AM
#109
3.0 BAR
Join Date: Oct 2005
Posts: 9,282
Re: I hereby resign from the Republicrat party....
You're basically borrowing short term at a low interest rate to lend it to someone else long term at a higher interest rate. Think of long term loans, they're usually bonds and mortgages. So you're filling up the market with all of these long term bonds and mortgages that are financed off of an assumption of a source that's going to continue to let you borrow short at a lower interest rate than what you're offering on your long term loans. On top of this it wasn't really mandatory to include it in any of your institutions official accounting as to what you were doing with the fund. So investors who were throwing money out for these short term loans really don't have any clue as to what's going on with their investment. You should be able to see how that's going to cause some instability in the market and sets up a situation for the short term investors to panic and call all of their loans in. In which case the manager of the SIV, who's lended long term, high interest, is going to have to pull their interest rates up in order to pay back the short term investor. Other short term investors see the panic in the market and decide it's in their interest to stay out of the SIV market for now so all of the cash flow dries up for the manager of the SIV fund. Which is then going to be transfered to the people at the end of the line who took the long term, high interest loans who are going to see their interest rates go through the roof as the banks scramble to pay back the short term lenders.
This is written really poorly and I'll give you a straighter shot in the morning. Especially if you find anything wrong with my logic behind it. I'm too tired right now to write coherently.
This is written really poorly and I'll give you a straighter shot in the morning. Especially if you find anything wrong with my logic behind it. I'm too tired right now to write coherently.
