WE Blog

I was in D.C. this past September. If you need a job, private security work looks to be a growing industry in that town – I couldn’t go anywhere without being checked out.

Maybe Alberto Gonzales can get a job as a security guard.

I doubt it KANSASNATIVE, I hear Homeland security is pretty strict, Alberto might not pass the check.

Oh sure. Blame the black guy.

Interesting. I wonder why the Eagle would use that particular photo.

Phillip?

I doubt that Jackson had much to do with the banking crisis – that was more the greed of lenders (banks) and some politically correct policies that led to the housing disaster.

Writerdog…I was thinking more along the line of Chuckee Cheese security guard…except that children aren’t really safe around Reds.

As far as the mortgage problem goes, it was NOT caused by criminal activity.
Sure, some people did illegal things, and some of those illegal acts will now be discovered, due to all of the audits.
However, we are dealing with a very complex situation that can not be blamed on any one person, or any one agency, or any one profession.
Greed on Wall Street?
Well, lets see now, is ANYONE suggesting that the housing “speculators” — those people who “flipped” houses for profit, or those people who simply sold their homes at a very hefty profit, should “give back” their gains?

This was a “bubble” — an economic problem where value is seperated from price, where people assume that PRICE will always increase to justify future costs.

When price and value come back into line, the interest payments then become questionable to the buyer, and people default.

This would be true even without the Adjustable Rate Mortgages.

Also, it was the policy of our government to open up home ownership to nearly everyone.

Most of these “Alt-A” and “Sub Prime” loans are still performing very well.

If it is truly the policy of the government to encourage such loans, more must be done to identify those loans so that investors understand what they are buying.

Again, of course illegal activity should be punished.

However, illegal activity had very little to do with the mortgage/housing crisis.

#
annie_moose
Posted April 16, 2008 at 8:51 am | Permalink

‘Oh sure. Blame the black guy.”

You guys got no problem picking apart everything Obama ever said did saw knew.He must not be black enough.
——————–
Obama had to move to Chicago to learn how to be black. He had no previous training before living in Indonesia and Hawaii.

#
KansasNative
Posted April 16, 2008 at 9:14 am | Permalink

Regular said :

“Obama had to move to Chicago to learn how to be black. He had no previous training before living in Indonesia and Hawaii.”

What a rascist comment Reg.

Pray tell, where does one go to learn to be white?
—————————
It’s not a racist remark, it’s the observation of many journalists who have followed Obama’s life.

Also, it’s just a fact. Obama had little exposure to Black culture prior to him reaching adulthood.

But a nice try in your own simplistic way.

RegularLiar only posted twice, but both times he was completely wrong.

The housing melt-down was entirely caused by Republican de-regulation of banks or non-regulation of new mortgage brokers. In all fairness, some of it started under the Republican president Bill Clinton.

Franklin is right that there probably wasn’t anything technically illegal. That’s because Worst. President. Ever. lets the white-collar criminals write the laws. Of course it’s not illegal when the polluters write energy policy or the mortgage brokers control the regulators.

As for the latest scandal, it’s just more of the same. Bush is like the old style communists. He doesn’t appoint people who are expert or even competent. He appoints people who are ideologically pure.

As a result you get the massive corruption and incomptence that is the standing legacy of this, the Worst. President. Ever.

Hey, maybe Alphonso can join Alberto Gonzales on the unemployment line.

I once asked right-wing-nut Joe Williams on this blog what out-of-work people were supposed to do.

“Well,” he huffed, “they could start their own business.”

Great idea!

Maybe they can start their law practice for government crooks.

“The Law Practice of Alphonso and Gonzo, specializing in defending government corruption”

Capn
It was CONGRESS that wrote laws which FORCED banks to make sub-prime loans.

It was lawyers like Obama who threatened lawsuits when loans were denied!

Franklin–

Wrong on three counts. Banks weren’t the culprits. It was non-regulated mortgage brokers.

Also, which Congress? The Republican dominated one?

And which president signed these laws?

No, I am right on target.

Of course I am using the term “bank” loosely, to include all mortgage lenders.

The sub prime market was CREATED by Congress, which forced lenders to make such loans through the “Community Development” laws.

Congress also came up with a data base that gave lawyers, like Obama, ammunition to file lawsuits and claim “redlining” or discrimation in loan processing.

Also, a big part of the mortgage problem is that the “original” lender, bank or mortgage company, rarely holds on to the paper.

That paper is “sold” on the market to hedge funds and other investors.

Also, the Blog link I posted was factual and was quoting Larry Kudlow, a well known authority on such issues.

Obama will be tied to the sub prime mess.

Count on it!

Capn
You do NOT know what you are talking about.

What does the term “broker” really mean?

“Broker” means that the product or service being offered is not OWNED by the person offering such product or service, or the firm that person represents.

So, a “mortgage broker” can, and often DOES, represent various BANKS and other mortgage lenders.

Capn
Furthermore:
Morgage lenders are ALL regulated.
You can complain about the regs, themselves, but to say that any mortgage lender is “unregulated” is pure BS.
A private, seller-financed loan would even have to abide by many different regulations.

It was the REGULATIONS, intented to fight “redlining” which CAUSED much of this problem to begin with.

Franklin writes:

“Obama will be tied to the sub prime mess.

Count on it!”

Piss into the wind much Franklin?

Franklin your persistent. Who was it that said if you repeat a lie enough times people accept as truth. That was before Al Gore’s internet. Our current problems are illustrated in the link below,

http://docs.google.com/TeamPresent?docid=ddp4zq7n_0cdjsr4fn&skipauth=true&pli=1#2

press the little arrows in the lower left hand corner to make it work

This picture reminds me of the one where bush takes McCain under his arm, hugs him tightly and kisses the top of his head. bush treats his minions like normal people treat their cats and dogs — we “pet” them.

Annie
I make my share of typos.

However, the contraction from of “you are” is “you’re” and the possessive form of “you” is “your” — FYI.

KFG
EVERYONE in the mortgage market knows about the Community Development laws and the “anti-redlining” laws.

Also, Congress set up “equal opportunity” questions on loans that created a data base.

Lawyers like Obama could then demand a higher and higher percentage of loan approvals for bad risk lenders.

Sorry Franklin was those damn gubermint skools

Oh, ok, so I didnt realize you were citing the “everyone knows it” source.

Jesus WEPT! Just say no, you cant prove it and skip the outrage and the “everyone knows it”.

Yes, there are c.d. laws. But as to those laws creating the subprime market?

hehehehehhe. Oh, yeah, that famous school of economics, “everyone knows it”.

Still the same paulie, no matter what nic yer usin’.

There are thousands of attorneys all over the country, like this firm in CHICAGO, that love to bring lawsuits against land lords, lenders, publications and everyone else involved in “housing” — The “Community Development” laws forced loans to be made to people with poor credit.

http://www.lawyerscomm.org/2005website/projects/housing/housingpics/newsletterspring02.pdf

So it really isnt the fault of poor and minorities. Or the lenders that fleeced them.

It really is all about the trial lawyers.

Thanks for clearing that up….

Paul, have you ever met a meme you didnt love?

KFG
When did subprime loans start?
Just a hint: they did not exist prior to the most recent amendments to the “Community Development”
laws.

“Jackson, who declined to be interviewed, will be remembered as a Cabinet secretary so committed to carrying out President Bush’s goal of increasing homeownership that he encouraged policies that threatened to exacerbate the mortgage crisis, according to interviews with more than 30 current and former HUD officials and housing experts, and a review of numerous HUD documents and audits.”

Seems to me to say it all. Regardless of franklin’s and regs assertions, Jackson had his hands bush deep it this mess. Private chef? Doesn’t it seem there are a lot of bush appointees going down in flames, or at least under a cloud of severely negative reviews? What we’re witnessing, again, is a corrupt admin, and it’s “good ole boy” network of incompetent bunglers.

Great legacy this bozo is leaving.

KFG
Lenders worked under the very real thread of lawsuits, if they ever denied credit.
Lenders also worked under a system that was demanding high payouts during a time of falling interest rates.
I stated early on, and often, that no one person or group can or should take all of the blame for this mess.
However, Congress, the Community Development rules, trial lawyers and activists like Obama, and the repeal of Glass-Steagall, under Clinton, all played a part.

I HATE working under the thread of lawsuits! :)

“and the repeal of Glass-Steagall, under Clinton”

That would be the repeal passed by both houses of the republican dominated congress?

Hmmm….

A very good reason not to give control of congress back to the republicans.

Outside the Beltway, it is not well known that a Victoria’s Secret catalog was responsible for a key aspect of the Gramm-Leach-Bliley Act

No wonder the Reps were for it.

(ok, it’s a red herring, but I still thought it funny. Funny how reg blames clinton for signing a bill sponsored by two republicans. That po’ boy can’t do nuthin’ right for the Go Pee force)

hee hee hee heeeeeeeee….

paulie, you’ve posted nothing but tortured logic and your opinion.

If that constitutes a win, I concede.

But really, you could have saved some bandwidth by just admitting you couldnt back up your opinion with fact.

‘mornin’ ksfarmgrrl. Now you know the cons never need facts before. Why would they let them (facts) bother them now?

In Paul-world purveyors of financial instruments can do no wrong. They are simply the victims of evil libs and greens.

Paul declares victory very easily. Isn’t he too old to have played soccer where everybody on every team gets a trophy? Maybe not…

I think “absolute facts” ranks right up there with “everyone knows it”.

All that peeing into the wind eventually gets you soaked Paul.

Hey Capn – with a little help I now have RA connected with someone I know from some time back. I am quite certain he is not “regular”

The sub prime market was CREATED by Congress, which forced lenders to make such loans through the “Community Development” laws.

Of course! It was the poor and minorities who are to blame. It wasn’t deregulation–it was too much regulation to help poor black people.

Just unfreakingbelievable!

I tremble for my country because I know that God is just, and His Justice cannot sleep forever. Thomas Jefferson

Someone pointed to the fact that it was two Republicans who fought for the repeal of glass-steagall.

The answer is right there in some of your faces, but you are just looking at it from the wrong perspective. What does it tell you if both parties were involved in getting this bill repealed?

It tells you that there is no difference between the Republicans and Democrats. A majority of them were bought and paid for years ago. All you need in this country is a majority.

I would hope that this would end the squabbling between Republicans and Democrats. Neither care about you and for some of you to defend one or the other is asinine.

It tells you that there is no difference between the Republicans and Democrats. A majority of them were bought and paid for years ago. All you need in this country is a majority.

I would hope that this would end the squabbling between Republicans and Democrats. Neither care about you and for some of you to defend one or the other is asinine.

Prophetic.

It is an absolute fact and everyone knows it that:

“Jackson, who declined to be interviewed, will be remembered as a Cabinet secretary so committed to carrying out President Bush’s goal of increasing homeownership that he ENCOURAGED policies that threatened to EXACERBATE the mortgage crisis, according to interviews with more than 30 current and former HUD officials and housing experts, and a review of numerous HUD documents and audits.”

In talking to some hedge fund experts, lower morgage rates for prime customers left many investors hungry for higher returns.
Those investors were convinced to buy packages of loans that mixed low credit score loans with higher credit score loans.
The big problem, today, is that it is now often hard to distinguish between such loans.

I have read a number of these ‘personal’ stories about the sub-prime mess. In almost all cases the homeowner made a lot more money than I do – these are NOT the low-income Comm Redev targets.

NPR had a story last night about a bank in New Orleans who trusted and worked with their low-income customers after Katrina. While they did have some losses they are doing MUCH better than the Bear Sterns etc bunch.

Linda
Think about it, would you?
“Sub” means below.
So if you borrowed money below prime you would be paying LESS than prime rates.

That is NOT what the term means.

Sub Prime means “LESS THAN AAA Credit”

bth, I once posted a link where a couple sold their 400k home to their children for 650k. The little Billy and Sally defaulted without a payment and Mommy and Daddy made a cool 250k.

Don’t know, but what ya wanna bet Mom and Dad rebought the home for 200k at forclosure auction?

This paper was written in 1996!:

http://bus.utk.edu/finance/fac_staff/flautt/yinger.pdf

It states that “default rates” basically, do not matter when we study loan discrimination.

The author states, rather clearly, that loan denial rates should be the same, across all racial lines, in the author’s opinion.

These same arguments have been used in court rooms all across the country, when “neighborhood organizers” like Obama shook down lenders to force sub-prime mortgages to low credit score customers.

linda – correct. The ‘rest of the story’ is that for the conventional mortgages they are more careful about appraisals. With many of the sub-primes they let thsoe skate as ‘fish’ noted.

As for “In talking to some hedge fund experts, lower morgage rates for prime customers left many investors hungry for higher returns.
Those investors were convinced to buy packages of loans that mixed low credit score loans with higher credit score loans.” Perhaps Paul can explain how ‘libs’ and Comm Redev forced that to be done.

I AM RUNNING FOR THE SAME OFFICE AS ANY ILLEGAL ALIEN LEADER HOLDS RIGHT NOW AND IF ANY LEADERS FOR ” WE THE PEOPLE ” CAN JOIN ME PLEASE DO SOMEONE HAS TO FIGHT THESE TRATIORS THERE WAY. AND DO NOT WORRY ABOUT IF YOU QUAILIFY THEY DON’T. THANK YOU. SEMPER FI.

hey chas you sound just like the person we the people need rite now you say what they are doing for america you sure are smart.

hey chas you sound just like the person we the people need rite now you say what they are doing for america you sure are smart.

Damn, try working on the capitalization, spelling and punctuation and get back to us in say – fifty years or so.

Bet his bush monicker is ‘eight ball’.