The US consumer far outweighs most other markets, by a large margin. Not only that, but we can only control what we can.
Bank foreclosure cover seen in bill at Obama's desk
- Thread starter XDMAR
- Start date
The #1 community for Gun Owners in Texas
Member Benefits:
Fewer Ads! Discuss all aspects of firearm ownership Discuss anti-gun legislation Buy, sell, and trade in the classified section Chat with Local gun shops, ranges, trainers & other businesses Discover free outdoor shooting areas View up to date on firearm-related events Share photos & video with other members ...and so much more!
Member Benefits:
The US consumer far outweighs most other markets, by a large margin. Not only that, but we can only control what we can.
The problem didn't start with the banks, it started with "The Community Reinvestment Act" back in the 90's, when Barney Franks and crew, with the help of Acorn forced banks to make loans to people that under normal circumstances would not qualify to buy a home, and to do it with little or no money down, and later forcing the banks to take it a step further and to make the loans regardless of credit score or verified documented income. If a person walked in and asked for a mortgage, had a pay stub and were a minority, they could borrow up to 120% of the value of the property. I was on the board of two banks at this time, when the kind folks from Freddy and Fanny said you WILL do this, and you must have a certain percentage of your loans carried in your banks portfolio made under these provisions or your bank would no longer be able to take part in certain other federal programs, like making or originating FHA, VA or any loans back by Freddy or Fanny.
The banks and the brokers on wall street then found a way to package these high risk mortgages in order to spread the risk out as much as they could, and the feds winked and let them do it...
So bitch about the banks all you want, but they were FORCED by the FEDERAL GOVERNMENT to make these loans in the first place to people who, under ANY NORMAL circumstances would not have been able to borrow the money for a pack of gun.
So now you have this whole new group of buyers...so prices go up...and the cycle starts, until the inevitable happens, and these people who the banks were forced to loan money to, on houses they could not afford and were way over valued, started defaulting on the loans...and BINGO...here we are. At one point, there were so many loans being made BECAUSE THE FED WAS FORCING THEM TO BE, that if the person could breath on a mirror and had a pulse, they could get a home loan...as long as they had the right skin color or ethinic background.
And what do the Feds and Barney Franks and crew do? They start pointing the finger at the bankers who "took advantage" of these poor, undeserving people by wanting them to actually PAY BACK the money they were loaned, and since they have the presses ear, and everyone loves to hate bankers, the banks who were in trouble in the first place because of all the SUB-PRIME loans the Fed FORCED them to make, the Banks get saddled with all of the blame. In the mean time, while the banks are paying the money back, we have bailed out Freddy and Fanny two more times...and the bankers that took the huge salaries and bonuses? Never heard much if anything about the bonus taken by Barney Franks and crew, and the ones in charge of Freddy and Fanny that make the ones taken by the folks at Citibank look REAL SMALL...
Was there greed? Sure...but basically what happened was nothing more than banks and brokers trying to protect themselves and their depository customers from the horrifically STUPID rules that forced them in to the sub-prime lending in the first place.
The banks and the brokers on wall street then found a way to package these high risk mortgages in order to spread the risk out as much as they could, and the feds winked and let them do it...
So bitch about the banks all you want, but they were FORCED by the FEDERAL GOVERNMENT to make these loans in the first place to people who, under ANY NORMAL circumstances would not have been able to borrow the money for a pack of gun.
So now you have this whole new group of buyers...so prices go up...and the cycle starts, until the inevitable happens, and these people who the banks were forced to loan money to, on houses they could not afford and were way over valued, started defaulting on the loans...and BINGO...here we are. At one point, there were so many loans being made BECAUSE THE FED WAS FORCING THEM TO BE, that if the person could breath on a mirror and had a pulse, they could get a home loan...as long as they had the right skin color or ethinic background.
And what do the Feds and Barney Franks and crew do? They start pointing the finger at the bankers who "took advantage" of these poor, undeserving people by wanting them to actually PAY BACK the money they were loaned, and since they have the presses ear, and everyone loves to hate bankers, the banks who were in trouble in the first place because of all the SUB-PRIME loans the Fed FORCED them to make, the Banks get saddled with all of the blame. In the mean time, while the banks are paying the money back, we have bailed out Freddy and Fanny two more times...and the bankers that took the huge salaries and bonuses? Never heard much if anything about the bonus taken by Barney Franks and crew, and the ones in charge of Freddy and Fanny that make the ones taken by the folks at Citibank look REAL SMALL...
Was there greed? Sure...but basically what happened was nothing more than banks and brokers trying to protect themselves and their depository customers from the horrifically STUPID rules that forced them in to the sub-prime lending in the first place.
texas skeeter
TGT Addict
are you kidding???? its 2 different items!! so AGAIN, the banks put a gun to the head of the person signing the note????? NO!! And the Bank is the one at fault on the other end for "Accepting" a signed note from someone who "CLEARLY" did not qualify legitimately for said loan AND THEY KNEW IT!!!!!!! yes there is such a thing as Predatory lending but in the end there is NO ONE to blame but yourself for signing those papers!! why does there ALWAYS have to be someone else to blame/share in the part of just making STUPID DECISIONS?? for the buyer to be foreclosed on its HIS own fault as he cleary didnt have to sign!! and for the bank to have to foreclose on a "NOT CREDIT/INCOME WORTHY HIGH RISK" customer its their own fault cause they knew this before giving them the house!!!
Once again, the ones with the gun to their head was the banks...the fed demanded that the sub-prime loans be made...and the feds were told what would happen...and it did, just exactly like was testified to before congress IN 1992...I'm trying to find the testimony transcript now, but here is the short version of the legislative changes that were made to the CRA in 1992.
I wish big Brother would just stay out of the mortgage thing. If they don't let the market correct itself (from the mess they made) and continue to block foreclosures then it could take well over 10 years for home prices to recover. This is what we get when legislators want to purchase votes (from the bankers and the poor) by extending the dream of home ownership to anyone with a pulse. If we didn't have the polictically correct bullies putting pressure on the lending institutions and if the lending instutions knew that any losses would bring them down (no bailouts), then they would be more prudent in who they loan to. Then the lenders would verify employment, do better approval analysis, etc.
texas skeeter
TGT Addict
AGAIN, NONE of this foreclosure business on those bad/shady loans for "TRUELY UNQUALIFIED" buyers would have NEVER happened if the buyer DID NOT SIGN the papers. thats all i was trying to point out. BUYERS FAULT!!!!!!!
Agreed...thanks to Acorn and other groups who forced the issue that people have a RIGHT to own a home....
Lots of different posts and rants here, some very good and addresses the issue directly. Here's my take in a few sentences..
What is the bottom line here? The fact that politicians, liberal democrats in particular, have injected themselves too much in the financial industry trying to impose their idea into fixing the problems with just more problems that exacerbate it.
Generally you will find for the most part that Repugs will try to let the system correct itself until it is obvious that something needs to be done. Then they will try tweeking it first. For instance.....
Take Prescription Drugs for Seniors. I am well versed in this issue because it affects me directly.
When democrats were screeeeeming "Seniors NEED Prescription Drugs", instead of just doing a quick bill and handing it to them, Repugs got more people involved, got pharmaceuticals involved, promoted "competition". A great bill was written, fought against by democrats naturally. Today it works, and it didn't TAKE OVER the health care industry.
Ok I lied. I couldn't do it in a few sentences.
What is the bottom line here? The fact that politicians, liberal democrats in particular, have injected themselves too much in the financial industry trying to impose their idea into fixing the problems with just more problems that exacerbate it.
Generally you will find for the most part that Repugs will try to let the system correct itself until it is obvious that something needs to be done. Then they will try tweeking it first. For instance.....
Take Prescription Drugs for Seniors. I am well versed in this issue because it affects me directly.
When democrats were screeeeeming "Seniors NEED Prescription Drugs", instead of just doing a quick bill and handing it to them, Repugs got more people involved, got pharmaceuticals involved, promoted "competition". A great bill was written, fought against by democrats naturally. Today it works, and it didn't TAKE OVER the health care industry.
Ok I lied. I couldn't do it in a few sentences.
