Has the Housing crash arrived?

[Duckinla]

As i understand from articles, the securitization of every subprime loan can earn bankers millions of dollars. So they give out as many loans as possible to scam the security buyers.

Nobody was getting scammed in this situation. Everyone knew exactly what they were getting. Security Buyers aren't stupid. They knew they were buying sub-prime loans. This kind of thing occurs when there is too much investment capital and not enough places to get healthy returns. Investors start taking bigger risks hoping to increase returns. They get what they bargained for.

Prime: good 3 letter dot com with great history

SubPrime: 8 letter dot com that makes no sense or a domain involved in Spyware.

Prime: keyword.com
Subprime: keyword.mobi

 

[Gerry]

As i understand from articles, the securitization of every subprime loan can earn bankers millions of dollars. So they give out as many loans as possible to scam the security buyers.

I would have to agree with Duck in the response that no one got scammed. It is all about greed...greedy borrowers, greedy investors, greedy money lenders...it runs from the bottom of the ladder up to the top and back down again.

Another point made by Duck also comes into play here. Just like stocks, bonds, and any investment, any high yield return typically carries high risk along with it.

If anyone is going to GET SCAMMED, it may end up being the taxpayers (again) bailing out lenders.

As I mentioned earlier, the lobbyists did their job in getting congress to pass and enact legislation making it much tougher on the consumer to file bankruptcy. It was as if the lenders had a vision...recession, inflation, stock market crash...and now they needed a parachute from loaning out so much money at will.

It doesn't matter how tough you make the bankruptcy law...if someone lost everything, you get nothing. Banks and lenders won't stand for this at all.

I know, but the transaction prices for the Feb stats were agreed like last year?

Feb 2006 compared to Feb 2007.

Prime: keyword.com
Subprime: keyword.mobi

Market correction: all extensions regged. Prime.

 

[Duckinla]

If anyone is going to GET SCAMMED, it may end up being the taxpayers (again) bailing out lenders.

I'm not so concerned about this. Mortgage backed securities can change hands several times, a big percentage of them were funded by foriegn investors. If they look to bail out the homebuyers, I will be outraged. You just can't keep removing the consequences of making bad decisions. A country can't last that way.

 

[NYdomainer]

There is always Chapter 11, or 7

 

[Duckinla]

There is always Chapter 11, or 7

You can't eliminate a home mortgage by filing bankruptcy. Same with student loans and taxes. Otherwise to many people would do it and nobody would lend the money.

 

[NYdomainer]

This is what Prez Lincoln did when the feds defaulted on their obligations.
Don't they teach that at U of O?

 

[Duckinla]

This is what Prez Lincoln did when the feds defaulted on their obligations.
Don't they teach that at U of O?

Mostly I learned how to get bong water out of the carpet before the parents showed up.