Propublica wins a Pulitzer

[AmericanFirst]

Blaming the victim gets you where you fools?

How exactly are you a victim if you borrow money and dont pay it back?

To truthmatters it is like a bank robber is a victim because he lost his job so he had to rob a bank to support his family, hence he is a victim. Doesn't matter that he committed a crime and is a criminal.

 

[Zoom-boing]

How stupid and unthinking would you have to be to take it knowing full well that there is no way in hell you can afford the payments??

I can explain that, by the way.

Did I mention the Pick-A-Payment loan earlier?

The way a Pick-A-Payment loan worked was like this. You had four choices of payment each month. One payment was really, really low. Almost anyone could afford it.

The second payment was a little higher. The third payment higher still. The fourth payment was the highest.

Guess which payment 80 percent of all Pick-A-Payment customers paid every month?

That's right. The lowest payment.

When I saw a Wachovia internal memo a few years ago about their wildly popular Pick-A-Payment program and their plans to ramp it up and put it on steroids, that is the exact moment I discovered our financial planet was well and truly fucked.


What was not being carefully explaind to the borrowers was that the lowest payment was a negative amortization payment.

I will pause now while some readers google "negative amortization".

(cue elevator music)

Okay. Understand?

If a borrower was making the lowest payment, they were not even covering the amount of interest owed on their loan every month.

Let's say you borrowed $250,000 at 5 percent API.

The lowest payment in a Pick-A-Payment loan might be, ohhh, let's say $512.23 a month.

The second lowest payment would be $638.64.

The third level payment would be $1,654.55

The fourth level payment would be $2,289.48

You can understand why 80 percent of the borrowers would make that $512.23 payment, yes?



All right. The first payment doesn't even cover the interest. The second payment is an interest-only payment. It does not pay down any principal. The third payment would pay off the loan in 30 years. The highest payment would pay off the loan in 15 years.

So at a minimum, just to avoid falling behind, you should be at least making the second highest payment of $638.64.

But if you make the $512.23 payment (which 80 percent did) then you are short $126.41 every month.

And that $126.41 gets added to your principal every month.

At the end of the variable period of your loan, which can be three to five years, you have accumulated from 10 to 25 percent more debt.

Instead of $250,000 you now owe $275,000, best case scenario. And your monthly payment now resets to $1,788.76.

So there you were, paying $512 dollars a month, happy as a lark in your new home. Now you have to cough up $1788 a month.

Good luck with that!

If one is presented with wide and varying 'payment options' one would be foolish to not ask why there are so many wide and varying 'payment options' and, once informed, if they still choose to go with the lowest rate? It's their problem, they signed the papers.

Crooked lenders and crooked lendees ought to be jailed.

 

[g5000]

Mortgage borrowers were a very small link in the global credit crisis. The actions of Wall Street were far greater crimes and lunacy.

They blow everything up every few years. Just like clockwork. The only common factor in every credit crisis is...Wall Street, their regulators, and the ratings agencies.

 

[Truthmatters]

Blaming the victim gets you where you fools?

How exactly are you a victim if you borrow money and dont pay it back?

To truthmatters it is like a bank robber is a victim because he lost his job so he had to rob a bank to support his family, hence he is a victim. Doesn't matter that he committed a crime and is a criminal.

why is it you fools are pretending we are not talking about the lending institutions who switched loans on borrowers after they signed?

You are defending fucking criminal behavior to take a cheap assed shot at me personally.

You people have no shred of morals left

 

[Amelia]

fools

idiots

fools

so sweet

 

[Truthmatters]

they believe in a kind of survival of the fittest.

They think making the American economy like a jungle with no rules protecting the "weak" so that the "strong" can will everything is the "moral" way to run a country.


Not everyone can be a financial wiz.

Most people dont understand the details of any contract they sign.

They would like to create an economy were most consummers refuse to use credit for lack of trust in the system.

What they ask for its a complete stagnation of the American economy because only cash is trusted.

Complete idiots they are

 

[Truthmatters]

fools

idiots

fools

so sweet

when have you EVER been sweet to me?

hypocrit

 

[Amelia]

fools

idiots

fools

Complete idiots

hypocrit

There's a reason my new year's resolution was to be more like TM.

I can but strive!

 

[Truthmatters]

I read it and I agree with Con.

Very deserving of the Pulitzer. Second one I believe.

Not everyone on Wall St. is a thief or out to screw everyone. Bad apples inhabit many businesses and always will.

If you read it then why are you spouting the same crap lie that this article is about wall street.

You agree with the article and then turn on a dime and blame the little guy for getting duped by the lenders.

jesus your stupid

 

[Crackerjack]

fools

idiots

Complete idiots

hypocrit

There's a reason my new year's resolution was to be more like TM.

I can but strive!

Your spelling and capitalization is way too good.

 

[Truthmatters]

fools

idiots

Complete idiots

hypocrit

There's a reason my new year's resolution was to be more like TM.

I can but strive!

then quit being stupid and start accepting cold hard facts when they are shown you

 

[Truthmatters]

Note the fools here just to insult me and they ignore the entire subject of the thread?


man the right needs a new braintrust.

 

[Truthmatters]

The Wall Street Money Machine - ProPublica

you dont have the intelligence to read and comment?

 

[Amelia]

fools

idiots

fools

Complete idiots

hypocrit

jesus your stupid

Enroll now in Debating 101, taught by Senior Lecturer Truthmatters.

 

[Truthmatters]

Ill take that as a no on your brain level

 

[Crackerjack]

Note the fools here just to insult me and they ignore the entire subject of the thread?


man the right needs a new braintrust.

You mean people come onto your thread (the one you personally own) and say stupid things? How terrible!

By the way, I'm not part of "the right."

 

[Truthmatters]

At least nine banks helped Magnetar hatch deals. Merrill Lynch, Citigroup and UBS all did multiple deals with Magnetar. JPMorgan Chase, often lauded for having avoided the worst of the CDO craze, actually ended up doing one of the riskiest deals with Magnetar, in May 2007, nearly a year after housing prices started to decline. According to marketing material and prospectuses, the banks didn't disclose to CDO investors the role Magnetar played.

Many of the bankers who worked on these deals personally benefited, earning millions in annual bonuses. The banks booked profits at the outset. But those gains were fleeting. As it turned out, the banks that assembled and marketed the Magnetar CDOs had trouble selling them. And when the crash came, they were among the biggest losers.


http://www.propublica.org/series/the-wall-street-money-machine

 

[Truthmatters]

In late 2005, the booming U.S. housing market seemed to be slowing. The Federal Reserve had begun raising interest rates. Subprime mortgage company shares were falling. Investors began to balk at buying complex mortgage securities. The housing bubble, which had propelled a historic growth in home prices, seemed poised to deflate. And if it had, the great financial crisis of 2008, which produced the Great Recession of 2008-09, might have come sooner and been less severe.

At just that moment, a few savvy financial engineers at a suburban Chicago hedge fund helped revive the Wall Street money machine, spawning billions of dollars of securities ultimately backed by home mortgages.

When the crash came, nearly all of these securities became worthless, a loss of an estimated $40 billion paid by investors, the investment banks who helped bring them into the world, and, eventually, American taxpayers.


http://www.propublica.org/series/the-wall-street-money-machine

 

[Truthmatters]

These are facts.

they are not imagined they are facts.

they shoot to hell your right wing talking points.

The lenders fucked us for profit.

what do you clowns do?

defend them.

 

[dilloduck]

Now how does this square with the right wing meme that poor people caused the crash?

poor people encourage rich liberals to steal