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How many "bank panics" between 1929 and 2007?In actuality Fed policies PREVENT boom and busts.Federal Reserve Policies Cause Booms and Busts | Richard M. Ebeling
"Interest rates, like market prices in general, cannot tell the truth about real supply and demand conditions when governments and their central banks prevent them from doing their job. All that government produces from its interventions, regulations, and manipulations is false signals and bad information. And all of us suffer from this abridgement of our right to freedom of speech to talk honestly to each other through the competitive communication of market prices and interest rates, without governments and central banks getting in the way."
Since the creation of the Fed re has been one Depression. Prior to that there was one about every ten years
You’re assuming the creation of the Fed has stymied depressions/recessions and it seems you believe this to be the first government charted bank. Neither is true. In the 100 years prior to the creation of the Federal Reserve there were 129 months of recession/depression. In the 100 years after, there have been 196 months and the longest was the Great Depression under the Feds watch.
View attachment 225955
None?
Oh...
I did not fall for any of these practices, either.Part XVI
Almost there. I can see the light at the end of the tunnel. There are a few more culprits who need to be called out.
That's why we need to circle back to AIG now.
Remember when AIG sold that first CDS to JP Morgan for the BISTRO CDO? If you understand that sentence, then I congratulate you for sticking it out this far. Well done!
Anyway, AIG didn't set any money aside in case JP Morgan came calling to collect on that insurance policy in the event a blue chip company defaulted.
And they continued to not set money aside as the CDS market exploded! They thought the universe would end before they would ever see the day when a CDO imploded.
No, literally. They actually believed the actual universe would end before such a thing would happen.
And if every CDO was of the same Smith & Wesson quality as that first one (BISTRO), they would have been right.
And everyone would have lived happily ever after.
But they weren't the same quality. Because Wall Street was making "toxic loans" to anyone who could draw a breath, and that is what was ending up in CDOs. A "toxic loan" is one in which the broker making the loan knew the borrower didn't have a chance in hell of ever paying off their mortgage.
I mentioned earlier that most of the subprime loans were made to middle class borrowers. However, it is definitely true that subprime loans were also being made to "low income borrowers".
The thing is, the hacks would have you believe the broker-dealers were FORCED to make those loans to the negroes. But now you know the opposite is true. The banks were forcing themselves on the lower income people.
This actually happened: Poor people would be attending church, and suddenly their preacher would introduce a mortgage broker and tell them Jesus want the congregation to listen to this motherfucker and Jesus was going to make them all rich. I kid you not.
Let me ask you something. If you have two people sitting at a table with a mountain of forms, and one of those people was poorly educated in an urban shithole school and was trapped in a redline area earning less than a survival wage, and the other person worked for an institution with CENTURIES of hard learned lessons about risk and lending, which one is the most culpable when that loan inevitably defaults?
That's right. The lender. That's why these loans were called "predatory loans".
Sure, the borrower should have known there was no way to make a $1400 a month payment on a less than subsistence wage.
But you see, good old Bush said we could and should "change the fine print". Then presto! Your monthly payment has just magically dropped to $300!
Whaaaaaat!?!
Wut!!!!!!!!!!!! I bought two houses and didn't fall prey to any of these practices. I read the fine print and rejected it. Wut!!!!!!!!!
Before the Fed, recessions were more frequent, longer lasting, and deeper.In actuality Fed policies PREVENT boom and busts.Federal Reserve Policies Cause Booms and Busts | Richard M. Ebeling
"Interest rates, like market prices in general, cannot tell the truth about real supply and demand conditions when governments and their central banks prevent them from doing their job. All that government produces from its interventions, regulations, and manipulations is false signals and bad information. And all of us suffer from this abridgement of our right to freedom of speech to talk honestly to each other through the competitive communication of market prices and interest rates, without governments and central banks getting in the way."
Since the creation of the Fed re has been one Depression. Prior to that there was one about every ten years
You’re assuming the creation of the Fed has stymied depressions/recessions and it seems you believe this to be the first government charted bank. Neither is true. In the 100 years prior to the creation of the Federal Reserve there were 129 months of recession/depression. In the 100 years after, there have been 196 months and the longest was the Great Depression under the Feds watch.
View attachment 225955
That's a simple fact.
You are cherry picking.Also notice there has been a recession under every Republican president except for Trump (so far).List of recessions in the United States - Wikipedia, the free encyclopedia
Take a good look at the list of recessions in that link, and take special note of the length and depth of each one. Notice how the ones of the 19th century were longer and more frequent than those of the 20th century.
Not true. The longest recession in American history was actually called The Long Depression, and it was from 1873 to 1879. By some measurements, the Long Depression lasted until 1896.Before the Fed, recessions were more frequent, longer lasting, and deeper.In actuality Fed policies PREVENT boom and busts.Federal Reserve Policies Cause Booms and Busts | Richard M. Ebeling
"Interest rates, like market prices in general, cannot tell the truth about real supply and demand conditions when governments and their central banks prevent them from doing their job. All that government produces from its interventions, regulations, and manipulations is false signals and bad information. And all of us suffer from this abridgement of our right to freedom of speech to talk honestly to each other through the competitive communication of market prices and interest rates, without governments and central banks getting in the way."
Since the creation of the Fed re has been one Depression. Prior to that there was one about every ten years
You’re assuming the creation of the Fed has stymied depressions/recessions and it seems you believe this to be the first government charted bank. Neither is true. In the 100 years prior to the creation of the Federal Reserve there were 129 months of recession/depression. In the 100 years after, there have been 196 months and the longest was the Great Depression under the Feds watch.
View attachment 225955
That's a simple fact.
That math doesn’t work.
Look, the 100 years prior to the Fed there were 6 major recessions and the longest was 27 months.
We are in a bond (debt) bubble which dwarfs the subprime bubble.
Tying our currency to how much of a particular metal we dig out of the ground is lunacy.How many "bank panics" between 1929 and 2007?In actuality Fed policies PREVENT boom and busts.Federal Reserve Policies Cause Booms and Busts | Richard M. Ebeling
"Interest rates, like market prices in general, cannot tell the truth about real supply and demand conditions when governments and their central banks prevent them from doing their job. All that government produces from its interventions, regulations, and manipulations is false signals and bad information. And all of us suffer from this abridgement of our right to freedom of speech to talk honestly to each other through the competitive communication of market prices and interest rates, without governments and central banks getting in the way."
Since the creation of the Fed re has been one Depression. Prior to that there was one about every ten years
You’re assuming the creation of the Fed has stymied depressions/recessions and it seems you believe this to be the first government charted bank. Neither is true. In the 100 years prior to the creation of the Federal Reserve there were 129 months of recession/depression. In the 100 years after, there have been 196 months and the longest was the Great Depression under the Feds watch.
View attachment 225955
None?
Oh...
That’s funny! Why would there be a bank panic when the bank can print money at will, and the money they print is guaranteed by the Government? Besides, your initial point wasn’t about bank panics, it was about the dearth of economic contraction since the creation of the Fed, which I showed is a fallacy.
What Caused the 2008 Financial Crisis and Could It Happen Again?
I still don't understand the cause of the financial crisis. I try to wrap my head around it.
I did not fall for any of these practices, either.Part XVI
Almost there. I can see the light at the end of the tunnel. There are a few more culprits who need to be called out.
That's why we need to circle back to AIG now.
Remember when AIG sold that first CDS to JP Morgan for the BISTRO CDO? If you understand that sentence, then I congratulate you for sticking it out this far. Well done!
Anyway, AIG didn't set any money aside in case JP Morgan came calling to collect on that insurance policy in the event a blue chip company defaulted.
And they continued to not set money aside as the CDS market exploded! They thought the universe would end before they would ever see the day when a CDO imploded.
No, literally. They actually believed the actual universe would end before such a thing would happen.
And if every CDO was of the same Smith & Wesson quality as that first one (BISTRO), they would have been right.
And everyone would have lived happily ever after.
But they weren't the same quality. Because Wall Street was making "toxic loans" to anyone who could draw a breath, and that is what was ending up in CDOs. A "toxic loan" is one in which the broker making the loan knew the borrower didn't have a chance in hell of ever paying off their mortgage.
I mentioned earlier that most of the subprime loans were made to middle class borrowers. However, it is definitely true that subprime loans were also being made to "low income borrowers".
The thing is, the hacks would have you believe the broker-dealers were FORCED to make those loans to the negroes. But now you know the opposite is true. The banks were forcing themselves on the lower income people.
This actually happened: Poor people would be attending church, and suddenly their preacher would introduce a mortgage broker and tell them Jesus want the congregation to listen to this motherfucker and Jesus was going to make them all rich. I kid you not.
Let me ask you something. If you have two people sitting at a table with a mountain of forms, and one of those people was poorly educated in an urban shithole school and was trapped in a redline area earning less than a survival wage, and the other person worked for an institution with CENTURIES of hard learned lessons about risk and lending, which one is the most culpable when that loan inevitably defaults?
That's right. The lender. That's why these loans were called "predatory loans".
Sure, the borrower should have known there was no way to make a $1400 a month payment on a less than subsistence wage.
But you see, good old Bush said we could and should "change the fine print". Then presto! Your monthly payment has just magically dropped to $300!
Whaaaaaat!?!
Wut!!!!!!!!!!!! I bought two houses and didn't fall prey to any of these practices. I read the fine print and rejected it. Wut!!!!!!!!!
But not everyone has the educational background to smell a rat.
I remember one new housing development going up in my town, and I would visit it once in a while to watch how much the houses cost. While they were still just dirt plots, the prices were skyrocketing.
The developer also allowed a broker to work out of the model house. So I talked to the broker, and I found they were offering some of the worst negative amortization loans I have ever heard of.
I went outside and found the developer, and explained to him that if someone took one of those loans for a $250,000 house, by the time the loan reset in three years, the principal would have climbed to $325,000.
He shrugged and said, "People are buying them."
My whole body went cold.
That, and some internal documents at Washington Mutual that I stumbled across, caused me to become very frightened. So I called two reporters (one print, one television) that I knew, and tried to explain to them the colossal disaster that was coming. Neither one followed up.
I bet they regretted that two years later when it all came crashing down.
I did get a call from a reporter AFTER the crash, and they did a story on me. I did my best to explain what happened, and what was going to happen, but they only had so many column inches.
Just as an aside, the people who bought those houses in that development and took those predatory loans were all middle class white professionals.
At least half of them defaulted. I know because I attended the foreclosure auction in 2009.
Yeah, the houses in my area are selling for far more than they were during the subprime bubble.
Inflation is not necessarily bad as long as it's low and controlled.
It's what makes buying a home affordable
That $1500 mortgage payment is tough to make today...but 20 years from now it becomes very affordable and allows for early pay down
I did not fall for any of these practices, either.Part XVI
Almost there. I can see the light at the end of the tunnel. There are a few more culprits who need to be called out.
That's why we need to circle back to AIG now.
Remember when AIG sold that first CDS to JP Morgan for the BISTRO CDO? If you understand that sentence, then I congratulate you for sticking it out this far. Well done!
Anyway, AIG didn't set any money aside in case JP Morgan came calling to collect on that insurance policy in the event a blue chip company defaulted.
And they continued to not set money aside as the CDS market exploded! They thought the universe would end before they would ever see the day when a CDO imploded.
No, literally. They actually believed the actual universe would end before such a thing would happen.
And if every CDO was of the same Smith & Wesson quality as that first one (BISTRO), they would have been right.
And everyone would have lived happily ever after.
But they weren't the same quality. Because Wall Street was making "toxic loans" to anyone who could draw a breath, and that is what was ending up in CDOs. A "toxic loan" is one in which the broker making the loan knew the borrower didn't have a chance in hell of ever paying off their mortgage.
I mentioned earlier that most of the subprime loans were made to middle class borrowers. However, it is definitely true that subprime loans were also being made to "low income borrowers".
The thing is, the hacks would have you believe the broker-dealers were FORCED to make those loans to the negroes. But now you know the opposite is true. The banks were forcing themselves on the lower income people.
This actually happened: Poor people would be attending church, and suddenly their preacher would introduce a mortgage broker and tell them Jesus want the congregation to listen to this motherfucker and Jesus was going to make them all rich. I kid you not.
Let me ask you something. If you have two people sitting at a table with a mountain of forms, and one of those people was poorly educated in an urban shithole school and was trapped in a redline area earning less than a survival wage, and the other person worked for an institution with CENTURIES of hard learned lessons about risk and lending, which one is the most culpable when that loan inevitably defaults?
That's right. The lender. That's why these loans were called "predatory loans".
Sure, the borrower should have known there was no way to make a $1400 a month payment on a less than subsistence wage.
But you see, good old Bush said we could and should "change the fine print". Then presto! Your monthly payment has just magically dropped to $300!
Whaaaaaat!?!
Wut!!!!!!!!!!!! I bought two houses and didn't fall prey to any of these practices. I read the fine print and rejected it. Wut!!!!!!!!!
But not everyone has the educational background to smell a rat.
I remember one new housing development going up in my town, and I would visit it once in a while to watch how much the houses cost. While they were still just dirt plots, the prices were skyrocketing.
The developer also allowed a broker to work out of the model house. So I talked to the broker, and I found they were offering some of the worst negative amortization loans I have ever heard of.
I went outside and found the developer, and explained to him that if someone took one of those loans for a $250,000 house, by the time the loan reset in three years, the principal would have climbed to $325,000.
He shrugged and said, "People are buying them."
My whole body went cold.
That, and some internal documents at Washington Mutual that I stumbled across, caused me to become very frightened. So I called two reporters (one print, one television) that I knew, and tried to explain to them the colossal disaster that was coming. Neither one followed up.
I bet they regretted that two years later when it all came crashing down.
I did get a call from a reporter AFTER the crash, and they did a story on me. I did my best to explain what happened, and what was going to happen, but they only had so many column inches.
Just as an aside, the people who bought those houses in that development and took those predatory loans were all middle class white professionals.
At least half of them defaulted. I know because I attended the foreclosure auction in 2009.
My sister is a real estate agent and made a fortune in the housing bubble. She was selling the same house three times in two years.
People were actually thinking that if they could just make those first few payments, they could resell that home for tens of thousands more. What they failed to realize was that they had to live SOMEWHERE. And when the bubble burst...they were living in the most expensive part of their little pyramid.
I actually considered selling my home and renting. That might have worked but I couldn't handle living in an apartment. I bought my house in 85 for $225K and could have sold it in 2004 for $425K.!!! With a lot of recent improvements I eventually sold it in 2016 for $400K...which I found astounding. We may be in a mini (possibly local) housing bubble
Inflating the prices makes it affordable..................LOL
Inflation is not necessarily bad as long as it's low and controlled.
It's what makes buying a home affordable
That $1500 mortgage payment is tough to make today...but 20 years from now it becomes very affordable and allows for early pay down
I did not fall for any of these practices, either.Part XVI
Almost there. I can see the light at the end of the tunnel. There are a few more culprits who need to be called out.
That's why we need to circle back to AIG now.
Remember when AIG sold that first CDS to JP Morgan for the BISTRO CDO? If you understand that sentence, then I congratulate you for sticking it out this far. Well done!
Anyway, AIG didn't set any money aside in case JP Morgan came calling to collect on that insurance policy in the event a blue chip company defaulted.
And they continued to not set money aside as the CDS market exploded! They thought the universe would end before they would ever see the day when a CDO imploded.
No, literally. They actually believed the actual universe would end before such a thing would happen.
And if every CDO was of the same Smith & Wesson quality as that first one (BISTRO), they would have been right.
And everyone would have lived happily ever after.
But they weren't the same quality. Because Wall Street was making "toxic loans" to anyone who could draw a breath, and that is what was ending up in CDOs. A "toxic loan" is one in which the broker making the loan knew the borrower didn't have a chance in hell of ever paying off their mortgage.
I mentioned earlier that most of the subprime loans were made to middle class borrowers. However, it is definitely true that subprime loans were also being made to "low income borrowers".
The thing is, the hacks would have you believe the broker-dealers were FORCED to make those loans to the negroes. But now you know the opposite is true. The banks were forcing themselves on the lower income people.
This actually happened: Poor people would be attending church, and suddenly their preacher would introduce a mortgage broker and tell them Jesus want the congregation to listen to this motherfucker and Jesus was going to make them all rich. I kid you not.
Let me ask you something. If you have two people sitting at a table with a mountain of forms, and one of those people was poorly educated in an urban shithole school and was trapped in a redline area earning less than a survival wage, and the other person worked for an institution with CENTURIES of hard learned lessons about risk and lending, which one is the most culpable when that loan inevitably defaults?
That's right. The lender. That's why these loans were called "predatory loans".
Sure, the borrower should have known there was no way to make a $1400 a month payment on a less than subsistence wage.
But you see, good old Bush said we could and should "change the fine print". Then presto! Your monthly payment has just magically dropped to $300!
Whaaaaaat!?!
Wut!!!!!!!!!!!! I bought two houses and didn't fall prey to any of these practices. I read the fine print and rejected it. Wut!!!!!!!!!
But not everyone has the educational background to smell a rat.
I remember one new housing development going up in my town, and I would visit it once in a while to watch how much the houses cost. While they were still just dirt plots, the prices were skyrocketing.
The developer also allowed a broker to work out of the model house. So I talked to the broker, and I found they were offering some of the worst negative amortization loans I have ever heard of.
I went outside and found the developer, and explained to him that if someone took one of those loans for a $250,000 house, by the time the loan reset in three years, the principal would have climbed to $325,000.
He shrugged and said, "People are buying them."
My whole body went cold.
That, and some internal documents at Washington Mutual that I stumbled across, caused me to become very frightened. So I called two reporters (one print, one television) that I knew, and tried to explain to them the colossal disaster that was coming. Neither one followed up.
I bet they regretted that two years later when it all came crashing down.
I did get a call from a reporter AFTER the crash, and they did a story on me. I did my best to explain what happened, and what was going to happen, but they only had so many column inches.
Just as an aside, the people who bought those houses in that development and took those predatory loans were all middle class white professionals.
At least half of them defaulted. I know because I attended the foreclosure auction in 2009.
My sister is a real estate agent and made a fortune in the housing bubble. She was selling the same house three times in two years.
People were actually thinking that if they could just make those first few payments, they could resell that home for tens of thousands more. What they failed to realize was that they had to live SOMEWHERE. And when the bubble burst...they were living in the most expensive part of their little pyramid.
I actually considered selling my home and renting. That might have worked but I couldn't handle living in an apartment. I bought my house in 85 for $225K and could have sold it in 2004 for $425K.!!! With a lot of recent improvements I eventually sold it in 2016 for $400K...which I found astounding. We may be in a mini (possibly local) housing bubble
Making profits on others misery.......helping drive up the cost til the bubble burst........buying the Real Estate to do a quick turn around hoping not to be stuck with the underwater mortgage when the bubble pops..........Yeah, the houses in my area are selling for far more than they were during the subprime bubble.
Inflation is not necessarily bad as long as it's low and controlled.
It's what makes buying a home affordable
That $1500 mortgage payment is tough to make today...but 20 years from now it becomes very affordable and allows for early pay down
I did not fall for any of these practices, either.Part XVI
Almost there. I can see the light at the end of the tunnel. There are a few more culprits who need to be called out.
That's why we need to circle back to AIG now.
Remember when AIG sold that first CDS to JP Morgan for the BISTRO CDO? If you understand that sentence, then I congratulate you for sticking it out this far. Well done!
Anyway, AIG didn't set any money aside in case JP Morgan came calling to collect on that insurance policy in the event a blue chip company defaulted.
And they continued to not set money aside as the CDS market exploded! They thought the universe would end before they would ever see the day when a CDO imploded.
No, literally. They actually believed the actual universe would end before such a thing would happen.
And if every CDO was of the same Smith & Wesson quality as that first one (BISTRO), they would have been right.
And everyone would have lived happily ever after.
But they weren't the same quality. Because Wall Street was making "toxic loans" to anyone who could draw a breath, and that is what was ending up in CDOs. A "toxic loan" is one in which the broker making the loan knew the borrower didn't have a chance in hell of ever paying off their mortgage.
I mentioned earlier that most of the subprime loans were made to middle class borrowers. However, it is definitely true that subprime loans were also being made to "low income borrowers".
The thing is, the hacks would have you believe the broker-dealers were FORCED to make those loans to the negroes. But now you know the opposite is true. The banks were forcing themselves on the lower income people.
This actually happened: Poor people would be attending church, and suddenly their preacher would introduce a mortgage broker and tell them Jesus want the congregation to listen to this motherfucker and Jesus was going to make them all rich. I kid you not.
Let me ask you something. If you have two people sitting at a table with a mountain of forms, and one of those people was poorly educated in an urban shithole school and was trapped in a redline area earning less than a survival wage, and the other person worked for an institution with CENTURIES of hard learned lessons about risk and lending, which one is the most culpable when that loan inevitably defaults?
That's right. The lender. That's why these loans were called "predatory loans".
Sure, the borrower should have known there was no way to make a $1400 a month payment on a less than subsistence wage.
But you see, good old Bush said we could and should "change the fine print". Then presto! Your monthly payment has just magically dropped to $300!
Whaaaaaat!?!
Wut!!!!!!!!!!!! I bought two houses and didn't fall prey to any of these practices. I read the fine print and rejected it. Wut!!!!!!!!!
But not everyone has the educational background to smell a rat.
I remember one new housing development going up in my town, and I would visit it once in a while to watch how much the houses cost. While they were still just dirt plots, the prices were skyrocketing.
The developer also allowed a broker to work out of the model house. So I talked to the broker, and I found they were offering some of the worst negative amortization loans I have ever heard of.
I went outside and found the developer, and explained to him that if someone took one of those loans for a $250,000 house, by the time the loan reset in three years, the principal would have climbed to $325,000.
He shrugged and said, "People are buying them."
My whole body went cold.
That, and some internal documents at Washington Mutual that I stumbled across, caused me to become very frightened. So I called two reporters (one print, one television) that I knew, and tried to explain to them the colossal disaster that was coming. Neither one followed up.
I bet they regretted that two years later when it all came crashing down.
I did get a call from a reporter AFTER the crash, and they did a story on me. I did my best to explain what happened, and what was going to happen, but they only had so many column inches.
Just as an aside, the people who bought those houses in that development and took those predatory loans were all middle class white professionals.
At least half of them defaulted. I know because I attended the foreclosure auction in 2009.
My sister is a real estate agent and made a fortune in the housing bubble. She was selling the same house three times in two years.
People were actually thinking that if they could just make those first few payments, they could resell that home for tens of thousands more. What they failed to realize was that they had to live SOMEWHERE. And when the bubble burst...they were living in the most expensive part of their little pyramid.
I actually considered selling my home and renting. That might have worked but I couldn't handle living in an apartment. I bought my house in 85 for $225K and could have sold it in 2004 for $425K.!!! With a lot of recent improvements I eventually sold it in 2016 for $400K...which I found astounding. We may be in a mini (possibly local) housing bubble
I have equity out the wazoo. I bought my house at the bottom of the crash for pennies on the dollar.
A house of cards..........can come down with a smaller bubble...........as we have seen.We are in a bond (debt) bubble which dwarfs the subprime bubble.
I want you to think about what would happen if the supply of MONEY stayed constant while the supply of GOODS and SERVICES increased.Making profits on others misery.......helping drive up the cost til the bubble burst........buying the Real Estate to do a quick turn around hoping not to be stuck with the underwater mortgage when the bubble pops..........Yeah, the houses in my area are selling for far more than they were during the subprime bubble.
Inflation is not necessarily bad as long as it's low and controlled.
It's what makes buying a home affordable
That $1500 mortgage payment is tough to make today...but 20 years from now it becomes very affordable and allows for early pay down
I did not fall for any of these practices, either.Part XVI
Almost there. I can see the light at the end of the tunnel. There are a few more culprits who need to be called out.
That's why we need to circle back to AIG now.
Remember when AIG sold that first CDS to JP Morgan for the BISTRO CDO? If you understand that sentence, then I congratulate you for sticking it out this far. Well done!
Anyway, AIG didn't set any money aside in case JP Morgan came calling to collect on that insurance policy in the event a blue chip company defaulted.
And they continued to not set money aside as the CDS market exploded! They thought the universe would end before they would ever see the day when a CDO imploded.
No, literally. They actually believed the actual universe would end before such a thing would happen.
And if every CDO was of the same Smith & Wesson quality as that first one (BISTRO), they would have been right.
And everyone would have lived happily ever after.
But they weren't the same quality. Because Wall Street was making "toxic loans" to anyone who could draw a breath, and that is what was ending up in CDOs. A "toxic loan" is one in which the broker making the loan knew the borrower didn't have a chance in hell of ever paying off their mortgage.
I mentioned earlier that most of the subprime loans were made to middle class borrowers. However, it is definitely true that subprime loans were also being made to "low income borrowers".
The thing is, the hacks would have you believe the broker-dealers were FORCED to make those loans to the negroes. But now you know the opposite is true. The banks were forcing themselves on the lower income people.
This actually happened: Poor people would be attending church, and suddenly their preacher would introduce a mortgage broker and tell them Jesus want the congregation to listen to this motherfucker and Jesus was going to make them all rich. I kid you not.
Let me ask you something. If you have two people sitting at a table with a mountain of forms, and one of those people was poorly educated in an urban shithole school and was trapped in a redline area earning less than a survival wage, and the other person worked for an institution with CENTURIES of hard learned lessons about risk and lending, which one is the most culpable when that loan inevitably defaults?
That's right. The lender. That's why these loans were called "predatory loans".
Sure, the borrower should have known there was no way to make a $1400 a month payment on a less than subsistence wage.
But you see, good old Bush said we could and should "change the fine print". Then presto! Your monthly payment has just magically dropped to $300!
Whaaaaaat!?!
Wut!!!!!!!!!!!! I bought two houses and didn't fall prey to any of these practices. I read the fine print and rejected it. Wut!!!!!!!!!
But not everyone has the educational background to smell a rat.
I remember one new housing development going up in my town, and I would visit it once in a while to watch how much the houses cost. While they were still just dirt plots, the prices were skyrocketing.
The developer also allowed a broker to work out of the model house. So I talked to the broker, and I found they were offering some of the worst negative amortization loans I have ever heard of.
I went outside and found the developer, and explained to him that if someone took one of those loans for a $250,000 house, by the time the loan reset in three years, the principal would have climbed to $325,000.
He shrugged and said, "People are buying them."
My whole body went cold.
That, and some internal documents at Washington Mutual that I stumbled across, caused me to become very frightened. So I called two reporters (one print, one television) that I knew, and tried to explain to them the colossal disaster that was coming. Neither one followed up.
I bet they regretted that two years later when it all came crashing down.
I did get a call from a reporter AFTER the crash, and they did a story on me. I did my best to explain what happened, and what was going to happen, but they only had so many column inches.
Just as an aside, the people who bought those houses in that development and took those predatory loans were all middle class white professionals.
At least half of them defaulted. I know because I attended the foreclosure auction in 2009.
My sister is a real estate agent and made a fortune in the housing bubble. She was selling the same house three times in two years.
People were actually thinking that if they could just make those first few payments, they could resell that home for tens of thousands more. What they failed to realize was that they had to live SOMEWHERE. And when the bubble burst...they were living in the most expensive part of their little pyramid.
I actually considered selling my home and renting. That might have worked but I couldn't handle living in an apartment. I bought my house in 85 for $225K and could have sold it in 2004 for $425K.!!! With a lot of recent improvements I eventually sold it in 2016 for $400K...which I found astounding. We may be in a mini (possibly local) housing bubble
I have equity out the wazoo. I bought my house at the bottom of the crash for pennies on the dollar.
aka......you got yours and to hell with those without a seat when the music stops.............and a country of people were destroyed in the process.
Am I supposed to clap........say yippie...........I don't think so.
There is about 247 trillion in debt in the world......private........about 90 trillion in Countries debt.............Most of that is still in U.S. currency..........I want you to think about what would happen if the supply of MONEY stayed constant while the supply of GOODS and SERVICES increased.Making profits on others misery.......helping drive up the cost til the bubble burst........buying the Real Estate to do a quick turn around hoping not to be stuck with the underwater mortgage when the bubble pops..........Yeah, the houses in my area are selling for far more than they were during the subprime bubble.
Inflation is not necessarily bad as long as it's low and controlled.
It's what makes buying a home affordable
That $1500 mortgage payment is tough to make today...but 20 years from now it becomes very affordable and allows for early pay down
I did not fall for any of these practices, either.Wut!!!!!!!!!!!! I bought two houses and didn't fall prey to any of these practices. I read the fine print and rejected it. Wut!!!!!!!!!
But not everyone has the educational background to smell a rat.
I remember one new housing development going up in my town, and I would visit it once in a while to watch how much the houses cost. While they were still just dirt plots, the prices were skyrocketing.
The developer also allowed a broker to work out of the model house. So I talked to the broker, and I found they were offering some of the worst negative amortization loans I have ever heard of.
I went outside and found the developer, and explained to him that if someone took one of those loans for a $250,000 house, by the time the loan reset in three years, the principal would have climbed to $325,000.
He shrugged and said, "People are buying them."
My whole body went cold.
That, and some internal documents at Washington Mutual that I stumbled across, caused me to become very frightened. So I called two reporters (one print, one television) that I knew, and tried to explain to them the colossal disaster that was coming. Neither one followed up.
I bet they regretted that two years later when it all came crashing down.
I did get a call from a reporter AFTER the crash, and they did a story on me. I did my best to explain what happened, and what was going to happen, but they only had so many column inches.
Just as an aside, the people who bought those houses in that development and took those predatory loans were all middle class white professionals.
At least half of them defaulted. I know because I attended the foreclosure auction in 2009.
My sister is a real estate agent and made a fortune in the housing bubble. She was selling the same house three times in two years.
People were actually thinking that if they could just make those first few payments, they could resell that home for tens of thousands more. What they failed to realize was that they had to live SOMEWHERE. And when the bubble burst...they were living in the most expensive part of their little pyramid.
I actually considered selling my home and renting. That might have worked but I couldn't handle living in an apartment. I bought my house in 85 for $225K and could have sold it in 2004 for $425K.!!! With a lot of recent improvements I eventually sold it in 2016 for $400K...which I found astounding. We may be in a mini (possibly local) housing bubble
I have equity out the wazoo. I bought my house at the bottom of the crash for pennies on the dollar.
aka......you got yours and to hell with those without a seat when the music stops.............and a country of people were destroyed in the process.
Am I supposed to clap........say yippie...........I don't think so.
An increase in the availability in goods and services increases the purchasing power of the money when the supply is fixed.I want you to think about what would happen if the supply of MONEY stayed constant while the supply of GOODS and SERVICES increased.Making profits on others misery.......helping drive up the cost til the bubble burst........buying the Real Estate to do a quick turn around hoping not to be stuck with the underwater mortgage when the bubble pops..........Yeah, the houses in my area are selling for far more than they were during the subprime bubble.
Inflation is not necessarily bad as long as it's low and controlled.
It's what makes buying a home affordable
That $1500 mortgage payment is tough to make today...but 20 years from now it becomes very affordable and allows for early pay down
I did not fall for any of these practices, either.Wut!!!!!!!!!!!! I bought two houses and didn't fall prey to any of these practices. I read the fine print and rejected it. Wut!!!!!!!!!
But not everyone has the educational background to smell a rat.
I remember one new housing development going up in my town, and I would visit it once in a while to watch how much the houses cost. While they were still just dirt plots, the prices were skyrocketing.
The developer also allowed a broker to work out of the model house. So I talked to the broker, and I found they were offering some of the worst negative amortization loans I have ever heard of.
I went outside and found the developer, and explained to him that if someone took one of those loans for a $250,000 house, by the time the loan reset in three years, the principal would have climbed to $325,000.
He shrugged and said, "People are buying them."
My whole body went cold.
That, and some internal documents at Washington Mutual that I stumbled across, caused me to become very frightened. So I called two reporters (one print, one television) that I knew, and tried to explain to them the colossal disaster that was coming. Neither one followed up.
I bet they regretted that two years later when it all came crashing down.
I did get a call from a reporter AFTER the crash, and they did a story on me. I did my best to explain what happened, and what was going to happen, but they only had so many column inches.
Just as an aside, the people who bought those houses in that development and took those predatory loans were all middle class white professionals.
At least half of them defaulted. I know because I attended the foreclosure auction in 2009.
My sister is a real estate agent and made a fortune in the housing bubble. She was selling the same house three times in two years.
People were actually thinking that if they could just make those first few payments, they could resell that home for tens of thousands more. What they failed to realize was that they had to live SOMEWHERE. And when the bubble burst...they were living in the most expensive part of their little pyramid.
I actually considered selling my home and renting. That might have worked but I couldn't handle living in an apartment. I bought my house in 85 for $225K and could have sold it in 2004 for $425K.!!! With a lot of recent improvements I eventually sold it in 2016 for $400K...which I found astounding. We may be in a mini (possibly local) housing bubble
I have equity out the wazoo. I bought my house at the bottom of the crash for pennies on the dollar.
aka......you got yours and to hell with those without a seat when the music stops.............and a country of people were destroyed in the process.
Am I supposed to clap........say yippie...........I don't think so.