A Second Mortgage Disaster On The Horizon?

[NOBama]

(CBS) When it comes to bailouts of American business, Barney Frank and the Congress may be just getting started. Nearly two trillion tax dollars have been shoveled into the hole that Wall Street dug and people wonder where the bottom is.

As correspondent Scott Pelley reports, it turns out the abyss is deeper than most people think because there is a second mortgage shock heading for the economy. In the executive suites of Wall Street and Washington, you're beginning to hear alarm about a new wave of mortgages with strange names that are about to become all too familiar. If you thought sub-primes were insanely reckless wait until you hear what's coming.



One of the best guides to the danger ahead is Whitney Tilson. He's an investment fund manager who has made such a name for himself recently that investors, who manage about $10 billion, gathered to hear him last week. Tilson saw, a year ago, that sub-prime mortgages were just the start.

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I almost fell out of my chair when I heard that Alt-A and option-ARM loans haven't been included in the mortgage meltdown rhetoric we've heard so much about over the past year or more.

 

[rayboyusmc]

I believe more and more every day that the people who are running our corporations are there because of who they know not what they know.

How could we have people so stupid in their own business areas?

Brownie, you're doing a heckuva job.

I didn't like Jack Welsh, but at least he seemed to know his business.

 

[DavidS]

I've also heard about commercial mortgages going bust as well.

The way I was taught business was that you created an LLC to be in charge of your lease. The S-Corp then pays your LLC rent money and you can use both as tax write-offs. What's also great is that you can dissolve your LLC and not owe a dime because it's an LLC, which would screw the bank that loaned the LLC money to buy the office in the first place.

Basically, there's a whole nuther sub-prime commercial mortgage market out there that I've heard is the next shoe to drop.

 

[NOBama]

Frank's fingerprints are all over the financial fiasco

 

[NOBama]

The way I was taught business was that you created an LLC to be in charge of your lease. The S-Corp then pays your LLC rent money and you can use both as tax write-offs. What's also great is that you can dissolve your LLC and not owe a dime because it's an LLC, which would screw the bank that loaned the LLC money to buy the office in the first place.

I hope you didn't pay for that type of business education.

 

[Annie]

Damn right Frank's hands are all over this, Chris Dodd's too. The corruption is alive and well in the Congress, with all the tut-tutting about Blago...

 

[NOBama]

Damn right Frank's hands are all over this, Chris Dodd's too. The corruption is alive and well in the Congress, with all the tut-tutting about Blago...

Unfortunately, both Frank and Dodd will get a pass. Dodd might get a reprimand for the sweetheart loan from Countrywide but, Frank’s lifestyle will continue to protect him as nobody wants to be accused of “gay-bashing”, IMO.

As far as Blago, I hope he squeals like a pig when he tries to save his hide in the near future.

 

[oreo]

I believe more and more every day that the people who are running our corporations are there because of who they know not what they know.

How could we have people so stupid in their own business areas?

Brownie, you're doing a heckuva job.

I didn't like Jack Welsh, but at least he seemed to know his business.

This all started with government intervention in the first place. Requiring Fannie & Freddie to LOWER qualifying standards. Henceforth encouraging banks to loan out money--per the gratitude of the American taxpayer guaranteed mortgages--to people who could never pay them back.

Go to the New York Times--archive article--read Fannie reduces requirements to stimulate mortgage lending. Date of article: Sept. 30, 1999.

When big goverment starts working their fingers into the private sector, they "always" create a huge mess.

Right now the senate cafeteria cannot even operate in black ink. If they cannot manage their own cafeteria, how in the world can we expect them to manage our private business. It's ridiculous.

I think we should all take some tomatoes--not "shoes" to Washington D.C. & start throwing them at people like Barney Franks & Criss Dodd.

It's unbelievable to me, that these two IDIOTS are in their same positions.