Mortgage Crisis Goes Beyond 8 Years and Fannie/Freddie

[smockers83]

This article was sent to me as I hardly ever visit Yahoo for whatever reason. Just never got into that website I guess. But a very interesting read from Ben Stein.

http://finance.yahoo.com/exper...15733

[telcoman]

This article was sent to me as I hardly ever visit Yahoo for whatever reason. Just never got into that website I guess. But a very interesting read from Ben Stein.

http://finance.yahoo.com/exper...15733

Good article

The argument back in the early 90's was that there was redlining in poor neighbor hoods and minority people could not get mortgages.

Instead of performing careful credit checks some figured out ways to make huge sums of money using CMO's and credit default swaps.

Not much different from the way some credit card companies operate.They don't care if people get in over their heads because they raise the interest rates and sell off the receivable to collection agencies.

So the question really becomes which political party is for some regulation of the banking system in this country?

I am not better off now than I was eight years ago and will cast my vote for Obama.

Telcoman

[Jesda]

I oppose regulation. The market has resolved its own issue by punishing institutions that engaged in poor practices. More careful lenders with long-term goals are now swallowing up their short-sighted competition.

The problem is when government gets involved -- Barney Frank and Chris Dodd harassing institutions into giving subprime loans, and John McCain running to Washington to support an expensive and ineffective bailout plan.

[Cold_Zero]

Good article

The argument back in the early 90's was that there was redlining in poor neighbor hoods and minority people could not get mortgages.

Instead of performing careful credit checks some figured out ways to make huge sums of money using CMO's and credit default swaps.

Not much different from the way some credit card companies operate.They don't care if people get in over their heads because they raise the interest rates and sell off the receivable to collection agencies.

So the question really becomes which political party is for some regulation of the banking system in this country?

I am not better off now than I was eight years ago and will cast my vote for Obama.

Telcoman

It should be noted that GW Bush's top campaign contributor in the 2004 election was....

MBNA. And what did the Congress pass in 2005? Changes to the Bankruptcy Code, specifically making it harder to write off CC debt that people assume closer to their bankruptcy filing. Hmmm... sounds a bit fishy. I would suggest everyone rent "Maxed Out." It is a good movie that highlights the ills in the lending industry. bud