S&L in a different package- same result.

[Gary Allan]

Originally Posted By: VeeDubb
Originally Posted By: Gary Allan


..but ultimately, Vee-Dub, who ended up fat here? Nobody leaves everyone with the bill and everyone without the loot. Not everyone can be out of chairs when the music stops

Are you looking for a simple answer or is this a rhetorical question?


Well, unless my suggestive "dispersion" rationalization would work, I'll take a simple(r) answer if there is one. I'm a simple man ..so simple is better.

 

[VeeDubb]

Well, I can't claim to know though your dispersion theory sounds pretty good. But I'm sure more than one banking executive and CEO walked away with a nice paycheck. But before the dust settles, quite a of these guys will likely see jail time.

 

[Gary Allan]

Originally Posted By: VeeDubb
Well, I can't claim to know though your dispersion theory sounds pretty good. But I'm sure more than one banking executive and CEO walked away with a nice paycheck. But before the dust settles, quite a of these guys will likely see jail time.


Can't we graduate to hangings? Pretty please??

 

[VeeDubb]

Gary,
Here is one guy who benefitted. I think that smile on his face says it all:

http://www.bloomberg.com/avp/avp.htm?N=a...HZOls57KYEo.asf

 

[Gary Allan]

I can see the Joseph McCarthy-like witch hunts that this sorta thing could inspire in the future.

This could graduate to a Colosseum like entertainment event. After all, the public needs its pound of flesh.


There's a mark there - I tell ya!!!

 

[Tempest]

Originally Posted By: Drew99GT
Originally Posted By: Tempest
It is a government sponsored entity designed to manipulate the market into what the government wants.
People are shocked that this happened why? This entire credit boondoggle has been set up because of faulty government policy.

It is that simple.


No, the fault lies at the foot of mortgage originators, loan officers, mortgage originating banks, brokerage institutions who sold MBSs, sovereign wealth funds, foreign reserve banks, and housing inspectors. THOSE are the people that inflated housing values, engaged in out right fraud, and robbed us. Mortgage brokers, housing inspectors/valuators, and the financial firms who trade MBOs are the ones who manipulated the market the most and stole the most from home owners.

It's not "that simple".

Yes, it is. To quote VeeDub:
Quote:
If you are a lender and you know you can unload your lemon to the next sucker, what happens to your incentives to monitor credit risk and take precautions? What happens to loan volume?

If these conditions did not exist, credit would have been more tight as there is risk involved.

Read the link I provided. It clearly states that the people in charge specifically increased their high risk % in spite of several warnings and proper reporting was put off for years.

This situation would have never occurred if the government did not artificially attempt to manipulate the market to get the results they wanted.

 

[Gary Allan]

The ultimate choke point, imo, would have been limits on the money supply. This shouldn't be rocket science. Granted my ignorance of such matters probably misses some element here ..but if you've got control of the tap ...and you know you're releasing more money than you can possibly sustain in perpetual mortgage writing ..just where is the issue with putting the brakes on this??