rushmc 23 #76 July 6, 2010 Quote>What fueled to housing market mess was gov policies that pushed >banks to loan money to those who could not pay it back. Agreed; that was part of it. But Fannie Mae/Freddie Mac losses amount to $160 billion and _might_ reach 1 trillion, worst case. The credit default swap market hit $54.6 trillion before it collapsed. Agreed And they are related"America will never be destroyed from the outside, if we falter and lose our freedoms, it will be because we destroyed ourselves." Abraham Lincoln Quote Share this post Link to post Share on other sites
carmenc 0 #77 July 6, 2010 QuoteWhat fueled to housing market mess was gov policies that pushed banks to loan money to those who could not pay it back. The banks then compensated with risky plans to try and cover thier asses So, you would increase gov involvment when they caused the mess to start with The overwhelming volume of bad loans was not on account of anything the US government forced on the banks. The banks managed that all by themselves, with the willing assistance of Wall Street, The London Stock Exchange, The Deutsche Borse, The Tokyo Stock Exchange, Euronext, Borsa Italiana, and countless other financial entities that do NOT answer to the US government. The mess was a failure of under-regulated capitalism. Quote Share this post Link to post Share on other sites
mnealtx 0 #78 July 6, 2010 QuoteOk, so if all that happened w/o the radical appreciation via low interest rates, the houses would default and be worth approximately what they sold for minus foreclosure costs. The real messis found in the hyperinflation. People buying WAY more house than they could afford, counting on being able to 'flip' it a year down the road. Adjustable rate mortgages. People using their equity as an ATM and then refinancing to cover it, sometimes several times over.Mike I love you, Shannon and Jim. POPS 9708 , SCR 14706 Quote Share this post Link to post Share on other sites
rushmc 23 #79 July 6, 2010 QuoteQuoteWhat fueled to housing market mess was gov policies that pushed banks to loan money to those who could not pay it back. The banks then compensated with risky plans to try and cover thier asses So, you would increase gov involvment when they caused the mess to start with The overwhelming volume of bad loans was not on account of anything the US government forced on the banks. The banks managed that all by themselves, with the willing assistance of Wall Street, The London Stock Exchange, The Deutsche Borse, The Tokyo Stock Exchange, Euronext, Borsa Italiana, and countless other financial entities that do NOT answer to the US government. The mess was a failure of under-regulated capitalism. You need to look into things better before you post things like this"America will never be destroyed from the outside, if we falter and lose our freedoms, it will be because we destroyed ourselves." Abraham Lincoln Quote Share this post Link to post Share on other sites
billvon 3,116 #80 July 6, 2010 >You need to look into things better before you post things like this He's right. The CDS market was a much bigger disaster than the housing market, and was a market in debt-coverage contracts created entirely by the financial industry. Quote Share this post Link to post Share on other sites
rushmc 23 #81 July 6, 2010 Quote>You need to look into things better before you post things like this He's right. The CDS market was a much bigger disaster than the housing market, and was a market in debt-coverage contracts created entirely by the financial industry. No he is not. The Gov granted privileges to those who followed the intent of the fair housing laws (which put people in houses they could not afford) and punished those who did not. Now, I am not saying the banks do not have a burden to bare in this but to blame those solely is not correct. Some of the debt-coverage contracts you speak of where born of the risk that these banks were put in under these programs"America will never be destroyed from the outside, if we falter and lose our freedoms, it will be because we destroyed ourselves." Abraham Lincoln Quote Share this post Link to post Share on other sites
carmenc 0 #82 July 6, 2010 QuoteQuote>You need to look into things better before you post things like this He's right. The CDS market was a much bigger disaster than the housing market, and was a market in debt-coverage contracts created entirely by the financial industry. No he is not. The Gov granted privileges to those who followed the intent of the fair housing laws (which put people in houses they could not afford) and punished those who did not. Now, I am not saying the banks do not have a burden to bare in this but to blame those solely is not correct. Some of the debt-coverage contracts you speak of where born of the risk that these banks were put in under these programs The fraction of the mess created by government imposed lending rules is totally insignificant in comparison with the totality. Check your numbers. Quote Share this post Link to post Share on other sites
billvon 3,116 #83 July 6, 2010 > Now, I am not saying the banks do not have a burden to bare in this >but to blame those solely is not correct. I agree. However, 54 trillion is much larger than 1 trillion. We should deal with both issues - but the 54 trillion dollar issue is probably the one we should start with. I mean, 50 trillion here, 50 trillion there, pretty soon you're talking serious money. Quote Share this post Link to post Share on other sites
rushmc 23 #84 July 7, 2010 QuoteQuoteQuote>You need to look into things better before you post things like this He's right. The CDS market was a much bigger disaster than the housing market, and was a market in debt-coverage contracts created entirely by the financial industry. No he is not. The Gov granted privileges to those who followed the intent of the fair housing laws (which put people in houses they could not afford) and punished those who did not. Now, I am not saying the banks do not have a burden to bare in this but to blame those solely is not correct. Some of the debt-coverage contracts you speak of where born of the risk that these banks were put in under these programs The fraction of the mess created by government imposed lending rules is totally insignificant in comparison with the totality. Check your numbers. Exactly the oposite"America will never be destroyed from the outside, if we falter and lose our freedoms, it will be because we destroyed ourselves." Abraham Lincoln Quote Share this post Link to post Share on other sites
carmenc 0 #85 July 7, 2010 QuoteQuoteQuoteQuote>You need to look into things better before you post things like this He's right. The CDS market was a much bigger disaster than the housing market, and was a market in debt-coverage contracts created entirely by the financial industry. No he is not. The Gov granted privileges to those who followed the intent of the fair housing laws (which put people in houses they could not afford) and punished those who did not. Now, I am not saying the banks do not have a burden to bare in this but to blame those solely is not correct. Some of the debt-coverage contracts you speak of where born of the risk that these banks were put in under these programs The fraction of the mess created by government imposed lending rules is totally insignificant in comparison with the totality. Check your numbers. Exactly the oposite You do realize the huge logical inconsistency of your statement, I hope. Quote Share this post Link to post Share on other sites
