| Author |
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Greenlantern
| | Posted on Friday, March 20, 2009 - 01:46 pm: | 
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This just in,
The cause of the mortgage crisis has been traced to,
Squirrels! You may now all return to your regularly scheduled lives . |
Madduck
| | Posted on Friday, March 20, 2009 - 03:07 pm: |
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The "borrowoing over your head argument" has one fatal flow. What you can afford in a commodity that is rapidly appreciating has a much different value point than in a slowly appreciating commodity. The banks were safe loaning to broke crack whores as long as the house keeps appreciating at better than 10% a year. In three years they've got title to an assett valued at 135% of original loan should none of the payment be made. A good argument could be made that they are better off foreclosing/taking title in such a rapidly growing market.
The fallacy in this line of thought is that nothing grows at 10%/year for a very long time. 3-5 years is about average for commodities in this game and housing went for about 12-15 years. Everyone got used to house as investment, not house as home.
If housing were still growing this crisis does not exist. End of Ponzi scheme is hard on everyone. The commercial real estate bubble is in the same boat and we are about 3-6 months from watching this bubble burst, hang on tight as this could be worse. Really big players are going to bite it big and anyone renting an apartment or condo is screwed. |
P_squared
| | Posted on Friday, March 20, 2009 - 03:33 pm: |
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I don't see the 'flaw' actually.
If you can't pay the mortgage every month based upon your income, or in 3/5/7 years when the ARM resets, you are borrowing over your head. I know lenders were in the habit of 'approving' folks for more than they could pay. Still doesn't absolve folks of being HONEST to say 'No thank you. I can't AFFORD the payments that loan would require.'
I know when I bought my 1st home, on a combined income of $45k a year, I was 'approved' for $275k. I said 'No thank you.' I KNEW I couldn't afford a $275k mortgage at that time.
Everything else is secondary and enabled the consumer. If you remove the dishonest consumer from the equation, there is no melt down, in spite of what everyone else (pols, lenders, traders, government, etc.) did/didn't do to enable the ponzi scheme.
That's my story & I'm sticking to it.
Now where's those enhanced boobies in oil? |
Bill0351
| | Posted on Friday, March 20, 2009 - 03:47 pm: |
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"Now where's those enhanced boobies in oil?"
I think that's mainly what the women on bikes thread turned into.
That isn't a complaint though!
It's just an observation.
I miss that thread.
Bill |
P_squared
| | Posted on Friday, March 20, 2009 - 03:53 pm: |
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Psssst...it's in the Backfire Board...it's still going.
For everyone else, I give you:
+
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Ft_bstrd
| | Posted on Friday, March 20, 2009 - 03:54 pm: |
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It's in the basement. Go contribute. |
Old_man
| | Posted on Friday, March 20, 2009 - 04:05 pm: |
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Everyone know it's the Democrat's fault.
Nancy Pelosi etal.
None of this would have happened.
If we could have kept those few out of Congress the last 8 years.
It was this vocal minority that forced the problems on us.
It was all that federal government controlling our corporations.
When will they learn to keep their noses out of the business of our business?
If we would have been left to our own devices, none of this would have happened.
(Message edited by old_man on March 20, 2009) |
Bill0351
| | Posted on Friday, March 20, 2009 - 04:14 pm: |
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It's not the same having it there. I liked it right here taunting me...
Open me.....
Open me......
Forget company policy.....
Why wait????? |
P_squared
| | Posted on Friday, March 20, 2009 - 04:25 pm: |
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Psssst...click here: http://www.badweatherbikers.com/cgibin/discus/boar d-auth.cgi?lm=1237580396&file=/272911/383376.html
That way you don't have to go anywhere to get there. Don't blame me if you get in trouble at work though. |
Aesquire
| | Posted on Wednesday, March 25, 2009 - 10:04 pm: |
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http://www.rollingstone.com/politics/story/2679390 3/the_big_takeover/print |
Dfbutler
| | Posted on Wednesday, March 25, 2009 - 11:27 pm: |
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This explains it all
http://crisisofcredit.com/ |
Sparky
| | Posted on Thursday, March 26, 2009 - 12:29 am: |
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If anyone is responsible for causing the home mortgage crisis and the economic crisis for that matter, that makes them a big fiduciary bag. Thx Dogbert the CEO. |
Court
| | Posted on Thursday, March 26, 2009 - 05:04 am: |
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I'd been waiting for Matt Taibbi's piece and it was worth the wait. That "Crisis of Credit" does a nice of of simplifying things as well. |
Ducxl
| | Posted on Thursday, March 26, 2009 - 05:48 am: |
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I was just following Court,and was led to the Taibbi piece.Very hard to understand.But it seems Wall st. lobbyists "bought" legislation to unregulated trading and sold the farm.
I'll need(and will)re-read one or two more times.
I'll go labor for the next 8 hours so i can eat and sleep. |
Mr_grumpy
| | Posted on Thursday, March 26, 2009 - 12:02 pm: |
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Umm, forgive my naivety, am I wrong in thinking it strange that people with no or poor credit ratings were lent 125% mortgages?
Then when the lenders all played "Hot potato" with these "iffy" loans, they got paid bonuses?
Now the music's stopped & everybody involved from the top down is trying to look angelic & innocent, saying "well it wasn't my fault so I still expect my bonus"
Now it's all a political football, with both sides saying it's the fault of the other & they're not going to help each other (& the rest of us) because it's not their fault, so "Ya boo sucks to you."
Am I wrong in finding this totally disgusting?
Is anybody else morally outraged?
I'm not a political animal by any means, I'll vote for whoever I think will do the best job for the country I'm living in. I couldn't give a toss what their philosophy is.
What p****s me off more than anything else is the constant justification of the indefensible & the ignorance of public opinion.
This isn't an anti US attack, my own countrymen were in the vanguard of all this.
Fortunately I live in a country viewed as "retarded" by many, well thank f*** for retards as France hasn't suffered as badly some others.
Rant over, & don't bother expecting me to reply to arguments picking holes in what I've written, it's an opinion, my opinion, & like arseholes everybody has one. |
Jaimec
| | Posted on Thursday, March 26, 2009 - 12:14 pm: |
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Best article I've read on this whole fiasco:
http://www.rollingstone.com/politics/story/2679390 3/the_big_takeover |
Slaughter
| | Posted on Thursday, March 26, 2009 - 01:10 pm: |
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EVERYBODY kept trying to convince us that we HAD TO buy into the real estate market or we'd never be able to. We sat on our bank accounts and assets over the past decade, figured that NOTHING could go on like this forever.
2 months ago, we bought the perfect home - 25x25 foot shop, 4 bedrooms, half acre. Recently remodelled throughout. Put about 40% down. We paid less than HALF of what it was assessed at 2 years ago when the owner took out a second for the remodelling and shop construction.
Seems too many folks just got too eager.
For us, it will be nice moving out of our cramped 2-bedroom condo, 2 LARGE U-Haul storage units and into the house and shop. We've been unable to use our garage where we've been living unless we parked the car outside.
EVERYBODY played a part in the current crisis. We had no information that others didn't have. We just didn't "NEED" to buy despite what our friends were telling us. |
Blake
| | Posted on Thursday, March 26, 2009 - 08:38 pm: |
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Congrats Steve! We'd be doing similarly but the oil boom has real estate standing strong here. |
Aesquire
| | Posted on Friday, March 27, 2009 - 06:58 am: |
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It apparently isn't that the loans are not being paid, it's that they sold the loans, and insurance for the loans, to more than 1 company, and kept selling bets on the loans even when they had no actual value to sell.
If I have a Cyclone & a Lightning & I sell the Cyclone to 6 people & the Lightning to 8, then sell 30 people insurance to make sure they got the bikes....then split for London to retire... I'm The guys who used to work for AIG, not the ones whose lives are threatened by congress & ACORN today. |
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