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whateverbendstherod

This doesn't seem like a good idea, haven't we been down this road once?

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http://www.washingtonpost.com/business/economy/obama-administration-pushes-banks-to-make-home-loans-to-people-with-weaker-credit/2013/04/02/a8b4370c-9aef-11e2-a941-a19bce7af755_story.html

 

Obama admin is urging banks to make home loans to people with "weaker" credit. Seems like we have seen the potential ramifications of such a policy in the last 10 years.

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Who will he blame when these loans default...oh yeah, the evil banks.

 

How come the regulating-loving lefties will not comment on this issue today? What happens when your president busts up regulations?

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Was the problem caused by the loans?

Or by being underhanded with crazy adjustable rate mortgages that ballooned into something nobody could afford?

How did the derivative packages impact the economy?

 

I don't think our economy blew up cause poor people got loans

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Was the problem caused by the loans?

Or by being underhanded with crazy adjustable rate mortgages that ballooned into something nobody could afford?

How did the derivative packages impact the economy?

 

I don't think our economy blew up cause poor people got loans

 

Who was the driving force behind those loans?

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Was the problem caused by the loans?

Or by being underhanded with crazy adjustable rate mortgages that ballooned into something nobody could afford?

How did the derivative packages impact the economy?

 

I don't think our economy blew up cause poor people got loans

 

1.) The banks were forced BY LAW to provide loans to people the banks KNEW would not be able to pay the money back.

 

2.) The banks had to make money despite this forced loss and so they started to market crazy loans and mortgages to everyone, hoping to counter the losses they knew were happening. So you had people flipping, you had people buying second and third homes, you had partnerships, etc., etc.

 

3.) As losses mounted, the banks tried to bundle the bad mortgages and losses forced on them with better mortgages and sell them internationally which worked for a while until the whole house of cards fell down.

 

The banks were not exactly innocent bystanders in all of this but the fact is the system of mortgages and bank loans worked pretty well until THE DEMOCRATS forced the banks to give loans to poor people who could not afford to pay them back. Had the Dems (with Reps going along to get along as usual) not forced the banks in the first place, none of this would have happened.

 

Now we have the poverty pimping Dems doing it again. Mental Illness? Yes long term. Short term, get reelected.

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1.) The banks were forced BY LAW to provide loans to people the banks KNEW would not be able to pay the money back.

 

2.) The banks had to make money despite this forced loss and so they started to market crazy loans and mortgages to everyone, hoping to counter the losses they knew were happening. So you had people flipping, you had people buying second and third homes, you had partnerships, etc., etc.

 

3.) As losses mounted, the banks tried to bundle the bad mortgages and losses forced on them with better mortgages and sell them internationally which worked for a while until the whole house of cards fell down.

 

The banks were not exactly innocent bystanders in all of this but the fact is the system of mortgages and bank loans worked pretty well until THE DEMOCRATS forced the banks to give loans to poor people who could not afford to pay them back. Had the Dems (with Reps going along to get along as usual) not forced the banks in the first place, none of this would have happened.

 

Now we have the poverty pimping Dems doing it again. Mental Illness? Yes long term. Short term, get reelected.

 

What Law was that ?

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Quote:

Originally Posted by fish'nmagician View Post

I don't think our economy blew up cause poor people got loans



It blew up because gummit decided banks should give unqualified  people loans, and coerced (in some cases forced) them to lend money that banks knew would not get back.



Barney Frank (D-Massachusetts) was a key player.


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A lot of blame to go around on this one, not just to the poor. The idea of giving loans to people who would never be able to pay them back was crazy. What the banks did, to bundle morgages and make such exotic loans was crazy, but they got bailed out, so who is the fool on that one? Once the economy imploded, several good people lost thier homes too, due to the over inflated market prices driven by people flipping etc. thier was a lot of money to be made in a short amount (relativley) of time. Blaming poor people getting loans is only part of the story. A lot of people made a lot of money on this mess, it wasn't the poor or the middle class.

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Quote:

Originally Posted by pakalolo View Post

If the ******* deadbeats paid their loans none of this would have happened! PERIOD END OF DISCUSSION



BS,



 



the loans were crap.....



they were almost impossible to pay after the ARM was adjusted, ballooned to something nobody could pay,



 



the only reason to END the discussion by pointing a finger at the folks who got hoodwinked by those things,



is so you can avoid looking at the banks and mortgage companies that were selling those things.


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Quote:

Originally Posted by MikeMunn View Post

A lot of blame to go around on this one, not just to the poor. The idea of giving loans to people who would never be able to pay them back was crazy.



yes and no,



 



clearly the folks who signed onto those ARM loans were able to make their payments during the early years......



but nobody could make the payments once the escalation kicked in.....



 



maybe if fixed mortgages were being marketed there wouldn't have been so many defaults?


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Quote:

Originally Posted by Knight771 View Post

2.) The banks had to make money despite this forced loss and so they started to market crazy loans and mortgages to everyone,



it's amazing how far some people will go to defend corporate greed.......


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Did anyone hold a gun to the head of a mortgagee and scream SIGN THE PAPERS!!?? When one signs a contract they are bound to the terms therein. If one doesn't understand the language an attorney is used. The ones who defaulted were either too stupid to understand the contract or they had no intention of paying the loan back.

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Quote:

Originally Posted by pakalolo View Post

Did anyone hold a gun to the head of a mortgagee and scream SIGN THE PAPERS!!??



Was the mortgagee properly informed as to how high the mortgage payments would be once the ARM kicked in?



 



why defend the swindler and blame the victim?



 



other than the tendancy of right wingers to disdain the poor and powerless, while defending their corporate masters.....


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