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ilivehere
Posts:128
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| 10/03/2008 9:17 PM |
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polarbearking-
not sure why your a public servant? Go do something else. Life is too short. I believe what got us into this mess is 6 things:
1. Banks created loan product
2. Real Estate Agent showed a house they knew their client couldn't afford
3. Client loved it and called loan officer knowing that they couldn't really afford the house.
4. Loan officer said "yes, i can get you in that home"
5. New homeowner grabbed key's and 100% financing with no long term plan.
6. Greedy Investors on Secondary market bought the crummy assets to be resold at a later date, we all see what is happening at the later date.
There was really no "KIND" that is solely responsible for this mess. It was a group effort by everyone involved.
Let's not point fingers, that solves nothing.
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lurknomore
Posts:270
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| 10/04/2008 8:12 AM |
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two cents--Apparently you didn't understand my short, somewhat-cryptic comment because your reply to me doesn't seem addressed to what I was trying to say. Probably my fault for not being clearer. You wrote, "wow, the markets really loved that bailout bill which passed today." Many people have posted views that the "bailout" was "for Wall Street, not for Main Street."
I was trying to say that the stock markets' negative reaction suggests it was not "for Wall Street" after all--otherwise "they" should have had a positive reaction. And perhaps they will in the next few days. Time will tell! But that was the intent of my statement.
BTW, I am always reading a good book. Right now it is Ludlum's, "The Bancroft Strategy." |
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tpc
Posts:498
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| 10/04/2008 10:21 AM |
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[quote]What have you and yours done to fix this mess except cry to the Gov't and ask to be bailed out? [/quote]
King-never cried to the govt. Never worked for the govt. Never collected unemployment compensation from the govt (never-not even once). The first nickle that I got from the govt in the form of a check was social security at the age of 65. Since i paid into the system for 48 years (thats a lot of compound interest) i think i am entitled to collect a SS check.
During that period of time, I mostly worked as a broker/mortgage banker. So i paid double on my soc sec because that is what brokers do. No safety net. No steady check. Paid for my own health insurance. Some women have the guts to take those kinds of chances while some men don't have the balls to take a chance.
Sorry to hear that you haven't had a raise since 2004. Maybe you should quit if you feel you are under paid and under appreciated. Take a chance. Make your fortune. Do what the repubs suggest and play the "survival of the fittest game".
You know everyone believes what they read in the newspaper. When it doesn't apply to them-they are outraged. From what everyone read in the SD newspapers, the pension plans of many city employees were enriched by board members serving their own self interest. Coming from Chicago, I always been a strong union supporter (my father was a union member). So i don't believe everything i read in the newspapers. So the point is "live by the stone, die by the stone". Everyone seems to think that everyone else is at fault. |
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tpc
Posts:498
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| 10/04/2008 10:45 AM |
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[quote]polarbearking-
not sure why your a public servant? Go do something else. Life is too short. I believe what got us into this mess is 6 things:
1. Banks created loan product
2. Real Estate Agent showed a house they knew their client couldn't afford
3. Client loved it and called loan officer knowing that they couldn't really afford the house.
4. Loan officer said "yes, i can get you in that home"
5. New homeowner grabbed key's and 100% financing with no long term plan.
6. Greedy Investors on Secondary market bought the crummy assets to be resold at a later date, we all see what is happening at the later date.
There was really no "KIND" that is solely responsible for this mess. It was a group effort by everyone involved.
Let's not point fingers, that solves nothing. [/quote]
i-great, great post.
Here is how i envisioned how a lot of these homes were sold just to maybe add something to your info.
A) In some fashion or other, through word of mouth, thru friends, thru co-workers,thru brokers, thru ads, etc. people learned that they too could buy a house. So to find out if this is real or bs, they contact a loan broker.
B) The mtge broker tells them they qualify of a 100% no doc loan.
C) When asked who the lenders are-they are told countrywide, wamu, citibank, bear sterns, wachovia. Surely if these lenders are willing to make me a loan then maybe i can actually afford this house or worst case scenario flip it and make a killing like my stupid friend jack did.
D) A prequal letter is issued. Next stop-to see a broker.
E) First question asked by the broker is to see the prequal letter. The re broker doesn't ask about how much money these people have. None of their business. They usually ask "what do you do for a living".
F)Broker shows a property that the buyer likes-Bingo-the buyer is the proud owner of a home. Maybe a dream of a lifetime-Yep poor people have dreams too.
So the questions are-
1) Did the sellers take advantage of the buyers?. After all it is the sellers who were the most enriched by this transaction.
2) Did the mtge broker take advantage of the nieve wall street folks that hung out a shingle saying "free money"?
3) Did the real estate brokers take advantage of the buyers or where they performing a service at the request of the buyers? Did they charge extra commissions? Did they cheat the nieve wall street lenders?????
ANYONE?????
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tpc
Posts:498
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| 10/04/2008 10:47 AM |
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| SORRY-I meant to attribute the great, great post to ilive. |
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wilson
Posts:541
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| 10/04/2008 12:31 PM |
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The correct answer is
1) No
2) No
3) No
and
1) Yes
2) Yes
3) Yes
depending on your point-of-view. Personally, I think everyone is responsible for their own actions. The flippers/speculators that got out ahead were either smart or lucky, but they did nothing wrong. The buyers being foreclosed on were either dumb, or misled, or greedy, or unlucky; but they are also responsible for their predicament. The banks and investors will now see that their underwriting standards were non-existent and correct that problem going forward. There will be lots of pain, but those who behaved prudently will be rewarded.
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PolarBearKing
Posts:161
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| 10/06/2008 8:04 AM |
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I'm a public servant for two reason.
1. It's a calling (or a curse - not quite sure which). It's who I am. I've NEVER complained about it and am greatful everyday for what I get to do.
2. I am financiallly conservative. I have two brothers that are true entrepenuers (sp?), they always have a few c-notes in their pockets and although they have some investments they're predominately cash rich. They may go a month with negative cash flow and then make a truck load af money for a couple of months. I cannot stomach that type of economical fluctuations. They know it and they deal with it....
...unlike tpc and his cohorts. They were making money selling loans that they KNEW were gonna fail. Now that they've made their money, then re-invested into the (fundamentally flawed) system that they created and screamed for a bailout. BTW, how's that working out for you. It's only 8a here on the west coast and we're waking up to the DOW falling below 10K. Duh... The bailout won't work. It is fundamentally flawed as well and will only prolong the inevitable and potentially make things worse.
The real problem is that tpc and the rest of his AARP card carrying BabyBoomers are worried that they are gonna spend the last 10 years of their lives in a one room retirement home instead of a villa in wine country. They are the vocal minority and we are listening, but I doubt for much longer. I hope you and yours have cashed out of your stock investments and put it in coffee cans... |
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tpc
Posts:498
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| 10/06/2008 3:40 PM |
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[quote]...unlike tpc and his cohorts. They were making money selling loans that they KNEW were gonna fail.[/quote]
Bare-never made a single family loan in my entire career. Only did commercial loans. |
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tpc
Posts:498
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| 10/06/2008 3:45 PM |
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[quote]The real problem is that tpc and the rest of his AARP card carrying BabyBoomers are worried that they are gonna spend the last 10 years of their lives in a one room retirement home instead of a villa in wine country.[/quote]
Polar-dont have money in the market. Keep it in CDs. However, i do anticipate that i will probably be investing in the market over the next 6 months. Maybe if you live long enuf (age 550) you too can join the AARP. |
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tpc
Posts:498
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| 10/06/2008 3:54 PM |
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[quote]Now that they've made their money, then re-invested into the (fundamentally flawed) system that they created and screamed for a bailout. BTW, how's that working out for you.[/quote]
Polar-You sound as if you are my financial advisor. Its the repubs who are responsible for the fundamentally flawed system. Resulted from deregulation and lack of oversight. I don't believe in the wall street bullshot. Suckers do. I have been very clear and candid in my posts on recent threads. Have my present home for sale because i expect to market to continue to decline. Intend to buy in Carlsbad when the market is right (1-3yrs). As i indicated before, I do expect to by stock probably in the next six months. Second time in 30+ years. |
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tpc
Posts:498
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| 10/06/2008 3:57 PM |
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[quote] BTW, how's that working out for you. It's only 8a here on the west coast and we're waking up to the DOW falling below 10K[/quote]
BAre-Its working out great. How is it working out for you???? |
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tpc
Posts:498
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| 10/06/2008 6:13 PM |
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[quote]The real problem is that tpc and the rest of his AARP card carrying BabyBoomers [/quote]
Bear-I am a pre baby boomer. Born in 1940. I guess that makes me a part of the 'greatest generation". |
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NCgirl
Posts:206
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| 10/06/2008 7:18 PM |
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| Saucer of milk table for two. |
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PolarBearKing
Posts:161
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| 10/06/2008 10:35 PM |
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Dang tpc, you're a little sensitive today. Take a couple of Midol and check back in manana.
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PolarBearKing
Posts:161
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| 10/06/2008 10:50 PM |
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Back on topic.
I heard tonight on Lou Dobbs that Mass, Vermont and one other New England state (can't remember which one) are asking the Feds for loans with the sweet deals like in the Bailout package. I wonder how long before Sacramento jumps on that band wagon??? |
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twocents
Posts:78
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| 10/07/2008 6:00 PM |
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| saucer of milk....bwah-ha-ha!!! |
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