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  1. #25
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    Feb 2009
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    Re: This really erked me this weekend...



    Wow.

    That's pretty incredible. That d-bag publicly admitted to these mortgages having a higher risk of default.


    Pretty eye opening.
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    My RSR Blog:
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  2. #26
    Join Date
    Sep 2009
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    Clayton,NC
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    Re: This really erked me this weekend...

    Quote Originally Posted by wickedsolo View Post
    Wow.

    That's pretty incredible. That d-bag publicly admitted to these mortgages having a higher risk of default.


    Pretty eye opening.
    You should read that book I linked to.

    Here is a good review.
    http://online.wsj.com/article/SB1000...730887312.html

    Here is people trying to do something about it (and a few trying not to)



    And here is why a few tried not to.
    http://www.opensecrets.org/news/2008...d-freddie.html




  3. Re: This really erked me this weekend...

    Anybody ever heard the term "House Poor"?

    That's alot of what happened, and quite frankly, still happens to a certain extent.

    Financial institutions making loans only look at what you're currently in debt for and your employment to determine if you're eligible.

    They don't take into account everyday expenses like how much you need to spend on groceries, gas for your cars, insurance payments, clothes, etc.

    All they look at is whether or not there is enough money left over in your check to cover the mortgage payment or car payment once the payments you're already obligated to pay are taken out.

    It's up to the individual to consider everything else in life when making a decision to finance something.

    I could have bought a much bigger house then I live in now at the time I bought this house.

    Hell, the banks even tried to push me further because my credit is so good and the numbers showed I could afford much more then I was willing to spends per month.

    I just re-financed this place (3.875% ) trying to cut the payment down some because shit is getting tight with everything else in this world going out of control.

    IMO, this mess is both the banks fault and the individuals fault for not looking at the whole picture when taking out a loan.
    Somebody on here mentioned in another thread about needing schools to have classes and courses about the basic skills needed to survive life, handle credit, etc.
    This situation is a perfect example of that notion.
    Will Die A Ravens Fan!!




  4. #28
    Join Date
    Sep 2009
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    Re: This really erked me this weekend...

    Quote Originally Posted by The Fanatic View Post
    Somebody on here mentioned in another thread about needing schools to have classes and courses about the basic skills needed to survive life, handle credit, etc.
    This situation is a perfect example of that notion.
    Maybe we could also have our elected officials attend this course as well...?




  5. #29
    Join Date
    Oct 2011
    Location
    Harford County
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    336

    Re: This really erked me this weekend...

    Quote Originally Posted by NCRAVEN View Post
    Maybe we could also have our elected officials attend this course as well...?
    And the politicians say

    More taxes will solve everything

    And the band played on...

    The Temptations, Ball of Confusion sometime around 1970? And nothing has changed.




  6. #30
    Join Date
    Oct 2011
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    Harford County
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    Re: This really erked me this weekend...

    Quote Originally Posted by The Fanatic View Post
    Anybody ever heard the term "House Poor"?


    IMO, this mess is both the banks fault and the individuals fault for not looking at the whole picture when taking out a loan.
    Somebody on here mentioned in another thread about needing schools to have classes and courses about the basic skills needed to survive life, handle credit, etc.
    This situation is a perfect example of that notion.
    I also include the real estate industry that facilitated the artificially high housing prices of a decade ago.

    Individuals were clearly at fault for signing loans they really didn't understand, but if you accept that trust is part of human nature, you've got to blame those who led the individuals to believe signing was in their best interest somewhat more than the individuals themselves.




  7. #31
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    Apr 2009
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    Re: This really erked me this weekend...

    FANATIC - The first time I heard that term HOUSE POOR was back in the 70s. My friend's
    dad was a builder and he worked with him. His dad used that term all the time.

    He said people were buying these huge houses but were eating macaroni for supper
    every night. They couldn't afford to do anything else.
    UBER RAVENS FAN AND HISTORIAN GURU.




  8. #32
    Join Date
    Aug 2007
    Location
    Houston, TX Y'all
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    23,260
    I have a friend back in Baltimore who did a 30 year ARM right toward the end of the bubble. Her rate tripled after the housing bubble blew up and the bank was not willing to refinance to a fixed rate mortgage. It was cheaper for her to do a planned buy back than it was for her to go through bankruptcy. She actually ended up renting the house from the bank once the bank took the house over.

    She'd be the first to tell you it was her fault she got into that mess.

    Wicked -- since you were in the Navy, you need to take advantage of the VA loans you can get once you decide to buy. All but one of my houses were done via the VA and I have a low rate fixed rate of 3.45% on my current home.
    WARNING: This post may contain material offensive to those who lack wit, humor, common sense and/or supporting factual or anecdotal evidence. All statements and assertions contained herein may be subject to literary devices not limited to: irony, metaphor, allusion and dripping sarcasm.




  9. Re: This really erked me this weekend...

    Quote Originally Posted by HoustonRaven View Post
    I have a friend back in Baltimore who did a 30 year ARM right toward the end of the bubble.
    I've never understood why anybody would do an ARM on anything.

    It's like gambling with your life.

    I guess the appeal is the very low interest rate to suck you in, but to think that the rate won't change because the current (at the time) economic climate is so good is insane to me.

    I've always been someone that wanted to know exactly or pretty damn close to what my payment was going to be for the duration of a loan I have taken out.
    I don't like surprises at all!!

    Even with a fixed rate loan there are still fluctuations due to taxes, insurances. etc. that cause increases due to escrow (sp?) shortages, etc., but nothing that is devastating the way a lot of those loans were that got so many people in trouble.

    I'm no economic guru, but I have enough common sense and basic math skills to understand that "fixed" means it ain't changing, and "adjustable" means it can change at anytime.
    Problem is/was a lot of people I suppose didn't understand that.

    Stuff like this is the type of skill that I'm referring to when I and somebody else in another thread spoke about classes or courses being required in high school of basic skills and understanding of how to function in life.
    Will Die A Ravens Fan!!




  10. #34
    Join Date
    Oct 2011
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    Harford County
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    Re: This really erked me this weekend...

    Quote Originally Posted by The Fanatic View Post
    I've never understood why anybody would do an ARM on anything.

    It's like gambling with your life.

    I guess the appeal is the very low interest rate to suck you in, but to think that the rate won't change because the current (at the time) economic climate is so good is insane to me.

    I've always been someone that wanted to know exactly or pretty damn close to what my payment was going to be for the duration of a loan I have taken out.
    I don't like surprises at all!!

    Even with a fixed rate loan there are still fluctuations due to taxes, insurances. etc. that cause increases due to escrow (sp?) shortages, etc., but nothing that is devastating the way a lot of those loans were that got so many people in trouble.

    I'm no economic guru, but I have enough common sense and basic math skills to understand that "fixed" means it ain't changing, and "adjustable" means it can change at anytime.
    Problem is/was a lot of people I suppose didn't understand that.

    Stuff like this is the type of skill that I'm referring to when I and somebody else in another thread spoke about classes or courses being required in high school of basic skills and understanding of how to function in life.
    ARMs were beneficial to house flippers and speculators to whom housing was an investment, not a home. Then, greed took over and the initial low interest rate was used as a selling tactic aimed at the more gullible among us.




  11. #35
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    Dec 2006
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    Re: This really erked me this weekend...

    The review of the housing problem in this thread is typical "blame the minorities" coded racist innuedo, conservative bluster. It is no different than the previous threads that blame Democrats for poverty in this country because they stick up for the poor. Meanwhile statistics show the extreme wealthy getting richer and everyone from middle class - down becoming poorer; yet, its the democrats enabling the poor by restributing the wealth? huh? One has to say.

    It is easy to debunk the bluster in this thread that allowing and even encouring people other than whites to buy houses was a huge mistake. Of course, no on this thread will admit that this is really beneath their language but as soon as they start blaming the government and using words like "minorities" the point is expresed.

    The CRA was in 1977 opening up more lending to minorities because previous to 1977, certain area in cities, known as "redlining", were off-limits to lending for houses. Areas that fell within the "redlines" were predominately black so banks wouldn't loan money for houses to be purchased in these areas. Clearly this policy was racist in intent. In 1977, CRA denied this practice. Did the housing bubble occur as soon as blacks started buyiing houses? Nope.

    The housing bubble began around 2000 NOT 1977. So what happened in 2000? Well, in 1999 three Republican Senators co-sponsored authored the Gramm-Leach-Bliley Act which repealed part of the Glass–Steagall Act of 1933. Glass Steagall limited commercial bank securities activities and affiliations between commercial banks and securities firms. In other words, Glass-Steagall prevented banks and securities firms from bundling mortgages which would disperse the risk asssociated with bad loans away from banks. The passing of the Republican Gramm-Leach-Bliley Act now opened up a "handshake" between lending banks and Wall Street. As a result, banks had less skin in the game while security firms passed bundled loans around making millions off the transactions. The Gramm-Leachy-Bliley Act was passed by a Republican House and a Republican Senate as well as signed off by Bill Clinton.

    The housing crash has little to do with lending to minorities or else this crash would have occurred shortly after 1977. It has everyhting to do with the repeal of Glass-Steagall. Bill Clinton has a hand in it as well as the Republican controlled congress of 1999. Fannie and Freddie had their role as well but none of this woulf have occurred with the repeal of Glass-Steagall and it has nothing to do with the Community Reinvestment Act of 1977.

    The ensuing bubble encouraged greedy Americans to buy more house than they could afford. It encouraged greedy Americans to refinace and pull unprecedented amount of money out their newly found "equity" and buy shit they don't need which ultimately led to them being unable to afford their upside down homes.

    Now that I am back in town, I need to go through and correct all the misinformation that is running rampant.








  12. #36
    Join Date
    Apr 2009
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    Re: This really erked me this weekend...

    Misinformation?

    Hey Galen, you just repeated what I said above about Clinton and the Fannies and Freddies.

    No one mentioned OBYs baby. Acorn, planting the seeds to disaster.


    http://www.nationalreview.com/articl.../stanley-kurtz
    Last edited by AirFlacco; 04-10-2012 at 10:40 PM.
    UBER RAVENS FAN AND HISTORIAN GURU.




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