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pacifichigh

Since 11 May 2005
1004 Posts
ATX
Texan
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blowhard
Since 26 Dec 2005
2028 Posts
Windward
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Thu Sep 18, 08 12:33 pm |
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If we still used the gold standard there would have never been an excess of cash
to lend to folks who had no means to pay it back.
"churn-n-burn"
so my real estate is not going to apperciate at 40% ?
a year  |
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jack
Since 12 Mar 2006
214 Posts
Stoked
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Thu Sep 18, 08 12:55 pm |
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I blame it on Best for destroying the secondary kite market... |
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blowhard
Since 26 Dec 2005
2028 Posts
Windward
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Thu Sep 18, 08 12:57 pm |
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ya but Caution brought them back with the $300 trade-in  |
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jdk
Since 21 Dec 2005
333 Posts
Obsessed
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Thu Sep 18, 08 5:00 pm |
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Greed. |
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registered

Since 12 Jul 2005
1319 Posts
tsunami
Sandbagger
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Thu Sep 18, 08 6:03 pm |
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to much glenn beck Shay... me to.
write in Ron Paul..
shrink the fed.
.. besides shay texas has many other assets
we are getting our national credit score lowered and thats not good for the deficit.
way to sadden the forum shay..... lock it before I jump of the roof of morgan stanley
stop using credit card for shit you don't need america.
vote republican go for broke....vote for Obama he is a joke.
your debt ratio is the new gold standard.
on a good note I can walk again after my latest MS attack. |
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SalmonSlayer
Since 27 Nov 2005
648 Posts
Addicted
CGKA Member
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Thu Sep 18, 08 6:23 pm |
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There were safeguards put in place after the depression that were later enhanced in the 50's to avoid our current banking situation. The Clinton administration removed these regulations in 1999 in the interest of making home ownership available to marginally qualified borrowers. I am not blaming Clinton at all on this issue. Bush could have changed it, but he did not. in fact, Bush made it worse through relaxing immigration laws. It was a truly bipartisan effort. The Investment banks then ran amok and developed loan programs that were extremely risky and now the chickens have come home to roost. It was plain greed. Not one of the CEOs and upper management of these banks deserves anything but a kick in the pants on their way out the door.
There is on phenomenon that is being under reported that is exacerbating the situation. There is a high percentage of illegal aliens that are defaulting on their loans. My bank always checked SS#s through a fraud check system (I dont know why employers are not required to do the same thing). I doubt that one fake SS# ever made it past our underwriters. However, I am aware that there were banks that were approving loans to illegals. I am not blaming our situation on illegals though, they are just a contributing factor and a good example of poor regulation. The defaults are coming from borrowers that are not taking responsibility for their own complicity in this mess regardless of their immigration status. These borrowers typically do not have the money management skills required to be a homeowner. Banks should have never loaned money to these borrowers. Many of these borrowers seem to blame everyone else but themselves for signing on the dotted line. Personal accountability seems to be taking a backseat to the "poor me" blame game.
There is one scam that is rather rampant with one group of legal immigrants I will not name.
You’re a smart foreign guy with excellent credit. You buy house with no money down… then the houses appreciate 100K in a short amount of time (not a stretch a few years back). Now and you know how to buy 20 house that all go up 100k.the borrower then takes out 50K-75K on each house
50k(minimum) X 20= 1 million dollars you never had… you put your 1 million in a foreign bank… leave the U.S. and go back to your country of origin and pay no income taxes on the money and are up 1 million U.S. dollars. Remember you started with none of your own money. Then you default on all of the loans with no penalty to yourself. The banks are stuck with a huge loss after absorbing all of the fees related to getting the houses off their books. Once again there are not regulations to stop this sort of scam.
You may not think what I have to say is PC in our hypersensitive society, but it is what it is.
All of this will pass and we will be better and wiser for it.
"What does not kill me will make me stronger" Conan |
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Blue

Since 03 Jul 2007
469 Posts
I used to be
Obsessed
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SalmonSlayer
Since 27 Nov 2005
648 Posts
Addicted
CGKA Member
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Thu Sep 18, 08 7:25 pm |
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Blue wrote: | C'mon, why blame foreigners Good old fashion home grown greed explains it well enough. |
It only took a couple of minutes to get a knee jerk reaction. No surprise there.
Reread the post again. I blamed the investment banks and borrowers in general. Banks and borrowers were greedy and now are paying the price for extending themselves too far.
" The Investment banks then ran amok and developed loan programs that were extremely risky and now the chickens have come home to roost. It was plain greed. Not one of the CEOs and upper management of these banks deserves anything but a kick in the pants on their way out the door. "
Is this where I blamed foreigners?
I am not blaming our situation on illegals though, they are just a contributing factor and a good example of poor regulation. "
How about here?
"The defaults are coming from borrowers that are not taking responsibility for their own complicity in this mess regardless of their immigration status".
I brought up the issue with the foreigners taking money home to further illustrate our lack of regulation
"Once again there are not regulations to stop this sort of scam. "
But all you could do was focus on the PC aspect of mentioning foreigners. GASP!!! |
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SalmonSlayer
Since 27 Nov 2005
648 Posts
Addicted
CGKA Member
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Thu Sep 18, 08 7:45 pm |
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I am actually sorry I posted to this subject. I was the first to complain about the last political thread that was locked. The dynamics of the bond market and Mortgage lending is the other thing I think about when I am not thinking of kiteboarding and my family. It seems to be all my customers think about, hence all I talk about all day long. I had my own knee jerk reaction and posted.
I dont think this forum is a good place for these topics. I will take my debate to a more appropriate forum.
P |
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Blue

Since 03 Jul 2007
469 Posts
I used to be
Obsessed
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Thu Sep 18, 08 7:59 pm |
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Let me rephrase my statement in more mature format. To use an example of politically charged factors that at best contributed marginally to the current situation adds nothing other than insignificant anecdote. Especially when other, more adequate examples are plentiful. _________________ just wear sunscreen |
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pacifichigh

Since 11 May 2005
1004 Posts
ATX
Texan
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Fri Sep 19, 08 4:39 am |
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Fish glad you are feeling better.
Being informed doesn't have to be a $hit storm.
Problem isn't just in the US either kids.
Russia halted trading twice this week on their stock exchange. |
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blowhard
Since 26 Dec 2005
2028 Posts
Windward
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Fri Sep 19, 08 7:08 am |
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[quote)
on a good note I can walk again after my latest MS attack.[/quote]
atta boy
and type again
\
hey buddy, need a loan?
I can loan you some dough
The fukin games that play out
My pal was telling of Mortgage Brokers lending money to peeps without,,,,
and collecting huge fees
and buying huge houses and cars and boats
down in la la land
Now They are sucking wind just like the guys they lent to
"Oh honey wer'e losing the Mc Mansion"
and now the taxpayers can bail them out
IMO people will never be smart enough to regulate the supply of money.
However much gold there is,
is all the money there is.
Ownership society is a truly worthy cause and both the dems and reps had a hand in the glamour
But It remains a difficult path (and should be)
save money
then,
buy a home
Can't skip the save money part.
Kinda like the "I want to be a movie star"
type shows on the tv.
Just because you want it doesn't mean you can have it
despite what your mommy tells you
You get what you pay for |
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registered

Since 12 Jul 2005
1319 Posts
tsunami
Sandbagger
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Fri Sep 19, 08 7:28 am |
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Doesn't low interest mean free money
Aig need the tax dollars to help the golden parachutes....
the private sector should be an indicator ..and the fed (look at S.S.) obviously is got their head in the sand again.
don't help the homeowner default that are causing most this multilayered b.s. the big companies will take the money and pay thier chiefs.
supposedly the gov is going to take the bad mortgages off thier hands
say hello to the new world..
damn typing is tough when my left hand is lame.
what will you do when the fdic is broke like the government and your IRA and bank accounts really are not that safe w/o the fdic promises...
the more money they print to bail us out the less dollarsare worth and the more CHina buys/gets.
this has me paying attention more than 9-11. too much rest and evil media.  |
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blowhard
Since 26 Dec 2005
2028 Posts
Windward
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Fri Sep 19, 08 7:41 am |
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Japan has had no interest for 10 years and that got them ?
Goverment intervention
is what exacerbated the
Great Depression
Instead of letting the losers take it on the head the Gov got in there and bailed out the fuks
thereby extending the downturn for years  |
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pacifichigh

Since 11 May 2005
1004 Posts
ATX
Texan
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Fri Sep 19, 08 8:08 am |
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The govt had no real choice but to step in with AIG, as their hands are in pretty much every cookie jar & the snowball effect would of made everything up to this point look like chicken fodder. |
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brass
Since 15 Jul 2006
152 Posts
Stoked
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Fri Sep 19, 08 8:15 am |
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Shrink the fed? Really registered? Seems to me that without some form of regulation the greed mongers stuff their pockets at will at the expense of the people who truely drive the economy (or at least the ones that used to before the greed mongers shipped manufacturing overseas- that should get the conversation going).
While I don't understand the logic behind blowhard's statement the regulation exacerbated the Depression I am willing to listen. Seems to me that the government (ie. The New Deal) was pretty critical to getting the country out of it through things like the CCC, WPA and BPA (which by the way was partly responsible for kiteboarding). |
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