Posted:
#26
And no Wallsteet i am In finance and in another level of intelligence than you, but that ok. i am not putting you down. god bless
LOL at these idiots in congress and their plans to fix the economy
Posted:
#33
I had to look one more time, with the hope that someone anyone would have something inteligent to say. ZERO NADA I AM WAITING COMMON YOU GUENIUSES TELL ME HOW OUR COUNTY WORKS. And please tell me where all the moneys comming from. NO TAX over 250k .Well every business owner that is either a S corp od a LLC will get taxed bigtime because all the liability goes thru the idividual. For the shit for brains that don't get it ifI have 300K in recievables and payout 280K for my business my net is 20k> I get Taxed on the 300k. The reason I am so in your face right now is I am very concerned. i am a idependent but ask yourself wher is all the money comming from? The last time we where in this positon we went into a depression. We all need to suck it up stop using our house as a piggybank and save money stop bitching, and stop consuming on credit. We enjoy the best quality of life than 99% of the world. i hope in some way i have informed you in some way.I have traveled in the military and on my own and everytime i come back to the states i kiss the ground. i now thats gay but if you don't know what you have you won't apperciate it. Consider yourself blessed.
Ps I am very aware that my typing sucks and i have made a few errors.
Posted:
#34
Quote Originally Posted by TheBookBeater:
The ignorance of the American voting public always amazes me. The reason for the meltdown in the housing market is because Clinton in the last three months in office signed legislation that deregulation Fanny Mae and Freddie Mac. (the two biggest mortgage holders) The reason for this is that he believed that everyone should have the right to own a home regardless of down payment, ability to pay, or credit. So for the last eight years you had a influx of buyers and not enough homes to buy. Simple supply and demand. Because of this home prices skyrocketed until the supply caught up with the demand. The so called Bailout Program is not a bail out program at all and will make the government money. Banks are all on margins and that margin for a mortgage is 10% which means they have to carry that as cash in the bank for the life of the loan. When a mortgage goes into default that margin goes up to 80% because only the top 20% covered by mortgage insurance. So If I am a bank and loan 100K out and that loan is in default I cannot lend out 800K over the next year because I have to have 80K on my margin on the 100K original loan. So I am asset rich but cash poor until I foreclose on the properties and get my cash flow back. It has nothing to do with the president and everything to do with the congress. When Clinton was in office you had a Republican controlled congress and economy was good. Now we have the opposite and the economy sucks. I will ask you this as a test to confirm my thought. Name me three Democratic policies that Clinton put through in (8) years in office. (8) years!! Now you are more informed that 99% of the dumbasses out there.
Clinton signed the Bill because it was tacked on to the budget bill. The original bill was voted down by the dems
The primary cause for the meltdown is 1% interest rates. Other factors didn't help
Posted:
#38
BookBeater,
One thing before I comment..I suggest you find a way to disagree and not be offensive in the process, it will help keep you out of the box in the future.
The "under"informed blame a president for the situation and as SecondAgain pointed out, the legislation you are blaming him for was pork added to the budget, hardly his legacy or a directive started by Clinton.
If you were to research outside the Republican Blogs you might discover that we have gone through real estate slowdowns before. So what made this time so different and so toxic?
LEVERAGE.
Leverage is why we are in this situation,not lending to a specific income group, or even really those nasty IO loans.
Mortgage and financial institutions can handle a certain ammt of foreclosures and not have it materially effect their business. I dont believe for one second that the reason for the financial mess we are in has much to do with lower income lending or even really I/O loans.
The reason for this overall mess is LEVERAGE.
Firms were lending out at ratios which were insane relative to their assets (firm assets) in the name of greed and profits. If lending firms hadnt been so aggressive they could have handled a drop in the real estate markets. The firms themselves are to blame, not lending to lower income or even marginal credit candidates.
The other issue is that most of this mess has NOTHING to do with lending itself, rather the packaged products made and sold to financial firms, hedge funds, automakers, insurers..anyone who wanted it. And also in this case LEVERAGE is what killed owners of these products.
Read up and try to see what the real issue is. Bear Sterns, Morgan Stanley, General Electric arent mortage lenders, Ford and GM arent lenders either.
One thing before I comment..I suggest you find a way to disagree and not be offensive in the process, it will help keep you out of the box in the future.
The "under"informed blame a president for the situation and as SecondAgain pointed out, the legislation you are blaming him for was pork added to the budget, hardly his legacy or a directive started by Clinton.
If you were to research outside the Republican Blogs you might discover that we have gone through real estate slowdowns before. So what made this time so different and so toxic?
LEVERAGE.
Leverage is why we are in this situation,not lending to a specific income group, or even really those nasty IO loans.
Mortgage and financial institutions can handle a certain ammt of foreclosures and not have it materially effect their business. I dont believe for one second that the reason for the financial mess we are in has much to do with lower income lending or even really I/O loans.
The reason for this overall mess is LEVERAGE.
Firms were lending out at ratios which were insane relative to their assets (firm assets) in the name of greed and profits. If lending firms hadnt been so aggressive they could have handled a drop in the real estate markets. The firms themselves are to blame, not lending to lower income or even marginal credit candidates.
The other issue is that most of this mess has NOTHING to do with lending itself, rather the packaged products made and sold to financial firms, hedge funds, automakers, insurers..anyone who wanted it. And also in this case LEVERAGE is what killed owners of these products.
Read up and try to see what the real issue is. Bear Sterns, Morgan Stanley, General Electric arent mortage lenders, Ford and GM arent lenders either.
Hot Forum Topics
