Wednesday, September 5, 2012

please sir, i want some more

i'm sorry, but we don't want more of the same, do we?... it baffles me that the big picture isn't seen by some very intelligent people... they sure think those trees look pretty, but there's a forest out there, too.

Mike Huckabee recently posted the following:
[T]he Daily Caller revealed some previously unpublished court information about a landmark case that many consider the fuse that set off the sub-prime mortgage boom and eventually, the economic meltdown. It was a 1995 discrimination lawsuit against Citibank, on behalf of a group of African-Americans who claimed they couldn’t get loans because of their race. It was part of a coordinated effort at the time by progressive groups. The banks didn’t want to be sued or accused of racism, so they loosened requirements for credit history and down payments.
at one point, the Daily Caller (and Huckabee, by proxy) attempt to tie a young Barack Obama to the sub-prime mortgage disaster... it's a stretch, by any reasonable person... but there's a bigger truth that the DC and Huck don't emphasise... it isn't that Obama was involved... it's the idea of forcing sub-prime mortgages on banks that don't want them.

so, what is a bank to do with toxic loans?... well, sell them, of course.
but who would buy them?... investors, of course.
and why would they buy them?... because they can be traded on the market, speculated against, even short-sales... they were high risk, so they could be bought inexpensively... and if mortgages were (mostly) paid on time, investors made big money... but if they weren't paid, investors were out only a fraction of their investment.
better still, you could bet on them failing, drive the price down, buy low, and get bigger returns... Stock Market 101 = "Buy Low; Sell High".

now, back the banks with federal insurance, and there is no risk should it collapse... great idea... idiots.

and the final nail, offer "No Documentation" and "Stated Income" loans... or "Interest Only" loans... someone with poor credit and slight income can get a loan without any repercussion against them... it's not like they paid a down payment, anyways!... the loans go belly-up, the banks foreclose, they're left holding property when no one is buying, they lose money... well, that is until the government bails them out.

the people who put this all in motion, from deregulating the banking industry to backing toxic assets to requiring loosened standards on housing mortgages... these are the people in the White House and have control of the Senate.

they believe that everyone has the right to own a home... everyone has a right to go to college... everyone has a right to everything.

and they believe it's the government's place to provide all of the above.

THIS is who they are... THIS is who is running things... THESE are the people want four more years.

Mike Huckabee's Facebook post
Obama’s African-American clients got coupons, not cash - 09/03/2012 - The Daily Caller
Buycks-Roberson v. Citibank Fed. Sav. Bank

No comments:

Post a Comment