Watched "The Big Short" housing bubble movie

[Indeependent]

its the kind of movie that angriest up the blood .
It's about some guys who saw the housing bubble burst coming in 2007 , and how they cashed it .

They ain't the bad guys either . The behavior of the banks and sec was rediculous . And of course they all got bailed out , no one went to jail.

Makes you a Bernie Sanders fan .

''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank

Any thoughts on the majority of subprime loans...which were not Fannie or Freddie?

Why were F/F stamping AAA on subprime paper?

Chump...I went to Citibank for a Mortgage in 2006 after being unemployed for 2 years.
The SOFTWARE rejected my application.
The kid at the desk took my application into the Bank Manager's office and 5 minutes later, the application was Rubber Stamped with Approved.
You get it?
The SOFTWARE rejected my application.
The BANK MANAGER Rubber Stamped Approval.
You get it?

The software was what the banks and their lawyers came up with. In the past, they rejected a lot of loans because of their standards. That is the very thing that the Clinton administration set out to change. While the bank's rules were still in their system, they were forced to ignore those and grant no-docs loans. They were being watched and had to make a certain amount of loans to certain people in certain neighborhoods. Janet Reno pounded her man-fist on the podium and warned them that they would make the loans- or else!

The interest rates were so high because they knew that the price of the homes were inflated and that there was a 99.99% chance that the people would default on their mortgages. Government knew it, too, but those who love a good crisis that gives government a chance to intervene in the private sector knew it was too good to pass up. And it was one hell of a slush fund before it all came crashing down.

This is what happens when politicians get involved in running businesses. Most Republicans tend to be business owners and understand how it works. Most Dems tend to be lawyers and only know how to go after people with deep pockets. It shows in policies on both sides.

There are at least 10 Mortgage Bankers and Brokers I know who never Rubber Stamped a Loan that the software rejected; nice try.

 

[Arianrhod]

good grief, what channel was this fairy tale on? CNN ? and they blamed the Banks?

So you feel the banks were just innocent victims? Please explain.

I don't shed tears for banks but do get angry at the root cause. Had it been bankers run awry with this on their own. The same voices arguing that banks preyed upon innocent mortgage holders were the same voices complaining they were denied loans based on race and neighborhood.

So the real crime, in your view, is "complaining."

I'd say the real crime was the repeal of Glass-Steagall, but that's just me.

 

[The Rabbi]

good grief, what channel was this fairy tale on? CNN ? and they blamed the Banks?

So you feel the banks were just innocent victims? Please explain.

I don't shed tears for banks but do get angry at the root cause. Had it been bankers run awry with this on their own. The same voices arguing that banks preyed upon innocent mortgage holders were the same voices complaining they were denied loans based on race and neighborhood.

So the real crime, in your view, is "complaining."

I'd say the real crime was the repeal of Glass-Steagall, but that's just me.

Because you're stupid.
You couldn't even say what Glass Steagal did much less describe how its repeal affected anything.

 

[Arianrhod]

good grief, what channel was this fairy tale on? CNN ? and they blamed the Banks?

So you feel the banks were just innocent victims? Please explain.

I don't shed tears for banks but do get angry at the root cause. Had it been bankers run awry with this on their own. The same voices arguing that banks preyed upon innocent mortgage holders were the same voices complaining they were denied loans based on race and neighborhood.

So the real crime, in your view, is "complaining."

I'd say the real crime was the repeal of Glass-Steagall, but that's just me.

Because you're stupid.
You couldn't even say what Glass Steagal did much less describe how its repeal affected anything.

Prove it.

 

[The Rabbi]

good grief, what channel was this fairy tale on? CNN ? and they blamed the Banks?

So you feel the banks were just innocent victims? Please explain.

I don't shed tears for banks but do get angry at the root cause. Had it been bankers run awry with this on their own. The same voices arguing that banks preyed upon innocent mortgage holders were the same voices complaining they were denied loans based on race and neighborhood.

So the real crime, in your view, is "complaining."

I'd say the real crime was the repeal of Glass-Steagall, but that's just me.

Because you're stupid.
You couldn't even say what Glass Steagal did much less describe how its repeal affected anything.

Prove it.

Just did.

 

[Arianrhod]

So you feel the banks were just innocent victims? Please explain.

I don't shed tears for banks but do get angry at the root cause. Had it been bankers run awry with this on their own. The same voices arguing that banks preyed upon innocent mortgage holders were the same voices complaining they were denied loans based on race and neighborhood.

So the real crime, in your view, is "complaining."

I'd say the real crime was the repeal of Glass-Steagall, but that's just me.

Because you're stupid.
You couldn't even say what Glass Steagal did much less describe how its repeal affected anything.

Prove it.

Just did.

This from the side that worships people with no experience for the job they're seeking.

 

[The Rabbi]

I don't shed tears for banks but do get angry at the root cause. Had it been bankers run awry with this on their own. The same voices arguing that banks preyed upon innocent mortgage holders were the same voices complaining they were denied loans based on race and neighborhood.

So the real crime, in your view, is "complaining."

I'd say the real crime was the repeal of Glass-Steagall, but that's just me.

Because you're stupid.
You couldn't even say what Glass Steagal did much less describe how its repeal affected anything.

Prove it.

Just did.

This from the side that worships people with no experience for the job they're seeking.

I'm not a Democrat, douchebag.

 

[Arianrhod]

So the real crime, in your view, is "complaining."

I'd say the real crime was the repeal of Glass-Steagall, but that's just me.

Because you're stupid.
You couldn't even say what Glass Steagal did much less describe how its repeal affected anything.

Prove it.

Just did.

This from the side that worships people with no experience for the job they're seeking.

I'm not a Democrat, douchebag.

Some media outlets claim there are Democrats supporting Trump, but it's dubious that will help him.

 

[Toro]

Why were F/F stamping AAA on subprime paper?

GSEs don't rate paper.

Be careful about channeling Krugman They were de facto AAA credits and THEY bought no income no assets paper as if it were AAA

GSEs don't rate paper.

The ratings agencies do.

 

[Toro]

BTW, this next recession which is coming up has absolutely nothing to do with the Fed or Obama or Republicans or whomever the narrow-minded political partisans want to blame.

Nonsense. Obama's policies of high regulation and cheap money have created the weakest economic recovery on record. It is no surprise that we are falling back into recession. Obviously there are factors beyond his policies. But those definitely play a big part.

The next recession is going to be caused by the collapse of the energy industry and the implosion of China. Neither of those have anything to do with Obama (or Republicans). Obama may have hindered the recovery, but we aren't suddenly going to slip into recession because of increased regulation.

I certainly hope I'm wrong about a recession because it could be ugly and we are running out of bullets. But I got pretty short last month.

 

[Manonthestreet]

its the kind of movie that angriest up the blood .
It's about some guys who saw the housing bubble burst coming in 2007 , and how they cashed it .

They ain't the bad guys either . The behavior of the banks and sec was rediculous . And of course they all got bailed out , no one went to jail.

Makes you a Bernie Sanders fan .

''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank

Any thoughts on the majority of subprime loans...which were not Fannie or Freddie?

Any thoughts on why Obama didnt send any of them to jail

 

[g5000]

The banks could be considered the victims in the government's scheme to make the "American dream" of owning a home available to everyone regardless of their ability to pay. Early in the Clinton administration the democrats decided that they would force banks to make bad loans under threat of civil rights litigation and the bad loans would be laundered through Fannie Mae and sold back to lending institutions as good loans.

Sorry, but this bullshit has been thoroughly debunked many, many times on this forum.

 

[g5000]

This was a worldwide derivatives bubble. These idiots who think it was all the fault of the negroes are not just ignorant, but blind.

I just imagine them watching all the For Sale signs going up in their white middle class neighborhoods and saying to themselves, "I had no idea Biff is a negro!"

This was GLOBAL. Were the negroes of Iceland responsible for that country's banks imploding? Germany? Italy? The United Kingdom?

Idiots.

 

[g5000]

Any thoughts on why Obama didnt send any of them to jail

If you examine who the top five donors are for every Republican and Democrat in Congress, it becomes blazingly obvious why none of the crooks at the top went to jail.

 

[Manonthestreet]

Wasnt the case with S&L crisis......

 

[g5000]

It wasn't the Mortgages, it was the Derivatives.

Bingo.

 

[Manonthestreet]

Dont the mortgages have to go bad for the derivatives to do the same

 

[g5000]

It wasn't the Mortgages, it was the Derivatives.

Huh? the mortgages were bad paper to start

The mortgages were needed to fuel the derivatives machine. When the broker-dealers ran out of good borrowers, they began hunting for anyone with a pulse to borrow money to keep the derivatives machine going. And they even got good borrowers to borrow more than they should. A person might be a good risk for a $200,000 loan, but the broker-dealers would coach them into half million dollar loans.

 

[g5000]

Dont the mortgages have to go bad for the derivatives to do the same

Derivatives are built on an underlying pool of loans. The demand for those derivatives was huge, and so the broker-dealers had to create a lot of loans.

There was a $70 trillion demand from investors, and there simply aren't that many low risk borrowers for that amount of money. So the global financial community threw the underwriting laws of the Universe out the window.

The reason the broker-dealers focused their loan creation mostly on mortgages is because that was the only sector which was performing well after the 2001 recession.

 

[g5000]

I have not seen the movie, but I bet it is about those people who bought CDS against the mortgage bubble.

The crazy thing about CDS is that no insurable interest is required for them. And that is still the case today.

That's simply insane.