We didn't learn a thing from the housing bubble

[OohPooPahDoo]

This has all been tried in the past, with disastrous results.

http://www.usmessageboard.com/polit...nomic-collapse-of-2008-democrat-policies.html

See a summary of what led to the economic collapse of 2008 (from which we still suffer today). Complete with quotes, interviews, and references to videos.

Loaning money to black people didn't cause the housing crisis you fucking racist.

 

[The Rabbi]

We've been getting a lot of refi offers lately. A lot of ARM's, they always emphasize in bold letters we'll be able to skip up to two payments, and they always encourage us to consume the difference on our note rather than save it.

I ask of the loan industry and government - did we not learn anything from the housing bubble? Its like it never happened! These guys are ready to do it all over again.

Why shouldn't they try it again? They know big daddy government will be there to catch them if they fall.

We should have let everything fail, let the chips fall where they may. It would have hurt more in the short term, but we would have been a lot better off in the long term.

No it wouldn't have shit for brains. It doesn't make us "better off in the long run" to obliterate the economy and put everyone out of work. THat's the dumbest thing I ever heard. That's like amputating your head because you've got a brain injury.

It makes us "better in the long run" to keep these institutions from getting so big that a single failure will set us back to the stone ages. THen we can afford to let them fail as they deserve.

So we would be better off letting them fail but if we let them fail it would obliterate the economy.
Do you give any thought before you post?

 

[OohPooPahDoo]

We've been getting a lot of refi offers lately. A lot of ARM's, they always emphasize in bold letters we'll be able to skip up to two payments, and they always encourage us to consume the difference on our note rather than save it.

I ask of the loan industry and government - did we not learn anything from the housing bubble? Its like it never happened! These guys are ready to do it all over again.

Have you learned yet that the housing bubble was Carters idea that Clinton ran with?

And that since it worked so well for clinton, obama is going to do it again?

You, to get the same results.

Still glad you blindly supported obama?

well, are you?

Are you seriously this big of an idiot?

 

[OohPooPahDoo]

I ask of the loan industry and government - did we not learn anything from the housing bubble? Its like it never happened! These guys are ready to do it all over again.

Nope, apparently not.

So, will you vote for the very same politicians that seek to manipulate tax laws and commit to more bailouts, all in the name of 'the dream of home ownership'? Or will you take a different approach and vote for the limited government guy that stands against cronyism?

It's easy to denigrate companies in the loan industry that benefit from the loopholes and taxpayer backing, but that wouldn't be possible without meddling nanny state do gooders, would it?

I'm not really sure how limiting government is going to prevent privately owned and operated "to big to fail" investment banks from buying junk mortgage investments from loan sharks whose only purpose is to make the loans, pocket the fees, and then unload them as soon as possible. My guess is you can't actually think at all and instead just know to reflexively spout "limited government" as the answer to every question asked of you.

 

[The Rabbi]

I ask of the loan industry and government - did we not learn anything from the housing bubble? Its like it never happened! These guys are ready to do it all over again.

Nope, apparently not.

So, will you vote for the very same politicians that seek to manipulate tax laws and commit to more bailouts, all in the name of 'the dream of home ownership'? Or will you take a different approach and vote for the limited government guy that stands against cronyism?

It's easy to denigrate companies in the loan industry that benefit from the loopholes and taxpayer backing, but that wouldn't be possible without meddling nanny state do gooders, would it?

I'm not really sure how limiting government is going to prevent privately owned and operated "to big to fail" investment banks from buying junk mortgage investments from loan sharks whose only purpose is to make the loans, pocket the fees, and then unload them as soon as possible. My guess is you can't actually think at all and instead just know to reflexively spout "limited government" as the answer to every question asked of you.

If you're not really sure you could always ask an adult.

 

[OohPooPahDoo]

While sub-prime financing played a somewhat significant part in the housing bubble and bust, it was only part of the problem. Average people who bought their homes were fine and could afford the payments, until the bubble burst and they lost their jobs in the ensuing meltdown. Once they lost their jobs, they could no longer afford the payments, but it wasn't because of the financing.

Amazingly illogical. Sub-prime financing was encouraged precisely for people who were NOT "fine and could afford the payments." Their failure to make these payments CAUSED the meltdown and loss of jobs, not vice versa.

Traditional "conforming" real estate financing required 20% down for residences and 30% down for investments. If these had been maintained, a dip in real estate prices would not have caused the banking collapse.

< 10% should not even be allowed. Freaking stock traders have to maintain a 10% margin - the cutoff for homeowners certainly shouldn't be lower.

 

[OohPooPahDoo]

We've been getting a lot of refi offers lately. A lot of ARM's, they always emphasize in bold letters we'll be able to skip up to two payments, and they always encourage us to consume the difference on our note rather than save it.

I ask of the loan industry and government - did we not learn anything from the housing bubble? Its like it never happened! These guys are ready to do it all over again.

You are correct. Jack-crap has not changed. But you're wrong about the culprit. The "loan industry" STOPPED writing crap loans and that freeze endangered the economic indicators. So HARP and other Federal programs were commissioned to make it easier to write CRAP loans again.. Because Fannie and Freddy are still making tainted sausage out of what the banks are ALLOWED to issue as "documentated" loans..

It's ALWAYS been Federal policy polluting the loan market. Nothing HAS changed..

Matter of Fact --- look for the systemic meltdown of the new Federally defined "student loan program" coming to a theatre near you...

You're full of shit. The big investment banks like Lehman and Goldman were not regulated by the CRA and free to buy or not buy whatever loans they wanted. Why is it you sheeple righties can't get this through your thick skulls?

 

[OohPooPahDoo]

Don't do it!!
It takes two to tango.

Of course I'm not going to take out an ARM or reduce my equity to take a vacation.

I'm not worried about ME taking a junk loan.

I'm worried about hundreds of thousands of other idiots doing it, causing a housing crash, and reducing the value of MY property in the process. Just like last time around. Then what if I really really need to take out equity for a financial emergency?


The folks who took the crap loans weren't the only ones hurt. A lot of responsible people also got fucked. Many lost their jobs.

Unless you're planning on selling soon not much you can do. Real Estate is an investment, which means there is risk. If the Fed actually does the right thing and raises rates then mortgage rates will go up adn your house will be worth less as well. So what? You want a risk free investment? Move to North Korea.

The only way we will see another housing crash is if the gov't sends the message that it will roll out program after program to help borrowers under water and will backstop banks by buying their toxic mortgage assets. Oh wait. We're fucked.

I didn't ask for a risk free investment.

 

[The Rabbi]

We've been getting a lot of refi offers lately. A lot of ARM's, they always emphasize in bold letters we'll be able to skip up to two payments, and they always encourage us to consume the difference on our note rather than save it.

I ask of the loan industry and government - did we not learn anything from the housing bubble? Its like it never happened! These guys are ready to do it all over again.

You are correct. Jack-crap has not changed. But you're wrong about the culprit. The "loan industry" STOPPED writing crap loans and that freeze endangered the economic indicators. So HARP and other Federal programs were commissioned to make it easier to write CRAP loans again.. Because Fannie and Freddy are still making tainted sausage out of what the banks are ALLOWED to issue as "documentated" loans..

It's ALWAYS been Federal policy polluting the loan market. Nothing HAS changed..

Matter of Fact --- look for the systemic meltdown of the new Federally defined "student loan program" coming to a theatre near you...

You're full of shit. The big investment banks like Lehman and Goldman were not regulated by the CRA and free to buy or not buy whatever loans they wanted. Why is it you sheeple righties can't get this through your thick skulls?

See, the problem is you don't understand what you're talking about. S o your solution is always more of the same of what caused it in the first place. You want to regulate this, outlaw that, control the other. That's how we got here. Because no matter how clever legislators and regulators are, the guys with the money are much smarter. S o they can play the regs to suit them. And with practically guaranteed bail out courtesy of Papa Obama we can be sure we'll see it again.
Instead why not elt the market take over. Companies that make stupid loans that fail will go out of business, probably before they hurt too many people. Companies that make good loans will stay in business. And the taxpayers wont be on the hook for someone else's mistake.

 

[The Rabbi]

Of course I'm not going to take out an ARM or reduce my equity to take a vacation.

I'm not worried about ME taking a junk loan.

I'm worried about hundreds of thousands of other idiots doing it, causing a housing crash, and reducing the value of MY property in the process. Just like last time around. Then what if I really really need to take out equity for a financial emergency?


The folks who took the crap loans weren't the only ones hurt. A lot of responsible people also got fucked. Many lost their jobs.

Unless you're planning on selling soon not much you can do. Real Estate is an investment, which means there is risk. If the Fed actually does the right thing and raises rates then mortgage rates will go up adn your house will be worth less as well. So what? You want a risk free investment? Move to North Korea.

The only way we will see another housing crash is if the gov't sends the message that it will roll out program after program to help borrowers under water and will backstop banks by buying their toxic mortgage assets. Oh wait. We're fucked.

I didn't ask for a risk free investment.

Good. So don't worry about other borrowers lowering the value of your home because they're morons.

 

[OohPooPahDoo]

The only way we will see another housing crash....

THe only way?

 

[OohPooPahDoo]

Why shouldn't they try it again? They know big daddy government will be there to catch them if they fall.

We should have let everything fail, let the chips fall where they may. It would have hurt more in the short term, but we would have been a lot better off in the long term.

No it wouldn't have shit for brains. It doesn't make us "better off in the long run" to obliterate the economy and put everyone out of work. THat's the dumbest thing I ever heard. That's like amputating your head because you've got a brain injury.

It makes us "better in the long run" to keep these institutions from getting so big that a single failure will set us back to the stone ages. THen we can afford to let them fail as they deserve.

So we would be better off letting them fail but if we let them fail it would obliterate the economy.
Do you give any thought before you post?

Your reading comprehension skills are severely lacking. Its better to not allow them to get so big that a single failure will destroy the economy. What part of that simple idea do you not understand?

 

[OohPooPahDoo]

Nope, apparently not.

So, will you vote for the very same politicians that seek to manipulate tax laws and commit to more bailouts, all in the name of 'the dream of home ownership'? Or will you take a different approach and vote for the limited government guy that stands against cronyism?

It's easy to denigrate companies in the loan industry that benefit from the loopholes and taxpayer backing, but that wouldn't be possible without meddling nanny state do gooders, would it?

I'm not really sure how limiting government is going to prevent privately owned and operated "to big to fail" investment banks from buying junk mortgage investments from loan sharks whose only purpose is to make the loans, pocket the fees, and then unload them as soon as possible. My guess is you can't actually think at all and instead just know to reflexively spout "limited government" as the answer to every question asked of you.

If you're not really sure you could always ask an adult.

Then maybe you can get your daddy to explain it to you and get back to me.

 

[OohPooPahDoo]

That's how we got here.

No it isn't.

 

[OohPooPahDoo]

Unless you're planning on selling soon not much you can do. Real Estate is an investment, which means there is risk. If the Fed actually does the right thing and raises rates then mortgage rates will go up adn your house will be worth less as well. So what? You want a risk free investment? Move to North Korea.

The only way we will see another housing crash is if the gov't sends the message that it will roll out program after program to help borrowers under water and will backstop banks by buying their toxic mortgage assets. Oh wait. We're fucked.

I didn't ask for a risk free investment.

Good. So don't worry about other borrowers lowering the value of your home because they're morons.

Why wouldn't I worry about my home losing value?

 

[The Rabbi]

I didn't ask for a risk free investment.

Good. So don't worry about other borrowers lowering the value of your home because they're morons.

Why wouldn't I worry about my home losing value?

Because that's a risk you take. If it really worries you you could always sell it and move into the cardboard box you're headed for anyway. I hear those don't depreciate much.

 

[OohPooPahDoo]

Good. So don't worry about other borrowers lowering the value of your home because they're morons.

Why wouldn't I worry about my home losing value?

Because that's a risk you take. If it really worries you you could always sell it and move into the cardboard box you're headed for anyway. I hear those don't depreciate much.

So because I have made an investment that involves risk, I should not consider the potential loss to be of any consequence?

That makes absolutely no sense! You right wing nutters will go through amazing twists of logic to justify the crap you're fed.

 

[flacaltenn]

While sub-prime financing played a somewhat significant part in the housing bubble and bust, it was only part of the problem. Average people who bought their homes were fine and could afford the payments, until the bubble burst and they lost their jobs in the ensuing meltdown. Once they lost their jobs, they could no longer afford the payments, but it wasn't because of the financing.

Amazingly illogical. Sub-prime financing was encouraged precisely for people who were NOT "fine and could afford the payments." Their failure to make these payments CAUSED the meltdown and loss of jobs, not vice versa.

Traditional "conforming" real estate financing required 20% down for residences and 30% down for investments. If these had been maintained, a dip in real estate prices would not have caused the banking collapse.

< 10% should not even be allowed. Freaking stock traders have to maintain a 10% margin - the cutoff for homeowners certainly shouldn't be lower.

So why does the Federal HARP program IGNORE this and BLESS the banks to write mortgages for homes up to nearly 200% of appraised value?? Fannie will just eat them up.

You really DON'T want to acknowledge who is cheerleading this disaster along do you? ... despite overwhelming evidence of the Federal role in the critically fatal decisions...

 

[The Rabbi]

Why wouldn't I worry about my home losing value?

Because that's a risk you take. If it really worries you you could always sell it and move into the cardboard box you're headed for anyway. I hear those don't depreciate much.

So because I have made an investment that involves risk, I should not consider the potential loss to be of any consequence?

That makes absolutely no sense! You right wing nutters will go through amazing twists of logic to justify the crap you're fed.

Hey, you're the one panicking about idiot neighbors taking out bad loans and ruining the value of your home, not me. Your solution pretty much guarantees that is exactly what will happen. Mine pretty much guarantees the opposite.
Your lack of understanding of markets is just amazing.

 

[OohPooPahDoo]

Amazingly illogical. Sub-prime financing was encouraged precisely for people who were NOT "fine and could afford the payments." Their failure to make these payments CAUSED the meltdown and loss of jobs, not vice versa.

Traditional "conforming" real estate financing required 20% down for residences and 30% down for investments. If these had been maintained, a dip in real estate prices would not have caused the banking collapse.

< 10% should not even be allowed. Freaking stock traders have to maintain a 10% margin - the cutoff for homeowners certainly shouldn't be lower.

So why does the Federal HARP program IGNORE this and BLESS the banks to write mortgages for homes up to nearly 200% of appraised value?? Fannie will just eat them up.

These are refinances. If you are already 200% LTV then getting a refi that is 200% LTV doesn't put you anymore underwater. Do I need to explain how keeping the same LTV but lowering your interest rate makes it easier to pay down the mortgage?