william the wie
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- Nov 18, 2009
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- #21
Not any more. There is purportedly a 9 year supply backlog of housing foreclosures in the pipeline now with as much as 80% of them are likely to end up on the courthouse steps either from back taxes or violation of local ordinances in regards to abandoned/foreclosed houses. That in turn will lead to lawsuits by affected tranche holders. And wait there's more! The 2006 vintage 5 year option ARMs will be decanted in 2011. These classic originated to be foreclosed mortgages feature negative equity. Yes, friends of banks this is perhaps the year in which all hell will break loose and you can find out what too big to fail really means.The liar loan industry was caused by government demanding banks make loans to people who could not pay.
The securitization of those was an accessory after the fact.
And those securitized mortgages had the full faith and credit of the US government.
It wasn't an accessory after the fact. Banks simply make 10 times as much profit by issuing mortgages and refis and rolling them over asap as they do via traditional banking.
The entire mortgage securitization industry serves the banks first and foremost.