On Mar 23, 4:30*pm, "Ed Huntress" wrote:
"Too_Many_Tools" wrote in message

...
On Mar 23, 1:46 pm, "Ed Huntress" wrote:





"Larry Jaques" wrote in message

.. .

On Sat, 22 Mar 2008 23:58:10 -0400, with neither quill nor qualm, Wes
quickly quoth:

I'm not tracking you. The banks with the bad loans should not be taking
the
keys, they should be working on ways to float the loans until better
times.
The borrowers should be paying as much as they can and we ride this
monster
trying to stay clear of the ditch.

I agree entirely. Putting that many people out on the street is
assinine, especially when there is so little market left for homes.
Bank repos are a major part of the problem.

It is like a renter that doesn't have the full payment for rent so he
doesn't pay anything instead of ponying up what he has. This whole thing
seems to have a trailer trash mentality on honoring obligations.

If I were the lender, I'd be keeping as much cash flow coming in as
possible. I'm curious as to legalities why they could/would not do
so. Wes? Ed? Anyone?

I have no idea what legalities would be involved. But the lenders don't
have
the option of taking lesser cash flow, because they're unable to make
their
margin calls or their loan payments now. They're stretched out too thin on
margins themselves. They need the money *now* to avoid bankrupcy.

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Ed Huntress- Hide quoted text -

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Did lenders have the option of not lending money to those who could
not pay their loan obiligations?
Or did they commint fraud with their depositor's funds?

Which lenders? Private mortgage brokers don't have depositors. Most
commercial banks sold the mortgages to people who knew what they were
buying. After that, it gets kind of murky about who knew what, but most of
those instruments were understood to be collateralized with mortgages, and
that many of them were subprime. The people who bought *them* didn't have
depositors, either, in the sense that you probably mean the term.

--
Ed Huntress- Hide quoted text -

- Show quoted text -

If no depositors will be harmed, then why are we the American taxpayer
bailing them out?

TMT