On 6/28/2011 10:03 PM, Robert Green wrote:
wrote in message
...
On Tue, 28 Jun 2011 17:41:38 -0400, "Robert Green"
wrote:
stuff snipped

do people have no individual responsibility at all, or is the
government
supposed to tell them what's good for them, and they're just supposed
to
listen and obey?

Great question. Doesn't also apply to all the banks and mortgage
companies
that gave loans to people without due diligence? Shouldn't THEY have to
suffer the consequences of their bad business decisions and NOT come
looking
to Uncle Sam to bail them out? That sword cuts both ways. I would even
say
it applies even MORE to bankers because THEY had the money and holding
onto
it was their responsibility.

The problem isn't that the banks issued mortgages to people who couldn't
pay,
rather that these bum mortgages were packaged up and sold as AAA rated
financial instruments.

If they didn't place the bad mortgages to begin with, what would there have
been to bundle up, brand as AAA and sell to investors? The process depended
on creating as many mortgages as possible to feed the voracious
securitization engine. This happened because bankers didn't care a bit
about the unsound nature of the underlying mortgages. That risk was being
bundled in with a mix of real AAA mortgages and sold down the line just the
way all the bad strawberries are placed at the bottom of the container where
they are hard to see until you open it.

Then the stupid mortgage originator

Stupid? So far guys like Countrywide's Angelo Mozilo were making $150M a
year marketing toxic waste and have been tapped on the wrist compared to the
outrageous amounts of money they made/stole. Crazy like a fox is more like
it.

http://forum.brokeroutpost.com/loans/forum/2/268988.htm

Posted - 06/04/2009 : 11:02:14 PM
http://www.reuters.com/article/ousiv...5540BG20090605

Born in 1938 to Italian immigrants and raised in The Bronx borough of New
York City, Mozilo evangelized home ownership for everyone.

A golfing enthusiast whose home is said to abut the Sherwood Country Club in
Ventura County, California, Mozilo built his company and his own prominence
by riding the property boom. In 2006, at the height of its success,
Countrywide originated $461 billion worth of loans -- close to $41 billion
of which were subprime.


sold the bum
mortgage out one door and bought more through the other, thinking that
other's
couldn't possibly be doing the same thing.

Correct. It was the glut of these bad mortgages that caused the downfall.
The bankers who thought they could repossess and resell even if they
couldn't resell to repackagers believed that values were always climbing and
they could just flip the foreclosures for more money. Instead they ended up
with a glut of foreclosures on the market and Jack and Jill came tumbling
down.

They were AAA rated obligations,
after all! F&F were right smack in the middle of it all.

Moody's and other raters failed their due diligence, but there was little
risk to them in doing so. It was all a shell game of hiding and shifting
risks to those who could not reasonably evaluate the underlying strength or
weakness of the product. Articles about how the ratings companies operate
make me ill when I read them. It's the ultimate racket.

--
Bobby G.



I could have gotten one of those Affirmative Action loans several years
ago but I knew I had health problems and no one to back me up if
anything happened to me that put me out of action for any length of
time. There was a wonderful house I wanted but my brain took over and
I politely declined the deal. ^_^

TDD