Goldman Sachs bet on housing meltdown -- and won
- Thread starter jficquette
- Start date
its ok let them think GS did. They all agreed in their xxx anonymous group that GS is to be made responsible for all evil in this world then so it must be.
I am actually amused and happy to know there are enough short sighted idiots in this market, more for me. Most probably punt intra day for a few points here or there and each time they get stopped out they must find someone to blame.
I am actually amused and happy to know there are enough short sighted idiots in this market, more for me. Most probably punt intra day for a few points here or there and each time they get stopped out they must find someone to blame.
There is nothing more pathetic than cheerleading the systematic looting of America.
a little context...
Many people took the mortgages because they were concerned housing prices were streaking by their ability to ever buy a house.
Until lenders started giving away money without testing qualifications - Housing prices were a function of peoples ability to borrow.
when you had to put 20% down housing assets were connected to the buyers pool ability to earn.
When the lenders no longer required people to qualify for the mortgages the first non qualified borrowers in got the appreciating assets in a deathmatch of house flipping and overleveraged buying. . Then more people were trained to buy without regard to ability to afford. Thats how bubbles work.
the lenders like goldman caused the asset bubble by providing mortgage money cheap money to anyone who asked for it.
As they were providing mortgage money to the consumer and selling mbs to consumers pensions they were buying CDOS (read put options) in such large quantity they broke aigs bank.
Then instead of accepting the fact they took foolish counter party risk - they said nope we are more greedy than the rest we will use our ex chairman to create a credit hysteria and get the tax payers to pay us off to the tune of billions.
a little context...
Many people took the mortgages because they were concerned housing prices were streaking by their ability to ever buy a house.
Until lenders started giving away money without testing qualifications - Housing prices were a function of peoples ability to borrow.
when you had to put 20% down housing assets were connected to the buyers pool ability to earn.
When the lenders no longer required people to qualify for the mortgages the first non qualified borrowers in got the appreciating assets in a deathmatch of house flipping and overleveraged buying. . Then more people were trained to buy without regard to ability to afford. Thats how bubbles work.
the lenders like goldman caused the asset bubble by providing mortgage money cheap money to anyone who asked for it.
As they were providing mortgage money to the consumer and selling mbs to consumers pensions they were buying CDOS (read put options) in such large quantity they broke aigs bank.
Then instead of accepting the fact they took foolish counter party risk - they said nope we are more greedy than the rest we will use our ex chairman to create a credit hysteria and get the tax payers to pay us off to the tune of billions.
Capitalism cuts both ways.
I'm not defending GS but you can't have all the positive that capitalism brings and not expect the negatives.
That's just not realistic.
I'm not defending GS but you can't have all the positive that capitalism brings and not expect the negatives.
That's just not realistic.
Speculation should be confined to the commodity, equity and bond markets. Mortgages should never have become a gambling vehicle and as far as I am concerned, mortgage derivatives are where this whole mess started and should be outlawed. Period.
Bad Lenders = bad mortgages.... It is ultimately the financial responsibility of the lender to lend to someone who might just pay them back, that's how the business works. Unless of course....too much for me to write, but just go down memory lane for the last 5 years...you see; hindsight is 20/20... peace