Goldman to be paid $1bn if CIT fails

[jem]

asisprop

you do not understand how the mortgage market worked.

you do not understand how goldman was syndicating the debt.

you do not understand the collusion with the ratings agencies like moodys (partially owned by buffet)

You do not understand how selling mortgages in states like CA is the exact same game as selling premium.

Do you realize that these banks were putting deals together in which there was 100% or more financing, 5% percent payouts to the mortgage brokers, 3-5 % payouts to the banks putting the deals together and servicing fees.

And some of these loans were destined to blow up because they were negative amortization?

Now was GS smart enough to know that selling mortgages was like selling premium and that they might get caught holding the bomb they were building -- sure They were so sure of this they bought puts from AIG.

And then they used their government connections to backstop AIG and let their competitors fail.

Smart sure - if you consider blowing up the american economic system for short term million dollar bonuses smart.

But that is not what I call it.

 

[Anaconda]

Quote from asiaprop:

you are the biggest moron out there. So, GS is responsible for a) the housing crisis, b) the oil spike and subsequent dump, c) they killed AIG, d) they killed CIT?

I never said any of these things.

You obviously lack basic reading comprehension. You're also delusional and mixing me with other posters.

Get back on the Ritalin.

 

[asiaprop]

the greed of the American consumer blew up the economy. Wall Street was just the middle man and they surely took a big bite from the pie. But in the end it was a pipe dream of ever rising housing prices that the average American believed in. Why dont you blame the American house construction industry, just because its so convenient to point fingers at the guys with the bigger pay checks?

Quote from jem:

asisprop

you do not understand how the mortgage market worked.

you do not understand how goldman was syndicating the debt.

you do not understand the collusion with the ratings agencies like moodys (partially owned by buffet)

You do not understand how selling mortgages in states like CA is the exact same game as selling premium.

Do you realize that these banks were putting deals together in which there was 100% or more financing, 5% percent payouts to the mortgage brokers, 3-5 % payouts to the banks putting the deals together and servicing fees.

And some of these loans were destined to blow up because they were negative amortization?

Now was GS smart enough to know that selling mortgages was like selling premium and that they might get caught holding the bomb they were building -- sure They were so sure of this they bought puts from AIG.

And then they used their government connections to backstop AIG and let their competitors fail.

Smart sure - if you consider blowing up the american economic system for short term million dollar bonuses smart.

But that is not what I call it.

 

[jem]

Quote from asiaprop:

the greed of the American consumer blew up the economy. Wall Street was just the middle man and they surely took a big bite from the pie. But in the end it was a pipe dream of ever rising housing prices that the average American believed in. Why dont you blame the American house construction industry, just because its so convenient to point fingers at the guys with the bigger pay checks?

I do blame the builders - who bought crappy land and then over improved the houses on postage stamp lots.
Then each phase the would include more tile, granite and stainless and then raised the prices 5% or more every month.

Then by sharing the profits with CW they got CW to find ways to lend more and more on their artificially inflated houses.

How many corrupt appraisals do you need to see before you know what happened.

By the way you got it exactly right. You know where Countywide got their money don't you.

By the way I know a lot of people were not innocent and I do not want them to mortgage our children's future with tax payer bailouts either.

I want to see the real estate market deflate to its proper level.

 

[asiaprop]

we are slowly moving to the same page. Some blame lies with the consumers, some with builders, some with Wall Street, A LOT with the government which all not just approved this mania but actually encouraged it.

At least we can agree GS is not the only one to be blamed for this crisis and sucking up all tax payers money as USA TODAY, some liberal wanna bees, and our clueless friend Anaconda claim.

Quote from jem:

I do blame the builders - who bought crappy land and then over improved the houses on postage stamp lots.
Then each phase the would include more tile, granite and stainless and then raised the prices 5% or more every month.

Then by sharing the profits with CW they got CW to find ways to lend more and more on their artificially inflated houses.

How many corrupt appraisals do you need to see before you know what happened.

By the way you got it exactly right. You know where Countywide got their money don't you.

By the way I know a lot of people were not innocent and I do not want them to mortgage our children's future with tax payer bailouts either.

I want to see the real estate market deflate to its proper level.

 

[ByLoSellHi]

I would love to undo the gifting of money to Goldman, directly and indirectly (e.g. AIG bailout that allowed AIG to pay Goldman 12 billion in CDS monies) and see if Goldman could survive.

Goldman probably received in excess of 40 billion in taxpayer funds, at a time when their capital had shrunk by 70%.

They are the ultimate spin masters, corporate welfare queens par excellence, and they would have and should have shared the same fate as Bear Stearns.

Scum of the earth...

...that they have shoeshine cocksuckers like asiaprop gazing at them with stars in their eyes is repulsive..

 

[asiaprop]

GS again...instead of obsessing over this firm...did you actually count the number of market calls you made this year and how many times you were plain wrong? I think your calls and your rants about GS highly correlate.

Quote from ByLoSellHi:

I would love to undo the gifting of money to Goldman, directly and indirectly (e.g. AIG bailout that allowed AIG to pay Goldman 12 billion in CDS monies) and see if Goldman could survive.

Goldman probably received in excess of 40 billion in taxpayer funds, at a time when their capital had shrunk by 70%.

They are the ultimate spin masters, corporate welfare queens par excellence, and they would have and should have shared the same fate as Bear Stearns.

Scum of the earth...

...that they have shoeshine cocksuckers like asiaprop gazing at them with stars in their eyes is repulsive..

 

[guru-trading]

It will be interesting to see how CIT is restructured. There are parts of CIT that can be very profitable environment such as the ABL side. Very few lenders lend on strong financials these days, they want to lend directly off the assets which suits ABL's very well. Problem is if a business is struggling the last thing it needs is to go from paying interest with a floor around 6% to some of the ABL rates out there right now which can be in the high teens.

Another area of CIT that is extremely profiable but not that viable right now is the loan syndication. The spreads are increased dramtically for the less sophisticated banks allowing huge fees to be collected, however, the pool of small banks is getting smaller and also their appetite for risk is as well.

My gut feeling on CIT filing for BK is that it all depends on manufacturers, if they continue to be weak then CIT will have no choice.