Letting the homeowners get thrown out on the streets isn't saving the nation. If the Republicans are addressing social concerns by giving investment houses a trillion dollars, then they should also be addressing social concerns at other levels too.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Ok, now the Democrats have gone too far!
- Thread starter ChkitOut
- Start date
Letting the homeowners get thrown out on the streets isn't saving the nation. If the Republicans are addressing social concerns by giving investment houses a trillion dollars, then they should also be addressing social concerns at other levels too.
If banks made risky loans, then sell those loans to others like(FANNIE AND FREDDIE) for profit, then risk is not on the first bank who make the liar loan, AND the first bank make money. The first bank transfers the risk to the buyers. Fannie and freddie take morgages they bought from banks who made liar loan(high risk) and sell them to hedge fund and investors. Now default happens on many of the loans. Big mess.
So why did original banks make the liar loans? Even if some of the poorer people who took the loans were wrong and greedy, it is still the job of the bank to access risk. But they did not care about risk because it was no risk to them because they sell those liar loans anyway.
This is not democrats or short sellers fault. It is deregulation fault. But now it is election time and everyone has to blame the other one to win votes.
So why did original banks make the liar loans? Even if some of the poorer people who took the loans were wrong and greedy, it is still the job of the bank to access risk. But they did not care about risk because it was no risk to them because they sell those liar loans anyway.
This is not democrats or short sellers fault. It is deregulation fault. But now it is election time and everyone has to blame the other one to win votes.
Quote from trendlover:
If banks made risky loans, then sell those loans to others like(FANNIE AND FREDDIE) for profit, then risk is not on the first bank who make the liar loan, AND the first bank make money. The first bank transfers the risk to the buyers. Fannie and freddie take morgages they bought from banks who made liar loan(high risk) and sell them to hedge fund and investors. Now default happens on many of the loans. Big mess.
So why did original banks make the liar loans? Even if some of the poorer people who took the loans were wrong and greedy, it is still the job of the bank to access risk. But they did not care about risk because it was no risk to them because they sell those liar loans anyway.
This is not democrats or short sellers fault. It is deregulation fault. But now it is election time and everyone has to blame the other one to win votes.
Actually it is dems fault, freddie and freddie is a dem creation and letting the debt get out of control is also a dem agenda. ALthough there were some lame repubs that also turned away from the freddie fannie problem also.
see this thread
http://www.elitetrader.com/vb/showthread.php?s=&threadid=137124
FDR's "New deal" will now go down in the books as "Bad deal" (it wasn't all bad, just parts)
Quote from ChkitOut:
Actually it is dems fault, freddie and freddie is a dem creation and letting the debt get out of control is also a dem agenda. ALthough there were some lame repubs that also turned away from the freddie fannie problem also.
FDR's "New deal" will now go down in the books as "Bad deal" (it wasn't all bad, just parts)
FNMA was created in 1938 and seemed to work okay until the Republicans got in charge.