Study: Housing Collapse Steeper than during the Great Depression.

Quote from bugscoe:

What needed to happen first for Wall Street to get involved?
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"Wall Street investment banks were subprime mortgage lenders’ single most important source of capital, and
therefore wielded tremendous power in the subprime mortgage market. These lenders raised cash for their
lending activities through frequent private-label securitizations, which are controlled by investment banks and
shielded from government oversight. By buying up mortgages, the investment banks granted lenders quick
access to capital for further lending activities. The investment banks, in turn, were able to produce the lucrative
subprime-related bonds that generated so much revenue and bonus money over the past several years."
http://northwestbronx.org/wallstreet_subprime.pdf
 
I am saying the Wall Street lead this. They find their nicho with lenders unregulated. Then give them money to fund the bad loans, then the unregulated lenders sell this loans back to investment banks, and the banks securitize, collaterize, bundle the loans, and sell. Big money fast for them, and they are not caring for long term consequences.
 
“Fremont, the largest high- APR lender in Boston in 2005 and the second-largest statewide, was wellknown
for the egregious quality of its loans, but seems to have been allowed to proceed unchecked at least
through the end of 2006.” Fremont was sued earlier in 2007 by Attorney General Martha Coakley, who
charged “unfair and deceptive conduct on a broad scale.” Goldman Sachs was the top purchaser of
Fremont’s mortgages in 2006, with $5.3 billion worth of purchases.
The following are brief descriptions of a few of the types of loans that met the criteria of investment banks like
Goldman Sachs during the subprime boom:
· Hybrid adjustable rate mortgages (ARMs). These loans carry low, fixed teaser rates (7-8%) that jump to
much higher adjustable rates (14%+ pegged to an index) after two or three years. Often, subprime ARM
borrowers’ ability to re-pay is judged based on the low, initial rate. Underwriters accept higher rates of refinancing
and foreclosure by saddling these borrowers with prepayment penalties and judging ability to pay
based on the value of the underlying asset – a widely recognized predatory tactic. ARMs went from 73% of
subprime loans in 2001 to 91% by 2006, and are causing many of the subprime foreclosures today."
 
Quote from Lucrum:

Well he did promise "Hope" during his last campaign.

And now he would like us all to Hope things get better, at least long enough for him to get re-elected.
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Hussein doesn't give a shit about reelection. he knows he will be making millions getting bribes ( aka speaking fees ) and no responsibility. Perfect for a career parasite like him .
 
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