they believe in strict rules and regulations and think the state/dictator is right always.

Sorry, but you are wrong. Your own quote describing fascism describes the democrat party. They don’t want to kill the golden goose, they just want to control it and keep the eggs. Democrats thrive to be part of the elite, thrive to be wealthy. Just look at the clintons. The majority of the democrat leadership are political professionals with little or no experience in the private sector and very little self achieved assets to show for it. They want the middle class to do well so they can take more for themselves and more to buy votes. People generally recognize communist very easily but fascism has always been insidious. Fascism is alive and well in the United States and winning the battle.

All Democrats closet Socialists? Definitely. Closet Communists? Perhaps some more than others, but not all.

Cuomo is doing what one would expect from your typical ill-informed politician: When something happens that you don’t understand, you do everything you can to stop everything involved in it. As a politician, he feels like he has to do something. It’s dumb. I know. They do it anyway.

Dave says it was his good credit alone that bought a home in Draper and a house in St. George, both with no money out of his pocket.

Now at the age of 27, Dave owes more than a million dollars in mortgage loans.

Sounds like he makes a lot of money, but quite the opposite is true.

Dave is a college student and waits tables after school.

He makes maybe $11,000 a year, yet he bought the Draper house for more than $700,000.

“You’re a server at a restaurant. How can you afford a $719,000 house? I can’t” says Dave.

Dave claims a man by the name of Ron Haycock, who he met through a mutual friend, set up the whole deal.

According to a list we obtained from a former employee of Ron Haycock there are at least 69 homes that went through Lawrence Skinner and Associates’ office in the past year and we confirmed at least 40 of those are in default or foreclosure.

Ron Haycock says none of those foreclosures are his fault, “Let me tell you what the deal is. OK. I’m an accountant. I go in and analyze a business proposition. I let them take a look at the business proposition. They take their own decisions, we turn it over to a mortgage broker, the mortgage broker does her own thing.”

But how could a college student making $11,000 a year convince any lender to give him a million dollars in mortgages?

Take a closer look at Dave Ormsbee’s loan application. It shows him as the owner of his own company, Ormsbee Graphic Design.

But there is no such physical company, it’s all created on paper, he says, under the direction of Ron Haycock.

“That’s the company that they had me make up,” says David.

And the loan documents show David doesn’t make $11,000 per year, but $18,500 a month.

“Do you make $18,500 a month? Nope. I don’t make that a year,” says David.

Dave says he didn’t fill-out the documents; they were done at Lawrence Skinner and Associates.

He admits he made the mistake of never looking at what he was signing.

“There just so much signing going on that you just don’t care what you’re signing after a while,” says Dave.

Now, whom shall we bail out in order to keep the housing bubble afloat, Mr. Cramer? The kid who swears he didn’t know that his $11,000 yearly earnings weren’t actually enough to pay for a $700k home? How about the broker that Haycock sent this guy to? Maybe the folks who bought this loan from the broker, thinking the kid was making $18k per month, could use some liquidity restoration right about now?

The only reason I can think of that the fraud-induced unwinding of the housing bubble isn’t the biggest story of the year is that the MSM has not figured out a way to blame W, either through action or inaction on his part. But the victimization of absolute idiots has begun as evident in this article that takes the kid’s ignorance of his stated income as gospel.

A bamboo practice kendo sword is called a shinai (竹刀). A wooden practice kendo sword is called a bokutou (木刀). That’s all I’m good for on this one. Cheers.

Deas on November 8, 2007 at 6:47 PM

That myfriends is an impressive comment; if nothing less than the 竹刀 – 木刀 alone.

- The Cat

P.S. cut and paste was the only way . . .

Making the unaffordable seem affordable was the niche of the subprime brokers. But that was an illusion which brought so many people into the market that prices rose significantly in relation to income and rents. Keeping housing unaffordable, with the illusion of affordability lent by the subprime industry, helps no one.

The promise of double-digit appreciation got many to overextend themselves to buy their “investment” but those gains are gone for a decade, regardless of Cuomo’s actions. Further, hundreds of billions of dollars over-rated toxic mortgage securities have already been purchased and have huge losses from defaults. The MARKET has rejected them.

So, homes are overpriced and are an unattractive investment, while the demand for mortgage-backed securities has dried up. There’s no demand for either until 1) home prices fall to historical norms and 2) the market can trust the ratings on the securities made up of subprime paper… enter Mr. Cuomo.

Meanwhile, you want the fed to flood the market with more liquidity – print more money – to buy overpriced homes and prop-up overextended homeowners in the face of a falling dollar? You know the dollar tanking is related to the increased money supply, do you not? Why diminish my savings with inflationary policies just to bail out a mortgage industry constructed from deception and poor fiscal decisions? Cramer only sees the damage to stocks from a correction in the mortgage industry. I say come on, correction, and let’s pray that most of the toxic securities are held outside of the U.S. and our corporations and pension funds.

sorry but you just described a communist. communism is the theory that there should be no classes that wealth should be shared and used for the common good. Of course the biggest communists are those in power because they get the best while the rest of the peons get nothing.

fascist believe that the state is king. that the state knows best. They care nothing about wealth. Only how that wealth can be used to further the states goals. They love capitalism because it makes the state stronger. they believe in strict rules and regulations and think the state/dictator is right always.

Weebork on November 8, 2007 at 2:16 PM

all democrats are closet communists

Cramer has been right on with the housing crash from the begining. The FED did not get it, the government did not get it, they still don’t. they think it is impacting just some poor folks. But everyone that owns a house is impacted. If the FED does not cut rates fast and big this country’s economy will implode. they tighten too fast and too much.

Now is not the time to place blame and start trials. That can wait. What Cumo is doing is what all Democrats do. They place blame while the crisis is going on. Look at Katrina, the wild fires, iraq war etc etc. You need to fix the problem first then place blame.

The problem is very big and very scary. Already the nations banks have lost 83 BILLION in market cap as their shares have fallen. They are writting over multi BIllION dollars in losses. The banks are scared to lend to borrowers. Only those with good jobs and and good credit need apply. It is spreading into the Auto industry and the credit card industry. The dollar will continue to fall until the economy rebounds. And instead of rushing in to save the day. The NY government rushes in to arrest people! We need gvernment regulations requiring banks to freeze ALL ARM increases today. We need the FHA to help open up the credit markets to quailified buyers. If the REPs i.e Bush fails to do these things the DEmocrats will walk away with the 2008 elections. We have a possible 7 million people losing their homes. These homes will have forclosure signs placed next door to you and that will drop your home vaule. People that are forclosured on will not be able to buy another home. the home inventory will continue to build and home prices will continue to come down. State and local governments tax revenues will wither away, schools will get less monet. The economy will sink into a major recssion/depression and Bush will be compared to Hoover in the history books.

Cumo is an ass and is a poor man’s spitzer. He is trying to repeat Spitzer’s run at mutal funds

Bring out the “communist” card is over the top in this case, …

Weebork on November 8, 2007 at 2:16 PM

naawww…. spot on.

Financial folks in the HA readership — is Cramer on to something in his Fannie Mae/Freddie Mac prognostication or is he the crank that he appears to be?

Financial folks in the HA readership — is Cramer on to something in his Fannie Mae/Freddie Mac prognostication or is it the crank that he appears to be on?
fixed

HR3915 is probably more of a threat to the mortgage industry than this Wamu situation. 3915 has the potential of making mortgage brokers go the way of the dinosaur. This is a pretty scary thought considering over half of all mortgages are originated by brokers.

This will kill the mortgage industry and the housing market. Ultimately the consumer will pay. Both in the form of further depressed housing prices and a scarcity of mortgage money and choices.

If anyone has any pull in Congress, I urge you to urge them to kill this bill. Should this ill conceived legislation pass in it’s current form, expect a 1930′s style depression in the near future. Heck, even if it doesn’t pass we may still see a depression scenario play out.

….turning the subprime mortgage troubles into an excuse to criminalize shoddy business practice.

Wrong. Washington Mutual stands accused of influencing appraisals to help folks get loans who probably shouldn’t have gotten them. If Cuomo can prove that WaMu knew the mortgage-backed securities containing these liar loans had problems and did not disclose to the buyers, they may be made to buy back the questionable securities, which would freeze an already greatly chilled MBS market. Wouldn’t do WaMu much good either.

Cramer is fundamentally wrong. He blames Cuomo’s actions for possibly ruining the mortgage industry by scaring away investors in mrtgage-backed securities. In fact, homes have simply become unaffordable, having year-over-year double-digit price gains against single-digit income advances.

Alternative loans like adjustable rate, no down payment and negative ammortization vehicles only served to make the unaffordable temporarily affordable, but now that the time has come to refinance, when the arms reset and the minimum payments go away, there is none to negative equity in these homes as prices have fallen. They cannot refinance. As the homeowners race to put their houses on the market to beat foreclosure, prices are beaten up further.

Folks who didn’t qualify for a mortgage at the local bank went down the street to Counrtywide where they got a subprime loan. That loan was bundled with other loans and sold at a profit to institutions like the bank that turned down similar loans in the first place. The loan originator has to “launder” the loan in such a way that it smelled quite diferent going out to market than it did coming in off the street.

Purchasers of mortgage-backed paper had no idea of the shennanigans going on with these loans at the originator’s table. There was a lot of lying and deception on the part of the lender and the buyer that has resulted in the downgrading of these securities. Coumo and others need to find the lawbreakers, even if it is the howmowner who lied abot income, and deal with them or else face the consequenses of a complete collapse in confidence in these securities.

Cuomo’s investigation is nothing but an attack on business to rally the “far left” which is just a code word for commies.

Link

Have no idea is what he is saying makes any sense. I’ll leave that up to people more knowledgeable about these things.

ChrisM on November 8, 2007 at 3:31 PM

Heh! Spastic!

Said a couple days ago GOOG would hit 1K before gold.