Paulson = KGB plant.

::Putin dancing like Snoopy in the background::

Mr_Magoo on October 11, 2008 at 12:09 PM

Nice conspiracy theory… has legs since he is “very close” with Chinese elites.

CC

::Putin dancing like Snoopy in the background::

Well, 5 million at $150K per home is 750 billion. Gee how much of our bailout is going into this?

THe GOP did a good job too, as Millions (I heard 5 million)of foreclosed homes were bought by illegals, amd BOA led the pack to get the Bush White House to change rules to allow mortgages to people without papers (or any fear of collection agencies)

The five million figure is how many homes have been sold to illegal immigrants via illegal mortgages.

That any bank would consider lending to an illegal alien as a safe risk is beyond understanding. First, the loans are illegal themselves. They do not meet the required standards for documentation of a mortgage because they are not purchased with valid social security numbers and identification.

The very fact that these people come here illegally shows a distinct lack of respect for our law. Then they apply for a fraudulent mortgage on top of that. This is a clear demonstration that they will do what is in their own best interests regardless of law or even social ethics. Why would a person that fits this personality profile be considered a good credit risk?

This once again points us to the purchase of this bad paper by Fannie and Freddie. The mortgage lenders did not worry about the risk because they sold it off to the FMs. Once again, unless you force the lenders to stand behind their own loans they will just grab for the bucks. Reselling of loan liability should be illegal. They might find a sucker, but as we have seen, the sucker ends up being the taxpayer.

This is just one more example of how our banks played a very dishonest game and left us all holding the bag.

Limerick on October 11, 2008 at 2:12 AM
Don’t worry, according to Newton, 2060 isn’t that far away.

Kini on October 11, 2008 at 2:18 AM

Well according to the ancient Maya calandar the date is 2012. They were pretty exact on the Spanish invasion date. But hey who’s counting?

I sure don’t know the answers to your questions but I think in the end it will be the American people who solve this problem. And probably by doing an end around of the government. I have absolutely no basis to say this or any idea how it would be done and maybe my faith in our citizens is misplaced but it is what I have so I embracing it.

Cindy Munford on October 11, 2008 at 9:02 AM

Well you’re right. In the end, it is only the working taxpayer who is available to bail out the weak and greedy. My fear is the price that the taxpayer will pay will be a much reduced standard of living going into the future. And I don’t mean in silly ways like no more BMW’s or granite countertops, I mean less of the basic necessities of life.

quax1 on October 11, 2008 at 1:13 AM

Unaffordable McMansions are a problem, but so are “starter homes”. The bottom line is that if you can’t pay the rent to the bank, and you can’t pay your utilities, HOA dues, and all the other costs associated with home ownership, you will eventually end up in default. There are tons of “starter homes” and McMansions in default in Georgia, and they all contribute to this disastrous situation.

In addition to all the factors which have been discussed ad nauseum as to how we got in this mess, add the fact that local governments force developers to include “low and moderate” income housing in their plans, social engineering it so everyone can have access to amenities like swimming pools and tennis courts, because that’s only “fair” dontcha know.

lexhamfox on October 11, 2008 at 1:29 AM

Leveling the playing field to a socialist like you means equal outcomes, not equal opportunity. These lawsuits were based on an idiotic premise, that banks don’t want to lend money to “minorities” because they are racists; that there is a racial element to credit.

This is absurd. Banks are in the business of making money, and it is in their interest to loan as much money to as many credit-worthy people as they can. They don’t give a flip what their skin color is, and for you to deny that banks lowered their lending standards in order to comply with the CRA flies in the face of reality.

The bottom line? If you want blacks and hispanics to own more homes, then I suggest you not vote for Obama since his record on education is abysmal. The money he doled out in the CAC went to groups who do not educate, they indoctrinate. Good luck getting a job anywhere in the business world if you’ve spent your entire life in Marxist schools who actually believe that writing and producing journals is a substitute for teaching math and science.

Get over it.

lexhamfox on October 11, 2008 at 1:29 AM

I find your comments amazing. Even with the bald-assed facts in front of you, you are in denial and repeating and perpetuating the big lie of our generation. That lie is bringing a fascist/Marxist to power.

I sure don’t know the answers to your questions but I think in the end it will be the American people who solve this problem. And probably by doing an end around of the government. I have absolutely no basis to say this or any idea how it would be done and maybe my faith in our citizens is misplaced but it is what I have so I embracing it.

I took his answer to mean that his bank was swimming in treasuries and dollars, and just how much more of it did we reasonably expect them to take? Why would the Chinese fundamentally be any different?

I still have my doubts about our country’s ability to finance this entire bailout without so drastically damaging the value of the dollar as to make it a joke.

I know the dollar is in high demand lately, but that may only be against currencies from countries that turned out to have as bad a banking crisis as we do, such as is the case with the Euro. The Yen and Swiss Franc seem to have done much better against the dollar. And until yesterday afternoon, so did gold.

And if European banks are guaranteeing all deposits, why won’t foreign money move out of the US and into safer banks?

The flight to safety in Treasuries certainly buoyed the dollar. But won’t that recede as the immediacy of the crisis recedes? Where will that leave the dollar? With commodities deflating, purchasing power seems to be improving,as we see with oil. But that’s demand driven.

As the plan “works”, and the markets recover, won’t the financial price we have to pay be paid out in terms of a depreciating currency? If not, then where is it exactly that we are paying? Or have we simply avoided paying by passing that entire bill on to the next generation?

Does anyone know why gold reversed yesterday, and have a prognosis of what lies in store for it in the years ahead?

I’m sure the guvmint will do an honest, competent job on running ruining our banking system.

Didn’t they also run ruin that Freddie and Fannie thing?

PattyJ on October 10, 2008 at 11:10 PM

Bush says we’re all in this together. No, the taxpayers werent in it, it was the politicians that drug us into it kicking and screaming.

We have provided the machinery to restore our financial system, and it is up to you to support and make it work.

It is your problem, my friends, your problem no less than it is mine.

Together we cannot fail. – FDR 1933

entagor on October 11, 2008 at 2:40 AM

Americans are treated and spoken to like small children today, by a government that seeks to provide them with their daily bread, in return for loyalty and obedience. Personal responsibility is not part of either side’s message any longer.

The new mantra is that it’s up to the government to make it work.

CC

To what end, I don’t know.

Show me the class action suit. Show me a case. Credit ratings and the rules around them are clear. Show me where banks were forced to lend to those with bad credit.

lexhamfox on October 11, 2008 at 12:11 AM

Okay…..

http://hotair.com/archives/2008/10/10/video-subprime-loans-affirmative-action-andrew-cuomo/

Video of Cuomo announcing a settlement that is exactly that.

CRA and the ever increasing pressure on banks to lend to people simply too big of a credit risk are at the root cause of this. Credit default swaps are what multiplied it out to the magnitude it is.

Even after all of this, credit default swaps are still not regulated and a person with a credit score in the 500s can still get a 3% FHA loan with many state/local governments having programs with “down payment assistance” that are big enough to essentially put a person in a home with zero down… CRA is still on the books, so the ultimate pressure point is still there. By all means, let’s buy more horses and put them in the barn but never mind closing those doors.

CC

So, it’s up to this. Socialism will save us. Wow.

stonemeister on October 10, 2008 at 10:49 PM

No. It will enslave us.

Bishop on October 11, 2008 at 1:29 AM

WHOOSH!
That was the sound of the whole concept flying right over someones head.

Thats OK though. I was just trying to be snide, but BigDog was too polite to rise to the bait this time.

Joe Biden has a DVD copy of that chat when it was broadcast live on television during the 1930’s.

Kini on October 11, 2008 at 2:57 AM

By the way….. where is greasy Joe these days?

entagor on October 11, 2008 at 2:40 AM

Joe Biden has a DVD copy of that chat when it was broadcast live on television during the 1930′s.