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Thread: housing market

  1. #40
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    Quote Originally Posted by netsalt View Post
    If we are all to accept that the crash was caused b
    y government intervention then explain how the rating agencies were in on it. Most investors would not have taken on such risky investments without a decent payout - unless the ratings were rigged to make it appear that the risk was minimal. The fact remains that even if these loans were forced by a government entity they were resold under false pretenses - AAA should be AAA - Junk is Junk.
    Ask yourself Net why were they bundled with good loans by Freddie and Fannie ?

    The value of those derivatives to this day aren't known.

    The investment bankers knew they were trash and so did the govt.

    But what choice did the banks under threat of Federal prossecution have ? Remember what happened to Wells Fargo.

    The value of the MBS at the time was impossible to assess.

    Its why AIG almost wen't down. Those banks by law had to buy credit default swaps ( insurance ) on those MBS because they were such a risk.


    What happened from the govt side was criminal but did anyone go to jail?

    6 trillion in wealth gone but the govt and the media ran a campaign to put it all on the banks and apparently they were some what succesful.

    Ever wonder why no bankers went to jail ?

  2. #41
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    All I can say is an awful lot of money was made packaging these loans, if you believe they were sold only to appease the government there is nothing more to be said. Dream on sweet dreamer.

  3. #42
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    Quote Originally Posted by netsalt View Post
    All I can say is an awfull lot of money was made packaging these loans, if you
    believe they were sold only to appease the government there is nothing more to be said. Dream on sweet dreamer.
    Sure there was money made but you honestly think Lehman Brothers wanted to go bankrupt ?

    And all that was made was lost anyway. Sure some people made money but even hedge fund managers and bank presidents a d traders lost billions in wealth.

    I think there was a culture in the financial market to buy and sell and make money without any attention paid to the inevitable crash.

    You're making money today so who cares.

    These derivitaves didnt sit in one place very long. At least not long enough for their asset liabillity people to get a handle on their true value.

    They still dont know their true value after being bundled and bought and sold multiple times.

    Investment banks buy and sell, they dont build up inventory.

    People must have thought that the housing market would just keep going through the roof and if it had we wouldnt be talking about this.

    Even home owners ignored the obvious and took advantage of their new found equity.

  4. #43
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    Quote Originally Posted by netsalt View Post
    If we are all to accept that the crash was caused by government intervention then explain how the rating agencies were in on it. Most investors would not have taken on such risky investments without a decent payout - unless the ratings were rigged to make it appear that the risk was minimal. The fact remains that even if these loans were forced by a government entity they were resold under false pretenses - AAA should be AAA - Junk is Junk.
    Might want to do some SERIOUS research on ratings... they seem to change with political whims. Yeah, I said that... now do some research and you will find it is more true than it should be.
    GA-HVAC-Tech

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  5. #44
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    Something to think about:

    In 1982, the oil boom came crashing down in Houston Texas. Those who lived there saw the WORST housing crises in modern history.

    GA was there... and can say without hesitation: What happened in 2008 was no different (except for the basic cause, that is a different post).

    The point is: There WAS HISTORY (and recent) of what would happen with a run-away bubble in housing prices just 30 years ago in Houston Texas... Did either the banking industry or the govt look, take notice, and be careful? Obviously NOT.

    So what does that say for BOTH the banking industry AND the govt? In GA's opinion, both are culpable... however: when banks are under orders from the govt to specifically make loans to folks who cannot pay them back... this does change the picture significantly.
    GA-HVAC-Tech

    Quality work at a fair price with excellent customer service!

    Romans Ch's 5-6-7-8

    2 Chronicles 7:14

  6. #45
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    Quote Originally Posted by Six View Post
    Sure there was money made but you honestly think Lehman Brothers wanted to go bankrupt ?

    And all that was made was lost anyway. Sure some people made money but even hedge fund managers and bank presidents a d traders lost billions in wealth.

    I think there was a culture in the financial market to buy and sell and make money without any attention paid to the inevitable crash.

    You're making money today so who cares.

    These derivitaves didnt sit in one place very long. At least not long enough for their asset liabillity people to get a handle on their true value.

    They still dont know their true value after being bundled and bought and sold multiple times.

    Investment banks buy and sell, they dont build up inventory.

    People must have thought that the housing market would just keep going through the roof and if it had we wouldnt be talking about this.

    Even home owners ignored the obvious and took advantage of their new found equity.
    It pains me to say it but I agree. The market was being made by people who never experienced a downturn. That goes from borrowers to traders, they never figured the bottom would fall out.

  7. #46
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    Quote Originally Posted by netsalt View Post
    It pains me to say it but I agree. The market was being made by people who never experienced a downturn. That goes from borrowers to traders, they never figured the bottom would fall out.
    There may of been some denial going on, but they knew. Trees dont grow to the sky. They didn't care as long as they were making theres, screw the rest of us. How much of it was the governments fault, how much of it was the banks fault, how much of it was the people who took out the loans that they couldn't afford is debatable? But we as a country especially the ones who lived within their means and did the right thing got screwed.

  8. #47
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    Quote Originally Posted by newoldtech View Post
    There may of been some denial going on, but they knew. Trees dont grow to the sky. They didn't care as long as they were making theres, screw the rest of us. How much of it was the governments fault, how much of it was the banks fault, how much of it was the people who took out the loans that they couldn't afford is debatable? But we as a country especially the ones who lived within their means and did the right thing got screwed.
    The problem as I see it is: Until this group of folks (the honest and silent majority) become less silent and more noisy... the same screwing will continue.
    GA-HVAC-Tech

    Quality work at a fair price with excellent customer service!

    Romans Ch's 5-6-7-8

    2 Chronicles 7:14

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