Comments on: Watch CNBC House of Cards Online

By: Ohm51

Ohm51 — Wed, 21 Apr 2010 20:40:51 +0000

Worse is that these loans were designed to fail, as the banks knowingly made the most toxic loans on behalf of hedge funds …. structuring the most toxic crap to be baked into some of the later CDO’s as the hedge funds were betting that the House of Cards was about to collapse.

So the banks got a percentage of the initial fees for taking the loans, and got bigger fees when they structured the CDO’s, then got money through ‘insurance’ when it all went south (credit default swaps), and then got the government to buy up any of the toxic crap still left in their portfolios so they could clear their books.

A scam from bottom to top.

By: Noah P.Goolsby

Noah P.Goolsby — Tue, 06 Oct 2009 16:58:22 +0000

acount 3361 and 8577 is the hands of http://www.mydebtsolution.com

By: NOX

NOX — Sun, 29 Mar 2009 03:09:49 +0000

Everyone was doing what everyone else was doing. Investors following other investors, wall street bankers following other wall street bankers credit rating agencies following other credit rating agencies, loan officers following other loan officers and home buyers following other home buyers. So who do you blame?. Everyone. Now, let’s pay our taxes.

By: Nate

Nate — Tue, 17 Mar 2009 19:51:23 +0000

Stacie,
The kids or the adults? The executives at Wall St. financial firms are not supposed to be children. They’re supposed to be adults, too, and we should hold them accountable, as such.

Second of all, The Fed is not the same as The Government. Do you understand that? The Fed is a public/private institution (in some ways similar to Freddie and Fannie). The Fed represents interstate banks, not the citizens of the United States. Its chairman is appointed by the president, but he/she only gets to choose from a list of candidates approved by the member banks. The Fed is not accountable to the taxpayers or Congress, as to how they spend their money. This is different from the Treasury. Don’t confuse them.

By: Max

Max — Mon, 09 Mar 2009 14:18:33 +0000

To add to Alleen and Stacie – both on target:
We sold our home in a upscale suburb of Columbus, OH in 2005 and lost 10k in the process, but the goal was to get out since we moved out-of-state. Our buyers were over their heads and put 0% down.

Foreclosures in Ohio started around 2004 due to: home equity loans, sub-prime mortgages, and loss of jobs. I blame unregulated banks, Alan Greenspan, slimey mortgage brokers and naive buyers.

Greenspan’s comments May ‘05: “There is no national bubble because homes purchases are too expensive and complicated to foster that kind of investment. Because the U.S. real estate market is composed of individual regions with different pricing trends, a collapse that damages the overall economy is unlikely.”.

By: Alleen

Alleen — Tue, 03 Mar 2009 23:59:24 +0000

I think the GOP implication was that it was the fault of poor minorities who aren’t entitled to home ownership that got too big for their britches and screwed up the housing market. I’ve heard Kudlow say essentially that. And that liberal “socialists” in the Congress (because it certainly couldn’t have been from Bush’s administration!) somehow encouraged this to happen because they’re such bleeding hearts for the poor minorities. Got it?

Well, as we all know, almost all Americans were living too high on the hog. But there were a lot of scammers out there preying on the ignorant consumers. My realtor tried to sell my last house to a couple with NO money just last year using some “charity” scam to provide the downpayment. I didn’t want to do it even though it would have sold my house. It would have put the buyer underwater at CLOSING! Crazy. It will take years for people to learn to live within their means.
And the scammers are still out there conning consumers into all sorts of “something for nothing” deals.

By: Stacie

Stacie — Tue, 03 Mar 2009 00:48:47 +0000

Simplicio,

To answer your queston, the attached link shows some of the fed’s involvement.
http://www.talkingpointsmemo.com/talk/2008/09/mortgage-crisis-was-foreseen-b.php

Also, Greenspan keeping the rates artificially low provided the groundwork for this bubble to occur in the first place (who do you blame? The kids for getting drunk or the adults (Fed Reserve) for providing the alcohol?)

By: simplicio

simplicio — Wed, 25 Feb 2009 15:49:25 +0000

I keep hearing this meme going around from conservatives claiming that it was the government forcing banks to make bad loans to people who couldn’t afford them. The evidence from this video argues against that being the case and that banks were all too happy to give loans to people they knew couldn’t afford them since all along they just planned to dump them into a black box and sell them on Wall Street to shortsighted and willfully ignorant investors.

Does anyone have any evidence to the contrary?

By: marketsense

marketsense — Tue, 24 Feb 2009 19:20:53 +0000

This video should be required viewing for all high school students. The idea that the ‘Bailout’ will bail anything out is nothing short of magical thinking. You cant spend your way out of a financial black hole.