Obama administration pushes banks to make home loans to people with weaker credit

[Broke Wave]

yeah, I'm pretty sure you have to be an institutional investor to even touch them.

I don't think so, it's OTC so it might be easy to do it. Then again I live in a different country with lax restrictions on investment so

 

[Domingo Halliburton]

This isnt completely dishonest, because F&F deserves some culpability, but its an overplayed hand at best. When GSE's controlled a larger share of mortgage origination market, in the early 2000s, sub prime loans were at slightly enlarged but reasonable levels and a fraction of prime loans. At worst a slight depression would have been triggered in just the housing market specifically. By '06 private banks had cornered about 80% of the subprime market, and subprime loans were exploding and by far the dominant mortgages....thats not covering the fraudulent activity involved w/ the loans.

Notice the relationship between GSE's control of the market, and the swelling of subprime mortgages beginning in '04...when GSE's re-assumed control in 07, it was too late:

what do we do? bring back glass-steagall? thats the only thing i can see to fix this problem. what do we do about ratings agencies as well? how anyone still takes them seriously is beyond me. but we do.

 

[Julius Skrrvin]

what do we do? bring back glass-steagall?

I feel like this should have been the first thing on the table after the crisis

 

[Piff Perkins]

It's safer to do this post Frank-Dodd than pre Frank-Dodd. I can't get too mad

 

[Domingo Halliburton]

I don't think so, it's OTC so it might be easy to do it. Then again I live in a different country with lax restrictions on investment so

Markit ABX.HE Index

here you go, breh. sign yourself up

 

[Broke Wave]

Markit ABX.HE Index

here you go, breh. sign yourself up

 

[Domingo Halliburton]

I feel like this should have been the first thing on the table after the crisis

see the thing is other countries operate entirely fine without glass-steagall type restrictions and their financial institutions don't bring them to near collapse.

 

[Julius Skrrvin]

see the thing is other countries operate entirely fine without glass-steagall type restrictions and their financial institutions don't bring them to near collapse.

i think that we sometimes have to think of economies as big jenga towers. sometimes you pull that shyt out but if it looks like its about to collapse you better push that block right back in

 

[Suicide King]

I thought FHA loans filled this void. Put 8-10% down and have a job were the only requirements.

 

[Brown_Pride]

see the thing is other countries operate entirely fine without glass-steagall type restrictions and their financial institutions don't bring them to near collapse.

why? I mean what's the difference?

 

[Domingo Halliburton]

why? I mean what's the difference?

thats my question

 

[Brown_Pride]

thats my question

are we just extra fukin greedy here then? There has to be a reason. Any theories...other than cultural?

 

[Bay Area]

Looks like im about to become a real estate agent at the right time.