I blame the scapegoats

sabretoothtigger

Bank Regulators

Thats a sketch of last years tax rebate?

dealornodeal_3

Politicians

I have just voted in this poll for Bankers and Brown(Politicians)

ManAtHome

Politicians

politicians - they appoint regulators who are supposed to police the grasping gits (a bit like parents supposedly "policing" children).

sabretoothtigger

Bank Regulators

In this ultra-low rate environment, where prices were appreciating, and most mortgages were being securitized, all that mattered to the mortgage originator was that a BORROWER NOT DEFAULT FOR 90 DAYS (some contracts were 6 Months).
The contracts between the firms that originated mortgages and the Wall Street firms that securitized them had explicit warranties.

The mortgage seller guaranteed to the mortgage bundle buyer (underwriter) that payments were current, the mortgage holders were valid, and that the loan would not default for 90 or 180 days.


So long as the mortgage did not default in that period of time, it could not be "put back" to the originator. A salesman or mortgage business would only lose their fee if the borrower defaulted within that 3 or 6 month contractually specified period. Indeed, a default gave the buyer the right to return the mortgage and charge back the lender the full purchase price.

What do rational, profit-maximizers do? They put people in houses that would not default in 90 days -- and the easiest way to do that were the 2/28 ARM mortgages.
Cheap teaser rates for 24 months, then the big reset. Once the reset occurred 24 months later, it was long off the books of the mortgage originators -- by then, it was Wall Street's problem.

http://bigpicture.typepad.com/comments/2008/10/why-lending-sta.html

worldwheeler

Generali wrote: »

So what have you done about it apart from posting a link to an interminable video?

Acknowledging a conspiracy won't give me great riches, knocking it over might. If it exists which it doesn't.

The link is to information. There are large parts of society that do not have the information to make judgements. I think that given the information in equal dose the public will be able to see the bigger picture. So I suppose that's is what I have done. NOW let's get back to starting divisive blame games. This only leads to division and masks the real outcome of this credit bubble:- the redistribution of wealth.

Generali

Generali

worldwheeler wrote: »

The link is to information. There are large parts of society that do not have the information to make judgements. I think that given the information in equal dose the public will be able to see the bigger picture. So I suppose that's is what I have done. NOW let's get back to starting divisive blame games. This only leads to division and masks the real outcome of this credit bubble:- the redistribution of wealth.

Perhaps you could summarise it so we all don't have to give up 3.5 hours of the only life we'll ever live to watch it.

worldwheeler

[quote=Generali;15321519]Perhaps you could summarise it so we all don't have to give up 3.5 hours of the only life we'll ever live to watch it.[/quote]


3 hours is TOO much time to learn something??? That seems a bit sad to me.
I guess we look forward to an injection that will inform people instantly of what they are allowed to know.

Mean while contemplation:-

'Manufacturing Dependency through Creating DEBT, Denial and Dominion''
posed the cynic
'Which of the following, if any, is true ?
A. 'Kick the peasants off the land (enclosure) and create dependency.
B. Kick the artisans out of their workshops and create dependency (industrialisation and mechanisation).
'C. Control companies by artificially strict regulations to protect the existing cartels.... and create dependency on the banks'
'D. 'Control the ability of nations to set their own exchange rates and make them dependent upon the whim and proxy usury supranational unelected federal institutions?'
E. 'Create a myth of 'progress' and a 'multi-party representative democracy and make them dependent upon compliance'
F. 'Create a media that churns out trivia within a manufactured debate ceiling and make them slaves to disinformation?'

neverdespairgirl

It's more complicated than that

Generali wrote: »

I'm barely organised enough to get The Boy off to nursery in matching socks. I only manage to get myself in matching socks by ensuring that all my socks are identical.

Matching socks are over-rated.

Isaac insisted on wearing one blue and one red sock today. The world didn't end.

I decided not to argue about it, there are battles which aren't worth fighting.

Generali

Generali

worldwheeler wrote: »

3 hours is TOO much time to learn something???

Nope, 3 hours is too long to waste. I could spend it starting to learn something new or continuing to learn something I enjoy. Or I could spend it with the kids.

worldwheeler wrote: »

Mean while contemplation:-

'Manufacturing Dependency through Creating DEBT, Denial and Dominion''
posed the cynic
'Which of the following, if any, is true ?
A. 'Kick the peasants off the land (enclosure) and create dependency.
B. Kick the artisans out of their workshops and create dependency (industrialisation and mechanisation).
'C. Control companies by artificially strict regulations to protect the existing cartels.... and create dependency on the banks'
'D. 'Control the ability of nations to set their own exchange rates and make them dependent upon the whim and proxy usury supranational unelected federal institutions?'
E. 'Create a myth of 'progress' and a 'multi-party representative democracy and make them dependent upon compliance'
F. 'Create a media that churns out trivia within a manufactured debate ceiling and make them slaves to disinformation?'

I think I know the argument. Thanks for the precis.

Generali

Generali

neverdespairgirl wrote: »

Isaac insisted on wearing one blue and one red sock today. The world didn't end.

I decided not to argue about it, there are battles which aren't worth fighting.

Exactly. "Only get into a fight with a toddler that you are determined to win"* as a very wise person once said.

There can only be one winner and it must be you, even if you are left standing in the smoking ruins of WC1.





*Mrs Generali circa 2005.