BENWEEWEE (finance content)

[nightfighter]

ka boom....... Ben and I spoke of this possiblity last summer. Of course I am now a contractor, jaded from a 20 year stint on Wall Street.........

[TheSpecialist]

Ben my buddy was looking for a job at differant places on friday, he works at Bear

On another note how bout these four letters SGMO, think DNA....

[likwid]

LEH

Thurs? Maybe Fri?

[Swimmer]

Originally Posted by likwid

LEH

Thurs? Maybe Fri?

Yah, Lehman was mention as a distinct possibilty also. It is interesting how greed affects us all.

What about Mort Zuckermans desciption of the sub-prime loans as LIAR LOANS?

It is interesting when companies like these score large they share the wealth with just themselves, ie; stockholders and so on, but when they collapse it comes out of our pockets.

No one should be allowed to sell off loans anymore. Once it is out of the originators sight it is also out of mind.

[MakoMike]

Originally Posted by Swimmer

Yah, Lehman was mention as a distinct possibilty also. It is interesting how greed affects us all.

What about Mort Zuckermans desciption of the sub-prime loans as LIAR LOANS?

It is interesting when companies like these score large they share the wealth with just themselves, ie; stockholders and so on, but when they collapse it comes out of our pockets.

No one shold be allowed to sell off loans anymore. Once it is out of the originators sight it is also out of mind.

Now there's a great prescription for totally shutting down all the credit markets as well as the national economy!

[likwid]

Total fear and loathing right now.
Dollar is crashing hard.

[Swimmer]

Originally Posted by MakoMike

Now there's a great prescription for totally shutting down all the credit markets as well as the national economy!

Makomike, its the large scale problem created by the home loan originators and the borrowers who both worked to create unverifiable nonexistent income, that created this mess. I don't see how reining in those originators and the companies they work for as the F.B.I. is starting to do will hurt. It is theft on a grand scale. It is going to shut down the economy all by itself without any help from anyone else. Just watch. This isn't much different from the house flipping scandals of a decade or more ago. That partailly collapsed the real estate market for about a year when that occurred. More greed and outright theft. The originator gets his, the real estate broker gets his, the attorneys get thiers, the originators company gets thiers, and the loan buyer gets left holding the bag. Not this time though. This time its us!

[mosholu]

I have to say I agree with MakoMike. I do not know how you can do this legally without drastically changing the way business is done but it is very problematic that these Wall Street guys take down millions in comp every year and when their business is threatened because of their recklessness the taxpayers have to pony up. Meanwhile these guys get to keep all their gains from the years running up to the crash.
The government should charge all the banks a yearly fee for being the backstop. No private workout company would ever do a deal without taking a big piece of the potential upside yet the government using our money step in every 7 years or so and gets these guys back on their feet and we see nothing from it.

[MakoMike]

Originally Posted by Swimmer

Makomike, its the large scale problem created by the home loan originators and the borrowers who both worked to create unverifiable nonexistent income, that created this mess. I don't see how reining in those originators and the companies they work for as the F.B.I. is starting to do will hurt. It is theft on a grand scale. It is going to shut down the economy all by itself without any help from anyone else. Just watch. This isn't much different from the house flipping scandals of a decade or more ago. That partailly collapsed the real estate market for about a year when that occurred. More greed and outright theft. The originator gets his, the real estate broker gets his, the attorneys get thiers, the originators company gets thiers, and the loan buyer gets left holding the bag. Not this time though. This time its us!

You said "No one shold be allowed to sell off loans anymore." That would totally shut down the credit markets, which in turn would totally shut down the economy. It would affect both big and small businesses, big companies couldn't float bonds or commercial paper, small companies couldn't get loans from the SBA or their local banks becuse those insitutions could borrow funds. The housing market would dry up in a POOF, when Fannie Mae couldn't raise funds, kids would be thrown out of school when Sallie-mae couldn't get funds for student loans. IN short most economic sctivity would come to a grinding halt.