BENWEEWEE (finance content)

[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.

[Fishpart]

The worst part is that the average Ed who saves his money and is up to date on his mortgage will never reap the benefit from a low interest rate. The mortgage rate won't go low enough to refi, but the interest rate on any savings will go deeper into the toilet than it already is.... Meanwhile the institutions getting the ultra low interest money from the taxpayer will turn around and invest it in T_Bills and make even more off the back of the taxpayer and their balance sheets will look great.


Kind of ironic the DJIA was up 420 yesterday

[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.

[Swimmer]

Let me refine my answer just a bit, home loan mortgage originators should be reined in, not commercial business loan companies. Commercial lending from banks to businesses has little or maybe nothing at all to do with the current sub-prime fiasco. Other than one is lending money to the other to cover the bad debt incurred by originators, who work for companies like Country Wide that obviously never bothered to check what thier employees were doing. All Country Wide did was count the money they earned after selling the mortages they issued to unqualified people. The sub-prime mortgage fiasco was what I was referring too. No one anywhere has said bank to business loans, the SBA, sallie mae, which sucks by the way since it outsourced its servicing to India, or any commercial lending started or had anything to do with the current crisis.