[Captainstabbin]

(10-08-2015 08:14 PM)worldwidetraveler Wrote:  

(10-08-2015 07:58 PM)Captainstabbin Wrote:  

It was government intervention that caused the collapse. Barney Frank almost single-handedly forced Fannie and Freddie to accept subprime debtors. That program was expanded and expanded until the collapse happened - then, 5 years later they tried to start the same programs again.

The banks never wanted to get involved in the loans but had constant regulatory pressure from Washington to do it - from both sides of the isle.

Frank admitted this:

Quote:

In a recent meeting with the Council on Foreign Relations, Barney Frank–the chair of the House Financial Services Committee and a longtime supporter of Fannie and Freddie–admitted that it had been a mistake to force homeownership on people who could not afford it. Renting, he said, would have been preferable. Now he tells us.

http://www.forbes.com/2009/02/13/housing...pinto.html

That's just one article, Google it, there are hundreds more.

1.Which banks didn't want to participate?

2. Are you saying the credit rating companies and banks had nothing to do with the collapse? Obviously government relaxing requirements was part of the reason, I'm just trying to understand how you can overlook all the other stuff that contributed.

1. Most of them.

2. Maybe 10%.

Read the attached article, or this one, it's all included. http://www.theatlantic.com/business/arch...is/249903/

[monster]

(10-08-2015 08:49 PM)Captainstabbin Wrote:  

(10-08-2015 08:14 PM)worldwidetraveler Wrote:  

(10-08-2015 07:58 PM)Captainstabbin Wrote:  

It was government intervention that caused the collapse. Barney Frank almost single-handedly forced Fannie and Freddie to accept subprime debtors. That program was expanded and expanded until the collapse happened - then, 5 years later they tried to start the same programs again.

The banks never wanted to get involved in the loans but had constant regulatory pressure from Washington to do it - from both sides of the isle.

Frank admitted this:

Quote:

In a recent meeting with the Council on Foreign Relations, Barney Frank–the chair of the House Financial Services Committee and a longtime supporter of Fannie and Freddie–admitted that it had been a mistake to force homeownership on people who could not afford it. Renting, he said, would have been preferable. Now he tells us.

http://www.forbes.com/2009/02/13/housing...pinto.html

That's just one article, Google it, there are hundreds more.

1.Which banks didn't want to participate?

2. Are you saying the credit rating companies and banks had nothing to do with the collapse? Obviously government relaxing requirements was part of the reason, I'm just trying to understand how you can overlook all the other stuff that contributed.

1. Most of them.

2. Maybe 10%.

Read the attached article, or this one, it's all included. http://www.theatlantic.com/business/arch...is/249903/

I'm afraid you have the situation confused. The banks through powerful lobbyists create the rules and regulations governing the finance industry, and this includes the lax regulations that led to the subprime mortgage event. Further, it was through the banks creations of complex derivatives that exacerbated and increased their appetite for non-creditworthy loans. The banks created the complex derivatives mainly because there was absolutely no government oversight on them so it was a real wild west where they could do what they want without any reporting or supervision at all.

No one man created the financial collapse. But the system did.

[worldwidetraveler]

(10-08-2015 08:49 PM)Captainstabbin Wrote:  

1. Most of them.

2. Maybe 10%.

Read the attached article, or this one, it's all included. http://www.theatlantic.com/business/arch...is/249903/

I did read it and always believed they were part of the problem that caused the collapse. I appreciate the links.

With that said, I would put more than 10% on the banks and credit rating companies.

http://www.washingtonpost.com/blogs/ezra..._blog.html

Quote:

According to a Federal Reserve study, more than 84 percent of the subprime mortgages in 2006 were issued by private lenders:

These junk loans were being packaged and sold on the secondary market as triple a investments. The banks knew they were junk which is why they purchased insurance against those loans defaulting. The insurance companies couldn't possibly pay out when the shit hit the fan.

Quote:

Hundreds of billions of dollars' worth of these triple-A securities were downgraded to "junk" status by 2010

https://en.wikipedia.org/wiki/Credit_rat...ime_crisis

That wasn't caused by Barney Frank unless you have a link that shows otherwise.

I'm alway open to new information.

Anyway, this is the type of behavior that leads to the destruction of a stable society which was the point of mine.

[Captainstabbin]

(10-08-2015 09:02 PM)worldwidetraveler Wrote:  

(10-08-2015 08:49 PM)Captainstabbin Wrote:  

1. Most of them.

2. Maybe 10%.

Read the attached article, or this one, it's all included. http://www.theatlantic.com/business/arch...is/249903/

I did read it and always believed they were part of the problem that caused the collapse. I appreciate the links.

With that said, I would put more than 10% on the banks and credit rating companies.

http://www.washingtonpost.com/blogs/ezra..._blog.html

Quote:

According to a Federal Reserve study, more than 84 percent of the subprime mortgages in 2006 were issued by private lenders:

These junk loans were being packaged and sold on the secondary market as triple a investments. The banks knew they were junk which is why they purchased insurance against those loans defaulting. The insurance companies couldn't possibly pay out when the shit hit the fan.

Quote:

Hundreds of billions of dollars' worth of these triple-A securities were downgraded to "junk" status by 2010

https://en.wikipedia.org/wiki/Credit_rat...ime_crisis

That wasn't caused by Barney Frank unless you have a link that shows otherwise.

I'm alway open to new information.

Anyway, this is the type of behavior that leads to the destruction of a stable society which was the point of mine.

He's the one who spearheaded the affordable housing requirements for Fannie and Freddie. Prior to Frank's involvement, they could only invest in prime mortgages - after him they were required to put 30% into subprime loans (that eventually went to 50%).

How is that not causative? Frank said it was a cause.

Then we get to the private lenders - Janet Reno was threatening banks to comply with the federal guidelines. This was the "Policy Statement on Discrimination in Lending". You've all never heard of this?

My father is in the hospital so I have to cut this short, but I might revisit it this weekend.

[Robert Hedrock]

If i may play an armchair psychologist.

I think Captainstabbin is viewing this as *blame the capitalist(bankers) versus blame the faggot liberal Barney Frank*

Given Captainstabbin political leanings, i think he may find it difficult to accept any other view point on this issue besides *blame the faggot liberal*

[wi30]

(10-07-2015 10:53 PM)Lacesoutray Wrote:  

I was in the brokerage business for more than a decade.
My first 2 years I learned phone sales from the absolute best in the world.
We were extremely aggressive.
We would get people to send us 3-5k to gamble in the markets. And then we'd push them to send us 50-100k. On one bet.

We placed all or nothing bets.
In 6 months either you lost it all Or in 6 weeks you tripled your money. Little in between.

We made 700 cold calls a day.
We pounded the phone till our fingers bled.

But - we were legit. Our customers knew they were taking big risks ...sometimes they won and sometimes they lost. Timing is everything.

The commissions never stopped - the beauty of being the broker.
But the best was when the trades would hit. It would be like press your bets at the craps table time. That was where everyone made a ton of dough. The broker made huge rips and if you could press and win again the customer would knock it out of the park.

Great times....

I think Leo starred in a movie about your life.

I bet you have some great stories. Look forward to hearing more in future threads.

[Lacesoutray]

There was not one event which caused the 2008 crisis. It was a heart attack of the entire financial system as a result of leverage and debt which had been accumulating for a lonnnng time.

I wouldn't listen to a damn thing Barney Frank says about finance or economics. He's a corrupt lawyer career politician

[Lacesoutray]

My first office was very similar to Wolf of Wall Street.
But with honesty and integrity.

Sure we were hard selling. We pushed our customers hard and they pushed us back harder.

You couldn't make it in that business if you couldn't close over the phone. I trained many a broker and more than 99% failed. It was a 1 in 100 success rate at best. But if you grinded it out and had the skill - you killed it.

I used to take entire commission checks and bet it alongside my customers bets. For a few years I was so confident in what we were putting our customers into that I would do the same with my risk capital.

We gambled hard. Partied hard. We won and lost ALOT of money. It was a lot of fun.

[rotinz]

Money and business is amoral for the most part. Those businesses he was making the loans to were also screwing people over, how many restaurants treat their servers and employees like shit while overworking them and not paying them even close to enough. An honest person shouldn't be treated like shit but I think it's fine to pull one over on another scum bag business person.

[ADEBISIGARANA]

Em hos ain't no models. How you a Billionaire and pulling avg man pussy. Fam got his priorities all jacked up. If I was a billionaire. Only 8s and above aged 18-24. Non- negotiable.