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February 25, 2008

Comments

RJ

Like previous comments point out pretty clearly, the banks have been violating the law to properly keep notes (YES THESE ARE LAWS!) and properly record the assignments, but they cut corners and money (GREED!!) and didn't do this, now THEY are crying foul? Sorry dude, they broker the law, and they are getting burned because of THEIR negligence and fraud. So sorry - NOT!

yeah, also. my buddy sold me a ten dollar debt you owe him. no i don't have a document with your signature on it. i have one with his though. so pay up.

larryo

Yes, pity the poor lenders. Never mind that they made billions - yes, Billions - on this securitized asset trick, which is part PONZI scheme and part blue-sky securities scam.

Tell me this: When GLB gutted Glass-Steagal, why was it thought advantageous to take this entire game out from under the watchful eye of the SEC?

Answer: Because the "smartest guys in the room" knew these "securities" they were intent on creating would never pass even a cursory inspection.

In other words, the legislative activities that paved the way for this debacle prove conclusively that they knew they were taking everyone for a ride.

You wrote: "If you can’t rely on the ability to seize the collateral then you might as well kiss the conventional conforming (the loans that are packaged and guaranteed by Freddie Mac and Fannie Mae) mortgage market goodbye. Because if Freddie and Fannie have to stick in the risk factor that they will not have access to the collateral on a loan that they have guaranteed against default, then they are either not going to guarantee it, or they will charge much, much more to guarantee it."

Not at all true, apparently. Freddie and Fannie can count on a taxpayer bailout. All risks are socialized, all profits are pocketed, along with fat bonuses.

The real problem here is that the banks have been creating money from nothing for years, and the ugly chickens are all coming home to roost. This system has needed reform for a long time and many of these bank execs and fund managers need to spend a long time in a structured environment. The feds hand out 10-year sentences like popcorn to neighborhood drug dealers, who can spend their entire lives slinging dope and not do one-tenth of the harm these "financiers" do in one day.

You, unfortunately, drank the koolaid.

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