Coffeesforclosers Posted June 22, 2022 Posted June 22, 2022 Sounds like a good time to sit on your cash, build up a strong down payment, and wait for the "pop" sound.
Jauronimo Posted June 23, 2022 Posted June 23, 2022 On 5/20/2022 at 6:55 AM, Tenhigh said: Please, Gene, tell us about how it was all Wall Street's fault, those greedy fat cats. As if slicing up subprime garbage into a hundred tiny slivers (tranches) and packaging it together with other dog**** and calling it all AAA rated, investment grade securities was not enough, Wall Street revived some arcane derivatives to really f@#$ everything up. The Credit Default Swap. Ultimately, it was AIG that decided to insure the entire pool of MBSs 10x over with CDSs because in their estimation it was nothing more than collecting monthly checks risk free. Of course none of this was possible without irresponsible and often predatory lending and GSEs backing it all through buying every ***** mortgage written, but Wall Street played a massive role in that perfect storm.
Orlando Buffalo Posted June 24, 2022 Posted June 24, 2022 10 hours ago, Jauronimo said: As if slicing up subprime garbage into a hundred tiny slivers (tranches) and packaging it together with other dog**** and calling it all AAA rated, investment grade securities was not enough, Wall Street revived some arcane derivatives to really f@#$ everything up. The Credit Default Swap. Ultimately, it was AIG that decided to insure the entire pool of MBSs 10x over with CDSs because in their estimation it was nothing more than collecting monthly checks risk free. Of course none of this was possible without irresponsible and often predatory lending and GSEs backing it all through buying every ***** mortgage written, but Wall Street played a massive role in that perfect storm. I felt I need to respond because I agree with everything you say but I do blame the government much more than wall Street because Wall Street was doing their job, make as much money as possible, while government was just sucking at its job. Wall Street is responsible for the form it came in while Government is responsible for the underlying issue. Both are to blame.
Tenhigh Posted June 25, 2022 Posted June 25, 2022 On 6/23/2022 at 8:52 PM, Buffalo Timmy said: I felt I need to respond because I agree with everything you say but I do blame the government much more than wall Street because Wall Street was doing their job, make as much money as possible, while government was just sucking at its job. Wall Street is responsible for the form it came in while Government is responsible for the underlying issue. Both are to blame. Thanks Timmy, I agree with most of this. None of the 08 debacle happens without the government buying the votes of poor people by forcing lenders to give them loans they couldn't afford, and to be clear, it was both the Clinton and Bush administrations, if that helps our friends on the left accept the truth. Most of what happened on Wall Street was a symptom, not a cause. HUD, FHA and the CRA are the main players in the cause here. Wall Street does what they do, issue and trade securities, and value them largely based on what the ratings agencies rate them at. Moodys, Fitch and S&P really f'd up too. 1
Big Blitz Posted July 2, 2022 Author Posted July 2, 2022 A housing bubble requires 3 elements. The 2022 housing market has hit 2 https://fortune.com/2022/07/02/housing-market-housing-bubble-requires-three-elements-the-us-has-hit-two/ 1
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