Wall St. wins Capt Obvious award

[Captain Morgan]

Originally Posted by smileyman

Our society has become a consumer spending crack pipe. Consumer buy all they can period. Consumers have adjusted to the income/inflation deficiencies over the years. Revolving credit, crunch down mortgage consolidations, went from 24 mo auto financing in the 70s to 72 mo finances and leases today. Mortgages from 10 yrs to 30, then adjustable rates to afford even longer effectual amortization.

this has been brewing for decades fellas. The middle class aged and shrank. Corporations turned out profit at the expense of long term viability. And I dont buy the global market crap. We started the global market by becoming huge importers, allowing a huge trade deficeit, closing off our natural resources for cheaper foreign alternatives, oil dependency, policing the world while fighting communism with trade deals that dealt us out...



shit I am tires of thinking about it.

yep. It's an ebb and flow. Right now, I think our society is starting to swing back toward a slight fear of debt (or maybe simply a respect of debt). We had been in a buying frenzy for awhile and I think we may be starting to swing the other direction. Our memories will be short and we'll then get back into the debt cycle and go through all this BS again. For some reason, we humans are incapable of learning from our mistakes over the long term. And we have great difficulty learning from the mistakes of others. Which is why history has a tendency to repeat itself.

[goof2]

Originally Posted by pauldun170

No...BOA bought Merrill Lynch under government pressure.
Countrywide was by choice and the long term gains outweighed the losses.
BOA was more than capable to absorb all the losses and captilize on Countrywides market presence.
When Merrill Lynch was in talks with BOA (initially) for a rescue it looked promising because Lewis was not happy with the performance of BOA's investment house for some time. Merrill had a lot of expertise to bring to the table. However once they looked closely at it they'd backed off. That's when the administration pulled their bullshit.

You have a point with small banks. I guess I was thinking more local banks like credit unions.

You are right on the BoA/Countrywide and BoA/Merrill deals, my mistake.

[smileyman]

Wisdom seemsto die with each generation no matter how we try to preserve it. Maybe without the pain of first hand experience it isnt quite as meaningful or memorable. Maybe it is just our nature to push the limits and never be satified.

[Homeslice]

Why the foreclosure delay is BS, and a misguided attempt by the government to muddle in private affairs

Oct 15, 2010 09:46am EDT by Peter Gorenstein in Investing, Recession, Housing

The so-called foreclosure-gate scandal might be much ado about nothing.

Banks repossessed a record 102,000 homes in September, and foreclosure filings rose 4% in the third quarter, with nearly 1 million properties added to the list. Foreclosure-gate won't end that cycle, nor will it amount to a "get out of jail free card" for struggling homeowners.

The temporary freeze of foreclosure proceedings in much of the country and by the biggest lenders in the game just delays the inevitable, says RealtyTrac Senior Vice President Rick Sharga. "Right now, what we're talking about are paperwork issues that are largely procedural in nature, and have almost no bearing on the ultimate disposition of a foreclosure," Sharga tells Aaron in this clip.

"The real question becomes whether a procedural problem trumps the fact that somebody hasn't been paying the mortgage," he says. Sharga doesn't think it does. The vast majority of foreclosures in question that will be delayed, are "destined to be foreclosed" eventually, he contends.

Make no mistake, foreclosure-gate will hurt the housing market. About one-third of all sales are foreclosures sales, Sharga estimates. That can't help but create a "chilling effect" on the market.

The delay also will likely prevent properties from hitting the market in time for the all-important spring buying season. "What that will do is add to the glut of distressed properties in the shadow inventory, which has the effect of driving down home prices," says Sharga.

[z06boy]

You loan $$ to people that can't pay it back...it's your fault and you should have known better than to loan it to them...you're labled a predator.

Turn people down for loans...you're descriminating.

I pretty much hear that everyday.

What a crock of $hit.

There's plenty of blame to go around and it definitely should be shared.

[pauldun170]

Originally Posted by z06boy

You loan $$ to people that can't pay it back...it's your fault and you should have known better than to loan it to them...you're labled a predator.

Turn people down for loans...you're descriminating.

I pretty much hear that everyday.

What a crock of $hit.

There's plenty of blame to go around and it definitely should be shared.

Yup...spot on.

[pauldun170]

Originally Posted by Homeslice

Why the foreclosure delay is BS, and a misguided attempt by the government to muddle in private affairs

Oct 15, 2010 09:46am EDT by Peter Gorenstein in Investing, Recession, Housing

The so-called foreclosure-gate scandal might be much ado about nothing.

Banks repossessed a record 102,000 homes in September, and foreclosure filings rose 4% in the third quarter, with nearly 1 million properties added to the list. Foreclosure-gate won't end that cycle, nor will it amount to a "get out of jail free card" for struggling homeowners.

The temporary freeze of foreclosure proceedings in much of the country and by the biggest lenders in the game just delays the inevitable, says RealtyTrac Senior Vice President Rick Sharga. "Right now, what we're talking about are paperwork issues that are largely procedural in nature, and have almost no bearing on the ultimate disposition of a foreclosure," Sharga tells Aaron in this clip.

"The real question becomes whether a procedural problem trumps the fact that somebody hasn't been paying the mortgage," he says. Sharga doesn't think it does. The vast majority of foreclosures in question that will be delayed, are "destined to be foreclosed" eventually, he contends.

Make no mistake, foreclosure-gate will hurt the housing market. About one-third of all sales are foreclosures sales, Sharga estimates. That can't help but create a "chilling effect" on the market.

The delay also will likely prevent properties from hitting the market in time for the all-important spring buying season. "What that will do is add to the glut of distressed properties in the shadow inventory, which has the effect of driving down home prices," says Sharga.

Can someone catch me up on this and how is the government involved with moratorium? How is this "foreclosure-gate"?
I could have sworn that this was a voluntary action by a few banks to ensure they dont end up wasting time and money in the courts.

From what I found the Adminstration has stated that it is against any moratorium.
http://michiganmessenger.com/42676/o...ure-moratorium

Is the author implying that FFET investigation into mortgage fraud is the reason why 3-4 banks are doing a document review.

Could it also be said that during the investigation, info came to light that discrepancy's in documents presented risk to banks and the banks are now doing a review in the process of mitigating that risk?


this article blows as much as the articles I usually post up.

[goof2]

Originally Posted by pauldun170

Can someone catch me up on this and how is the government involved with moratorium? How is this "foreclosure-gate"?
I could have sworn that this was a voluntary action by a few banks to ensure they dont end up wasting time and money in the courts.

From what I found the Adminstration has stated that it is against any moratorium.
http://michiganmessenger.com/42676/o...ure-moratorium

Is the author implying that FFET investigation into mortgage fraud is the reason why 3-4 banks are doing a document review.

Could it also be said that during the investigation, info came to light that discrepancy's in documents presented risk to banks and the banks are now doing a review in the process of mitigating that risk?


this article blows as much as the articles I usually post up.

It doesn't have anything to do with the government, outside the fact that foreclosures have to go through the courts. The "-gate" thing isn't indicating government involvement, it is just a way for lazy authors to evoke "scandal". To be fair the author never indicates these moratoriums are government-directed either.

These moratoriums/document reviews are nothing more than a response to the courts. For the last couple of years the courts have functioned as nothing more than a rubber stamp in the process. Up until recently they were letting foreclosures go through without a bank even having to produce the paperwork demonstrating that they held a loan on the property that was being foreclosed. Some courts are actually starting to look for proper documentation and it has occasionally hurt the banks legally and publicly. The moratoriums are being put in place while banks voluntary attempt to revise their procedures in order to ensure they don't get smacked down in court anymore.

As for the effect on homeowners, this only institutes a delay. If they aren't paying their mortgage they will still get foreclosed on, just a little later than has been common. My guess is the administration opposes the moratoriums because once they are lifted the fear is it will create a statistical "foreclosure bomb" down the line. People are paying attention to the foreclosure rate and using it as a factor to indicate whether economic recovery is occurring. The administration would like to avoid a big jump in that number a few months from now.

[101lifts2]

Originally Posted by Homeslice

.... Foreclosure-gate won't end that cycle, nor will it amount to a "get out of jail free card" for struggling homeowners. .....

Maybe not, but it will give them another 2-3 FREE months to live there while not paying any rent. Can you say a new big screen TV?

[goof2]

BoA is already lifting their moratorium in 23 states.

http://money.cnn.com/2010/10/18/news...dex.htm?hpt=T1