Mortgage "crisis" USA TODAY OPINION

[TexKan]

I'm glad you came out of the shawdows................. see it's so much easier to just say what you want - in public. You 2 have been so overbearing that you discourage folks to post what thier point of view is. I thought that was the intent of a forum. I didn't realise it was the Highway and AOO show.

Your opinion is not the only opinion that is valuable. Too bad when you disagree you hide in the shawdows - spineless and cowardly thumping people on the head. Just so you can save face. I know you 2 boys are so busy proppin each other up that you don't have a lot of time to read anyone's posts but your own.

What a piece of work you both are!


BTW - Unemployment is at 4.8% - we are REALLY doin good!! Course I'm sure it's just the media trashing Bush. Yeah that's it!! Can you say - recession???? Screw the indicators - people are having a very difficult time. They could use a little economic encouragement. Courd you 2 speak to daddy Bush bout that? Perhaps a full time job with benefits that would provide healthcare for thier family would help.

[Army_of_One]

U.S. jobless rate hits six-year low
Clinton's euphoric, but news causes stocks to plunge

July 5, 1996
Web posted at: 5:50 p.m. EDT

WASHINGTON (CNN) -- Economists didn't expect June's unemployment rate to be much different from May's, which was an already-low 5.6 percent. But in fact, it did fall -- to 5.3 percent. The unemployment rate hasn't been that low since June 1990.

The Labor Department said Friday that businesses added 239,000 workers to their payrolls during June. The vast majority of the jobs added were in the service industry, including restaurants, bars, and agencies that place temporary workers.

Analysts said preparations for the Summer Olympics in Atlanta also helped boost the total.

Even the average wage rose for June, up 9 cents to $11.82 an hour. It was the biggest one-month wage increase on record, and indicates that not only are more people working, but they are being paid more for their work.

Economists noted that the boost in average hourly earnings, a key indicator of wage pressures, jumped 0.8 percent, the biggest monthly increase on record.

In January, analysts were concerned that growth was so anemic that the nation was in danger of a recession. But five straight months of strong job gains now have analysts worried more about inflation.
Stocks plummet

It scared the stock market, which interpreted the report to mean that the Federal Reserve Bank may move at its next meeting to raise interest rates in an effort to stave off inflation. The Dow Jones Industrial Average dropped 114 points, the seventh biggest point drop in history, and the NASDAQ Composite dropped 23 points.

The Dow decline was the biggest since a 171-point drop after the February job gain was released.

Bonds also were pummeled as falling demand pushed the yield on Treasury's 30-year bond up to 7.18 percent at closing from 6.93 percent on Wednesday.

But the Clinton administration was tickled about the increase in jobs, and took credit for the upturn.

The president said the figures showed "the most solid American economy in a generation." He attributed the drop in unemployment to economic measures his administration has implemented, including strategic moves to reduce the federal deficit, expand trade, and invest in training people for the new economy.

"Our critics said it wouldn't work," Clinton told reporters at the White House. "But today's news, once again, proves them wrong."

The Clinton administration downplayed the report's other ramification -- that more money in the economy could encourage more inflation. The president's staff argue that rising productivity is giving workers room to enjoy higher wages without risking inflation.

Despite the fact that the United States is now in the third-longest peace-time expansion in history, the campaign staff of Republican presidential candidate Bob Dole said the jobs numbers probably would not help Clinton's campaign that much.

Republicans say a slow-growth economy has made workers anxious, and 20 percent of new jobs have gone to people taking a second job to pay their bills.

"Even as more people found jobs last month, a stunning 70 percent of Americans agreed the country is on the wrong track," said Dole campaign spokesman Nelson Warfield. "If people are finding jobs but are still unhappy about where the nation is headed, Bill Clinton is in serious danger of unemployment himself."

The Federal Reserve is almost guaranteed to push interest rates up to stave off inflation. Its next opportunity will be at its next meeting, on August 20

CNN - U.S. jobless rate hits six-year low - July 5, 1996

[Army_of_One]

Originally Posted by TexKan

I'm glad you came out of the shawdows................. see it's so much easier to just say what you want - in public. You 2 have been so overbearing that you discourage folks to post what thier point of view is. I thought that was the intent of a forum. I didn't realise it was the Highway and AOO show.

Your opinion is not the only opinion that is valuable. Too bad when you disagree you hide in the shawdows - spineless and cowardly thumping people on the head. Just so you can save face. I know you 2 boys are so busy proppin each other up that you don't have a lot of time to read anyone's posts but your own.

What a piece of work you both are!


BTW - Unemployment is at 4.8% - we are REALLY doin good!! Course I'm sure it's just the media trashing Bush. Yeah that's it!! Can you say - recession???? Screw the indicators - people are having a very difficult time. They could use a little economic encouragement. Courd you 2 speak to daddy Bush bout that? Perhaps a full time job with benefits that would provide healthcare for thier family would help.

You are fortunate enough to have your muzzle removed long enough for me to read this, reply and then put your muzzle back on. If you reply it will be for the DB to read, not me because I cannot stomach the incoherent spatter that you post. Granted it is your right in this forum to type whatever you want but it's also others right to ignore it. I'm sure I'm ignored by some and I don't care. You say you don't care but yet you spew your personal attacks. I doubt that HWY left that neg rep for you and if you are not sure then you should have a cup of STFU until you know WHO did. My guess is it could have been me or any 1 of a dozen people on this board who have to read your inane drivel.

It's not about being right or left. It's about what we think is right.

Now...have a good day and here's your muzzle. <click>

LOL

[TexKan]

Tell it to the folks that can't make a house payment, take thier children to the Dr, or provide any other basic need to thier family.

Glad to see you actually stepped up to the plate - little one.

[Army_of_One]

Read this in todays Wichita paper.

Credit anthem

seems all too apt

Queen's rock anthem "I Want it All (I Want it Now)" is the theme song for the latest Chase credit card commercial. There's no better song to portray financial management in the United States and the credit crisis faced by both corporate America and individuals in this materialistic nation.

Mortgage lenders certainly wanted it all when they made inappropriate and overinflated loans to thousands of Americans. They want it now from the government, and many corporations have received it, getting significant financial relief for their poor management.

Homeowners wanted it all when they took inappropriate and overinflated loans to purchase homes and cars and boats they couldn't afford. They want it now from the government, and many will receive it, getting financial relief and lower interest rates for their poor management of personal finances.

As for the majority of Americans who seek to work hard, live within their means, and provide for their families -- they have the privilege of paying for it all.
Government assistance should be for those who are unable to care for themselves, not those who mismanage their money.
JIM ELLIOTT

Hillsboro

[TexKan]

You forgot to spread the blame around - nice try tho - LOL

The home prices growth in early 2000s was completely unrealistic (that's obvious now). It made homeowners believe that the prices will continue to grow and make future refinance and second mortgages quite profitable and eased lending standards allowed them to buy more expensive homes than they could afford with traditional fixed rates loans and more expensive than they can afford now when their adjustable mortgage loans are resetting. I cannot avoid sympathy I feel for those borrowers, but I must say that I believe a large number of them carries great part of blame for current mortgage crisis as they ran into flexible loans like option ARMs without understanding them, or even lied on stated income loan applications.

Lenders where prompt to offer these riskier loans to subprime borrowers as loan products with adjustable rates transfer great part of a risk from the lender to the borrower. This risk transfer was also main reason why they often offered greater commission to brokers if they sell adjustable rate loan. Probably some of the brokers were overtaken by greed and were offering and suggesting adjustable mortgages to borrowers who would qualify for prime loans. But banks and other lending institutions did not expect such a large number of foreclosures and extreme decline of house prices. Now, they are paying the price as the large number of defaults resulted in great losses for those lenders offering subprime loans.

Central banks and other large investors have also suffered significant losses as a result of mortgage asset devaluation. The risk of investing in subprime mortgage backed securities wasn't realized as it should been. The investors relied on investment grade ratings applied to mortgage backed securities by the rating agencies. Here we come to the one of the main aspects of subprime crisis. Rating agencies provide their investment rating model based mostly on historical data. Mortgage backed securities have excellent historical data. But adjustable mortgage loans and all theirs innovative variations are new products on mortgage market and have no historical data. Does this fact leaves rating agencies free of blame for investment losses? I'll leave this question open. Regulators have also turned their attention on investment grade ratings and doubt that rating agencies were in conflict of interest. But regulators themselves are also one of the main factors accused for the mortgage crisis. They missed to prevent crisis through legislation that would regulate higher lending standards. They are expected to play a great role in future prevention of any kind of economic crisis.


Causes of Subprime Crisis | Mortgage Home Loans - Info Center

[Highwayman]

Originally Posted by TexKan

You forgot to spread the blame around - nice try tho - LOL

I didn't forget.

Originally Posted by Highwayman

...I want to find the truly deserving folks and attempt to help them work through it by working something out with the lenders. I want the lenders that sold these crap mortgages to come up with funds to help with this bailout. I want to trace the crap loans back to the realtors and brokers that got these folks in trouble and if I find one that pushed a lot of the crap loans for their own profit, let’s pull their license. And finally I want the greedy politicians to stop trying to take a fat chuck out of every successful transaction so this market can turn around and folks will have their equity secure again.

I don’t want to just throw money at the problem without fixing the problem....

From your source....

I cannot avoid sympathy I feel for those borrowers, but I must say that I believe a large number of them carries great part of blame for current mortgage crisis as they ran into flexible loans like option ARMs without understanding them, or even lied on stated income loan applications.

Should I feel sorry for someone that lied on their loan application?

[Army_of_One]

Originally Posted by Highwayman

From your source....

Should I feel sorry for someone that lied on their loan application?

In one simple word....


NOPE

Too bad she doesn't take the time to read the entire piece.

[TexKan]

If I hadn't read the entire piece I wouldn't have posted it. I never said that some people didn't do a dumb thing. All I said was it's not only the borrowers fault. Being duped into thinking something is a good idea by an industry looking to make a buck is pretty easy to do. ARM's were never a good idea. So think what you want, I just wanted to give you the notion that there were more players than the home buyer is the disaster we face now. Call that closed minded if you like. Not everyone sees things like you do. That doesn't make them wrong. Course I know that you could bail everyone out with your investments. Enjoy your feeling that you are not on this earth to be a little compassionate of those that are not as fortunate as you.

I just think the help from the govt should be sread around if there is to be any help at all. Call that a lofty idea - it makes no difference to me.

[Army_of_One]

Originally Posted by Highwayman

Should I feel sorry for someone that lied on their loan application?

You know Highway....I think that you might agree that if these people are bailed out then what do they learn? The mistake should sting a little bit in order to learn from it. That's how I was raised. If I got a speeding ticket my parents made ME pay for it...and I learned from that. As long as the gov't keeps rewarding people for stupid behavior that stupid behavior will continue.