no loan without 20% down

[blahblahblah]

i dont understand how securitization of loans was a socialist experiment.

It wasn’t. Like you said, securitization of mortgage debt and the fraudulent rating thereof was unregulated capitalism. The socialism will come in the endgame, when unregulated capitalism produces the predictable disastrous outcome — in this case a massive wave of foreclosures. The government will either print money to deflate the value of these debts as well as their own (stealing the savings from those who have it, a “stealth” tax as it were), or by simply purchasing the bad loans and then renegotiating the terms with the borrowers to allow them to stay in their houses. There are tons of plans floating around now, but all of them will involve a transfer of wealth from those who have it to those who don’t.

A similar thing happened under FDR in the 1930s after another disastrous episode of unregulated capitalism run amok. The answer then was massive public works projects, social security, etc…

Long story short, if you don’t like socialism then make sure your capitalist system is well-regulated. Otherwise, that’s exactly what you’re going to end up with when the wheels come off the ponzi scheme and the unwashed masses demand reparations. In the 1920s it was stocks, this time it was houses.

[drunkle]

ok, i see. you said that we *will* get “a weird socialized system” and not that that’s what we had.

frankly, the term “socialism” has become so distorted and stigmatized that it’s meaningless and should just be avoided. whether or not anyone wants to admit it, america is a socialist country.

[drunkle]

ok, i see. you said that we *will* get “a weird socialized system” and not that that’s what we had.

frankly, the term “socialism” has become so distorted and stigmatized that it’s meaningless and should just be avoided. whether or not anyone wants to admit it, america is a socialist country.

[drunkle]

ok, i see. you said that we *will* get “a weird socialized system” and not that that’s what we had.

frankly, the term “socialism” has become so distorted and stigmatized that it’s meaningless and should just be avoided. whether or not anyone wants to admit it, america is a socialist country.

[drunkle]

ok, i see. you said that we *will* get “a weird socialized system” and not that that’s what we had.

frankly, the term “socialism” has become so distorted and stigmatized that it’s meaningless and should just be avoided. whether or not anyone wants to admit it, america is a socialist country.

[drunkle]

ok, i see. you said that we *will* get “a weird socialized system” and not that that’s what we had.

frankly, the term “socialism” has become so distorted and stigmatized that it’s meaningless and should just be avoided. whether or not anyone wants to admit it, america is a socialist country.

[JustLurking]

Raybyrnes,

Jumbo rates are not that great. Mortgage interest is not deductible over $1,000,000. Why wouldn’t you put a good chunk down on a pricey property? Just curious.

[JustLurking]

Raybyrnes,

Jumbo rates are not that great. Mortgage interest is not deductible over $1,000,000. Why wouldn’t you put a good chunk down on a pricey property? Just curious.

[JustLurking]

Raybyrnes,

Jumbo rates are not that great. Mortgage interest is not deductible over $1,000,000. Why wouldn’t you put a good chunk down on a pricey property? Just curious.

[JustLurking]

Raybyrnes,

Jumbo rates are not that great. Mortgage interest is not deductible over $1,000,000. Why wouldn’t you put a good chunk down on a pricey property? Just curious.

[JustLurking]

Raybyrnes,

Jumbo rates are not that great. Mortgage interest is not deductible over $1,000,000. Why wouldn’t you put a good chunk down on a pricey property? Just curious.

[Raybyrnes]

Jumbo rates might not be great for someone with average credit but with good credit rates are still in the high 5 low 6 range.

Morgage Interest is not deductible over 1 Million. Would need to simply run a weighted average calculation to adjust for cost of capital relative to potential rates of return. May find that this is a reason to put down or not put down additional capital.

I would not personally elect to put more down than absolutely necessary because as long as I possess the capital or ahve acces to it I have security knowing that in a worst case scenario I ahve bought myself additional time to make payments whereas if I plunk money down than the bank has my capital and I ahve to trust in my ability to get Equity lines and other products if I need to unlock the equity.

Sort of like this. Hurrican Katrina hits. Would I rather have a low monthly payment and little capital in the bank or would I rather have a higher monthly payment but lots of money in the bank. I would rather opt for scenario 2 provided I was not getting hit with some absurd premium. IE a 9% loan as opposed to 6%. That is my reasoning. Is there some flaw that you would point out to me.

[Raybyrnes]

Jumbo rates might not be great for someone with average credit but with good credit rates are still in the high 5 low 6 range.

Morgage Interest is not deductible over 1 Million. Would need to simply run a weighted average calculation to adjust for cost of capital relative to potential rates of return. May find that this is a reason to put down or not put down additional capital.

I would not personally elect to put more down than absolutely necessary because as long as I possess the capital or ahve acces to it I have security knowing that in a worst case scenario I ahve bought myself additional time to make payments whereas if I plunk money down than the bank has my capital and I ahve to trust in my ability to get Equity lines and other products if I need to unlock the equity.

Sort of like this. Hurrican Katrina hits. Would I rather have a low monthly payment and little capital in the bank or would I rather have a higher monthly payment but lots of money in the bank. I would rather opt for scenario 2 provided I was not getting hit with some absurd premium. IE a 9% loan as opposed to 6%. That is my reasoning. Is there some flaw that you would point out to me.

[Raybyrnes]

Jumbo rates might not be great for someone with average credit but with good credit rates are still in the high 5 low 6 range.

Morgage Interest is not deductible over 1 Million. Would need to simply run a weighted average calculation to adjust for cost of capital relative to potential rates of return. May find that this is a reason to put down or not put down additional capital.

I would not personally elect to put more down than absolutely necessary because as long as I possess the capital or ahve acces to it I have security knowing that in a worst case scenario I ahve bought myself additional time to make payments whereas if I plunk money down than the bank has my capital and I ahve to trust in my ability to get Equity lines and other products if I need to unlock the equity.

Sort of like this. Hurrican Katrina hits. Would I rather have a low monthly payment and little capital in the bank or would I rather have a higher monthly payment but lots of money in the bank. I would rather opt for scenario 2 provided I was not getting hit with some absurd premium. IE a 9% loan as opposed to 6%. That is my reasoning. Is there some flaw that you would point out to me.

[Raybyrnes]

Jumbo rates might not be great for someone with average credit but with good credit rates are still in the high 5 low 6 range.

Morgage Interest is not deductible over 1 Million. Would need to simply run a weighted average calculation to adjust for cost of capital relative to potential rates of return. May find that this is a reason to put down or not put down additional capital.

I would not personally elect to put more down than absolutely necessary because as long as I possess the capital or ahve acces to it I have security knowing that in a worst case scenario I ahve bought myself additional time to make payments whereas if I plunk money down than the bank has my capital and I ahve to trust in my ability to get Equity lines and other products if I need to unlock the equity.

Sort of like this. Hurrican Katrina hits. Would I rather have a low monthly payment and little capital in the bank or would I rather have a higher monthly payment but lots of money in the bank. I would rather opt for scenario 2 provided I was not getting hit with some absurd premium. IE a 9% loan as opposed to 6%. That is my reasoning. Is there some flaw that you would point out to me.

[Author]

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