Why can I not get a loan?

[TheBreeze]

[quote=davelj]
Um, Breeze, that “mortgage-related stuff” is most decidedly NOT MBSs/CDOs, etc. Let’s at least keep the terms straight. What I advocated in that post was that the government – us taxpayers, that is – eat principal reductions for lots of folks who are underwater. In buying MBS, etc. from institutions the government (a) doesn’t really know what it’s getting in terms of losses, and (b) is really helping out the institutions involved, as opposed to individuals. In offering plain principal reductions, the loss content is more straightforward and you’re helping homeowners in a more direct manner. You may be opposed to both, which is fine, but they are two different things. But you have a record of being confused on similar matters.

[/quote]

Eating principal reductions means that the taxpayers would by paying down the loan to some lower amount, right? So it’s a bailout for the loanholder (banks, etc), right? What else could “eat principal reductions” mean?

[davelj]

Also, Breeze, for the record, these big wigs are not my “cronies,” as you suggest. I’m a small potato in the whole scheme of things (fortunately). I deal exclusively with community banks, almost all with less than $2 billion in assets. The folks that I deal with are not the ones that have put the system at risk, although there are plenty of community bankers, generically, that have done galactically stupid things (like making too many silly construction loans).

I’m outraged by a lot of this shit as well. Specifically, yesterday’s announcement that Merrill paid out $3-$4 billion in bonuses shortly before the BofA merger closed. I also post from time to time over at nakedcapitalism (a great site) where I’m Hu Flung Pu (I’m very mature, you see). Here’s my post from last night (on the Merrill bonus payments):

‘Hu Flung Pu said…

It’s bullshit like this that (a) undermines the “legitimate” work that lots of folks are trying to do to keep the financial system from imploding, and (b) makes me want to kick these asshats in the nutsack… repeatedly.

I want to say “unbelievable.” But unfortunately it’s par for the course given what we’ve seen thus far. Just wow.’

Anyhow, as I’ve said before, my only interest is in not letting the whole system implode. But beyond that, we should be extracting as much pain as possible from bank investors and executives. In a lot of cases, that means wiping them out. I have no problem with that.

[davelj]

Also, Breeze, for the record, these big wigs are not my “cronies,” as you suggest. I’m a small potato in the whole scheme of things (fortunately). I deal exclusively with community banks, almost all with less than $2 billion in assets. The folks that I deal with are not the ones that have put the system at risk, although there are plenty of community bankers, generically, that have done galactically stupid things (like making too many silly construction loans).

I’m outraged by a lot of this shit as well. Specifically, yesterday’s announcement that Merrill paid out $3-$4 billion in bonuses shortly before the BofA merger closed. I also post from time to time over at nakedcapitalism (a great site) where I’m Hu Flung Pu (I’m very mature, you see). Here’s my post from last night (on the Merrill bonus payments):

‘Hu Flung Pu said…

It’s bullshit like this that (a) undermines the “legitimate” work that lots of folks are trying to do to keep the financial system from imploding, and (b) makes me want to kick these asshats in the nutsack… repeatedly.

I want to say “unbelievable.” But unfortunately it’s par for the course given what we’ve seen thus far. Just wow.’

Anyhow, as I’ve said before, my only interest is in not letting the whole system implode. But beyond that, we should be extracting as much pain as possible from bank investors and executives. In a lot of cases, that means wiping them out. I have no problem with that.

[davelj]

Also, Breeze, for the record, these big wigs are not my “cronies,” as you suggest. I’m a small potato in the whole scheme of things (fortunately). I deal exclusively with community banks, almost all with less than $2 billion in assets. The folks that I deal with are not the ones that have put the system at risk, although there are plenty of community bankers, generically, that have done galactically stupid things (like making too many silly construction loans).

I’m outraged by a lot of this shit as well. Specifically, yesterday’s announcement that Merrill paid out $3-$4 billion in bonuses shortly before the BofA merger closed. I also post from time to time over at nakedcapitalism (a great site) where I’m Hu Flung Pu (I’m very mature, you see). Here’s my post from last night (on the Merrill bonus payments):

‘Hu Flung Pu said…

It’s bullshit like this that (a) undermines the “legitimate” work that lots of folks are trying to do to keep the financial system from imploding, and (b) makes me want to kick these asshats in the nutsack… repeatedly.

I want to say “unbelievable.” But unfortunately it’s par for the course given what we’ve seen thus far. Just wow.’

Anyhow, as I’ve said before, my only interest is in not letting the whole system implode. But beyond that, we should be extracting as much pain as possible from bank investors and executives. In a lot of cases, that means wiping them out. I have no problem with that.

[davelj]

Also, Breeze, for the record, these big wigs are not my “cronies,” as you suggest. I’m a small potato in the whole scheme of things (fortunately). I deal exclusively with community banks, almost all with less than $2 billion in assets. The folks that I deal with are not the ones that have put the system at risk, although there are plenty of community bankers, generically, that have done galactically stupid things (like making too many silly construction loans).

I’m outraged by a lot of this shit as well. Specifically, yesterday’s announcement that Merrill paid out $3-$4 billion in bonuses shortly before the BofA merger closed. I also post from time to time over at nakedcapitalism (a great site) where I’m Hu Flung Pu (I’m very mature, you see). Here’s my post from last night (on the Merrill bonus payments):

‘Hu Flung Pu said…

It’s bullshit like this that (a) undermines the “legitimate” work that lots of folks are trying to do to keep the financial system from imploding, and (b) makes me want to kick these asshats in the nutsack… repeatedly.

I want to say “unbelievable.” But unfortunately it’s par for the course given what we’ve seen thus far. Just wow.’

Anyhow, as I’ve said before, my only interest is in not letting the whole system implode. But beyond that, we should be extracting as much pain as possible from bank investors and executives. In a lot of cases, that means wiping them out. I have no problem with that.

[davelj]

Also, Breeze, for the record, these big wigs are not my “cronies,” as you suggest. I’m a small potato in the whole scheme of things (fortunately). I deal exclusively with community banks, almost all with less than $2 billion in assets. The folks that I deal with are not the ones that have put the system at risk, although there are plenty of community bankers, generically, that have done galactically stupid things (like making too many silly construction loans).

I’m outraged by a lot of this shit as well. Specifically, yesterday’s announcement that Merrill paid out $3-$4 billion in bonuses shortly before the BofA merger closed. I also post from time to time over at nakedcapitalism (a great site) where I’m Hu Flung Pu (I’m very mature, you see). Here’s my post from last night (on the Merrill bonus payments):

‘Hu Flung Pu said…

It’s bullshit like this that (a) undermines the “legitimate” work that lots of folks are trying to do to keep the financial system from imploding, and (b) makes me want to kick these asshats in the nutsack… repeatedly.

I want to say “unbelievable.” But unfortunately it’s par for the course given what we’ve seen thus far. Just wow.’

Anyhow, as I’ve said before, my only interest is in not letting the whole system implode. But beyond that, we should be extracting as much pain as possible from bank investors and executives. In a lot of cases, that means wiping them out. I have no problem with that.

[davelj]

[quote=TheBreeze]

Eating principal reductions means that the taxpayers would by paying down the loan to some lower amount, right? So it’s a bailout for the loanholder (banks, etc), right? What else could “eat principal reductions” mean?
[/quote]

I suspect this will largely be with Fannie/Freddie and related loans because the process will be simpler than with institutions over which we have less control (that is, the banks). We are the loan holders here as we own these pigs (Fannie/Freddie) now. So we can make a principal reduction or just have the folks not pay us. It’s six of one, half dozen of the other. Frankly, I’d rather reduce principal on loans that we’d otherwise not get paid on anyway instead of foreclose. At least this helps an individual directly as opposed to an institution. Again, you want to see the whole system collapse, which is your prerogative, but casting that option aside, and assuming that certain folks and/or entities will be helped, I assume you’d rather see an individual helped directly as opposed to an institution, yes?

Anyhow, I’m off to a board meeting… at a bank… where we zero non-performing assets, zero loan losses, and boatloads of capital. I know, it’s amazing, but there are lots of banks out there like us. But you won’t read about us/them in the news.

[davelj]

[quote=TheBreeze]

Eating principal reductions means that the taxpayers would by paying down the loan to some lower amount, right? So it’s a bailout for the loanholder (banks, etc), right? What else could “eat principal reductions” mean?
[/quote]

I suspect this will largely be with Fannie/Freddie and related loans because the process will be simpler than with institutions over which we have less control (that is, the banks). We are the loan holders here as we own these pigs (Fannie/Freddie) now. So we can make a principal reduction or just have the folks not pay us. It’s six of one, half dozen of the other. Frankly, I’d rather reduce principal on loans that we’d otherwise not get paid on anyway instead of foreclose. At least this helps an individual directly as opposed to an institution. Again, you want to see the whole system collapse, which is your prerogative, but casting that option aside, and assuming that certain folks and/or entities will be helped, I assume you’d rather see an individual helped directly as opposed to an institution, yes?

Anyhow, I’m off to a board meeting… at a bank… where we zero non-performing assets, zero loan losses, and boatloads of capital. I know, it’s amazing, but there are lots of banks out there like us. But you won’t read about us/them in the news.

[davelj]

[quote=TheBreeze]

Eating principal reductions means that the taxpayers would by paying down the loan to some lower amount, right? So it’s a bailout for the loanholder (banks, etc), right? What else could “eat principal reductions” mean?
[/quote]

I suspect this will largely be with Fannie/Freddie and related loans because the process will be simpler than with institutions over which we have less control (that is, the banks). We are the loan holders here as we own these pigs (Fannie/Freddie) now. So we can make a principal reduction or just have the folks not pay us. It’s six of one, half dozen of the other. Frankly, I’d rather reduce principal on loans that we’d otherwise not get paid on anyway instead of foreclose. At least this helps an individual directly as opposed to an institution. Again, you want to see the whole system collapse, which is your prerogative, but casting that option aside, and assuming that certain folks and/or entities will be helped, I assume you’d rather see an individual helped directly as opposed to an institution, yes?

Anyhow, I’m off to a board meeting… at a bank… where we zero non-performing assets, zero loan losses, and boatloads of capital. I know, it’s amazing, but there are lots of banks out there like us. But you won’t read about us/them in the news.

[davelj]

[quote=TheBreeze]

Eating principal reductions means that the taxpayers would by paying down the loan to some lower amount, right? So it’s a bailout for the loanholder (banks, etc), right? What else could “eat principal reductions” mean?
[/quote]

I suspect this will largely be with Fannie/Freddie and related loans because the process will be simpler than with institutions over which we have less control (that is, the banks). We are the loan holders here as we own these pigs (Fannie/Freddie) now. So we can make a principal reduction or just have the folks not pay us. It’s six of one, half dozen of the other. Frankly, I’d rather reduce principal on loans that we’d otherwise not get paid on anyway instead of foreclose. At least this helps an individual directly as opposed to an institution. Again, you want to see the whole system collapse, which is your prerogative, but casting that option aside, and assuming that certain folks and/or entities will be helped, I assume you’d rather see an individual helped directly as opposed to an institution, yes?

Anyhow, I’m off to a board meeting… at a bank… where we zero non-performing assets, zero loan losses, and boatloads of capital. I know, it’s amazing, but there are lots of banks out there like us. But you won’t read about us/them in the news.

[davelj]

[quote=TheBreeze]

Eating principal reductions means that the taxpayers would by paying down the loan to some lower amount, right? So it’s a bailout for the loanholder (banks, etc), right? What else could “eat principal reductions” mean?
[/quote]

I suspect this will largely be with Fannie/Freddie and related loans because the process will be simpler than with institutions over which we have less control (that is, the banks). We are the loan holders here as we own these pigs (Fannie/Freddie) now. So we can make a principal reduction or just have the folks not pay us. It’s six of one, half dozen of the other. Frankly, I’d rather reduce principal on loans that we’d otherwise not get paid on anyway instead of foreclose. At least this helps an individual directly as opposed to an institution. Again, you want to see the whole system collapse, which is your prerogative, but casting that option aside, and assuming that certain folks and/or entities will be helped, I assume you’d rather see an individual helped directly as opposed to an institution, yes?

Anyhow, I’m off to a board meeting… at a bank… where we zero non-performing assets, zero loan losses, and boatloads of capital. I know, it’s amazing, but there are lots of banks out there like us. But you won’t read about us/them in the news.

[Anonymous]

I have read this site and board for a long time but never registered to comment until now….

I am SHOCKED at some of the comments in this thread from people that make assumptions and attacks claiming to know all about the OP.

It obviously stems from a mix of jealously and bitterness at their own situations. Take the good comments and info and do your best to ignore the others. They serve little purpose in your life, leave them alone to wallow in their own misery.

[Anonymous]

I have read this site and board for a long time but never registered to comment until now….

I am SHOCKED at some of the comments in this thread from people that make assumptions and attacks claiming to know all about the OP.

It obviously stems from a mix of jealously and bitterness at their own situations. Take the good comments and info and do your best to ignore the others. They serve little purpose in your life, leave them alone to wallow in their own misery.

[Anonymous]

I have read this site and board for a long time but never registered to comment until now….

I am SHOCKED at some of the comments in this thread from people that make assumptions and attacks claiming to know all about the OP.

It obviously stems from a mix of jealously and bitterness at their own situations. Take the good comments and info and do your best to ignore the others. They serve little purpose in your life, leave them alone to wallow in their own misery.

[Anonymous]

I have read this site and board for a long time but never registered to comment until now….

I am SHOCKED at some of the comments in this thread from people that make assumptions and attacks claiming to know all about the OP.

It obviously stems from a mix of jealously and bitterness at their own situations. Take the good comments and info and do your best to ignore the others. They serve little purpose in your life, leave them alone to wallow in their own misery.

[Author]

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