[UCGal]

Oops – SDDuuude beat me to it.

[UCGal]

Oops – SDDuuude beat me to it.

[UCGal]

Oops – SDDuuude beat me to it.

[UCGal]

One more place to blame…

The ratings agencies. Moody’s, S&P, et al. If they’d recognized that crappy mortgages bundled into derivatives created CRAPPY investments, not AAA rated investments, a lot of the housing bubble could have been avoided.
The derivatives market drove the housing bubble – cheap easy money drove prices up.

[UCGal]

One more place to blame…

The ratings agencies. Moody’s, S&P, et al. If they’d recognized that crappy mortgages bundled into derivatives created CRAPPY investments, not AAA rated investments, a lot of the housing bubble could have been avoided.
The derivatives market drove the housing bubble – cheap easy money drove prices up.

[UCGal]

One more place to blame…

The ratings agencies. Moody’s, S&P, et al. If they’d recognized that crappy mortgages bundled into derivatives created CRAPPY investments, not AAA rated investments, a lot of the housing bubble could have been avoided.
The derivatives market drove the housing bubble – cheap easy money drove prices up.

[UCGal]

One more place to blame…

The ratings agencies. Moody’s, S&P, et al. If they’d recognized that crappy mortgages bundled into derivatives created CRAPPY investments, not AAA rated investments, a lot of the housing bubble could have been avoided.
The derivatives market drove the housing bubble – cheap easy money drove prices up.

[UCGal]

One more place to blame…

The ratings agencies. Moody’s, S&P, et al. If they’d recognized that crappy mortgages bundled into derivatives created CRAPPY investments, not AAA rated investments, a lot of the housing bubble could have been avoided.
The derivatives market drove the housing bubble – cheap easy money drove prices up.

[UCGal]

My standard reply to all of this – there’s enough blame to go around. So – all of the above.

But – I’d add another category – politicians who got rid of Glass Steagall.

I’d put some blame on Phill Gramm, Jim Leach, and Thomas Bliley – sponsors of the Gramm-Leach-Bliley act that gutted Glass Steagall – and some blame should go to President Clinton – who signed it into law. (I’m a bi-partison blamer.)

The GLB act, passed in 1999, blurred the lines between insurance companies, investment banks, and commercial banks. It allowed banks to be active participants in derivitives… I created the structure that turned into the giant shitpile that brought on the economic meltdown.

[UCGal]

My standard reply to all of this – there’s enough blame to go around. So – all of the above.

But – I’d add another category – politicians who got rid of Glass Steagall.

I’d put some blame on Phill Gramm, Jim Leach, and Thomas Bliley – sponsors of the Gramm-Leach-Bliley act that gutted Glass Steagall – and some blame should go to President Clinton – who signed it into law. (I’m a bi-partison blamer.)

The GLB act, passed in 1999, blurred the lines between insurance companies, investment banks, and commercial banks. It allowed banks to be active participants in derivitives… I created the structure that turned into the giant shitpile that brought on the economic meltdown.

[UCGal]

My standard reply to all of this – there’s enough blame to go around. So – all of the above.

But – I’d add another category – politicians who got rid of Glass Steagall.

I’d put some blame on Phill Gramm, Jim Leach, and Thomas Bliley – sponsors of the Gramm-Leach-Bliley act that gutted Glass Steagall – and some blame should go to President Clinton – who signed it into law. (I’m a bi-partison blamer.)

The GLB act, passed in 1999, blurred the lines between insurance companies, investment banks, and commercial banks. It allowed banks to be active participants in derivitives… I created the structure that turned into the giant shitpile that brought on the economic meltdown.

[UCGal]

My standard reply to all of this – there’s enough blame to go around. So – all of the above.

But – I’d add another category – politicians who got rid of Glass Steagall.

I’d put some blame on Phill Gramm, Jim Leach, and Thomas Bliley – sponsors of the Gramm-Leach-Bliley act that gutted Glass Steagall – and some blame should go to President Clinton – who signed it into law. (I’m a bi-partison blamer.)

The GLB act, passed in 1999, blurred the lines between insurance companies, investment banks, and commercial banks. It allowed banks to be active participants in derivitives… I created the structure that turned into the giant shitpile that brought on the economic meltdown.

[UCGal]

My standard reply to all of this – there’s enough blame to go around. So – all of the above.

But – I’d add another category – politicians who got rid of Glass Steagall.

I’d put some blame on Phill Gramm, Jim Leach, and Thomas Bliley – sponsors of the Gramm-Leach-Bliley act that gutted Glass Steagall – and some blame should go to President Clinton – who signed it into law. (I’m a bi-partison blamer.)

The GLB act, passed in 1999, blurred the lines between insurance companies, investment banks, and commercial banks. It allowed banks to be active participants in derivitives… I created the structure that turned into the giant shitpile that brought on the economic meltdown.

[UCGal]

[quote=meadandale]We all know that these people aren’t smart enough to be banking their mortgage payments in lieu of making the payments so I’d say that this assessment is pretty much spot on.
[/quote]

True story, real person, lives in another state:
* She’s a stay at home mom
* He’s had the same job for 15 years or so
* purchased home 11 years ago. Refied 7 years ago.
* got behind about 9 months ago. Had dispute with bank over penalties.
* Stopped paying 9 months ago.
* Trustee sale scheduled for next month.
* She’s freaking out.

2 months ago she asked me for advise. I asked if they’d applied for a loan mod. They had – they don’t qualify because mortgage is less than the 31% they push it to. (good news in my book – mortgage should be affordable.)
I asked if they were banking the mortgage payments they weren’t making – to either bring account current or for deposit on rental they’d be moving to… Nope – they can’t afford it.

Yes – the same mortgage payment they made for years… same income they’ve had for years… now they can’t afford it.

I concluded they’ve expanded their spending to absorb their mortgage payment money and like the free rent… but have no plan in place AT ALL for what to do when they get booted out of the house. And they will be booted out.

It’s hard to muster sympathy when there’s been no external factors (loss of job, illness, whatever) to put them in this position.

[UCGal]

[quote=meadandale]We all know that these people aren’t smart enough to be banking their mortgage payments in lieu of making the payments so I’d say that this assessment is pretty much spot on.
[/quote]

True story, real person, lives in another state:
* She’s a stay at home mom
* He’s had the same job for 15 years or so
* purchased home 11 years ago. Refied 7 years ago.
* got behind about 9 months ago. Had dispute with bank over penalties.
* Stopped paying 9 months ago.
* Trustee sale scheduled for next month.
* She’s freaking out.

2 months ago she asked me for advise. I asked if they’d applied for a loan mod. They had – they don’t qualify because mortgage is less than the 31% they push it to. (good news in my book – mortgage should be affordable.)
I asked if they were banking the mortgage payments they weren’t making – to either bring account current or for deposit on rental they’d be moving to… Nope – they can’t afford it.

Yes – the same mortgage payment they made for years… same income they’ve had for years… now they can’t afford it.

I concluded they’ve expanded their spending to absorb their mortgage payment money and like the free rent… but have no plan in place AT ALL for what to do when they get booted out of the house. And they will be booted out.

It’s hard to muster sympathy when there’s been no external factors (loss of job, illness, whatever) to put them in this position.

[Author]

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