It's Happening

[sammyg2]

Big business is too greedy. We need to eliminate all big businesses. They can't be trusted.
And while we're at it, we'll eliminate milions of jobs that are supplied by big business.
We don't need the jobs provided by the greedy SOBs, or their goods or services. We can all go live in a cave or under a rock. [end of sarcasm/]

Big business is run my businessmen who do a job. Their job is to provide a return on investment to stockholders ( like me).
If they don't make a profit, we fire them for not doing their job. How is greed a part of that? The only greed is on the part of the investers who buy the stock expecting a decent return, a dividend, an increase in the share price so it can be sold at a profit. Our investments fund the growing of our economy.
That is a good thing, that is what gives you and I a decent standard of living.
So please, enjoy it, celebrate it, appreciate it. Or take your communist-loving attitude and move to another north Korea or vietnam, whichever.
Just please, stop biting the hand that feeds you out of ignorance.

[turbo6bar]

If you don't enjoy the bread and circuses, you are a terrorist. We need more patriots.

[Porsche-O-Phile]

I smile a little with every "McFlipper" that gets served a foreclosure notice.

Justice is being served and there will be plenty more helpings to go around before this is all done.

[Chocaholic]

Originally Posted by Moses

The sky is falling!

The Dow dropped 300 points in a day!

(Look at the past 12 months Dow performance)

Stretch this chart back 10, 20 or 50 years and you'll see the same upward trend. Global warming doesn't happen because it was hot today. The stock market isn't tanking because we had a soft week. The stock market is having a sale. No better time to buy. Get a grip.

Sorry boys....there's no one to point a finger at on this one.

[FenderGuy]

Well I work in Mortgage Industry; you can't really blame the whole industry. I personally don’t put people into loans they can not afford. It seems some investors took out more then they afford on some of these loans, some people didn’t understand the loan they received, they saw only low payments (and some consumers still dont understand the loans they have ). And yes some LO’s got greedy, but that’s not why there is a mess spilling over to the prime markets.

[turbo6bar]

As long as lenders have little/no motivation to clean up the fraud, we will repeat the scenario again. It would be wrong to place all blame on lenders, though. The real issue has been easy money. When monetary policy goes too far in one direction, we suffer from the boom/bust cycle.

[Rick Lee]

Fraud is not what caused this. It may seem fraudulent to put someone into a loan they don't understand or can ill afford. But it's not illegal and the borrowers are all old enough to be responsible for their own actions.

[turbo6bar]

So I suppose the first payment defaults are just a mirage.

[Rick Lee]

Originally Posted by turbo6bar

So I suppose the first payment defaults are just a mirage.

What does that have to do with anything I wrote?

Plenty of deadbeats can get into a house, even if they have no intention of even making the first payment. They can still live there a good six mos. completely free before they have to worry about being tossed out.

[turbo6bar]

So it is one hundred percent deadbeats and not even 1% fraud.

[turbo6bar]

Any investigator worth a dime could find plenty of fraud simply by browsing broker networking web sites like Mortgage Grapevine. It was overlooked as long as the money flowed and defaults stayed low.

[Rick Lee]

I'm sure it's far more than 1% fraud. But that doesn't mean fraud is the cause of the subprime implosion. Fraud has always been around and always will be and always will be involved in more than 1% of mortgages. Way, way too generous credit and underwriting guidelines are the cause. That does not constitute fraud. If it did, why haven't we seen investors and heads of all the bankrupt big lenders doing the perp walk? And I think it also goes to prove that our current credit reporting system, while seemingly arbitrary and unfair, is actually a pretty good forecasting tool for people's ability and willingness to repay loans. If you have a 580 FICO, you have no business getting anything close to 100% financing on stated income for around 8% interest. And that was a pretty common and LEGAL thing about a year ago.

[turbo6bar]

Can't argue with you one bit. That's why I earlier said "the real issue has been easy money." It translated into non-existent lending standards (no credit, no job, no SSN, no IQ, no signature, no problem), and was capped by outright fraud (dead men buying flip properties, homeless men owning investment condos in Tampa, etc).

Years from now, government and institutions will conclude the primary cause of the bubble was easy money. There, I just saved researchers and the government a few hundred million in studies.

[Rick Lee]

Plenty of stuff that you and I think should be fraud was not. I couldn't believe people were doing loans for immigrants with just a work permit, no pay stubs, no rent history, no trade lines, etc. But they were and for a while investors were buying those loans. Just because you and I wouldn't even think of lending our own money to someone doesn't mean there aren't others who will.

[turbo6bar]

I must concede you're correct on that point. If we ignore the ethical implications, many/most brokers were just going with the flow.

[legion]

Today the markets are taking a dump again. I expect liquidity to be a major concern in the near future. The Fed has stuck with the line of repelling inflation. Maybe they'll change their tune next meeting?

Still, I wouldn't want to try to buy a house in the next year or two...

[tabs]

Like always its the lure of easy money that leads to excess.

I get tired of listening to the ignorant and their fears. If U pay attention and listen after awhile you will get the true drift of the way things are going. Day to day the Market is up, it is down, sometimes its flat, long term trend is that we are in a Bull Market at least until the 3 quarter of 08. There simply is NO OTHER PLACE to invest money where the risk to reward ratio is favorable.

August is the month where the Market Traders go on vacation. So this month the Market is going to drift back and forth, this period can be characterized as a "backing and filling" period after reaching its new high so quickly...September and October expect the Market to start to rise again.

If any of U doubt me go buy a new house...or put your money where U sleep, in your matress.

[FenderGuy]

I'm looking foward to buying a house in the next 6 months to a year. It's going to be interesting

[BGCarrera32]

Originally Posted by legion

Still, I wouldn't want to try to buy a house in the next year or two...

Why not? Plenty of good deals on the market. I just wouldn't want to try and sell my house.

[legion]

Let me rephrase:

I wouldn't want to finance a house in the next year or two...

I wouldn't want to sell one either.