So, we have come to this day

[delldude]

Just because we have a minority president does not mean that minorities are still not getting turned down for loans where there white counter parts are not. It does not mean that minorities are still not being being turned away for homes, apartments, jobs, and other opportunities. Yes this country has come along way but we are not done yet. It's like the war was fought but no one bothered to clean up the mess.

What the hell do you think tanked Freddie,Fannie and Uncle Sam?

I suspect that had Obama had 'dark' skin he would not have been elected. The fact that his middle name is Hussien was a huge issue. It was only a name. Meaningless. And yet it was being used by the opposition to try and derail his election.

Look all around the country...there's bunches of darker than he in Local,State and Federal governments for some time now.Both male an female alike.As to proportional representation....that's some type orwellian liberal manifestation of your psyche :blink:

We don't or never will live in a perfect society....that's where we have the option to make changes and improvements.This is not a classless society either....look at the hoopla last night?You in that class?

 

[delldude]

Personally I like a President with a name like War Eagle Jones on the podium in full ceremonial attire taking the oath but that's just me.

That would be cool.....

 

[Cosworth]

What the hell do you think tanked Freddie,Fannie and Uncle Sam?



Look all around the country...there's bunches of darker than he in Local,State and Federal governments for some time now.Both male an female alike.As to proportional representation....that's some type orwellian liberal manifestation of your psyche :blink:

We don't or never will live in a perfect society....that's where we have the option to make changes and improvements.This is not a classless society either....look at the hoopla last night?You in that class?

Making $200k loans to people who only should have been qualified for $100k was the problem. This has nothing to do with qualifying minorities, this has to do with qualifying people for amounts that they were not capable of paying. Look at the California foreclosures. We are not talking about 'low income' homes. We are talking about $1 million homes.

Yes, there are darker people holding office. There is a Muslim holding office as well. Does that mean he could get elected POTUS? I doubt it.

I am not looking for a perfect society. As you said, that is impossible. That does not mean we can just rest on our laurels. We have come a long way but our journey is not over. That is the racism that the US is not dealing with.

 

[delldude]

Making $200k loans to people who only should have been qualified for $100k was the problem. This has nothing to do with qualifying minorities, this has to do with qualifying people for amounts that they were not capable of paying. Look at the California foreclosures. We are not talking about 'low income' homes. We are talking about $1 million homes.

Cos...the program started out for minorities and was pushed by the likes of Fannie/Freddie...the 'look the other way' stuff started there and got woefully out of hand.
Look it up...that's how it went.Uncle Sam asleep at the vault of our money.

 

[Cosworth]

Cos...the program started out for minorities and was pushed by the likes of Fannie/Freddie...the 'look the other way' stuff started there and got woefully out of hand.
Look it up...that's how it went.Uncle Sam asleep at the vault of our money.

I understand that my my interpretation of what Congress was looking for was to not deny loans based on race or gender. The intent was not to grant a loan of $200k when the individual could only afford $100k. I believe the banks saw a way of making money by making bad loans thinking they could flip the property wen they foreclosed. That part of the plan did not work out to well. I believe the banks played fast and loose and they lost.

 

[Gilding the Lily]

I understand that my my interpretation of what Congress was looking for was to not deny loans based on race or gender. The intent was not to grant a loan of $200k when the individual could only afford $100k. I believe the banks saw a way of making money by making bad loans thinking they could flip the property wen they foreclosed. That part of the plan did not work out to well. I believe the banks played fast and loose and they lost.

Cos,

Yes, the banks did think they could make significant money off making bad loans, although not off of "flipping" the house. Rather, the banks offered "bad" loans and then bundled them with "good" loans and sold them to investors (mostly institutional investors). These bundled mortgages (mortgage backed securities) were often rated very well, despite having "bad" loans included. Thus, they were making a killing. Unfortunately, the bank's left arm didn't know (or didn't care) what the right arm was doing. While the left arm was selling these bundled mortgages, the right arm was buying these bundled mortgages from other banks (including the "bad" loans that come with it).

 

[Cosworth]

I figured they had to think they were making money somewhere.

What bugs me is people are using the excuse that banks were forced to make bad loans. My understanding is that they were forced to make loans, not bad one. They chose to make the bad ones them selves. Had they just made good smaller loans perhaps this would not have happened or at least not be as bad as it is.

 

[southwind]

Don't for one minute try and blame all of this on banks and the government alone !

Many people , who took out $200,000 loans, a number you throw out and who couldn't afford those loans and knew it, took out "INTEREST ONLY" loans hoping to cash-in by selling before their mortgage payment increased !

When the bottom started to fall out and they couldn't sell before the payment went up, they "BAILED OUT"!

It's time the individual took some of the blame, instead of poor , pitiful me vs. Big Brother !

 

[jimntx]

Southwind, you are correct. Almost none of the participants are blameless in this situation--I do excuse those who were responsible, bought what they could afford, but then some financial reversal like job loss messed them up.

My niece lived in Long Beach, CA for 12 years. The whole time she was there, her friends were buying those wildly overpriced California houses, with no down payment, low monthly payments and a HUGE balloon note in 5-10 years. The market was so hot at the time, they could sell the house for much more than they "paid" before the balloon note came due. Then the bottom fell out of the market.

Those friends had told my niece that she was a fool not to participate in the game. She always answered that she could not afford to buy. However, when she got a fabulous job at a pharmaceutical company in Northern New Jersey two years ago, she was able to buy a $300,000 house with a 20% down payment. Even then the realtor tried to talk her out of making any down payment. "We can just roll those costs into your mortgage." (Like down payment, closing costs, prepaids, etc) But, even though the market is down in NJ right now, my niece is not upside down in her loan like most of her neighbors.

If more people had done this, we might not have had as many homeowners, but those homeowners would still own those homes.

 

[Cosworth]

Of course the people are responsible as well. Thing is they had far less too lose than the banks so the banks should have been far smarter. People are stupid. Someone offers them $xxx to by a house and says don't worry they will trust them. They should not but they do. he bank will be left holding the bag if the people default. Banks just did not count on holding this many bags while hanging up side down by their nuts. Sucks to be them. They were lending the money it's their job to make sure they are covered.

If I ask you for $xxx. Are you just going to give it to me and hope I can repay it or are you going to make damn sure I have enough to cover your ass should things go south? If I ask for $xxx but you think I am only good for half of that will you still give me the full amount? Are you going to assume I am smart enough to know when I am in over my head to tell you know, I should not get that amount or are you going to assume I am an idiot and give me what you think I am worth?

 

[Kieran]

Topic closed at the OP's request.