Re: Home Foreclosures: Crisis Is Only Getting Deeper, conservatives echo Custer, indians, what indians?

<milt.shook@[EMAIL PROTECTED]
> wrote in message 
news:92ddb59c-bd91-4045-913b-ea501da31626@[EMAIL PROTECTED]
> On May 14, 8:30 pm, "BuffettHa...@[EMAIL PROTECTED]
" <BuffettHa...@[EMAIL PROTECTED]
>
> wrote:
>> On May 14, 8:02 pm, "Patriot" <liber...@[EMAIL PROTECTED]
> wrote:
>>
>> > Dumb ****ing idiots shouldn't have bought a home that they couldn't 
>> > afford.
>>
>> > Now that's common sense!
>>
>> Everyone was doing it.  The credit crunch and real estate collapse
>> still
>> has not hit canada by any measure. . . and the big sub prime lenders
>> here are the german and swiss banks, lol.
>
> Over here, there was a lot of corruption. There is nothing inherently
> wrong with subprime loans, or even interest-only loans. The problem
> was, we allowed pretty much anyone to be a broker, and a lot of crooks
> took applications from people, faked their qualifications to submit to
> the bank, then, after the bank approved the underwriting of the
> mortgage and supplied the cash, the broker sold the paper, then
> someone else sold the paper, etc.
>
> One of the problems lawyers are having right now is, there is a lot of
> obvious fraud out there, but they can't find someone to sue, because
> it's almost impossible to figure out who owns what mortgage.
>
> This goes a lot deeper than a bunch of foreclosures. It's a criminal
> enterprise gone wild.

Nonsense.  Whilst there was some fraud involved here and there, it 
mostly was a capital market's experiment that failed.  There was a lot 
of money to be lent and not enough takers so it is just natural to 
extend credit to less credit worthy people when that happens.  When we 
look back at this 5 years from now, it won't look all that bad.  Soak it 
up and move on.  Interest rates remain relatively low for those that ARE 
credit worthy.  The financial companies were fairly stupid to package 
the debt the way they did and are paying for it now via lack of trust 
issues between them.  The experiment simply didn't work.

Fred