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

In article <pan.2008.05.15.17.18.46.274925@[EMAIL PROTECTED]
>,
 The Trucker <mikcob@[EMAIL PROTECTED]
> wrote:

> On Wed, 14 May 2008 20:52:42 -0700, Video61 wrote:
> 
> > On May 14, 9:21 pm, James Dale Guckert <RichGan...@[EMAIL PROTECTED]
> wrote:
> >> In article <03LWj.5665$hv2.4...@[EMAIL PROTECTED]
>,
> >>
> >>  "Patriot" <liber...@[EMAIL PROTECTED]
> wrote:
> >> > Dumb ****ing idiots shouldn't have bought a home that they couldn't

> >> > afford.
> >>
> >> > Now that's common sense!
> >>
> >> "Common sense" at the time undermined your premise, "Patriot." 
Common
> >> sense also said quite loudly at the time that if you take a
low-interest
> >> (at the time) loan on a house that EVERYONE is telling you is only
going
> >> to become worth more than your purchase price (income!)--and quickly
at
> >> that... and EVERYONE is telling you that you can refinance the loan
> >> (reduced liability!) before the reset kicks in so you can continue to
> >> repay the mortgage... and EVERYONE felt safe assuming that the equity
in
> >> the home would always exceed the loan itself... then there was not
much
> >> reason to believe that you cannot afford a home with a tiny down
> >> payment, no do***entation of income, and an adjustable rate. 
Meanwhile
> >> there was no reason not to take out a low-interest (at the time)
HELOC
> >> and use that money to buy BSC shares on margin (more income!).
> >> Meanwhile the lenders KNEW they could then break up the loan into
neat
> >> little packages and sell them to other financial institutions who
didn't
> >> care about the fundamentals because the financial market was just
peachy.
> >>
> >> Cluster****: The American Way!
> >> --
> >> James Guckert / Rich Gannon / Whore for Bush
> > 
> >  nice overview, and quite correct. the blame the little guy crowd is
> > either ignorant, or stupid. probably both. the applicants were
> > encouraged to do what they did, by the mortgage brokers and banks. the
> > little guys only wanted to own a home. speculators smelled easy money.
> 
> That analysis is simply wrong.  If you didn't buy a house you were going
> to be financial road kill.  That explains why a lot of people who really
> did not want to own a house bought them.  The brokers would have created
> these mortgages using blow up dolls if they could have gotten away with
> it.  The people who really could not really afford to do these deals
> but who did want to own a home were just pawns in the greed game.  

'Struth.  Eight years ago I bought a small condo that was worth, at the 
peak of the market, nearly four times what I paid for it.  (No idea what 
it's worth now... don't really care.  It's my home for the foreseeable 
future.)  A couple years back I was told I was *crazy* not to (a) get 
into one of those neato 'lie-about-income-and-pay-nothing' loans and 
move into a bigger place with the Mrs.; *and* (b) take advantage of my 
monster equity help finance this move.

I decided that it was prudent to be crazy.

> But ask yourself if those that could not afford it were actually harmed.


Well, dollar-and-cent-wise, maybe not all that much.  

The average U.S. credit rating score, though, is going to take a huge 
hit once this shakes out, which may have (appropriately enough) an 
effect on who can get a loan to buy a home or start a small business.

Dunno if lenders grade on a curve now; but they may have to if they want 
to get their capital working again.
-- 
James Guckert / Rich Gannon / Whore for Bush