Shades of Schadenfreude

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  • Posted By: klebrun @ 09/30/2008 7:38:51 PM

    sward9: If you check the federal reserve website you will find that the CRA loans made up only 10% of the loans for the 500 CRA approved banks and that a Federtal Reserve survey in 2000 showed that the profits for CRA loans were slightly less profitable than the rest of the portfolio.

    But that was when we had a solid economy and before the invasion of the sub-primes.

    Traditional loans at this time were 125 basis points above 10-year treasuries and mortgage brokers earned an origination fee of 1 to 1.25% of the loan amount.

    The sub-prime lenders descended like locusts on the minority neighborhoods with loans that generated anywhere from 5-15% fees with the deregulation.

    It was legalized rape of minority families desperate to get their children out of inner city gangs, drugs, poor schools, etc.

    Suggesting that the CRA program which worked well from its inception in 1977 through to 2000 was at fault is abolute and total BS. It was the deregulation and sub-primes that did the job.

    • Posted By: klebrun @ 09/30/2008 8:18:01 PM

      The comments claiming that unethical minorities and Democrats brought down Wall Street with CRA loans is a sleazy and racist propaganda campaign to appeal to prejudices and shift the focus away from Republican deregulation policies that were the real cause of this mess.

  • Posted By: Fortemiked @ 09/30/2008 7:47:23 PM

    Here's where the blame lies; EVERYBODY!!! From the banks that gave deadbeats money that they didn't deserve, to the deadbeats themselves. Not forgetting a partisan government that allows it all to happen as they get "contributions" from these banks. What made anyone think that this bailout would pass, much less work? It was written by people that are not suffering. No matter how much money the taxpayer has or not, the lawmakers and corporate suits are still going to get paid. No matter how bad the economy gets, they will not suffer. They don't pay for gas. We do. They don't pay for their food. We do. They don't pay for infrastructure. We do. And let's not forget all those blind mice around the world thinking that we seem to know what we're doing. We don't. We accept credit whenever it's handed to us. Haven't you heard? The United States has the most deadbeats of any nation. They're called political parties. Democrats, Republicans, any suit that calls him/herself a politician is a deadbeat. We've all heard the adage; Poli = many, tics = blood sucking insect. Are we ever going to learn? This country has been doing this for hundreds of years and we still won???t learn. NO politician has ever cared about the working man. And they never will. Forgive me, there may be a few out there that may, but they do not call themselves dems or reps. those two parties have never, I repeat NEVER given a hoot about working folk. All they care about is themselves and the people that pad their pockets. Namely corporate CEO's and the like. Sure some "hero" will finally pass some measure that will take the edge off of this, but it will just happen again.

  • Posted By: sward9 @ 09/30/2008 7:09:29 PM

    I find it hilarious that everyone is blaming capitalism and deregulation for this mess...sure, greed is to blame in part. However, banks were forced by Congress to increase their lending to the disadvantaged as part of the Community Reinvestment Act (sound like deregulation to you?). Once the banks learned that they could actually make money by tweeking mortgage terms things got a little out of control. But if government would not have forced the banks down the path (and if the American public took more responsibility as borrowers) we would not be in this mess as deep.

  • Posted By: phxbob @ 09/30/2008 7:01:13 PM

    It would seem in a free market that whatever gap is left by institutional failure will be filled by new entrants at some point. The problem with the bail out is history. When has it ever worked? Political leaders are not educated in these matters. Who is to be saved...?? How will that decision be made? Raise the FDIC Insurance to protect against bank runs and let the market work. Bailout will only decrease the dollar and raise commodity prices..

  • Posted By: fuzzytruthseker @ 09/30/2008 6:47:32 PM

    Why should anybody in the Rest of the World feel guilty if they experience some pleasure at the deserved fate of the US 'wallowing in the worst financal crisis snce the Great Depression'? I mean, nobody , but NOBODY in the world is happy to see the foreclosures of the homes of the reasonable household heads who work hard to keep up their families' dignity. However, it has long been obvious that there had been ravenous rascals who ran the military-industrial-financial complex of the US that already in the 1970's Lester Thurow denounced as "The Zero-Sum Society". The world complained of the brutal invasions, the bullying of every international organisation, the monstrous support given to the worst dictators to oppress the epople they kept under their knucles ( "The dictator isa s.o.b, one US President after another acknowledged, but he's our s.o.b.."), but nothing doing. THE WILL OF THE FREE WORLD" THE WAYOF LIFE OF THE AMERICAN PEOPLE. Would the US Treasury have grown bankrupt already in 1971 had the Rest of the World insisted, in Monroe-style gunboat diplomacy, that the US Treasury honour the then-binding obligation the US had taken to convert on demand any holding of forex reserves held the Rest in US Treasury bonds into gold at US$32 an ounce, no problem. Just renege on the commitment. "The US dollar is our currency but your problem.

    For my part, I am angry that the Rest of the World is still so compassionate on the greedy bunch of the military-financial complex.

  • Posted By: SDDan @ 09/30/2008 6:05:13 PM

    Here is a little piece of advice for anyone who is fed up with the current status quo: You do NOT have to vote Republican or Democrat.

    Let me repeat that in case you missed it: YOU DO NOT HAVE TO VOTE FOR OBAMA OR MCCAIN.

    Both candidates are owned by the very people who put us in the position we are in right now and are supporting the bailout.

    There are other options. Check www.votepact.org for more details.

  • Posted By: kaw kaay shion @ 09/30/2008 6:01:28 PM

    BRUSH UP ON YOUR CANTONESE EVERYBODY. LOOKS LIKE THE BANK WILL BE OWNED BY THE RED COMMUNIST CHINESE WHICH MAKES THEM THE NEW LANDLORDS AS WELL. THIS ALL DEFINITELY EXPLAINS WHY RED REPUBLICAN FORMER LIASON TO CHINA, FORMER PRESIENT GEORGE HERBERT WALKER BUSH MADE AT LEAST NINE TRIPS TO VISIT HIS BEJING BUDDIES THIS YEAR BEFORE ALL THIS HAPPENED.

  • Posted By: gelbkreuz @ 09/30/2008 5:55:49 PM

    China did not win the "medal tally count," they won the gold medal count. The U.S. won the "medal tally count" as it won the most medals. To me, that's the "tally count." Get it right. You know, I worry more about the concern the media has for fact-checking than I do about the economy because I rely on the former to know about the latter. One minute it's $700 billion then "1 trillion," then what. What else am I reading in these articles that are "just slightly off but doesn't really matter?" Nobody knows but we'll report on it anyway. Ugh.

  • Posted By: kaw kaay shion @ 09/30/2008 5:54:04 PM

    BRUSH UP ON YOUR CANTONESE. LOOKS TO ME LIKE THE BANKS AND NEW LANDLORDS WILL BE RED COMMUNIST CHINESE. THIS DEFINITELY EXPLAINS WHY RED REPUBLICAN FORMER PRESIDENT GEORGE HERBERT WALKER BUSH MADE NINE TRIPS THAT WE KNOW OF TO HIS BEJING BUDDIES THIS YEAR.

  • Posted By: gelbkreuz @ 09/30/2008 5:49:40 PM

    China didn't win the medal "tally count," they won the gold medal count. The U.S. won the medal "tally count" as it had the most medals over all. You think I'm nit picking? Nit picking maybe, but what else in this story is "just a tad" off? If only we knew.

    Thank you media, for over-blowing the issues and disregarding the fine details once again.

  • Posted By: gypsyq @ 09/30/2008 5:47:36 PM

    It is time to take personal responsibility, I am not in forclosure I bought a house I could afford. Nobody is going to pay my bills if I can't. It is time for corporations to deal with their own mess. Maybe someone will give them a loan - maybe not. I don't want my tax money bailing out big business.

  • Posted By: Iconoblaster @ 09/30/2008 5:45:44 PM

    When a salesman tries to rush you into a quick decision, THAT is the very moment to take your time, and examine your options carefully. There's a REASON he is trying to rush you, and it isn't to make anything better for YOU. Act in haste, repent at leisure. It is an act of extreme chutzpah that Bush would even ASK the American public to buy up $700 billion in bad paper, in order to rescue from disaster the very people who drew up that bad paper. Astonishing gall.

  • Posted By: nimodahooligan @ 09/30/2008 5:03:06 PM

    wow...just, huh, wow...

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