Fed's Loan Rescue Sparks Big Stock Rally
- Thread starter uscitizen
- Start date
So... I assume that makes you Curly then?
evince
Truthmatters
Thanks SF, that is helpful to my understanding this
He missed the fact that lenders were pushing people into these subprimes who could have qualified for a traditional loan. This was part of the preditory lending that was taking place. They toold folks that they only qualified for a sub prime and that in the current market all they had to do was refi before the end of their interest only loan they could refi at a lower rate because rates were going down. They suckered them.
He stated that some of the loans were from those who fraudulently pushed people into them. That he didn't dwell solely on that is the basis of your fallacious remarks in this post.
Sammy Jankis
Was it me?
It's shit like this that proves our nation is basically fascist. When individuals have problems it's "too bad, so sad". But when investors start having problems it's "how much money can we make for you for free so you can make other work for it.
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The Almighty
1) I did mention that there were fraudulent lending practices, but they were not the bulk of these loans.
2) People were not pushed into "these subprimes" vs. a traditional loan. Subprime refers to their credit rating. Not the type of loan they take... ARMs, i-only, 15 & 30-fixed etc...
3) your last statement is pure conjecture. I am sure there were some that were talked into taking out more loan than they could afford, but again you are trying to take responsibility away from the borrowers. It is their obligation as well to know not only what they can afford, but it is also their responsibility to understand the terms of the loan they are agreeing to repay.
evince
Truthmatters
http://seekingalpha.com/article/561...lass-borrowers-pushed-into-subprime-mortgages
Yes they were pushed into subprimes
Yes they were pushed into subprimes
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The Almighty
Again Desh.... subprime is NOT a type of loan to be pushed into.
Subprime refers to the fact that the borrowers had bad credit.
evince
Truthmatters
The analysis also raises pointed questions about the practices of major mortgage lenders. Many borrowers whose credit scores might have qualified them for more conventional loans say they were pushed into risky subprime loans. They say lenders or brokers aggressively marketed the loans, offering easier and faster approvals -- and playing down or hiding the onerous price paid over the long haul in higher interest rates or stricter repayment terms.
you didnt read it huh?
you didnt read it huh?
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The Almighty
The report details how, earlier in the decade, borrowers increasingly found themselves in subprime loans for one reason or another, such as, they had no money for a down payment or they really couldn't afford the place that they were going to "flip" in six months anyway.
An analysis for The Wall Street Journal of more than $2.5 trillion in subprime loans made since 2000 shows that as the number of subprime loans mushroomed, an increasing proportion of them went to people with credit scores high enough to often qualify for conventional loans with far better terms.
...
The surprisingly high number of subprime loans among more credit-worthy borrowers shows how far such mortgages have spread into the economy -- including middle-class and wealthy communities where they once were scarce. They also affirm that thousands of borrowers took out loans -- perhaps foolishly -- with little or no documentation, or no down payment, or without the income to qualify for a conventional loan of the size they wanted."
An analysis for The Wall Street Journal of more than $2.5 trillion in subprime loans made since 2000 shows that as the number of subprime loans mushroomed, an increasing proportion of them went to people with credit scores high enough to often qualify for conventional loans with far better terms.
...
The surprisingly high number of subprime loans among more credit-worthy borrowers shows how far such mortgages have spread into the economy -- including middle-class and wealthy communities where they once were scarce. They also affirm that thousands of borrowers took out loans -- perhaps foolishly -- with little or no documentation, or no down payment, or without the income to qualify for a conventional loan of the size they wanted."
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The Almighty
yes I read it... and many lenders also say that borrowers lied to them about their situation.... both sides can SAY whatever they want. I am sure there is an element of truth to both.
In order to "push" somebody into a "sub-prime" loan they would have had to forcefully lead people with crappy credit (sub-prime) into their offices and force them to sign documents.
Now they may have lied to them about the loans, that is fraud, but it is doubtful they "pushed" anybody into the loans.
Now they may have lied to them about the loans, that is fraud, but it is doubtful they "pushed" anybody into the loans.
uscitizen
Villified User
Stocks Swoon As Dollar Falls, Gold Jumps
Mar 13, 11:25 AM (ET)
By TIM PARADIS
NEW YORK (AP) - Stocks tumbled Thursday as investors recoiled at a further decline in the dollar, spikes in gold and oil prices and a warning that a Carlyle Group fund is near collapse. The major indexes each lost more than 1 percent; the Dow Jones industrial average at times fell more than 200 points.
Talk of regulatory changes for the mortgage industry did little to dislodge Wall Street's glum mood. Treasury Secretary Henry Paulson outlined a plan Thursday to provide stronger oversight of mortgage lenders, whose lax standards are blamed for touching off the concerns about souring debt that have led to turmoil in the credit markets.
Investors appeared doubtful that regulatory changes at this point would give the economy the immediate boost it needs. Consumers are paring back their discretionary spending by more than many anticipated - a government report Thursday said retail sales fell in February after the market predicted an increase.
"Things just aren't good for the consumer, and thus, they're not good for Wall Street, said Kim Caughey, equity research analyst at Fort Pitt Capital Group.
http://apnews.myway.com/article/20080313/D8VCKG400.html
Mar 13, 11:25 AM (ET)
By TIM PARADIS
NEW YORK (AP) - Stocks tumbled Thursday as investors recoiled at a further decline in the dollar, spikes in gold and oil prices and a warning that a Carlyle Group fund is near collapse. The major indexes each lost more than 1 percent; the Dow Jones industrial average at times fell more than 200 points.
Talk of regulatory changes for the mortgage industry did little to dislodge Wall Street's glum mood. Treasury Secretary Henry Paulson outlined a plan Thursday to provide stronger oversight of mortgage lenders, whose lax standards are blamed for touching off the concerns about souring debt that have led to turmoil in the credit markets.
Investors appeared doubtful that regulatory changes at this point would give the economy the immediate boost it needs. Consumers are paring back their discretionary spending by more than many anticipated - a government report Thursday said retail sales fell in February after the market predicted an increase.
"Things just aren't good for the consumer, and thus, they're not good for Wall Street, said Kim Caughey, equity research analyst at Fort Pitt Capital Group.
http://apnews.myway.com/article/20080313/D8VCKG400.html
uscitizen
Villified User
Retail Sales Plunge by 0.6 Percent
Mar 13, 11:36 AM (ET)
By MARTIN CRUTSINGER
WASHINGTON (AP) - Consumers, battered by plunging home prices and a credit crunch, stayed away from the malls in February, pushing retail sales down by a larger-than-expected amount. It was another worrisome sign that the country could be falling into a recession.
The Commerce Department reported Thursday that retail sales fell by 0.6 percent last month, far worse than the 0.2 percent increase that analysts had been expecting.
The weakness was widespread with sales of autos, furniture and appliances all down.
It marked the second time in the past three months that retail sales have taken a tumble. Sales had fallen by an even bigger 0.7 percent in December, the largest drop in six months, as the nation's retailers suffered through a dismal holiday shopping season. Sales posted a modest 0.4 percent gain in January.
http://apnews.myway.com/article/20080313/D8VCKL400.html
Mar 13, 11:36 AM (ET)
By MARTIN CRUTSINGER
WASHINGTON (AP) - Consumers, battered by plunging home prices and a credit crunch, stayed away from the malls in February, pushing retail sales down by a larger-than-expected amount. It was another worrisome sign that the country could be falling into a recession.
The Commerce Department reported Thursday that retail sales fell by 0.6 percent last month, far worse than the 0.2 percent increase that analysts had been expecting.
The weakness was widespread with sales of autos, furniture and appliances all down.
It marked the second time in the past three months that retail sales have taken a tumble. Sales had fallen by an even bigger 0.7 percent in December, the largest drop in six months, as the nation's retailers suffered through a dismal holiday shopping season. Sales posted a modest 0.4 percent gain in January.
http://apnews.myway.com/article/20080313/D8VCKL400.html
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The Almighty
US.... those two articles should prepare you for the stupidity that is going to come from the Fed on Tuesday. I am upping my guess... they will cut by 75-100bps.
Gold going to $1150 by summer
Oil to $140
Grain... well... lets just say a loaf of bread will be slightly less than a home in Detroit.
Gold going to $1150 by summer
Oil to $140
Grain... well... lets just say a loaf of bread will be slightly less than a home in Detroit.
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The Almighty
My fault.... for Lorax and Gumby.... to clarify... the loaf of bread comment in my previous post was sarcasm. I apologize for not informing you immediately. I know how confused you get.