Message 1159 of 5998

Remember the Housing Problem?

Here's a video and article you might want to check. view link

This teaser is the very end of the article. You have to read it yourself to get the whole story.

** John Talbott, a former Goldman investment banker and the author of a new book, "The 88 Biggest Lies on Wall Street," said "it wasn't a mistake" when illegal immigrants got home mortgages.

The lenders, he said, "just wanted somebody, anybody to sign a note" so they could sell it to Wall Street, where ratings agencies that were paid hefty fees by the investment banks bestowed triple-A grades or their equivalent on most subprime bonds.

"It's not just unethical," Talbott said of the chain of profiting subprime players extending from real estate appraisers to Wall Street. "It's totally criminal."
Lollykoko's profile
Amazing the stuff that's coming out now after the fact!
Charles1950's profile

over 2 years ago
Goldman Sachs has been engineering derivitaves disasters for agess and profiting from them.

view link
pancho3's profile

over 2 years ago
the housing stuff is not over. has anyone noticed the major firms that sold predatory loans or sub prime are now ofering morgage adjustments? I think that is the beauty of entreprenurism.
what i do find interesting also is that the banks could have decided not to give out loans to people who did not meet their criteria the law I believe said banks could not ref line a neighborhood. TD bank made a mangement decision toonly stay with prime loans as did Comonwealth. theu both are 45 billion dollar banks. since the sub prime loan thing jhit the fan these two banks have nerged into one very large bank headquarters I believe Toronto.
yichel's profile

over 2 years ago
Thanks for that link, pancho. The Sunday local paper had a full page article similar to that. I tried to find a link, but gave up.
scn1950's profile

over 2 years ago
Then the Community Reinvestment Act went from business loans to real estate loans. The CRA "encouraged" banks to loan money to less than ideal applicants in less than desrable communities and then the wheels started falling off.
pancho3's profile

over 2 years ago
Lots of blame , but the 2 primary culprits are an incompetent government and criminals in the financial services .

over 2 years ago
Bank of America was is giving loans to illlegals, reason another place to make a profit.
sartre's profile

over 2 years ago
I just wonder if the Housing debacle and the Savings and Loan mess have anything in common other than the last name of the seated President?
Lollykoko's profile

over 2 years ago
Are we ever going to see the criminal prosecutions of these bankers like we did in the 80's?

over 2 years ago
We need a public outcry and a proper-paper-trail to prosecute the bad guys.
MisterScience's profile

over 2 years ago

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