Major California Based Mortgage Bank fails, Fannie Mae and Freedie Mac may fail too

[12voltman59]

The two big companies, Fannie Mae and Freddie Mac, that back many home loan mortages--they are in danger of failing:

http://www.msnbc.msn.com/id/25635292/

California Mortgage bank IndyMac fails and is taken over by federal regulators:

http://www.msnbc.msn.com/id/25644988/

I guess that we are far from being out of the woods in regards to the mortgage credit crisis.

Other major banks are on shaky ground as well.

Wachovia
http://www.usatoday.com/money/companies/earnings/2007-10-19-wachovia_N.htm

Bank of America

http://www.fool.com/investing/dividends-income/2008/07/11/stock-rehab-bank-of-america.aspx

National City-which had become a major player in holding mortgages
http://www.slate.com/id/2189899/

[HighEnergy]

Great. As a realtor, I am so fucked.

[vitt&cho]

They want to do away with paper .

There is no more middle ground anymore... there will only be rich and poor.

And if you dont have a job, you're basically done.

They want to put everything on cards.

Hasnt anyone noticed?

Back to the Future part 2 seems to ring a bell....:eek:

Out with the Compact disc...

On with the mp3...

[bisexualinsocal]

Oh noes! It's da new world order!

[innaminka]

Greed!
Made in the US style.

[antzy57]

Check this out folks!

http://money.cnn.com/2008/07/11/news/economy/fannie_freddie.fortune/index.htm?eref=rss_topstories

[bisexualinsocal]

Greed!
Made in the US style.

Yep. Just like tantrum throwing union sign worshippers.

[proseros]

http://main.bisexual.com/forum/showthread.php?t=5673

Oh well...

[proseros]

http://www.abcnews.go.com/Business/Economy/wireStory?id=5330669

[guycurious]

And they should fall IMO. I'm self employed. I run my own contracting business. If I were to do business with customers who had little means of paying for my services and I don't get paid, is the gov. going to bail me out ?

No. Those lenders knew damn well they were taking risks underwriting those mortgages. They gambled and lost. It's no one's fault but their own.

If you can afford a 100K house you buy a 100K house. You do not buy a 200K house and HOPE you are making more money next year to pay for the rate adjustment. That's just poor money management.

"But the lenders were preying on these people" BS. The borrowers wanted to live in the McMansions that they COULDN'T afford so they signed up for these adjustment rate loans hoping, by some miracle, they would be able to afford the house when the rates adjusted. The borrowers had the loan docs. in front of them before they signed. They failed to review the loan terms. It's their own fault, period.

[proseros]

And they should fall IMO. I'm self employed. I run my own contracting business. If I were to do business with customers who had little means of paying for my services and I don't get paid, is the gov. going to bail me out ?

No. Those lenders knew damn well they were taking risks underwriting those mortgages. They gambled and lost. It's no one's fault but their own.

If you can afford a 100K house you buy a 100K house. You do not buy a 200K house and HOPE you are making more money next year to pay for the rate adjustment. That's just poor money management.

"But the lenders were preying on these people" BS. The borrowers wanted to live in the McMansions that they COULDN'T afford so they signed up for these adjustment rate loans hoping, by some miracle, they would be able to afford the house when the rates adjusted. The borrowers had the loan docs. in front of them before they signed. They failed to review the loan terms. It's their own fault, period.

Hold on there.
Now while I don't disagree with your sentiment as far as practical application is concerned-I strongly disagree with your assertion.
My earlier response to this news [and by the way if you look at the dates on thses news links you will see that they go back quite a while-a lot of these affiliate banks have gone belly up a long time ago].

It's not your fault if you have already figured in your income to meet the adjust ment and that's what a lot of these people-thousands if not hundreds of thousands of people did. The way you summarise the whole affair you might as be saying that a third of the American population is just plain stupid, and that is even more frightening than the credit crisis.
No these lenders pushed these loans on low income borrowers KNOWING the banks had no collateral to back the loans [the FDIC DOES NOT REQUIRE BANKS TO HAVE AS MUCH IN RESERVE AS THEY ARE LENDING-Once again watch ZEITGEIST, read the transcript (posted in another thread) and you'll understand exactly what has been going on here. This entire thing was orchestrated with the INTENT of driving interest rates through the roof and collecting on debt. We all know, or should know by now that a NEW HOME doesn't have half the equity as it would have 20 or 30 years ago.

So yes it did back fire in a big way, but as we've argued on my job over and over again [I'm employed in the financial sector], the banks were trying to pull off for a second time the same thing they did in the Mid-Seventies with gentrification, thinking it would work the same way. This has been engineered for the past 10 years, since the 90's and anyone who's been paying attention to the massive real estate buy-backs and buy-outs that have been happening all that time knows it as well.

No it's not a race issue-It's a money issue. And THERE IS NO MONEY. The entire country is running on the fumes of debt, rather than actual gas cash.
And do think being self-employed will keep you safe? Do you really believe that?

If the banks are too busy pay BACK the Fed-Where do you think YOUR INCOME WILL COME FROM?

[proseros]

And a side-note:

A "write-down" is exactly that and translates as-

All the money that has been accounted as INCOME is NOT INCOME AND HAS BEEN TAKEN OFF THE BOOKS. it doesn't exist. It never did.
And what do banks do? THEY LEND MONEY.
And they have been lending billions of dollars that they never had.
That means the banks have that much LESS money to meet operating expenses and pay back it's own loans-which means

YOUR MONEY, IS BACKED BY NOTHING.

[BronzeBobby]

Yes, but Proseros, I agree with guycurious. The collapse of the whole system is necessary and these people need to leave their homes. The homes need to be put back up for auction. The whole system has to readjust. So there's no point in screaming at/about Bush about it. And Obama's idea to use $10b in taxpayer funds to "keep people in their homes" is ridiculous. When that $10b is gone, people will say they were being preyed on by Obama.

For all that I have criticized Bush, the truth is that his lowered interest rates made it possible for many people to experience homeownership, who would have never had a home in their whole lives. Some of them are now losing what they bought, others are able to cling to it and should be thankful to Bush's policies. The collapse of the mortgage banks is like a drunk body vomiting out its alcohol and slowly returning to equilibrium. It's necessary and the government should not be trying to prop anybody up, nor should people spend all their time demonizing those who were involved.

[vittoria]

Fkk it.

I'm readying myself for some Thunderdome.

(Gets out here Tina Turner earrings)

Hmmm.... wonder who will be the "Master Blaster"?!?!?!?!

[chook]

All I can say to the world is " WAKE UP AND SMELL THE COFFEE " Because the writing is definitely on the wall!!!!!!!!!...........While we are going to shit the Chinese and Indians are becoming filthy rich....now that's gotta tell you something??????

Cheers Chook :bigrin:

[BreeIsMe]

Chook,
let's keep everything in perspective....the average person in India and China is NOT going to get filthy rich. Most live in horrible poverty.

and whose to say they don't deserve a little something.

Just a little reality check...


Bree

[proseros]

This is a very important document everyone should read regarding the mechanics of [primarily] U.S. financial/banking system and the Federal Reserve.

http://landru.i-link-2.net/monques/mmm2.html