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Originally Posted by AK_Gandy
Most banks are simply the 'middle-man' on Mortgage Backed Securities. The reason the average person can't buy, isn't because they aren't "accredited"...........it's because they are sold in bundles that takes a large amount of capital to purchase..
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Ok, I have half a million dollars. Please direct me to where I can go to buy an MBS or a Security backed by Credit Card debt etc.
Quote:
Originally Posted by AK_Gandy
As far as Americans making more interest on simple pass-book savings, most banks are in a jam as it is so..............that's not likely to happen..
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What about on the upswing? If I have to loan against deposits then supply and demand states that if I want to be able to loan more money that I have to raise the amount of interest I pay in order to attract deposits, correct? With securitization, that doesn't need to happen. When the debt is sold to foreigners by Wall Street, the money supply increases with no increase in the amount of interest that must be paid to depositors but the bank is still liable to pay the debt if the borrower defaults. If the bank has sold the mortgage on a speculative exchange then it is able to collect more than the principle up front and post that as profit before it even collects the first payment from the borrower. This "profit" then gets paid to CEO's and the dealers and of course shareholders lots of whom may also be foreigners.
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Originally Posted by AK_Gandy
If a person wants a better deal......join a Credit Union, that typically, doesn't mess with mortgages. .
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Strawman.
Quote:
Originally Posted by AK_Gandy
I have a question for you; What do you think should be done and who/why do you think that it would help?
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The same thing we did since 1933 up until 1999, do not allow investment banks and your neighborhood banks and insurance companies to interact in anyway whatsoever. This way the fraudsters and speculators on Wall Street cannot steal money from the American people in the form of debt obligations to foreigners that could never possibly be repaid.
I bet a lot of the securities that were sold were nothing more than fraud that had no income stream to back them whatsoever. Of course with the group of advisors that Obama has none of this will ever be investigated and Obama sure doesn't give the first care about doing the right thing.
