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"Purchase mortgage backed securities from your local broker. You must open a brokerage account first. The broker will then purchase the mortgage backed security. There is a cost for the purchase, but not the brokerage account. Minimums on mortgage backed securities are $25000 with CMO's as low as $5000."
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Okay, you 1 me 0.
Quote:
Originally Posted by AK_Gandy
Not sure what you've been reading or listening to but, your conspiracy theory has so many holes and incorrect assumptions, that I couldn't change your mind if I wrote the rest of the night. .
It's not a conspiracy theory. . Selling the security/bond whatever in a speculative manner I.E. it's worth more because it's going to be paying a higher interest rate, is what caused this mess.
Sub-prime loans were sold because they promised a higher interest rate with the risk being insured by your local insurance company (due to leech/bliley which allowed investment banks, your neighborhood bank and insurance companies to interact) because they fetched a higher value and thus instant profit for the dealer I.E. Goldman Sachs.
Quote:
Originally Posted by AK_Gandy
I agree with repealing the GLBA and reinstating Glass-Steagall.
But that has nothing to do with foreigners buying the resultant products.
You're incorrectly mixing the two.
Ummmm..........the lack of regulation, non-existant enforcement and looking the other way...............didn't happen on Obama's watch.
Sorry to sound confusing. This is the internet and a lot times things are misinterpreted or perhaps I didn't say enough to convey my point. I will try and clear it up tommorrow.
Quote:
Originally Posted by AK_Gandy
Ummmm..........the lack of regulation, non-existant enforcement and looking the other way...............didn't happen on Obama's watch..
Larry Summers and Tim Geithner are all about looking the other way. If Obama says one thing then puts people in there that clearly have other intentions then what choice is one left with but to call him the liar that he is?
Yup! This philosophy has worked great in Iraq, Somalia etc. I can tell you put a lot of thought into that one.
Here's a very good video that explains the proper size of government. You are right that it can be too small (was that a problem in Iraq???). Government has to be big enough to provide for defense, the rule of law, etc.
Here's a very good video that explains the proper size of government. You are right that it can be too small (was that a problem in Iraq???). Government has to be big enough to provide for defense, the rule of law, etc.
What do you mean when you say big or small? Are you talking about the reach of it's laws, the amount of taxes that it charges or the services it gets itself into?
Are you against National Parks? Are you against foreign aid? Are you against regulations?
Are you against the public school system as a whole on local level or are you against the dept of education at the federal level?
Do you think they charge too much for what you get back? If so, what model country or place in history are you using as your Mecca?
It's not a conspiracy theory. . Selling the security/bond whatever in a speculative manner I.E. it's worth more because it's going to be paying a higher interest rate, is what caused this mess.
Sub-prime loans were sold because they promised a higher interest rate with the risk being insured by your local insurance company (due to leech/bliley which allowed investment banks, your neighborhood bank and insurance companies to interact) because they fetched a higher value and thus instant profit for the dealer I.E. Goldman Sachs.
The real problem isn't that there were subprime loans out there.
The real problem was not identifying them as such.
The credit rating industry — dominated by Moody’s, Standard & Poor’s and Fitch Ratings — was widely criticized for failing to identify risks in securities backed by subprime mortgages, whose collapse touched off the financial crisis. The agencies are crucial financial gatekeepers, issuing ratings on the creditworthiness of public companies and securities. Their grades can be key factors in determining a company’s ability to raise or borrow money, and at what cost securities will be purchased by banks, mutual funds, state pension funds or local governments.
In a nutshell, if the 'subprime' loans were correctly identified in the first place, then an investor would be able to make an educated choice.
Instead.....they were 'bundled' (mixed) with good loans, rated higher than they should have been and then re-sold based on the riskier loans being the same as the best ones in the bundle.
Some people may have still purchased them hoping for a big payback (as you mentioned, subprime loans carried a lot higher interest rate) but, a lot of them would have been shunned.
In that case, banks would then stop making the loans because they would not have the secondary market to unload them.
Therefore......no domino effect on the banks/financial institutions.
Just ask Barney Frank, he'll tell you all about the loan industry. Just don't bend over to pick up the soap.
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There has been quite a bit of chatter about this money loaned by the Federal Reserve and their resistance in telling who got the loans.
I don't know if it is true, but I would not be surprised if it is true. Don't you wonder what happened to all of the billions of dollars related to the stimulus bill? My son-in-law who is a journeyman electrician in Chicago has been out of work since April. They were all hoping that Chicago would get the Olympics because they said business would pick up for everyone. I don't think the Olympics were a part of the stimulus bill do you?
There has been quite a bit of chatter about this money loaned by the Federal Reserve and their resistance in telling who got the loans.
I don't know if it is true, but I would not be surprised if it is true. Don't you wonder what happened to all of the billions of dollars related to the stimulus bill? My son-in-law who is a journeyman electrician in Chicago has been out of work since April. They were all hoping that Chicago would get the Olympics because they said business would pick up for everyone. I don't think the Olympics were a part of the stimulus bill do you?
Yes, although I understood and agreed with the need for the TARP funds...............I was strongly for an accounting of where they went.
However, Bush did not require it and that was just a(nother) mistake on his part.
It's interesting that a freshman congressman is the one asking the tough questions...........and he's a Democrat to boot.
Just ask Barney Frank, he'll tell you all about the loan industry. Just don't bend over to pick up the soap.
Pappy, c'mon.
Do you really care to know the truth and all of the ramifications/actions that led up to this mess.................or is it just easier to blame those liberals and maintain a simplistic/naive view?
What do you mean when you say big or small? Are you talking about the reach of it's laws, the amount of taxes that it charges or the services it gets itself into?
Are you against National Parks? Are you against foreign aid? Are you against regulations?
Are you against the public school system as a whole on local level or are you against the dept of education at the federal level?
Do you think they charge too much for what you get back? If so, what model country or place in history are you using as your Mecca?
Do you despise FDR and everything he stood for?
My opinion of the federal government is similar to the founding fathers. The federal government should provide for national defense, international trade and treaties.
We can't have the states making their own independent armies, and negotiating their own international treaties, but we can have states take care of their own roads, education, etc.
With a small federal government and (possibly) larger state governments, the people can shop around for a state who's services are similar to what they want. We can have 50 (or more if the states will farm out things to the local communities) separate experiments in the size of government. If a state blows it, the citizens and businesses will eventually teach them a lesson by moving (we are now seeing that in CA, NY and others). On the other hand, if the federal government is too big, we're just stuck.
Experimentation and competition will tend to improve the system over time.
A one size fits all solution mandated from Washington leads to bloated government, wasted spending, excessive control of our lives and corruption.
My opinion of the federal government is similar to the founding fathers. The federal government should provide for national defense, international trade and treaties.
We can't have the states making their own independent armies, and negotiating their own international treaties, but we can have states take care of their own roads, education, etc.
With a small federal government and (possibly) larger state governments, the people can shop around for a state who's services are similar to what they want. We can have 50 (or more if the states will farm out things to the local communities) separate experiments in the size of government. If a state blows it, the citizens and businesses will eventually teach them a lesson by moving (we are now seeing that in CA, NY and others). On the other hand, if the federal government is too big, we're just stuck.
Experimentation and competition will tend to improve the system over time.
A one size fits all solution mandated from Washington leads to bloated government, wasted spending, excessive control of our lives and corruption.
So you don't think the Fed should regulate Banks or that there should be National Parks etc?
What makes you think your "idea" will work? Where has it already been implemented or in what period in our History?
So you don't think the Fed should regulate Banks or that there should be National Parks etc?
I've never claimed that the federal government doesn't do anything that is good. Heck, everything it does benefits someone.
Today it is just too big, too expensive and sadly, too corrupt.
We can't afford it!!!
It's time to cut back. Where to cut? I say let the Constitution be the guide.
Since you asked, bank regulation is probably a valid part of regulating interstate commerce. National parks? We're picking at nits here, but couldn't they be state parks? If the Grand Canyon became an Arizona state park, wouldn't it still be one of our nation's treasures?
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Originally Posted by checkthisout
What makes you think your "idea" will work? Where has it already been implemented or in what period in our History?
Where and when has a nation put together a government that was a collection of independent states with a relatively weak federal government that had only a handful of enumerated powers?
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