$1.2 TRILLION SECRET

I've read some articles that says quite a bit of the money went to foreign banks...I have uncirculated letters from hedge fund directors saying the foreign banks were buying the mortgages that were package fraudualantly by Wall Street to get rid of US Trade credits...we buy a substantial larger amounts of goods from China, Japan, India,than they buy from us, this creats trade deficits/credit. Wall Street figured out that they could sell mortgage pools to the foreign banks and that would held reduce the trades credits. Wall Street manipulated the mortgages and how they were rated (AA, AAA) for almost 4 years and thats what drove our housing prices so crazy...anyone that could fog a mirror could get a mortgage.

When everything started to come apart and the losses were astronomical, the foreign countries flipped out because they lost so much money...their solution was...threatened to dump US Treasury bonds that they also held into the world credit markets...that would drive up our countries borrowering costs radically and criple our country since it appears that we can't live without massive amounts of deficit spending... India got burned badly and holds $1.2 trillion in US Treasurys, China and Japan hold similar amounts. Remember when Paulson was saying that the country was on the brink of a liquidity crisis...its because the foreign banks were threatening not to buy US Treasurys and they were threatening to dump what they alread had...at that time the deficit was at $9.5 Trillion +/-...now its over $10 trillion and will go past $11 trillion by mid February when the new stimulus bill passes. Everyone is trying to figure out what happened to the bailout money...you can guess. We buy their products, they buy our financial instruments. This is the part of the story the press isn't telling. I'm in the mortgage business and have watched this unfold...it is shocking. I don't think the jails are big enough to hold all the people that were involved.

quote:

Originally posted by Tom@Seal Beach:
I've read some articles that says quite a bit of the money went to foreign banks...I have uncirculated letters from hedge fund directors saying the foreign banks were buying the mortgages that were package fraudualantly by Wall Street to get rid of US Trade credits...we buy a substantial larger amounts of goods from China, Japan, India,than they buy from us, this creats trade deficits/credit. Wall Street figured out that they could sell mortgage pools to the foreign banks and that would held reduce the trades credits. Wall Street manipulated the mortgages and how they were rated (AA, AAA) for almost 4 years and thats what drove our housing prices so crazy...anyone that could fog a mirror could get a mortgage.



When everything started to come apart and the losses were astronomical, the foreign countries flipped out because they lost so much money...their solution was...threatened to dump US Treasury bonds that they also held into the world credit markets...that would drive up our countries borrowering costs radically and criple our country since it appears that we can't live without massive amounts of deficit spending... India got burned badly and holds $1.2 trillion in US Treasurys, China and Japan hold similar amounts. Remember when Paulson was saying that the country was on the brink of a liquidity crisis...its because the foreign banks were threatening not to buy US Treasurys and they were threatening to dump what they alread had...at that time the deficit was at $9.5 Trillion +/-...now its over $10 trillion and will go past $11 trillion by mid February when the new stimulus bill passes. Everyone is trying to figure out what happened to the bailout money...you can guess. We buy their products, they buy our financial instruments. This is the part of the story the press isn't telling. I'm in the mortgage business and have watched this unfold...it is shocking. I don't think the jails are big enough to hold all the people that were involved.

It would be nice to see at least a few of these A** holes in JAIL!

Cuvee, couldn't agree more. It's decimated our industry...I lost lots of busines because I wouldn't play the games others would. Now lawmakers want more laws on the books...all they have to do is enforce the ones that are already there.

Many key players are also people that made very large political contributions and have significant pull within the government. Try a google search on "Friends of Angelo". Congressional members got sweet heart deals. Senator Dodd (Chair of Senate Banking)promised 6 months ago to give all documentation on his sweet heart loan from Countrywide...but never produced the documents. Guess what, now that it's a democratically controlled government, he being a democrat losses allot of pressure to produce them now. Not trying to make it a democrat or republican thing because there are crooks on both sides...just the reality. I'd like to see them ALL thrown out of office and banned...they have not served this country.

My concern here, not my prediction, is that the table is really set for violence in the street here.
If one is a student of history and one yields credence to historical analyzation, the main contributing factor to both the French and the Russian Revolutions was the demise of the middle class.
Well folks, guess what?

Sure one needs to be closer to ground zero to see this and many may never realize it at all.

My concern is that if it all really collapses, i.e., there isn't some type of movement that shows there will be a recovery the unemployed hoards in the streets with no unemployment insurance will eventually turn into mobs looking for the guys that caused all of this.

You say we have no aristocracy to send to the gallows? Are you kidding? We're talking about financial aristocracy now I think? Isn't this the same discussion with a little bit of a twist?

You can't have an economy this size based primarily on just lending money. We need to produce hard products and employ people with salaries that contribute to social stabilaty and economic growth. The only labor that is being employed now is third world.

That is who the bankers lent their sub prime morgages to at the expense of US labor.

You think you can afford a "home" here (not even a house, just a home) on $15 per hour?

And you are the Harvard MBA wizkids? Holy shit is all I can say. I'm not going to stand around lighting fuses on Molatov cocktales but maybe I'll try and help to put out the fire by pissing on you?

Talk about who should be steralized so they can't breed and spread their misery to the rest of the world huh? I think the wrong group is definately in charge here.

You know that during the Great Depression alot of people on Wall Street jumped to their deaths due to the remorse they felt at losing everything of their clients...I feel that attitude has changed...

Jeff

After reading a lot about it I really believe this economic mess goes back to wall street greed. It is really sad how they blame the sub prime mess on uneducated gardeners buying $500,000 dollar homes and not being able to pay for them. It was all about how much money could be made now with no regard for the future. It was essentially a pyramid with wall street sitting on the top. Really sad, highly educated and no morals. Wall street would have given rope to a baby if they could of made money off it.

GREED$$$$ From the top to the bottom. The all mighty dollar. The root of all evil.
Sad to say, but this will never change until people held accountable and thrown in jail for their actions.
Wishfull thinking......

I would love to see some criminal investigations. And I hope Obama brings a new level of transparency and honor to the White House. Then I would like to see him set a standard for the House and Senate that the American people demand be followed.

I am conservative, and Obama isn't my guy, but he has the American people behind him, and that should give him some power to change things.

R.

quote:

Originally posted by Mark M:
It is really sad how they blame the sub prime mess on uneducated gardeners buying $500,000 dollar homes and not being able to pay for them.

But what responsibility does the uneducated gardener have?? He or she is not innocent necessarily. What in the world made them think they could possibly afford a $500,000 house on a $30,000 salary in the first place? Because their loan agent said so? Or because they wanted to believe they could? They bowed to temptation-they are just as guilty. Unless of course they are just that unintelligent-then that's unfortunate. But I think that's the exception not the rule. I think a lot of people went into these deals without doing their due diligence and homework. A lot of them got caught up in trying to keep up with the Jones' and it burned them. I feel for them, I really do, but I played by the rules and live within my means and now I STILL have to pay for those that didn't. That pisses me off no end.

Then I realize I still have a house....a great job....an exceptional family.....so maybe playing by the rules paid off after all.

Miles I couldn't agree more. I lost so much business because we had a strict rule at my company...if the borrower made the income and could prove they were self employed and had cash in the bank that was representative of what they said they earned...OK. When we wouldn't do the loan, they'de go down the street and find 10 other companies very willing to do the loan. I have had teachers who get a paychecks and W-2's, that stated their income...why because they had to lie to get the house they wanted...they were making $8,500 per month...they stated they made $18,000 per month...and now they can't refinance to get out of the bad loan that is adjusting because they are in way over their heads and you don't get a loan today unless you can document your income...wow what a concept.

I had someone tell me they got burned on a their loan and wanted it recinded and need advise on how to do that...they had retired after getting their loan and were only making $6,800 per month in retirement...and couldn't continue making their payments. Guess how big the loan is $4,000,000. AND they took $1,000,000 cash out and at the time they got the loan were earning $14,000 per month, guess how much they told me they stated on the application to get the $4,000,000 loan...$140,000 PER MONTH...PER MONTH, I'm not making this up. The borrower can't make the payments now because he's spent the $1,000,000 cash that he took at closing and wants to have his loan washed away because Countrywide only has an electronic scan of the original loan document with his signature, which is standard in the industry....he believes he's been wronged and wants the loan to be forgiven.

I could go on and on about stories of staff members from banks telling us inflate the income on loan applications because the debt ratios were too high, and when I said "that misrepresentation"...I was told "don't worry about it, we do it all the time"! That bank was about 40 years old based in California. It was sold 2-3 years ago to a 100 year old east coast bank who never did funky loans. The 100 year old bank was just taken over by one of the government sponsored BIGGIE BANKS (rimes with cargo) because of all the bad loans on the books of the bank that got purchased. These are just a few of the things I've seen, and unfortunately WE, our kids and grand kids are all going to pay for the bail out of this problem.