[Homestead] Wrong admission
bobford79 at yahoo.com
Wed Sep 24 15:29:49 EDT 2008
I wasn't commenting, Moon. I just thought it was an interesting take from a very left wing publication about the person that Republican McCain has mentioned as a possible Treasury Secretary. But, I do think you underestimate the size of sub-prime......
"Although sub-prime and other risky mortgages were relatively rare before the mid-1990s, their use increased dramatically during the subsequent decade. In 2001, newly originated subprime, Alt-A, and home equity lines (second mortgages or "seconds") totaled $330 billion and amounted to 15 percent of all new residential mortgages. Just three years later, in 2004, these mortgages accounted for almost $1.1 trillion in new loans and 37 percent of residential mortgages. Their volume peaked in 2006 when they reached $1.4 trillion and 48 percent of new residential mortgages. Over a similar period, the volume of mortgage-backed securities (MBS) collateralized by subprime mortgages increased from $18.5 billion in 1995 to $507.9 billion in 2005."
Credit swaps were not de-regulated. They were never regulated. Currency gambles , credit swaps, other apparitions of banks and hedge fund managers are still beyond my grasp. A few weeks ago, before the worst hit, I heard someone on CNBC, if my memory is correct it was Buffett, say that he didn't think that the people running the banks understood how these things worked, a lot of the time. The result was the only concern.
One example of how unscrupulous people gamed the system, turned it into high stakes craps :after J. Rogers left G. Soros, to do his own thing (Soros and Rogers founded Quantum together); Soros, started throwing hard sevens at National currencies. The credit swaps were just part of his quiver; naked shorting currencies, devaluing every ones measure of exchange; while legal, was certainly scurrilous. Soros will never pay, some even think he is admirable. People like Gramm & Biden; they just work for people like Soros. Soros is just one hyena in a large pack of dogs.
Neither Republicans are Democrats are left unsoiled . And, presently, it doesn't appear that any of the real boar-hogs will pay; they just throw us a couple of little piggies as scapegoats.....bobford
----- Original Message ----
From: "paxamicus at earthlink.net" <paxamicus at earthlink.net>
To: homestead at lists.ibiblio.org
Sent: Wednesday, September 24, 2008 11:58:08 AM
Subject: Re: [Homestead] Wrong admission
It's not the mortgages. Yes, they are a problem and yes the housing
market has plotzed and people by the millions are having Troubles.
IGA wasn't issuing mortgages. They were trading unregulated credit
swaps. THAT's what the problem is right now. The subprime market was
maybe what, $50 million? They are talking about 700 HUNDRED BILLION to
bail these idiots out of trouble. And just giving it to them, not even
loaning it to them like the airlines or car companies.
The value of the entire U.S. Treasuries market: $4.5 trillion.
The value of the entire mortgage market: $7 trillion.
The size of the U.S. stock market: $22 trillion.
OK, you ready?
The size of the credit default swap market last year: $45 trillion.
And all of it completely unregulated.
That's why the US taxpayer is going to get Enron-ed.
I can't figure out how to undo the bold. Sorry.
On Sep 24, 2008, at 2:33 PM, bob ford wrote:
> Andrew Cuomo and Fannie and Freddie: How the youngest Housing and
> Urban Development secretary in history gave birth to the mortgage
> (Cuomo) "took actions that-in combination with many other factors-
> helped plunge Fannie and Freddie into the subprime markets without
> putting in place the means to monitor their increasingly risky
> investments. He turned the Federal Housing Administration mortgage
> program into a sweetheart lender with sky-high loan ceilings and no
> money down, and he legalized what a federal judge has branded
> 'kickbacks' to brokers that have fueled the sale of overpriced and
> unsupportable loans. Three to four million families are now facing
> foreclosure, and Cuomo is one of the reasons why."
> ----- Original Message ----
> From: "paxamicus at earthlink.net" <paxamicus at earthlink.net>
> To: homestead at lists.ibiblio.org
> Sent: Wednesday, September 24, 2008 11:19:45 AM
> Subject: Re: [Homestead] Wrong admission
> Although the sub prime loan debacle was the tip of the ice berg, this
> bail out isn't about mortgages and individuals. It's about the
> unregulated credit swaps between banking institutions, and Lynda, how
> 'bout we just say, Gramm, period, and let's throw in Bank Suisse, at
> any time. : )
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