market crash explained by an insider

[lezonebay]

http://www.portfolio.com/news-markets/national-news/portfolio/2008/11/11/The-End-of-Wall-Streets-Boom?print=true


The more I see and read about this the more I don't buy the Mark in SBA's - "...we the people are responsible for this ... " story.

The You and Me could fly if the system would have been legal and real. It was based on fake documents and shuffles, and was nothing legal about it. It wasn't exactly illegal either but more like not correct.
Why people did what they did ? Because a person is smart but the people are stupid.
They believed that a credit rating is all what they need. as long as people believe what the banks the government and the news says, things like that will happen.

when the financial crizis was forming we had to see in the news that Britney Spears has showed her *****cat again... like that was an important news.

People believe everything that a government, a news and bankers tells them. a banker is almost like a criminal, they lie to cheat your money out of you. Yet people believe what those liers tells them so its their fault ? believing a lie is not a crime, but to be the liar is.

this bubble market was created for a reason and it was not a coincidence. People reacted the way they should, they used the credit and took as much as they can. Now I regret not doing the same. It was cheap money and I could have got a load of it. I have a good credit ratings and I could have borrowed money cheap and live large. Now all these people file for a bankruptcy and their debt will be wiped off or they will get a term that is as sweet as pie.

those so-called agents who sold these mortgages are the one responsible. they should be sued and fired asap.

I think the financial world de-faulted due to their greediness and lies. not the people. They were expected to react the way they did.

[Mark in SBA]

[Here's what you can expect...]

"Mr. Laszlo, is this your handwritten loan application document, signed by you?"

"Yes."

"And you requested a no-document, adjustable rate $450,000 second mortgage on your $800,000 home, correct?"

"Yes."

"The one you are now in default and foreclosure?"

"Uh, yes."

"Mr. Laszlo, is this your signature on this Federally-mandated interest rate disclosure form acknowledging you've read and understand the loan agreement?"

"Uh, yes."

"How about this Federally-mandated truth-in-lending form disclosing the balloon payment?"

"Uh, yeah, looks like it."

"And are all these initials yours on each and every page of the loan contract and closing documents?"

[groans audibly]"Yes."

"And so you're claiming you didn't see or understand the terms and conditions of this contract, even with over a dozen FHA- and HUD-mandated disclosure and notice forms clearly outlining the exact terms and conditions of the loan agreement?"

"Yes."

"And you still didn't exercise your 48-hour right to cancel, correct?"

"Nope."

"Your Honor, I move for immediate dismissal and foreclosure."

"Granted. Next case."

[FYI, NOBODY is getting out of the foreclosure on the "I was duped" argument. And the government can't change the conditions of the original loan, ex post facto, if they're not one of the parties.]

[lezonebay]

with that. people should NOT take loans they can not pay for but thats NOT illegal. What was not legal is the fact that the bankers HID these loans for many years and thus creating a mass problems. it would have been 10% of the crisis had the faulted loans were out in the open. they were HID in the bunch of good standing loans and sold to a next bank or financial institution.

As I said before if a person fails on their loan, its their fault. If 2 million people faults on their loans, there is something wrong with a big picture.

The problems were not solved but shoved under a carpet. Sure they made money so they did not care. But the crisis is again THEIR problem. THis is why the government or actually the "PEOPLE" should have NOT rescued the lenders. Others would have come and took over their place. The system they sell their loans should be changed not to be able to sell the faulted mortgages and loans, and new fresh financial companies with new employes should have taken over.

AIG agents and all did nothing to stop this and they had their way. All they had to do back in 2003 to report that a higher percentage of mortgages are not guaranteed and the risk is higher then usual. Lets stop for a moment and reorganize this.
nope, they went along with a wagon because they KNEW they will be saved.
This is where I say the Wrongful act came from not the people but the BANKERS. They let it all go to the last minute because they were SURE they will be saved.

if you loan 400 USD from your own money to a low life BUM and you know (you must as you are in the business of loaning money) he will NOT pay it back but you will get a 20usd bonus, why do you do it ? You must know that at the end the cousin will save the bum. The cousin will pay you the 400 back with interest and you will be saved. otherwise you run, right ?

[lezonebay]

http://articles.moneycentral.msn.com/Banking/YourCreditRating/why-lenders-might-forgive-your-debt.aspx

this is what I was talking about - forgiving the debts ? WTF ? they are loosing more with a foreclosure so they will reorganize the loan structure. That should have been done 7 years ago and a better filtering system should have been added to avoid defaulting loans. But I'm asking why would they do that ? they won't loose a penny at the end !

It was a well thought out and played and timed event which was known to happen since 2001. 8 years of running wild and then right before the election it is folded. coincidence ? hardly. it had to happen at one time and it needs to be fixed with a tools which will come from the same people who caused the original mess.
longer credits, higher rates, dropping bad clients, getting federal aids, writing off faulty loans and getting tax write offs, etc. its all are the advantages for the lenders at the moment.
The real losers will not be the lenders. It will be US.

I kept myself real safe and secure but eventually I will feel the same as lenders are getting tougher and creating new better rules. Will it affect me ? I don't think so. My loans are secured and I have decent credit ratings. the new rules will be the ones they sould have inititalized at teh 1st sign of the trouble to avoid the mess.
the housing boom would have been a whole lot less, and the credit/mortgage mess would have been something of a tiny setback. But would that been better ? not for the lenders.
this is a great time to be a lender ! I wish that I could have all my asset liquid now and start financing and lending. you can pretty much set your tough rules and you buy dirt cheap !
This is the time to invest into real estate, high end cars, jewelry, domestic stocks, etc.
no short term gains, but in 2-3 years it will bring a lot of capita !
see lenders will win again, no matter what !

[Walte]

This is From an investment site.

Simply put, the average American household is already too much in debt and this scares banks from lending any money. Giving $700B to these banks will not change the fact that lending to bad debtors is a risky venture. It is safer for banks to invest this money in commodities (oil and gold) which do keep up with inflation than to issue loans that cannot be repaid. So expect this bailout package to give a speculative boost to oil prices.

I see the banks are already in trouble with the US Gov. for not freeing up the helicopter money.

Walt