I really love to hear all the news on mortgage fraud, bad loans, sub-prime, and the collapse of available equity. The sub-prime loans that had no chance of ever being repaid may cause the collapse of the US housing market as we know it for a decade! They knew this when the loans were issued! To compound the fraud...these knowingly bad loads were packaged and sold around the globe. If you haven't heard the banks overseas are tettering on the edge of slovency with loads of bad notes (from our sub-prime collateralized mortgage obligations CMO's!) Yet for those that caused the problems are leaving their corporations with bonuses, and full retirement to the tune of millions as in Countrywide. What is up wiht this?
They should be leaving the firms in handcuffs and shackles. This government seems to always give a pass to the banks, they threw the book at Enron, Martha Stewart, and a few others...but no big players as of yet have been arrested for this major mortgage fraud. When are we going tyo hear of some arrests, some indictments? They will do a lot to restore calm in the markets. Instead Walls Street climbs higher in a suckers rally acting as if it is just a pebble ont he road. It isn't. It is far deeper. The Federal Reserve intervantion last week for .75 bp was only the 5th time the Federal Reserve has done this. It was unprecidented, and was done for a greater reason than mortgages, A bank(s) was introuble, and perhaps out of cash!
It really makes you think about the values that are running this country at every level. It is all about the buck, elections, values, and payback! This debacle could lead to a very deep recession, and those that perpetrated it are getting a pass! Why was it easy to act like a bully and throw the book at Martha Stewart...when the resets a lone this wear from sub-prime will be over 500 billion dollars...that is 10 times higher than last year!
So was it right to arrest and prosecute Martha and give the banks and lenders that could cause a global recession a pass?
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Jim, I think that the bankers just did what was natural for them, they lent money when they had it. The real bad guy was Alan Greenspan. I don't buy that he should get a pass.
Bill Roberts
SEE: http://www.cnbc.com/id/22901531
The FBI has opened investigations into 14 corporations as part of a crackdown on improper subprime lending, agency officials said Tuesday.
The FEDS are on the move. Let's see what the perps get by with. One of the problems with the FBI is that they only investigate and prosecute after the fact. Regulation and oversight is the job of guys like the FDIC, SEC, and a few others. Problem is, they didn't. They're getting in the act now, but only after the damage to the economy has been done.
It's going to be interesting to watch. You know me. I want to see some perp walks.
Jim,
I can't agree more... it makes me sick to think about the loans that were written and hardship customers and lenders were put into... too bad so many people have to get hurt by actions of a few bad eggs... who are now for the must part out of our industry... thank you Jim
Rick
Homefinders, Real Estate in MD & VA, Lenn Harley, Broker, New & Resale Homes Lenn I agree...there is a difference between oversight and hindsight. If you ask me it was blind-sight! It is too late now the damage has been done to not only homeowners, home values, hoe owners, home buyers, mortgage industries, inspectors, attorneys, title companies, real estate agents and companies
Jeff Geoghan MBA, - Lancaster PA Real Estate Expert I know they looked the other way! I wonder if the government is going to prosecute? I noticed the government did not vocally say anything about asking the heads of the oversight agencies, and Fannie Mae and Freddie Mac should step down, or ask for immediate investigations! None of the above!!! So...IMHO the US government condoned this!
We need to be contacting our representatives and demanding answers!!!!
Jim - I totally agree that the banks seem to always get a pass. The airlines as well get a pass and bailed out. Many of the airlines used 9-11 as a way to profit.
Mark Horan PA Keller Williams Kissimmee, Florida When The bank in England faild the head lines on the new from Europe was that the banks in the US knowingly gave loans to those they knew had no ability to repay ever! In fact they referred to as fraud! Northern Rock did not almost fail from British real estate or builders. It was from Collateralized Mortgage Obligation CMOS from the USA! So why does everyone in the USA act as if they do not know what has undermined the banks globally! Mad mortgage here were turned into investment instruments and re-marketed! It is not the ability for the distressed home owner that has threatened the economy! That is just the starting point to global mayhem!