Derivatives Market

[WA_Vol]

you realize it's a loan not a handout right?

In theory. What was the collateral if its not paid back? A bankrupt business? Not very favorable terms for the lender.

 

[droski]

If that's the case, why is a minority Democratic Congressman setting Housing Policy for a Republican controlled Congress and Republican President? I don't buy it, they don't have the power to push that through.

what a president is going to go against home ownership publically? the same idiots complaining about "preditory lending" were the same idiots talking about how banks were racist against minorities and the same idiots that pushed hte banks and fannie and freddie to loosen their standards to loan to these people. that is the fact and it is well documented. do some research before you blame bush.

 

[droski]

In theory. What was the collateral if its not paid back? A bankrupt business? Not very favorable terms for the lender.

these are businesses that still generate billions in positive free cash flow.

 

[WA_Vol]

what a president is going to go against home ownership publically? the same idiots complaining about "preditory lending" were the same idiots talking about how banks were racist against minorities and the same idiots that pushed hte banks and fannie and freddie to loosen their standards to loan to these people. that is the fact and it is well documented. do some research before you blame bush.

I did research this. The agency responsible for regulating Fannie and Freddie told Bush repeatedly that they were in trouble, and when he begun to speak publicly about it, Bush fired him.

 

[rjd970]

these are businesses that still generate billions in positive free cash flow.

Free cash flow based on what? Seriously, what are banks actually creating? I still haven't figured out what wealth they actually create that isn't paper funny money.

I have much respect for you guys Droski, honestly, and it is why I am not an investor, trader, or banker. This stuff is witchcraft as far as I'm concerned.

 

[vols4sure]

I did research this. The agency responsible for regulating Fannie and Freddie told Bush repeatedly that they were in trouble, and when he begun to speak publicly about it, Bush fired him.

Link or source?

 

[WA_Vol]

what a president is going to go against home ownership publically? the same idiots complaining about "preditory lending" were the same idiots talking about how banks were racist against minorities and the same idiots that pushed hte banks and fannie and freddie to loosen their standards to loan to these people. that is the fact and it is well documented. do some research before you blame bush.

The evidence of a U.S. housing bubble was literally everywhere. Bush chose to ignore it or focus on Iraq.

United States housing bubble - Wikipedia, the free encyclopedia

However, claims that there was no warning of the crisis were repudiated in an August 2008 article in the The New York Times, which reported that Richard F. Syron, the CEO of Freddie Mac, received a memo from David Andrukonis, the company's former chief risk officer in 2003, warning him that Freddie Mac was financing risk-laden loans that threatened Freddie Mac's financial stability. In his memo, Mr. Andrukonis wrote that these loans "would likely pose an enormous financial and reputational risk to the company and the country."[35] The article revealed that more than two-dozen high-ranking executives said that Mr. Syron had simply decided to ignore the warnings. Other cautions came as early as 2001, when the late Federal Reserve governor Edward Gramlich warned of the risks posed by sub-prime mortgages.[36] Reuters reported in October 2007 that a Merrill Lynch analyst too had warned in 2006 that companies could suffer from their subprime investments.

 

[droski]

I did research this. The agency responsible for regulating Fannie and Freddie told Bush repeatedly that they were in trouble, and when he begun to speak publicly about it, Bush fired him.

Time and time again, Frank insisted that Fannie Mae and Freddie Mac were in good shape. Five years ago, for example, when the Bush administration proposed much tighter regulation of the two companies, Frank was adamant that "these two entities, Fannie Mae and Freddie Mac, are not facing any kind of financial crisis." When the White House warned of "systemic risk for our financial system" unless the mortgage giants were curbed, Frank complained that the administration was more concerned about financial safety than about housing.

Frank's fingerprints are all over the financial fiasco - The Boston Globe

One of many articles pointing out the truth.

Free cash flow based on what? Seriously, what are banks actually creating? I still haven't figured out what wealth they actually create that isn't paper funny money.

I have much respect for you guys Droski, honestly, and it is why I am not an investor, trader, or banker. This stuff is witchcraft as far as I'm concerned.

the banks borrow at a lower rate than they loan at. they make that profit. traders generate cash by profitable trades. brokers generate cash flow by buying and selling.

 

[WA_Vol]

On the basis of 2006 market data that were indicating a marked decline, including lower sales, rising inventories, falling median prices and increased foreclosure rates,[16] some economists have concluded that the correction in the U.S. housing market began in 2006.[25][39] A May 2006 Fortune magazine report on the US housing bubble states: "The great housing bubble has finally started to deflate ... In many once-sizzling markets around the country, accounts of dropping list prices have replaced tales of waiting lists for unbuilt condos and bidding wars over humdrum three-bedroom colonials."[14]

 

[WA_Vol]

Time and time again, Frank insisted that Fannie Mae and Freddie Mac were in good shape. Five years ago, for example, when the Bush administration proposed much tighter regulation of the two companies, Frank was adamant that "these two entities, Fannie Mae and Freddie Mac, are not facing any kind of financial crisis." When the White House warned of "systemic risk for our financial system" unless the mortgage giants were curbed, Frank complained that the administration was more concerned about financial safety than about housing.

Frank's fingerprints are all over the financial fiasco - The Boston Globe

One of many articles pointing out the truth.



the banks borrow at a lower rate than they loan at. they make that profit. traders generate cash by profitable trades. brokers generate cash flow by buying and selling.

Doesn't explain why a minority democrat in a House of over 400 members is setting housing policy for the White House and a Republican Congress. Not to mention, he had a brothel run out of his apartment at one time, one of the least respected members of Congress.

 

[rjd970]

the banks borrow at a lower rate than they loan at. they make that profit. traders generate cash by profitable trades. brokers generate cash flow by buying and selling.

I understand. But what wealth is being "created"? Again, it seems to me that it is all paper. If a bank goes under, what assets do they really have? The building they operate out of? If they are borrowing money, then they really don't own the house that I pay a mortgage on, it would be who they are borrowing from, and so forth. Right? It just seems like it is all paper. They are not making wealth, they are a middle man that charges interest on money they don't even really own. And it gets even worse once you get to the federal reserve, who just prints money out of thin air and then distributes it out at interest.

That is what pisses me off the most about this bailout business. They should be allowed to go under, but don't...and instead take our hard earned taxpayer money and lend it back to us at interest.

 

[vols4sure]

I did research this. The agency responsible for regulating Fannie and Freddie told Bush repeatedly that they were in trouble, and when he begun to speak publicly about it, Bush fired him.

Since you researched this, I would assume you have a source for Bush firing the regulators that spoke out publicly. I would like to see it because I will place quite a bit more blame on Bush than I currently do.