In September 2008, the two largest housing mortgage companies called Fannie Mae and Freddie Mac, which were government-sponsored enterprises, which hold hundreds of billions of dollars of mortgages, because of the losses they took on the mortgages, they essentially became insolvent, and the government had to take them over.
Securities based on risky mortgages are what toppled financial institutions but it was the government that made the mortgages risky in the first place, by making home-ownership statistics the holy grail, for which everything else was to be sacrificed, including commonsense standards for making home loans.
The financial collapse of 2008 got its start with predatory mortgages, that weren't sold by community banks and credit unions, they were sold by fly by night mortgage brokers who had almost zero federal oversight and then the big banks looked over, saw the profit potential and they wanted it bad. So they jumped in and sold millions of these terrible mortgages while the bank regulators just looked the other way.
And I think we need a combination of a freeze, potentially, and also we need to sit down with the - with the banking industry and talk to them about ways in which we can help them be able to work those mortgages out, because it's absolutely imperative that we keep people in their homes.
Debbie Wasserman Schultz
Imagine if the pension funds and endowments that own much of the equity in our financial services companies demanded that those companies revisit the way mortgages were marketed to those without adequate skills to understand the products they were being sold. Management would have to change the way things were done.
When you're in your 20s, you're a little more carefree; you're single. You have a very different way of looking at the world and experiencing the world. But later in your 30s, when you have children, a career, career obstacles, mortgages, car payments and relationships, you have to negotiate; that's a very different life.
Melissa De Sousa
Evidently there is no need for delay, no need for further study, if the government takes a loss and Wall Street makes a profit, but it is absolutely necessary to delay if homeowners might have a chance to cut their mortgages and stay in their homes. This is wrong, and it is time to fight back!
No. It is not acceptable that the 6 largest financial institutions in this country have assets of almost 10 trillion dollars, and issue half of the mortgages and two-thirds of the credit cards. That is too much wealth and power in the hands of a few. If Teddy Roosevelt were alive today he'd tell us to 'break them up.' And he'd be right. These huge banks must be broken up.
In early 2005, I really studied the prospectuses of these mortgage pools that were tranched out into different-rated slices rated by agencies like S&P and Moody's. They had names like Park Place and People's Choice. It was clear to me that many of the buyers of these repackaged subprime mortgages were doing little analysis.
Everything that I've gone through since the end of 2010, from me finding out about my financial adviser stealing, mismanaging my money - that affected everything, from child support, mortgages, to me having to sell my properties, me being in and out of court trying to modify my child support. It's a lot to deal with at one time.
Fortunately I am not the first person to tell you that you will never die. You simply lose your body. You will be the same except you won't have to worry about rent or mortgages or fashionable clothes. You will be released from sexual obsessions. You will not have drug addictions. You will not need alcohol. You will not have to worry about cellulite or cigarettes or cancer or AIDS or venereal disease. You will be free.
One more time? We've done this. We've done this at least four times where there's a new government program to help homeowners who have trouble with their mortgages. None of these programs have worked. I don't know why anyone would think that this next idea is going to work. All it does is delay the clearing of the market. As soon as the market clears and we understand where the prices really are - [that] will be the most important thing we can do in order to improve home values around the country.
Still, I wonder if more women artists, musicians and writers aren't household names because we don't have enough faith in our own pursuits to give ourselves the time we desperately need to be transformed by a creative vision. Maybe that glass ceiling isn't really made of glass at all, but of sticky little fingers, dishes piled in the sink, and mortgages that demand two incomes.
The securitisation of mortgages added a new dimension of systemic risk. Financial engineers claimed they were reducing risks through geographic diversification: in fact they were increasing them by creating an agency problem. The agents were more interested in maximising fee income than in protecting the interests of bondholders. That is the verity that was ignored by regulators and market participants alike.
The farmer after sacrificing pleasure, taste, freedom, thought, love, to his work, turns out often a bankrupt, like the merchant.This result might well seem astounding. All this drudgery, from cockcrowing to starlight, for all these years, to end in mortgages and the auctioneer's flag, and removing from bad to worse. It is time to have the thing looked into, and with a sifting criticism ascertained who is the fool.
Ralph Waldo Emerson
What the mortgage bubble was all about was big banks like Goldman Sachs taking big bundles of subprime mortgages that were lent out largely to low-income, highly risky borrowers, and applying this kind of magic-pixie-dust math to these bundles of securities and slapping AAA ratings on them.
All humans are essentially wild creatures and hate confinement. We need what is wild, and we thrill to it, our wildness bubbling over with an anarchic joie de vivre. We glint when the wild light shines. The more suffocatingly enclosed we are - tamed by television, controlled by mortgages and bureaucracy - the louder our wild genes scream in aggression, anger and depression.
One year I went as a pirate, but from then on I went as a hobo. It's a word you don't hear anymore. Along with 'tramp, ' it's been replaced by 'homeless person, ' which isn't the same thing. Unlike someone who was evicted or lost his house in a fire, the hobo roughed it by choice. Being at liberty, unencumbered by bills and mortgages, better suited his drinking schedule, and so he found shelter wherever he could, never a bum, but something much less threatening, a figure of merriment, almost.
Some think that it is cruel or brutal to remove the bottom 10 percent of our people. It isn't. It's just the opposite. What I think is brutal and "false kindness" is keeping people around who aren't going to grow and prosper. There's no cruelty like waiting and telling people late into their careers that they don't belong - just when the options are limited and they're putting their children through college or paying off big mortgages.
What does a person need - really need? A few pounds of food each day, heat and shelter, six feet to lie down in - and some form of working activity that will yield a sense of accomplishment. That's all - in the material sense. And we know it. But we are brainwashed by our economic system until we end up in a tomb beneath a pyramid of time payments, mortgages, preposterous gadgetry, playthings that divert our attention from the sheer idiocy of the charade. The years thunder by.
Who owns Cross Creek? The red-birds, I think, more than I, for they will have their nests even in the face of delinquent mortgages..It seems to me that the earth may be borrowed, but not bought. It may be used, but not owned. It gives itself in response to love and tending, offers its sesonal flowering and fruiting. But we are tenants and not possessors, lovers, and not masters. Cross Creek belongs to the wind and the rain, to the sun and the seasons, to the cosmic secrecy of seed, and beyond all, to time..."
Marjorie Kinnan Rawlings
I am asking my Attorney General to create a special unit of federal prosecutors and leading state attorneys general to expand our investigations into the abusive lending and packaging of risky mortgages that led to the housing crisis. This new unit will hold accountable those who broke the law, speed assistance to homeowners, and help turn the page on an era of recklessness that hurt so many Americans.
Wesley went everywhere with me from then on. I even wrapped him in baby blankets and held him in my arms while grocery shopping, to keep him warm during the first cold winter. Occasionally someone would ask to see "the baby," and when I opened the blanket, would leap back shrieking, "What is that?! A dinosaur?" Apparently, the world is full of educated adults with mortgages and stock portfolios who think people are walking around grocery stores with dinosaurs in their arms.
In some ways I think it [the strike] was important. I'm not sure that "worth it" is the right term, but it was important. A lot of people lost a lot of things - I was greatly concerned for our crews. Those are the people who really sort of paid. A lot of us in quiet ways did everything that we could to help people pay mortgages.
Edward Allen Bernero
According to the Bank of England the economy is growing too fast so interest rates must rise to counter the supposed inflationary threat. In lay terms, I interpret this to mean that people are working much harder, causing economic growth, and they're in danger of spending their money, which is what the recession-hit shops want them to do. But the Bank and the City seem to think this is wrong, and that if people work harder they should be punished by having their mortgages increased.
Gold has intrinsic value. The problem with the dollar is it has no intrinsic value. And if the Federal Reserve is going to spend trillions of them to buy up all these bad mortgages and all other kinds of bad debt, the dollar is going to lose all of its value. Gold will store its value, and you'll always be able to buy more food with your gold.
No one pushed harder than Congressman Barney Frank to force banks and other financial institutions to reduce their mortgage lending standards, in order to meet government-set goals for more home ownership. Those lower mortgage lending standards are at the heart of the increased riskiness of the mortgage market and of the collapse of Wall Street securities based on those risky mortgages.
The good people of Dakota offered to give Calvin Coolidge a farm if he would live on it. I wouldn't advise you to give those people too much credit for generosity. There is not a farmer in any State in the West that wouldn't be glad to give him a farm if he will paint it, fix up the fences and keep up the series of mortgages that are on it. And if you think Coolidge ain't smart, you just watch him not take it.
it was Greenspan who through some excessive deregulation prepared the monetary ground for the rise of the subprime mortgage companies: a lending market that specialises in high-risk mortgages and loans. 'Innovation', said Greenspan in April 2005, 'has brought about a multitude of new products, such as subprime loans and niche credit programs for immigrants'. It is almost touching to find out that Greenspan cares so much about immigrants.
Financial innovation can be highly dangerous, though almost no one will tell you this. New financial products are typically created for sunny days and are almost never stress-tested for stormy weather. Securitization is an area that almost perfectly fits this description; markets for securitized assets such as subprime mortgages completely collapsed in 2008 and have not fully recovered. Ironically, the government is eager to restore the securitization markets back to their pre-collapse stature.
One third of the $15 trillion of mortgages in existence in 2008 are owned, or securitized by Fannie Mae, Freddie Mac, Ginnie Mae, the Federal Housing and the Veterans Administration. Wall Street buyers of repackaged loans didn't mind buying risky paper because they assumed that they would be guaranteed by the federal government: read bailout from the taxpayers. Today's housing mess can be laid directly at the feet of Congress and the White House.
Walter E. Williams
Big banks churn out page after page of incomprehensible fine print to obscure the cost and risks of checking accounts, credit cards, mortgages and other financial products. The result is that consumers can't make direct product comparisons, markets aren't competitive, and costs are higher. If the playing field is leveled and the broken market fixed, a lot more money will stay in the pockets of millions of hard-working families. That's real stimulus - money to families, without increasing our national debt.
Despite your delusions to the contrary, swingers, by and large, are a civilized lot. We come in all ages, shapes, sizes, nationalities, and ethnicities. We have differing beliefs, varying opinions, IQs, and senses of humor. We have families, friends, careers, hobbies, mortgages, and retirement plans. In short, we're just like everyone else. We don't strap on leather chaps and nipple clamps to go about our day. Wearing kinks on our sleeves like badges of honor isn't our style. Truth be told, we don't talk that much about our dalliances-at least not to Vanilla folk. We're not ashamed. We simply assume most of the world doesn't get our way of life. And more times than not, we're right.
The average net worth of the lower half of the distribution, representing 62 million households, was $11,000 in 2013. About one-fourth of these families reported zero wealth or negative net worth, and a significant fraction of those said they were ' 'underwater' on their home mortgages, owing more than the value of the home. This $11,000 average is 50% lower than the average wealth of the lower half of families in 1989, adjusted for inflation.
The American share of the crisis began with grossly improper mortgages provided to wholly unqualified borrowers, all directly caused and encouraged by government distortion of and interference in the market. The government's market deformation and market intervention was in turn the result of two factors: political favouritism and Leftist ideology, on the one hand; and upon the other, corruption: the blatant cooption of such Friends of Angelo as Mr Dodd and of such bien-pensant Lefties as Mr Frank. The stability and efficiency of any market is directly proportional to the amount and trustworthiness of market information. The Yank Congress, for blatantly partisan and ideological reasons, gave out false information to the market, pushing lenders into making bad loans and giving out, with the appropriate winks and nudges, that Fannie (will Americans ever realise how that sounds) and Freddie, imperfectly quangoised, were 'really just as good as the Treasury' and were in any case 'too big to [be let] fail': which, as it happens, was untrue. Similarly, this moronic mantra of 'too big to fail' was chanted desperately and loudly to drown out the warning sounds of various financial institutions on the brink and of the automobile industry. Incomprehensible sums of public money were thrown at these corporations so that they could avoid bankruptcy, and have succeeded only in privatising profit whilst socialising risk.
Say what you will of religion, but draw applicable conclusions and comparisons to reach a consensus. Religion = Reli = Prefix to Relic, or an ancient item. In days of old, items were novel, and they inspired devotion to the divine, and in the divine. Now, items are hypnotizing the masses into submission. Take Christ for example. When he broke bread in the Bible, people actually ate, it was useful to their bodies. Compare that to the politics, governments and corrupt, bumbling bureacrats and lobbyists in the economic recession of today. When they "broke bread", the economy nearly collapsed, and the benefactors thereof were only a select, decadent few. There was no bread to be had, so they asked the people for more! Breaking bread went from meaning sharing food and knowledge and wealth of mind and character, to meaning break the system, being libelous, being unaccountable, and robbing the earth. So they married people's paychecks to the land for high ransoms, rents and mortgages, effectively making any renter or landowner either a slave or a slave master once more. We have higher class toys to play with, and believe we are free. The difference is, the love of profit has the potential, and has nearly already enslaved all, it isn't restriced by culture anymore. Truth is not religion. Governments are religions. Truth does not encourage you to worship things. Governments are for profit. Truth is for progress. Governments are about process. When profit goes before progress, the latter suffers. The truest measurement of the quality of progress, will be its immediate and effective results without the aid of material profit. Quality is meticulous, it leaves no stone unturned, it is thorough and detail oriented. It takes its time, but the results are always worth the investment. Profit is quick, it is ruthless, it is unforgiving, it seeks to be first, but confuses being first with being the best, it is long scale suicidal, it is illusory, it is temporary, it is vastly unfulfilling. It breaks families, and it turns friends. It is single track minded, and small minded as well. Quality, would never do that, my friends. Ironic how dealing and concerning with money, some of those who make the most money, and break other's monies are the most unaccountable. People open bank accounts, over spend, and then expect to be held "unaccountable" for their actions. They even act innocent and unaccountable. But I tell you, everything can and will be counted, and accounted for. Peace can be had, but people must first annhilate the love of items, over their own kind.
Justin Kyle McFarlane Beau