Topic: People say bankers should be in jail for giving out too many loans.
Anonymous A started this discussion 13 years ago #29,950
What about the people who took the loans & didn't pay them back?
squeegee joined in and replied with this 13 years ago, 6 minutes later[^] [v] #434,444
Systemic problems on the supply side don't require adjustments be made on the demand side.
The problem was bankers taking advantage of people by encouraging overspending and writing loans they knew were bad. Yes people made bad decisions, but they had loan officers ramming bad choices down their throats
The problem was bankers taking advantage of people by encouraging overspending and writing loans they knew were bad. Yes people made bad decisions, but they had loan officers ramming bad choices down their throats
Syntax joined in and replied with this 13 years ago, 9 minutes later, 15 minutes after the original post[^] [v] #434,445
It does take two to Tango.
That said Bear Stearns over sold sack of shit packages of loans labeled as Prime. OK other investment banks did that but were labeled to big to fail.
That said Bear Stearns over sold sack of shit packages of loans labeled as Prime. OK other investment banks did that but were labeled to big to fail.
Anonymous D joined in and replied with this 13 years ago, 10 minutes later, 26 minutes after the original post[^] [v] #434,446
Shit tier trolling, mate.
It was the white speculators and property developers who took out enormous loans that created the biggest problems. Those defaults were worse than black people's.
Failing to repay a loan is a contractual tort. Misleading consumers and encouraging them to overstate income to get around regulatory constructs is commonly known as the criminal tort of fraud.
It was the white speculators and property developers who took out enormous loans that created the biggest problems. Those defaults were worse than black people's.
Failing to repay a loan is a contractual tort. Misleading consumers and encouraging them to overstate income to get around regulatory constructs is commonly known as the criminal tort of fraud.
(Edited 5 minutes later.)
Anonymous E joined in and replied with this 13 years ago, 3 minutes later, 29 minutes after the original post[^] [v] #434,448
@434,444 (squeegee)
The government was forcing them to make bad loans. In order to not have lawsuits or having their credentials removed they had to make a lot of loans inner city loans and meet racial quotas and stuff. The feds justified it saying that they would buy up all the bad loans that the banks made with the quasigovernmental Fannie-Mae and Freddie Mac. Then, surprise of surprises Fannie and Freddie got nailed when no one paid. Everyone blames the banks; meanwhile there is a lot of blame to go around. Well meaning but misguided political policies, hedge funds, ratings companies, bad law...
The government was forcing them to make bad loans. In order to not have lawsuits or having their credentials removed they had to make a lot of loans inner city loans and meet racial quotas and stuff. The feds justified it saying that they would buy up all the bad loans that the banks made with the quasigovernmental Fannie-Mae and Freddie Mac. Then, surprise of surprises Fannie and Freddie got nailed when no one paid. Everyone blames the banks; meanwhile there is a lot of blame to go around. Well meaning but misguided political policies, hedge funds, ratings companies, bad law...
Anonymous F joined in and replied with this 13 years ago, 1 minute later, 31 minutes after the original post[^] [v] #434,450
Anonymous D replied with this 13 years ago, 55 seconds later, 32 minutes after the original post[^] [v] #434,452
Anonymous E replied with this 13 years ago, 50 seconds later, 33 minutes after the original post[^] [v] #434,454
Anonymous D replied with this 13 years ago, 18 seconds later, 33 minutes after the original post[^] [v] #434,455
Anonymous E replied with this 13 years ago, 3 minutes later, 36 minutes after the original post[^] [v] #434,457
@previous (D)
As soon as I remember the name of the act the federal government was using I can get the cites. It's on the tip of my tongue. Hard to google when your keywords are "you know, that one law...".
As soon as I remember the name of the act the federal government was using I can get the cites. It's on the tip of my tongue. Hard to google when your keywords are "you know, that one law...".
Anonymous G joined in and replied with this 13 years ago, 4 minutes later, 41 minutes after the original post[^] [v] #434,458
@previous (E)
The government didn't force them to make bad loans. The banks chose variable APR and interest-only payments as the structure for many minority loans. That's what made the loans so bad, not the credit risks of the customers.
The government didn't force them to make bad loans. The banks chose variable APR and interest-only payments as the structure for many minority loans. That's what made the loans so bad, not the credit risks of the customers.
Syntax replied with this 13 years ago, 7 minutes later, 49 minutes after the original post[^] [v] #434,460
@434,457 (E)
I will help you out here.
Ghetto loans forced er encouraged by Gov
Chase bank for instance.
Former Chase Banker Admits His Bank Pushed Minorities Into Subprime Mortgage Loans
http://thinkprogress.org/economy/2011/12/01/379332/former-banker-subprime-pushed/
I will help you out here.
Ghetto loans forced er encouraged by Gov
Chase bank for instance.
Former Chase Banker Admits His Bank Pushed Minorities Into Subprime Mortgage Loans
http://thinkprogress.org/economy/2011/12/01/379332/former-banker-subprime-pushed/
Anonymous E replied with this 13 years ago, 5 minutes later, 54 minutes after the original post[^] [v] #434,463
@434,458 (G)
Variable rates are the only real way to make loans to high risk people. If a community isn't well served enough you get nailed with the Community Reinvestmemt Act. You have to make loans to be allowed to open branches in underserved areas. They then modified the CRA to not allow those loans to be made.
Ehh good cites are proving impossible to find... it just comes down to dick waving between two schools of economists and Appeal to Authority fallacies by writing Nobel Laureate by everyone's name. Pretty much every notable American economist gets a Nobel sooner or later.
Variable rates are the only real way to make loans to high risk people. If a community isn't well served enough you get nailed with the Community Reinvestmemt Act. You have to make loans to be allowed to open branches in underserved areas. They then modified the CRA to not allow those loans to be made.
Ehh good cites are proving impossible to find... it just comes down to dick waving between two schools of economists and Appeal to Authority fallacies by writing Nobel Laureate by everyone's name. Pretty much every notable American economist gets a Nobel sooner or later.
Meta !PARAdoxiHw joined in and replied with this 13 years ago, 2 minutes later, 56 minutes after the original post[^] [v] #434,464
@434,458 (G)
Community Reinvestment Act, though I don't think it played much of a part. Fed money printing and interest rate games were much more to blame, imo.
Community Reinvestment Act, though I don't think it played much of a part. Fed money printing and interest rate games were much more to blame, imo.
Anonymous G replied with this 13 years ago, 18 minutes later, 1 hour after the original post[^] [v] #434,467
@434,463 (E)
> expect some people to be risky loan candidates
> tie their interest rates to economic indicators
> be shocked when loans go delinquent in periods of economic strain
mfw
> expect some people to be risky loan candidates
> tie their interest rates to economic indicators
> be shocked when loans go delinquent in periods of economic strain
mfw
Anonymous E replied with this 13 years ago, 3 minutes later, 1 hour after the original post[^] [v] #434,469
@434,464 (Meta !PARAdoxiHw)
I think the CRA is pretty good in principle (but why do you need a law telling banks to make properly profitable loans in the first place since it is their purpose, anyway). Enforcement got hamfisted, though. The housing bubble is what happens when you punish saving by keeping returns so far below inflation, and when everyone who is an ideal customer is already holding a mortgage you have to make loans somewhere.
I think the CRA is pretty good in principle (but why do you need a law telling banks to make properly profitable loans in the first place since it is their purpose, anyway). Enforcement got hamfisted, though. The housing bubble is what happens when you punish saving by keeping returns so far below inflation, and when everyone who is an ideal customer is already holding a mortgage you have to make loans somewhere.
Anonymous E double-posted this 13 years ago, 1 minute later, 1 hour after the original post[^] [v] #434,470
@434,467 (G)
Or not make the loan, community groups see you turned down someone because by law they get all of the records, and get sued.
Or not make the loan, community groups see you turned down someone because by law they get all of the records, and get sued.
beckyderp !8ElfFaoFao joined in and replied with this 13 years ago, 2 minutes later, 1 hour after the original post[^] [v] #434,471
I'm not reading all this, but I assume it's mostly shit-tier racist libertarian shit. Yes?
Anonymous G replied with this 13 years ago, 2 minutes later, 1 hour after the original post[^] [v] #434,472
Anonymous J joined in and replied with this 13 years ago, 34 minutes later, 1 hour after the original post[^] [v] #434,474
@434,471 (beckyderp !8ElfFaoFao)
> it's mostly shit-tier racist libertarian shit
Pretty much. Some people here are wasting their talents trolling when they are clearly qualified to be writing the Ron Paul newsletter.
> it's mostly shit-tier racist libertarian shit
Pretty much. Some people here are wasting their talents trolling when they are clearly qualified to be writing the Ron Paul newsletter.
Anonymous G replied with this 13 years ago, 18 minutes later, 2 hours after the original post[^] [v] #434,478
Meowmeowderp joined in and replied with this 13 years ago, 3 minutes later, 2 hours after the original post[^] [v] #434,481
Freddy fucked Fanny's holes until they collapsed.
Meta !PARAdoxiHw replied with this 13 years ago, 14 minutes later, 2 hours after the original post[^] [v] #434,486
@434,478 (G)
The majority of subprime loans were not taken out by people of color. Please stop race baiting. Thanks.
The majority of subprime loans were not taken out by people of color. Please stop race baiting. Thanks.
Meowmeowderp replied with this 13 years ago, 53 seconds later, 2 hours after the original post[^] [v] #434,487
But niggers are scum.
Anonymous G replied with this 13 years ago, 13 minutes later, 2 hours after the original post[^] [v] #434,488
@434,486 (Meta !PARAdoxiHw)
But the shit-tier libertarian trolls desperately need more reasons why the working class are inferior people.
FTFY
But the shit-tier libertarian trolls desperately need more reasons why the working class are inferior people.
FTFY
Meta !PARAdoxiHw replied with this 13 years ago, 3 minutes later, 2 hours after the original post[^] [v] #434,489
@previous (G)
Again, it's not the fault of the working class, but the Fed manipulating interest rates, as well as government policies designed to increase the price of housing. Again, please stop with the baiting and please contribute something to the conversation. Thanks, thanx. THanks.
Again, it's not the fault of the working class, but the Fed manipulating interest rates, as well as government policies designed to increase the price of housing. Again, please stop with the baiting and please contribute something to the conversation. Thanks, thanx. THanks.
Anonymous G replied with this 13 years ago, 2 minutes later, 2 hours after the original post[^] [v] #434,490
@previous (Meta !PARAdoxiHw)
But the shit-tier libertarian trolls desperately need more reasons to justify their selfishness.
Thanx.
But the shit-tier libertarian trolls desperately need more reasons to justify their selfishness.
Thanx.
(Edited 19 seconds later.)
Meta !PARAdoxiHw replied with this 13 years ago, 2 minutes later, 2 hours after the original post[^] [v] #434,491
Anonymous G replied with this 13 years ago, 7 minutes later, 3 hours after the original post[^] [v] #434,498
Anonymous A (OP) replied with this 13 years ago, 8 minutes later, 3 hours after the original post[^] [v] #434,499
Meowmeowderp replied with this 13 years ago, 12 hours later, 15 hours after the original post[^] [v] #434,600
*sigh*
No letting niggers work.
No letting niggers work.