To be clear, not too many were worried about stopping the practice. The paper was gone before the ink was dry. Everyone was riding the wave, and laughing all the way. I remember getting calls from lending houses with terms that made absolutely no sense. When I questioned the telemarketer, they just said that those were the terms. It was contrary to everything I had seen in all my years of borrowing.
Idiot. To the investors that you claim Obama ruined? What was the alternative? They lose everything?
The crash was not due to any housing bubble. Duh. The housing was a vehicle for predatory lending/investing practices.
And who are Gramm/Leach/Bliley?
Canada, like so many other countries, could have fallen victim. They weren't stupid enough to invest in MBDs as many in Europe were.
LMAO. Why did it take so many years then?
So then the investors lose everything anyway? Why do you blame Obama?
Because the paper was out the door before the ink dried.
It wasn't just 'banks'. It was private lenders as well. They make the money off of the points/fees, and dump the garbage on Wall St. It's not like they kept the loan and earned the interest.
Agree. But...a lot of the bad paper was for equity loans used to speculate on houses, buy boats, etc. Much of the bad paper did nothing for new housing starts. My properties had twice the equity within a year or two. Many people borrowed against the new equity and spent like drunken sailors.
On that we agree
Let's not forget to include AIG here.
AIG gave AAA ratings to this junk, and then defaulted when the shit hit the fan
Nobody. When AIG is telling Wall St. that the paper is gold, and when the banks take their fees/points and immediately dump the paper, why not just play the game? How ridiculous is it when Wall St. starts trading bad paper in credit default swaps?