Comments on: Who is to Blame for the Subprime Meltdown? http://raincityguide.com/2007/09/16/who-is-to-blame-for-the-subprime-meltdown/ Seattle's Leading Resource for Real Estate Information Sun, 08 Nov 2009 01:47:42 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: The Milgram Experiments : National Association of Mortgage Fiduciaries http://raincityguide.com/2007/09/16/who-is-to-blame-for-the-subprime-meltdown/#comment-326889 The Milgram Experiments : National Association of Mortgage Fiduciaries Sun, 19 Oct 2008 05:48:48 +0000 http://raincityguide.com/2007/09/16/who-is-to-blame-for-the-subprime-meltdown/#comment-326889 [...] During the subprime meltdown of 2007, many mortgage brokers and LOs defended their decision to sell subprime loans saying “The lenders were the ones that provided the loans. We were only selling what we were told to sell.”  As wholesale lenders fell, the blame shifted to Wall Street. “It was Wall Street’s fault for creating those toxic mortgage products.”  Now the Wall St investment bankers are failing and the blame continues to shift.  This blog post is not about who is to blame.  I’ve already blogged about blame in other places.  [...] [...] During the subprime meltdown of 2007, many mortgage brokers and LOs defended their decision to sell subprime loans saying “The lenders were the ones that provided the loans. We were only selling what we were told to sell.”  As wholesale lenders fell, the blame shifted to Wall Street. “It was Wall Street’s fault for creating those toxic mortgage products.”  Now the Wall St investment bankers are failing and the blame continues to shift.  This blog post is not about who is to blame.  I’ve already blogged about blame in other places.  [...]

]]> By: rich http://raincityguide.com/2007/09/16/who-is-to-blame-for-the-subprime-meltdown/#comment-323897 rich Tue, 26 Aug 2008 22:18:36 +0000 http://raincityguide.com/2007/09/16/who-is-to-blame-for-the-subprime-meltdown/#comment-323897 The business community relies on certain human traits- our predictability is what makes us vulnerable. We are weak creatures, and as a result tend to be overconsumptive and illogical, and as a result, easily exploited. Did anybody really think Santa lives in Washington and was giving away free money? Does anybody think our government and central bank is run by a bunch of savants and couldn't figure where this was eventually going? If you wonder why you are paying $4 for a gal of gas, it is because of all the extra money that had to be printed, thus devaluating your dollars. This was necessary to keep the lifeblood (money), in the "circular flow" (nationally circulating discretionary income expenditures to pay for each other's labor) at a level where the country can function. This makes up for the money hemmorhaged from the circular flow into the elite's bank accounts. Even though they are hit by inflation, they actually profited from it- for them it is the cost of doing business. The rest of us can't say that. BTW- In what currency do our public officials keep the fruits of their labors? The business community relies on certain human traits- our predictability is what makes us vulnerable. We are weak creatures, and as a result tend to be overconsumptive and illogical, and as a result, easily exploited.
Did anybody really think Santa lives in Washington and was giving away free money? Does anybody think our government and central bank is run by a bunch of savants and couldn’t figure where this was eventually going?
If you wonder why you are paying $4 for a gal of gas, it is because of all the extra money that had to be printed, thus devaluating your dollars. This was necessary to keep the lifeblood (money), in the “circular flow” (nationally circulating discretionary income expenditures to pay for each other’s labor) at a level where the country can function. This makes up for the money hemmorhaged from the circular flow into the elite’s bank accounts. Even though they are hit by inflation, they actually profited from it- for them it is the cost of doing business. The rest of us can’t say that. BTW- In what currency do our public officials keep the fruits of their labors?

]]> By: Debbie H Wang http://raincityguide.com/2007/09/16/who-is-to-blame-for-the-subprime-meltdown/#comment-259219 Debbie H Wang Sat, 09 Feb 2008 03:44:19 +0000 http://raincityguide.com/2007/09/16/who-is-to-blame-for-the-subprime-meltdown/#comment-259219 You are absolutely right. Instead of blaming somebody else, we all should exam ourselves. What have we done to contribute this? What can we do now to prevent this to happen again in the future? As a LO, we should never mislead customer to have a mortgage he/she can't afford to make a profit. We should always take every opportunity to educate our customers and help them to make the right choice. You are absolutely right. Instead of blaming somebody else, we all should exam ourselves. What have we done to contribute this? What can we do now to prevent this to happen again in the future?

As a LO, we should never mislead customer to have a mortgage he/she can’t afford to make a profit. We should always take every opportunity to educate our customers and help them to make the right choice.

]]> By: J. Finney http://raincityguide.com/2007/09/16/who-is-to-blame-for-the-subprime-meltdown/#comment-259025 J. Finney Fri, 08 Feb 2008 22:26:49 +0000 http://raincityguide.com/2007/09/16/who-is-to-blame-for-the-subprime-meltdown/#comment-259025 "creative minds knows no boundary" the investors! They knew from day one the outlay, statistics, and the consequences but were willing to risk it all to make Trillions of dollars, they never actually talk about how much the investment firms actually made from 05' - meltdown, only the losses they suffered, which I'm sure are a drop n the bucket. I also believe that their blame game was calculated and targeted at the backs of the industry who solicited the products to sheild themselves from any immediate ramifications. “creative minds knows no boundary” the investors! They knew from day one the outlay, statistics, and the consequences but were willing to risk it all to make Trillions of dollars, they never actually talk about how much the investment firms actually made from 05′ – meltdown, only the losses they suffered, which I’m sure are a drop n the bucket. I also believe that their blame game was calculated and targeted at the backs of the industry who solicited the products to sheild themselves from any immediate ramifications.

]]> By: ARDELL http://raincityguide.com/2007/09/16/who-is-to-blame-for-the-subprime-meltdown/#comment-208980 ARDELL Tue, 13 Nov 2007 01:46:45 +0000 http://raincityguide.com/2007/09/16/who-is-to-blame-for-the-subprime-meltdown/#comment-208980 Steve, I'm not involved in this thread, but I am an Editor of the site. Your comment with cursing in it posted twice, so I erased one and edited the other. Your comment seemed relevant, but please know that we don't permit cursing here. Thanks. Steve,

I’m not involved in this thread, but I am an Editor of the site. Your comment with cursing in it posted twice, so I erased one and edited the other.

Your comment seemed relevant, but please know that we don’t permit cursing here.

Thanks.

]]> By: steve ellis http://raincityguide.com/2007/09/16/who-is-to-blame-for-the-subprime-meltdown/#comment-208976 steve ellis Tue, 13 Nov 2007 01:41:13 +0000 http://raincityguide.com/2007/09/16/who-is-to-blame-for-the-subprime-meltdown/#comment-208976 Is everyone just *)&*%$ stupid?!!!! If a mortgage originator is selling a product (no doc) etc, that means a bunch of aholes on wallstreet created the product as a sucerity that a rep came to the mortgage company to get the broker/banker to sell it. Is everyone so &)&#*&(#  stupid, they don’t see the similarity in the insurance and investment businesses????!!! Steve ps. Carl Berkelhammer s-cks Is everyone just *)&*%$ stupid?!!!!

If a mortgage originator is selling a product (no doc) etc, that means a bunch of aholes on wallstreet created the product as a sucerity that a rep came to the mortgage company to get the broker/banker to sell it. Is everyone so &)&#*&(#  stupid, they don’t see the similarity in the insurance and investment businesses????!!!

Steve

ps. Carl Berkelhammer s-cks

]]> By: Jillayne Schlicke http://raincityguide.com/2007/09/16/who-is-to-blame-for-the-subprime-meltdown/#comment-185347 Jillayne Schlicke Wed, 26 Sep 2007 22:07:58 +0000 http://raincityguide.com/2007/09/16/who-is-to-blame-for-the-subprime-meltdown/#comment-185347 Here is another one to add to the blame list: "Asian, European, and Anglo Saxon Central Banks." The US Congress is orchestrating a show trial of "predatory lenders". The blame-game was ever thus. Wall Street bankers were hounded after the 1929 crash: some went to prison. But if you track down the root cause of this credit bubble - now popped - the "blame" lies with Asian, European and Anglo Saxon central banks. They created this mess, if that is what we now face. It was they - in effect governments - who intervened in countless complex ways to push down the price of global credit to levels that warped behaviour, as the Bank for International Settlements (BIS) has repeatedly noted. By setting the price of money too low, they encouraged debt and punished savings. —Abrose Evans-Pritchard, in the UK Telegraph, August 21st, 2007. Here is another one to add to the blame list: “Asian, European, and Anglo Saxon Central Banks.”

The US Congress is orchestrating a show trial of “predatory lenders”. The blame-game was ever thus. Wall Street bankers were hounded after the 1929 crash: some went to prison. But if you track down the root cause of this credit bubble – now popped – the “blame” lies with Asian, European and Anglo Saxon central banks.

They created this mess, if that is what we now face. It was they – in effect governments – who intervened in countless complex ways to push down the price of global credit to levels that warped behaviour, as the Bank for International Settlements (BIS) has repeatedly noted. By setting the price of money too low, they encouraged debt and punished savings.

—Abrose Evans-Pritchard, in the UK Telegraph, August 21st, 2007.

]]> By: 7 Ways to Make an Impact | Rain City Guide | A Seattle Real Estate Blog... http://raincityguide.com/2007/09/16/who-is-to-blame-for-the-subprime-meltdown/#comment-185278 7 Ways to Make an Impact | Rain City Guide | A Seattle Real Estate Blog... Wed, 26 Sep 2007 16:58:30 +0000 http://raincityguide.com/2007/09/16/who-is-to-blame-for-the-subprime-meltdown/#comment-185278 [...] 5. Be more credible: Whether taking on short sales, professional status, or subprime lending, Jillayne Schlicke always finds a way to offer the voice of reason by providing an interesting perspective filled with interesting solutions… [...] [...] 5. Be more credible: Whether taking on short sales, professional status, or subprime lending, Jillayne Schlicke always finds a way to offer the voice of reason by providing an interesting perspective filled with interesting solutions… [...]

]]> By: Rhonda Porter http://raincityguide.com/2007/09/16/who-is-to-blame-for-the-subprime-meltdown/#comment-183306 Rhonda Porter Fri, 21 Sep 2007 22:49:41 +0000 http://raincityguide.com/2007/09/16/who-is-to-blame-for-the-subprime-meltdown/#comment-183306 David, what do you propose? How are you going to stop other LOs from doing subprime loans? I apologize for my "tude"...I have two of my clients who I helped with their original mortgages that both wound up in the hands of LOs who put these guys in options ARMs without them understanding what they were in for despite my ongoing communications..etc. One client I should be able to "save"...it's costing him tons in prepays, lost equity, lost closing costs...etc. The other one, I'm not so sure if I'll be able to help...I don't think she has any equity from thanks to the mortgage broker she was dating at the time. Grrrr. So...what do you recommend as an actual plan? Your words are nice but unless you run for office or ??? I'm not sure what you can do. David, what do you propose? How are you going to stop other LOs from doing subprime loans?

I apologize for my “tude”…I have two of my clients who I helped with their original mortgages that both wound up in the hands of LOs who put these guys in options ARMs without them understanding what they were in for despite my ongoing communications..etc.
One client I should be able to “save”…it’s costing him tons in prepays, lost equity, lost closing costs…etc. The other one, I’m not so sure if I’ll be able to help…I don’t think she has any equity from thanks to the mortgage broker she was dating at the time.

Grrrr.

So…what do you recommend as an actual plan? Your words are nice but unless you run for office or ??? I’m not sure what you can do.

]]> By: David Young, #510-LO-34429 http://raincityguide.com/2007/09/16/who-is-to-blame-for-the-subprime-meltdown/#comment-183301 David Young, #510-LO-34429 Fri, 21 Sep 2007 22:14:31 +0000 http://raincityguide.com/2007/09/16/who-is-to-blame-for-the-subprime-meltdown/#comment-183301 Certainly Rhonda. I understand your point. However... ...I believe that we are too individualistic in our approach to business. We don't take a 'community'/'covenant' structure to the way we approach life. We, as loan originators, are most responsible and should 'step up'. We are in this thing called life together. We are not separate, cubbyholes that live unto ourselves. Paradoxically, I believe, those who step up will be given the leadership of the next generation of moneylending and will be able to set the stage for what 'appropriate and honorable lending' is. Certainly Rhonda. I understand your point. However…

…I believe that we are too individualistic in our approach to business. We don’t take a ‘community’/'covenant’ structure to the way we approach life. We, as loan originators, are most responsible and should ’step up’. We are in this thing called life together. We are not separate, cubbyholes that live unto ourselves.

Paradoxically, I believe, those who step up will be given the leadership of the next generation of moneylending and will be able to set the stage for what ‘appropriate and honorable lending’ is.

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