On Fri, Feb 20, 2009 at 1:00 PM, Gruss Gott <[email protected]> wrote:
>
> Dude.  That's all bullshit.  If you actually took 10 seconds to get
> your information from a credible source instead of that bullshit
> you're always reading you wouldn't be so ignorant.  Perpetually.
>
> So I"ll repeat the facts for you that you keep ignoring:
>
> 1.) The ENTIRE sub-prime market - every single mortgage - is LESS THAN $1 T.
>
> 2.) Of that entire market, LESS THAN 10% are under right now.
>
> 3.) That means to solve the problem you keep harping on would cost AT
> MOST $100 Billion.

Let's give it a thought then.

$100 Billion in foreclosures brought down the prices of houses across
the country.
How many people are now upside down in their house because their
neighbors screwed up?
That asset loss means they can't use the equity in their home to buy
nice things like tuition for the kids. Now they need to save and hope
the house they invested in rebounds so it can help them when
retirement comes.

People aren't spending, people aren't borrowing. They're saving and waiting.


> so you're wrong.  Just look at the basic facts.  But as with all lies,
> there's a grain of truth.
>
> The truth in this case is that Congress did force the GSEs to lend to
> sub-prime BUT THEY DIDN'T.
>
> They got around the requirement of lending to sub-prime by buying
> MBSs.  That in turn created a market for CDOs which then encouraged
> investment banks to go loonie.
>
> But simple regulation would've prevent all of that.  Regulation Bush
> could've enacted with no congressional oversight.

Regulation Clinton removed?

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