Indeed, many innocent people were brutalized to keep the housing market and economy booming. The clueless buyers were feed upon by the Real Estate Companies, Real Estate Brokers, and the Builders. The Bush Administration knew full well about the housing bubble at least a couple of year before the burst. The Federal Reserve keep advising congress and the American people that the situation was contained even as the housing industry continue to over build. LOL What a joke, and the guilty parties are not being investigated or punished, but at least some congressmen and Presidential candidates and trying to make financial amends to the buyers, who were hustled into this mess.
Regards, LelandJ Stephen Russell wrote: > On Thu, Feb 14, 2008 at 12:41 PM, Leland F. Jackson, CPA < > [EMAIL PROTECTED]> wrote: > > >> The idea of a sub-prime rate for a mortgage should have been a clue that >> something wasn't right. The prime rate is a very low interest rate that >> banks change each other for loans. So if a bank or mortgage company >> has a booming business, but not enough cash from deposits and investors >> to provide loans, they can turn to the Federal Reserve, which is an arm >> of the world bank, to borrow money at an extremely low rates. Why would >> a bank then loan the fund out at an interest rate lower than it would >> pay the Federal Reserve for the money? On its face such a transaction >> would be a losing deal. >> >> > ------------------------------------------------ > > What? > Sub Prime refers to type of paper they were generating. This was class > c,d,e paper. Or shitty payments are to be expected from these lowlifes. So > make the loan and sweep in after we foreclose and the value of the > investment will have risen and we will make a profit on the sale after > repo. > > They created so many different plans for you to live a dream, all knowing > that the dream was a fantasy. Well for you that is. It was a calculated > plan that worked for a long time, bumping up home prices. Making new home > starts soar! We were doing GREAT! > > Money was being taken out of the short term gains by a lot of owners so they > could now purchase a nice BIG suv to put in front of their nice big home. > > I have heard of a lot of families in McMansions who had the great looking > home, lawn, vehicles, but inside it was pretty stark. > > > > > > > _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[EMAIL PROTECTED] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
