tagged w/ Banking Collapse
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Rep. Barney Frank (D-MA): "You can reach out to your fellow young people and make it clear to them, that when [sic] they may not be satisfied with everything we've done -- we're not satisfied with everything we've done. The way to cure that is to give us more authority and more ability" Giving either side more authority is a scary thought. Be careful what you wish (vote) for!Rep. Barney Frank (D-MA): "You can reach out to your fellow young people and make... more
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Citigroup has hired banking industry lobbyist Richard F. Hohlt, the man who blocked banking regulation in the 1980s and "played a pivotal role helping to prolong dubious industry practices that cost taxpayers $150 bilion to clean up." He was also instrumental in helping the Bush administration "out "Valerie Wilson as a CIA agent.
After taking $45 billion in TARP assistance, Citigroup has struck a "loss sharing deal" with the government, which makes us (taxpayers) on the hook for an additional future loss $214 billion dollars!
As if they hadn't plundered enough, now they've hired Hohlt to fight any future regulations.
What an obscene example of hubris.Citigroup has hired banking industry lobbyist Richard F. Hohlt, the man who blocked... more
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In the mortgage industry, they are called "liar loans" - mortgages approved without requiring proof of the borrower's income or assets. The worst of them earn the nickname "ninja loans," short for "no income, no job, and (no) assets."
The nation's struggling housing market, already awash in subprime foreclosures, is now getting hit with a second wave of losses as homeowners with liar loans default in record numbers. In some parts of the country, the loans are threatening to drag out the mortgage crisis for another two years.
"Those loans are going to perform very badly," said Thomas Lawler, a Virginia housing economist. "They're heavily concentrated in states where home prices are plummeting" such as California, Florida, Nevada and Arizona.
Many homeowners with liar loans are stuck. They can't refinance because housing prices in those markets have nose-dived, and lenders are now demanding full documentation of income and assets.
Losses on liar loans could total $100 billion, according to Moody's Economy.com. That's on top of the $400 billion in expected losses from subprime loans.
Fannie Mae and Freddie Mac, the nation's largest buyers and backers of mortgages, lost a combined $3.1 billion between April and June. Half of their credit losses came from sour liar loans, which are officially called Alternative-A loans (Alt-A for short) because they are seen as a step below A-credit, or prime, borrowers.
Many of the lenders that specialized in such loans are now defunct - banks such as American Home Mortgage, Bear Stearns and IndyMac Bank. More lenders may follow.
The mortgage bankers and brokers who survived were more cautious, but acknowledge they too were swept up in the housing hysteria to some extent.In the mortgage industry, they are called "liar loans" - mortgages approved... more
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ivxx
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added this
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3 years ago
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This is one of the most insightful articles I have read concerning the current financial crisis in America and the world. If you are interested in understanding what is really happening, this is a must read.This is one of the most insightful articles I have read concerning the current... more
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With the American housing market in its worst crisis since the Great Depression of the 1930s, President Bush is expected to sign into law a massive new government intervention designed to slow the slide.
Bush's gift to Wall Street only helps home owners by reducing their mortgage payments a maximum of 10%. Bush's plan does nothing to address falling house values and that is what this article is all about. Many or the people walking away from their mortgages are upper middle class professionals making a sensible business decision.
Since home values have dropped so much an huge percentage of homes in America no longer make sense as an investment.With the American housing market in its worst crisis since the Great Depression of the... more
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"CARSON CITY, Nev. (AP) — The 28 branches of 1st National Bank of Nevada and First Heritage Bank, operating in Nevada, Arizona and California, were closed Friday by federal regulators.
The banks, owned by Scottsdale, Ariz.-based First National Bank Holding Co., were scheduled to reopen on Monday as Mutual of Omaha Bank branches, the Federal Deposit Insurance Corp. said.
The FDIC said the takeover of the failed banks was the least costly resolution and all depositors — including those with funds in excess of FDIC insurance limits — will switch to Mutual of Omaha with "the full amount of their deposits."
Hopefully, these depositors and account holders will be insured up to the federal limit of $100,000.00. This is the second FDIC takeover since the IndyMac branches in California!! "CARSON CITY, Nev. (AP) — The 28 branches of 1st National Bank of Nevada... more
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It is only now becoming clear that our banking system is in trouble despite assurances from Bush. The system, as it is presently, rewards a few for bank failures while countless depositors will find themselves with no money and no federal insurance on their deposits. Bush was instrumental in allowing Wall Street to hijack the banks and our savings.It is only now becoming clear that our banking system is in trouble despite assurances... more
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When will the American people start to run scared and begin wanting worthless US dollars instead of worthless FDIC assurances.
American banks hold 1.28 Quadrillion dollars in worthless gambling notes called "derivatives"
If the American people lose faith in the banks, the system will rapidly self distruct.
Every time there is a Bush in the Whitehouse, the taxpayers suffer terrible losses in the backing system. Remember the S&L collapse? Bush was Vice President.When will the American people start to run scared and begin wanting worthless US... more
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`You might just as well say,' added the March Hare, `that "I like what I get" is the same thing as "I get what I like"!'
`You might just as well say,' added the March Hare, `that "I like what I... more
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Borrowing at Fannie Mae, the U.S. government-sponsored mortgage company, has never been so expensive and it may not get better any time soon.Borrowing at Fannie Mae, the U.S. government-sponsored mortgage company, has never... more
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Billionaire investor Eli Broad said the U.S. economy is in the worst recession since World War II and a recovery in the housing market is ``several years'' away.
``This is worse than any recession we've had since World War II,'' Broad, 75, said in an interview yesterday. Broad, the founder of homebuilder KB Home, said the U.S. should avoid a depression on the scale of the 1930s because the country now has sufficient ``safety nets.''
Billionaire investor Eli Broad said the U.S. economy is in the worst recession since... more
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Like Camus' "The Plague" no one is talking about the perfect financial storm that is quickly gathering and converging on a huge financial house of credit cards and worthless bank assets.
Go on E-Bay and search for "silk carpet" and you will see dozens of once priceless carpets sitting on E-Bay with zero bids.
I am interestest if someone knows of a safe place to puts one's assets these days of failing banks and brokerage houses. The government will not be able to stop the panic once it starts and that could be any day and say a really big fall in the stock market.Like Camus' "The Plague" no one is talking about the perfect financial... more
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