Log in or Sign up
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
Quantity vs Value
>
Reply to Thread
Message:
<p>[QUOTE="medoraman, post: 3335286, member: 26302"]I would argue there were many causes of 2008. One I wrote about for my final MBA paper when I specialized in securitization. It was that bad paper cannot be diversified away. Why was there bad mortgages? One reason was greedy agents and poor underwriting. People simply thought diversification solved all woes, and they don't. Another huge reason, though, was Barney Frank and his hearings forcing banks to write bad loans. Mortgages really were the spark of the whole thing, creating a liquidity crisis that brought down others.</p><p><br /></p><p>Yes, there are greedy people. Yes, there should have been more oversight to prevent this. Many on the inside and outside of the mortgage world saw the danger but were ignored. However, just as guilty were those in Washington who thought they could browbeat and embarrass financial firms into forcing loans that the financial firms pretty much KNEW would default, and KNEW the borrowers were going to be worst off for getting the loan. I simply wish those in Washington would get the blame they also deserve. You are not helping a poor person by giving him a loan he cannot repay. That borrower now lost his down payment and any principal he made, his credit got ruined. All so certain congresspeople could say they "did something about it to make it more fair".[/QUOTE]</p><p><br /></p>
[QUOTE="medoraman, post: 3335286, member: 26302"]I would argue there were many causes of 2008. One I wrote about for my final MBA paper when I specialized in securitization. It was that bad paper cannot be diversified away. Why was there bad mortgages? One reason was greedy agents and poor underwriting. People simply thought diversification solved all woes, and they don't. Another huge reason, though, was Barney Frank and his hearings forcing banks to write bad loans. Mortgages really were the spark of the whole thing, creating a liquidity crisis that brought down others. Yes, there are greedy people. Yes, there should have been more oversight to prevent this. Many on the inside and outside of the mortgage world saw the danger but were ignored. However, just as guilty were those in Washington who thought they could browbeat and embarrass financial firms into forcing loans that the financial firms pretty much KNEW would default, and KNEW the borrowers were going to be worst off for getting the loan. I simply wish those in Washington would get the blame they also deserve. You are not helping a poor person by giving him a loan he cannot repay. That borrower now lost his down payment and any principal he made, his credit got ruined. All so certain congresspeople could say they "did something about it to make it more fair".[/QUOTE]
Your name or email address:
Do you already have an account?
No, create an account now.
Yes, my password is:
Forgot your password?
Stay logged in
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
Quantity vs Value
>
Home
Home
Quick Links
Search Forums
Recent Activity
Recent Posts
Forums
Forums
Quick Links
Search Forums
Recent Posts
Competitions
Competitions
Quick Links
Competition Index
Rules, Terms & Conditions
Gallery
Gallery
Quick Links
Search Media
New Media
Showcase
Showcase
Quick Links
Search Items
Most Active Members
New Items
Directory
Directory
Quick Links
Directory Home
New Listings
Members
Members
Quick Links
Notable Members
Current Visitors
Recent Activity
New Profile Posts
Sponsors
Menu
Search
Search titles only
Posted by Member:
Separate names with a comma.
Newer Than:
Search this thread only
Search this forum only
Display results as threads
Useful Searches
Recent Posts
More...