August 09, 2007

Mortgage Mess: Clean-up in Aisle Three!

Looks like we're not gonna need government regulation of the mortgage market after all. The market is gonna take care of this mess for us

The days of liar's loans, stated income, no-money-down, negative amortization, teaser rate, adjustable rate, high LTV toxic mortgage crap went the way of the puppet.

Why? Because the loans didn't get paid back, and the bagholders said no-more.

So all of the companies involved in that crap have gone out of business, or are on their way out.

It's funny, the Senate will hold hearings in 2008 on this disaster, all kinds of new laws and regulations will go into effect, and in the end it won't matter. The market, as it always does, cleans up its own messes.

The only problem though is that this mess was massive and historic, and the clean-up will be devastating.

A little regulation would have gone a long way in 2002, 2003, 2004. But now that the market had to do it, versus our corrupted and incompetent Congress and President, the cleanup will go on and on an on...

2007, 2008, 2009, 2010, 2011, 2012, 2013, ...


Agent #777 said...

Well, then, - FIRST!

I gotta take them where I can get them!

Anonymous said...

Well if its stopping now and most adjustments occur in 5 years or less then I'd say by 2012 the lion's share of this mess will be worked out.

Anonymous said...

Indeed, the market will clean up the mess, but the market's way of cleaning up messes is (metaphorical---or real) arson.

And that kind of arson spreads to people who didn't deserve it as well as those who did.

The regulation---which of course used to be there all along until the recent stupid years---will be reapplied to prevent the next mess from getting too big.

Anonymous said...

*** FLASH ***

Futures down big. French bank BMP has announced suspension of three funds with exposure to U.S. sub-prime mess because they can no longer calculate their value. ALSO: NO REDEMPTIONS ALLOWED!!!

Interesting CNBC is reporting this but Yahoo! Finance hasn't run a single piece.

Anonymous said...

The U.S. dollar is going to be crushed in the bailout.

Keep Hitlery out of whitehouse said...

Hitlery was on CNBC this week talking about her plans for a tax payer funded mortgage bailout if she's elected president.

Don't vote for this bolshevik! Look in your hearts dems. Even you know this witch is bad for the US.

Mike Mosieur said...

Oh God, now we have the Gub-ment screwing with the housing market.

Chuckie Schummer can get us out of this mess!

Hey Chuck and the rest of you boneheads in Gub-ment...STAY OUT OF THIS!!

Try enforcing the existing rules and catching and prosecuting those involved in fraud. Do not try to legislate the free market. Let the market forces take it where it should go.

“Already there are a number of legislative proposals on the table, with important implications for the ability of young men and women to purchase homes and existing homebuyers to sell. “

This would keep prices artificially high and reward unwise and uninformed speculation. Let nature take it’s course. The weak and stupid need to get burned and stay out of a market they don't understand.

Anonymous said...

Bring a Big Frickin mop!

Anonymous said...

Don't forget the 10 yr IO's. Those people can't refi because their LTV is upside down. They may be just making pymts now, but once the IO period is over... Same goes for all those HELOCs with Interest Only draw periods.... Good luck guys!

GT said...

i saw on cnbc trump mortgage is no more. that is laughable. never even heard of it. why would you want a trump mortgage...i'm pretty sure their rates arent so great and it isnt something you can regularly show off like trump water.