The first legislative crackdown you'll soon see in the US will be against toxic loans and unregulated mortgage clerks, which by the time our bought-and-sold-NAR/NAHB-purchased-Senate gets around to it will be a moot point anyway, because the market will already have taken care of the issue by cutting off access to funds.
For the housing wonks out there, here's Sen. Sarbanes laying it on the line against predatory lending in this video which preceded the economist panel discussion I posted earlier.
For the housing wonks out there, here's Sen. Sarbanes laying it on the line against predatory lending in this video which preceded the economist panel discussion I posted earlier.
You know the NAR and NAHB must be plenty pissed their $$$ haven't shut him up, being the #1 and #4 Senate PAC contributors last year. Maybe he didn't get his check in the mail?
Bottom line folks is that corrupted mortgage brokers steered clueless and greedy homedebtors into toxic loans to earn bigger commissions, when those homedebtors would have been much better off with a different debt instrument, namely the 30-year fixed (which if you remember Greenspan told people to get out of too.. hmmm...).
Those toxic loan proceeds then helped drive up home prices to insane levels, and now the loan holders will default to the tune of over $1 Trillion, leaving the bagholders (China, hedge funds, etc) of the commoditized loan bundles in a world of hurt, and the prices of US homes collapsing to pre-bubble levels.
Too bad the Senate didn't get involved when it could have helped. Instead they're the CSI team showing up to zip open the body bag and start the investigation.
Bottom line folks is that corrupted mortgage brokers steered clueless and greedy homedebtors into toxic loans to earn bigger commissions, when those homedebtors would have been much better off with a different debt instrument, namely the 30-year fixed (which if you remember Greenspan told people to get out of too.. hmmm...).
Those toxic loan proceeds then helped drive up home prices to insane levels, and now the loan holders will default to the tune of over $1 Trillion, leaving the bagholders (China, hedge funds, etc) of the commoditized loan bundles in a world of hurt, and the prices of US homes collapsing to pre-bubble levels.
Too bad the Senate didn't get involved when it could have helped. Instead they're the CSI team showing up to zip open the body bag and start the investigation.
