Comments on: Occupy the mortgage lenders Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 By: NedStark Tue, 25 Oct 2011 22:26:22 +0000 “But $350 billion is roughly what the financial sector as a whole earned in an average quarter during the credit boom – and profit levels in recent quarters have reached or exceeded those levels.”

You don’t really believe that the “profits” recently reported by the big banks were real, do you? It was all accounting gimmicks, manipulated to make it look to investors like they weren’t in such bad shape.

These guys have managed their businesses into the ground. It might be worth it to help neither the housing market nor the financial industry…just to see the big banks implode under the weight of their own greed and stupidity. Especially if the Justice dept would actually do their job and prosecute these white collar criminals. At least then folks might perceive that there’s some amount of fairness in our political/economic/justice system.

By: DrJJJJ Tue, 25 Oct 2011 17:11:38 +0000 I watch McMansion after Mcmansion being built in our neighborhoods for years by those that had to keep up with the Jones and now I’m watching them walk away after they borrowed every dime the banks would lend them and no, I have nothing to do with banking-they haven’t been any better, but I haven’t heard of one home gambler being called on a lie-they just tranferrred the loss to taxpayers! When I was down in Vegas for a business trip, I heard of waiters and waitresses that had bought several expensive homes on false income claims only because they were appreciating assets and they were only bought to flip/gamble with! What’s wrong with this picture? 3 sides to every story, 2 sides and the truth!

By: goldelux Tue, 25 Oct 2011 09:04:26 +0000 It’s an interesting idea for lenders to be invited to forgo a year’s profits, and surely not too onerous if spread over a number of years.

But. As the economic and financial crisis worsens, house prices drop further and more jobs go, the problem will surely get worse.

So the logical thing to do would be to step in now and pree-empt the spiral of decline by converting all mortgage lending to a not-for-profit arrangement.

UK building societies provide an excellent model.

By: edgyinchina Tue, 25 Oct 2011 00:10:51 +0000 DrJJJJ: talk about transference. You must support irresponsibility, un-accountability, and fraud. Which means you are either a crook yourself, or a banker – oops… that’s the same thing…
You should change your handle to DrFailure_To_Accept_Responsibility

By: DrJJJJ Mon, 24 Oct 2011 22:26:59 +0000 Ya, don’t expect us to pay for our poor decisions-it’s not our fault-it’s somebody elses, get “them” to pay for it! Classical transference- a mental disorder!!

By: BowMtnSpirit Mon, 24 Oct 2011 21:12:51 +0000 “…the government should reduce the value of mortgages when they are sufficiently underwater, with the government and the banks splitting the losses; in exchange, the borrower must agree that the new loan becomes “full recourse.” That means that lenders could pursue borrowers’ other assets – not just the house – in case of default.”

If this is done, there will be a violent revolution in this country. This is an incredibly pernicious ploy to further socialize the costs of the bubble upon taxpayers and to permit the banks to pursue their equity outside of the original collateral. This HURTS taxpayers and homeowners, it does NOT help them! For someone who has already lost their home, it saddles them with additional taxes and no recourse whatsoever. For a struggling homeowner, it marginally assists them, but the assistance is offset by increased taxes and the danger of losing other assets not originally used to collateralize the mortgage. This is a purely pro-banks proposal.

You want to see incensed Americans? Pull this garbage and you will see more outrage than you ever imagined.

By: DrJJJJ Mon, 24 Oct 2011 20:31:46 +0000 Occupy the home buyers that lied about their incomes to gamble with our futures on a home miles above their means! Real easy to check too-W2s please for the year you borrowed! If ya didn’t lie you’ve got nothin to hide! If you did lie, you should get no help and get stuck with a good portion of the loss! Seen bank stock prices lately-looks like they’re paying for their lyin/cheatin & stealin! Hpow many home buyers/gamblers have been prosecuted? That’s what I thought! It’s a Fed Offense to lie on a Fed/Tax payer back loan FYI! Start in Nevada-bet ya find 10s of thousands that cheated the rest of us and I haven’t heard a peep about it! Now they’re talking cash for cons-more bailout for flakes! Sorry to those that had good intent/were honest-the flakes stold your bailout money we don’t have now too!

By: txgadfly Mon, 24 Oct 2011 15:45:05 +0000 What happened in the mortgage and mortgage backed CDO market was purely and simply criminal.

To deter systemic crime, cultural crime, repeated and knowing crime by bankers, the responsible individuals must be indicted for what they actually did. This means that the highest raking bank employees who knew of and either approved of or did not disapprove of these frauds need to be indicted on Federal bank fraud charges. This will result in high ranking financial officials facing tens of thousands of charges for even more financial crimes. Thousands of them must end up in prison or this will be done again.

Currently, given the pathetic state of corporate governance laws in the USA, shareholders who had no information about those policies and who had no practical control over the relevant Boards of Directors will be hit with huge fines while the criminals who did all this damage continue to be employed as bankers! This is a gross, gross miscarriage of justice and will destroy banks in the USA. Does the Government think investors are fools? If we wanted a Libyan style banking system, we would have bought stock in Libyan banks! Time to end corruption and self-dealing in the US Government.

By: matthewslyman Mon, 24 Oct 2011 12:08:17 +0000 The mortgage system needs to be fixed, or it will lead to another crisis.

In the UK, the mortgage borrower carries all of the risk (which creates major problems for labour mobility in a down-housing market turn).

In the USA, the bank carries all of the risk (which creates major problems with fraudulent mortgage applications, and elective debt default.)

US and UK mortgage law is both flawed. The only solution is to balance the risk between bank and borrower, as per “Islamic finance”. (I’m not a Muslim, never have been and never will be; but this principle offers an obvious and principled solution.)