Luxury Homes of the 99%

tkhayes · November 7, 2011

So what you are saying then is that these derivatives, designed and sold by wall st helped to fuel the bust?

Thanks for helping to make my case, even if I may be mistaken about some of the regulations.... At least it is then an argument for future regulation right?

weekender · November 7, 2011

Quote
So what you are saying then is that these derivatives, designed and sold by wall st helped to fuel the bust?

Thanks for helping to make my case, even if I may be mistaken about some of the regulations.... At least it is then an argument for future regulation right?

I'm not saying that derivatives helped fuel the bust. everyone is saying that. i wish i could take credit for something so obvious.

I'm saying you were wrong in your post. you are also wrong to imply Canada avoided the problem because of stricter regulations. They didnt invest in the same securities of their own free will. No regulations prevented it. Do you know anything about how lax the Canadian listing requirements are? they are far more lax than our NYSE and Nasdaq markets, for example. They have less regulation than us, not more.

Effective regulation is needed for a fair and orderly market. no reasonably intellegent person would dissagree with that.

"The point is, I'm weird, but I never felt weird."
John Frusciante

GeorgiaDon · November 7, 2011

Quote
you are also wrong to imply Canada avoided the problem because of stricter regulations. They didnt invest in the same securities of their own free will. No regulations prevented it. Do you know anything about how lax the Canadian listing requirements are? they are far more lax than our NYSE and Nasdaq markets, for example. They have less regulation than us, not more.

My understanding is that in Canada the entity that sold the mortgage must keep it for some period of time (I think a year). No-one will lend money to a mortgagee if they know they have to hold the note and won't get paid. Simple, and effective.

Don

_____________________________________
Tolerance is the cost we must pay for our adventure in liberty. (Dworkin, 1996)
“Education is not filling a bucket, but lighting a fire.” (Yeats)

kelpdiver · November 7, 2011

Quote
My understanding is that in Canada the entity that sold the mortgage must keep it for some period of time (I think a year). No-one will lend money to a mortgagee if they know they have to hold the note and won't get paid. Simple, and effective.

Don

Many US banks do in fact hold onto a substantial portion of their loans. A steady 4-8% does make money in a nice predictable pattern.

Looping back to what I said, and weekender followed on in more specifics - it's far more complicated a cause and effect than something that new regulations are going to solve.

One consequence of the event, and appears soon to be codified, is that you won't be able to get the home loans as easily as you could. It may in fact be extremely difficult, esp for first time home buyers in expensive markets where the 28%/38% thresholds were commonly exceeded. Regulations have costs, and not just to the evil corporate overlords.

tkhayes · November 8, 2011

http://www.tampabay.com/news/perspective/article1199964.ece

great article and says volumes about the mess and the inability of some to see it.

lawrocket · November 8, 2011