“Best practices†required that the lender accept “non traditional†evidence of ability to pay – and the reason such evidence was non traditional is that it is not evidence. If a mortgage business followed HUD “best practicesâ€, as in practice it had to do, it meant they were allowing borrowers or their loan officers to make $#!% up.
Tag: CRA
How to fix the financial crisis
Proposed reforms, both left and right, are unlikely to have any effect on the continuing massive misappropriation from the financial system. It is absurd that people are discussing obscure details of the credit swap market. To fix the financial crisis, we have to revoke, or at least denounce and denigrate, Marie Curie’s Nobel prize. When they gave a Nobel prize to Marie Curie for being female, that did not hurt …
Yale Harvard and Basel style Free Enterprise
Basel II is tens of thousands of pages of regulations, no one knows how vast it is, because not all the regulations can be found in any one place, but it could all be replaced by two simple rules: Politically correct victim groups shall always find it easy to borrow money, regardless of their ability or intention to pay it back, and politically well connected businesses shall always make money, regardless of whether they are competently run or not.
Where the money went
The government has been shuffling the money around to obfuscate who stole it. It lends money, and then announces that there is no problem, the money has been paid back. But after much fiddling, the money has mostly come to rest, in that the government is now the proud owner of about one trillion dollars of mortgage backed securities guaranteed by Fannie, Freddie, and the FHA, plus some Fannie, Freddy, …
The vast majority of defaults were black and hispanic
Hat tip Steve Sailer who provides the breakdown of defaults. The proximate cause of the international crisis is that the US$, the international reserve currency, lost much credibility. The proximate cause of the US$ losing credibility was massive defaults by blacks and Hispanics, and the proximate cause of the massive defaults by blacks and Hispanics was affirmative action lending to people whom I could tell at a glance from twenty …
Creating the next crisis 2
Thanks to the generosity of kindly uncle Sam:
Bad credit?
No credit?
No problem! Buy the house of your dreams with no money down!
Creating the next crisis:
In a free market, financiers who take stupid risks lose money, and cease to be financiers. The core of the Obama Bush interventions is to ensure that financiers who take stupid risks continue in business and continue in charge of other people’s money. In the Washington Post, Obama’s chief financial advisers explain their program: In theory, securitization should serve to reduce credit risk by spreading it more widely. But by …
Securitization
From the point of view of oligarchs and crony capitalists, the crisis is not that a lot loans were made to no hablo English wetbacks. The crisis is that people are rejecting securitization of debt. The Obama regime’s capitalism smashing measures are intended not to destroy capitalism, nor to install socialism, but to restore securitization of debt. This is socialism for the financiers, not for the proles: Crony socialism, crony …
Trillion missing, top accountant dead
David Kellerman, the acting Chief Financial Officer and Senior VP at Freddie Mac, was found dead early this morning from at his home in Virginia. It is described as an apparent suicide. The press is rightly comparing this with the very similar “suicide†of Enron’s top accountant. When large sums of money disappear, the person who knows most about where the money went often, by an interesting coincidence, winds up …
Smashing capitalism
President Barack Hussein Obama tells us: Your warranty will be safe. In fact, it will be safer than it has ever been. Because starting today, the United States will stand behind your warranty. This reads like something out of “Atlas Shruggedâ€. I predict fifty percent inflation or so over the next three or four years – and that is if we eventually turn back from this course, or at least …