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BD
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8 months ago
in GilroyDispatch.com | Why it truly is Barack Obama's subprime mortgage mess on Gilroy Dispatch
I just wish more people understood this but Obama uses certain phrases and key words to cloud the truth, knowing he will never get challenged. All he has to do is refer to the 8 years of Bush or the Bush policies, but if people really thought about this or read up on the subject, they would ask the question I have and I am sure you have, too: Can you explain how the eight years of Bush policies caused this when it was not Bush who was pushing these subprime loans? I only hope that enough people who are not yet decided just can't bring themselves to pulling the lever for Obama on Tuesday.
2 replies
W
BD: it's been a great 8 years! too bad we can't have a third term.
Gilroy Mortgage Broker
The unwritten saga of subprime is that In order to generate more foreigh capital into the american stock markets, the SEC turned a blind eye when Hi-level Republicans on Senate Finance Committee ventured into the world of foreign capital procurement.
MBS's (Mortgage Backed Securities) were the result. These securities allowed foreign invenstors (China holds 81% of ALL MBS's issued) to invest not in the mortgage, but in the profit stream resulting from these mortgages, typically Adjustable Rate Mortgages(ARM's). The reason more ARM's were written was that foreign investors were willing to hold the securities for the four or five years it took for these ARM's to auto-adjust. At that time, there was no thought in anyone's mind that housing values would fall. Everyone bet on the stellar rise that was taking place in 06-07. The average return on MBS's was 28% in under 10 years.
MBS's became so popular that only upper level brokerage houses offeres them. Schwab, Sherson-Lehman, BofA investments and others RAN to be able to sell these. The fees and write charges were handsome, and since the foreigh investors didnt hold title through these MBS's to real American property, the SEC turned a blind eye.
Late 07- home values hit the precipice. they began to fall and the rest is history.
Neither a republican nor a democrat begun saga. Just the simple result of good old American Greed.
Shame on you Cynthia for blaming it on Obama.
MBS's (Mortgage Backed Securities) were the result. These securities allowed foreign invenstors (China holds 81% of ALL MBS's issued) to invest not in the mortgage, but in the profit stream resulting from these mortgages, typically Adjustable Rate Mortgages(ARM's). The reason more ARM's were written was that foreign investors were willing to hold the securities for the four or five years it took for these ARM's to auto-adjust. At that time, there was no thought in anyone's mind that housing values would fall. Everyone bet on the stellar rise that was taking place in 06-07. The average return on MBS's was 28% in under 10 years.
MBS's became so popular that only upper level brokerage houses offeres them. Schwab, Sherson-Lehman, BofA investments and others RAN to be able to sell these. The fees and write charges were handsome, and since the foreigh investors didnt hold title through these MBS's to real American property, the SEC turned a blind eye.
Late 07- home values hit the precipice. they began to fall and the rest is history.
Neither a republican nor a democrat begun saga. Just the simple result of good old American Greed.
Shame on you Cynthia for blaming it on Obama.
