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Old 03-05-2008, 07:52 AM   #41
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Makes me want to go out and take a 100% cash out refi on this paid-off home. This being Texas, though, that's not allowed.

I'm tired of the responsible always bailing out the irresponsible through Uncle Sam.

Any direct bailouts should be placed as a lien on the property, payable when the property sells, assuming there is equity remaining after paying off the mortgage(s).
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"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

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Old 03-05-2008, 08:54 AM   #42
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they are raising prices tremendously
One of those things I never understood completely. "We're not sure if you're going to be able to make your payments...so we're going to make them bigger"
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Old 03-05-2008, 09:25 AM   #43
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One of those things I never understood completely. "We're not sure if you're going to be able to make your payments...so we're going to make them bigger"
Well, that may be with some subprime/predatory lenders on delinquent clients, but Brewer's referring to the premiums that insurance companies charge on mortgages to insure them for repackaging to investors.

Buffett sure seems to be training a new generation of insurance analysts. The next few years of premiums in this industry are going to be like 2006 was for property-damage premiums or 2002 for junk bonds...
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Old 03-05-2008, 09:29 AM   #44
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Buffett sure seems to be training a new generation of insurance analysts. The next few years of premiums in this industry are going to be like 2006 was for property-damage premiums or 2002 for junk bonds...
Buffett sure knows how to capitalize on periods where premiums are very high and security is a major concern. A rock-solid AAA rating and a ridiculous mountain of cash can certainly make you the one scared individuals and institutions want to do business with.
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"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
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Old 03-05-2008, 09:38 AM   #45
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I disagree with Bernanke's suggestion that lenders should forgive a portion of homeowners' loans. I also think Ben is having trouble sleeping at night, because he knows full well just how serious the condition of our economy is in right now. Sure, he is very desperate, but his apparent pessimism should be a clue to us all that some very ugly things are about to happen to our economy.
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Old 03-05-2008, 09:42 AM   #46
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I disagree with Bernanke's suggestion that lenders should forgive a portion of homeowners' loans. I also think Ben is having trouble sleeping at night, because he knows full well just how serious the condition of our economy is in right now. Sure, he is very desperate, but his apparent pessimism should be a clue to us all that some very ugly things are about to happen to our economy.
I think Ben needs to shut up for a while. He didn't create this problem -- I think lack of institutional/regulatory control in the banking sector plus Greenspan's easy money are largely to blame for that -- but unlike Easy Al, Helicopter Ben doesn't have the street cred to calm the markets. Even when he made mistakes, the markets were calmed with Greenspan at the helm, but any time Bernanke speaks, the market panics.

I tend to think Bernanke is an underpromise-and-overdeliver kind of guy, someone who doesn't want to give false hope. As a result I think he exudes a pessimism the markets don't want to hear. He seems to fuel the fires of uncertainty which is the worst fuel to throw at financial markets.
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"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
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Old 03-05-2008, 10:42 AM   #47
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I have to agree with the President of the Mortgage Bankers Association in his response to Bernanke's Proposal to cut the principal for homeowners facing foreclosure, "It is not a casual thing to disrupt an existing legal contract, as those contracts are the basis on which our market economy is based. That said, there is an incentive for lenders, borrowers and investors to work together to maximize the value of the relationship."

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Old 03-05-2008, 11:44 AM   #48
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Scott Burns says the crisis is overblown ...

Foreclosure 'crisis' is overblown - MSN Money
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