barbarus
Recycles dryer sheets
- Joined
- Aug 1, 2007
- Messages
- 433
Here's One You Can Read to the Kids....
- Thread starter barbarus
- Start date
chinaco
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Feb 14, 2007
- Messages
- 5,072
Pretty Good story. Classic con scheme!
It is certainly true and applicable... to investment bankers, market analyst (and rating agencies), and small investors (the mark).
If it is too good to be true!!!
It is certainly true and applicable... to investment bankers, market analyst (and rating agencies), and small investors (the mark).
If it is too good to be true!!!
dex
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Oct 28, 2003
- Messages
- 5,105
' Moral: Substitute housing for monkeys. As the winter of the US economy arrives, you still have the house you had before the price was bid up. Now that prices are falling back down, who has your savings?'
I have to disagree that that this is a valid annology for the mortage crisis.
The people who lost money are
The secondary mortgage bond holders
Those who had equity in the house and lost it because they could not pay the increase variable mortgage rate.*
Those who can pay the mortgage but are selling into a falling market at less than they paid for it.*
* - This is the example of where actual savings could said to be lost. But as we on this board know for proper analysis a portion of the equity would need to be equated to market value rent.
Those that who have not been financially hurt are:
Those who are not selling there home (they may have an unrealized profit or loss)
Mortgage bond holders who did not issue or buy high risk mortgages.
Those who did not have any equity in their home and lost it
Those who benefit from the mortgage crisis
Those looking to buy a home - lower prices
Those looking for a mortgage - lower interest rate
Borrowers in general - lower interest rates.
A pretty poor annology from my point of view. In the mortgage crisis the "con man" got hurt as did some (not all) of those who can not pay the increased interest rates.
I have to disagree that that this is a valid annology for the mortage crisis.
The people who lost money are
The secondary mortgage bond holders
Those who had equity in the house and lost it because they could not pay the increase variable mortgage rate.*
Those who can pay the mortgage but are selling into a falling market at less than they paid for it.*
* - This is the example of where actual savings could said to be lost. But as we on this board know for proper analysis a portion of the equity would need to be equated to market value rent.
Those that who have not been financially hurt are:
Those who are not selling there home (they may have an unrealized profit or loss)
Mortgage bond holders who did not issue or buy high risk mortgages.
Those who did not have any equity in their home and lost it
Those who benefit from the mortgage crisis
Those looking to buy a home - lower prices
Those looking for a mortgage - lower interest rate
Borrowers in general - lower interest rates.
A pretty poor annology from my point of view. In the mortgage crisis the "con man" got hurt as did some (not all) of those who can not pay the increased interest rates.
