Help & FAQs    Search BCF    Members    Groups    Events Calendar
Resend my activation email : Register : Log in 
BCF: Bike Chat Forums


Subprime Mortgage 2: Bankers Boogaloo

 Reply to topic
Bike Chat Forums Index -> Politics & Current Affairs
View previous topic : View next topic  
Author Message

smegballs
World Chat Champion



Joined: 28 Oct 2007
Karma :
PostPosted: 20:26 - 03 Apr 2013    Post subject: Subprime Mortgage 2: Bankers Boogaloo Reply with quote
Obama administration pushes banks to make home loans to people with weaker credit

Brick Wall
 Back to top
View user's profile Send private message Send e-mail You must be logged in to rate posts

oldpink
World Chat Champion



Joined: 02 Aug 2006
Karma :
PostPosted: 20:35 - 03 Apr 2013    Post subject: Reply with quote
America is Trillions in debt already
so another couple of billion on top of that is hardly going to be noticed
until we (the tax payers) have to stump up when it all turns to shit again Thumbs Up
____________________
I have become comfortably numb

Theory & hazard 24-may 2016, CBT 8th June 2016, MOD 1 2nd Aug 2016 Mod 2 2nd-Nov 2016 - Current bike CBR 600 RR

Last edited by oldpink on 19:44 - 04 Apr 2013; edited 1 time in total
 Back to top
View user's profile Send private message Visit poster's website You must be logged in to rate posts

mr jamez
World Chat Champion



Joined: 04 Aug 2003
Karma :
PostPosted: 21:29 - 03 Apr 2013    Post subject: Reply with quote
"Housing officials are urging the Justice Department to provide assurances to banks that they will not face legal or financial recriminations if they make loans to riskier borrowers who meet government standards but later default."

So when we see bailout round two, are people going to question exactly what the financial sector and governments have been doing for the past six years? I've got a niggling feeling its along the lines of taking us all for suckers Smile
____________________
NSR 125F > BROS 400 > NC30 > BROS 400 > Trumpet S4 > '97 VFR 750
 Back to top
View user's profile Send private message Send e-mail You must be logged in to rate posts

daemonoid
World Chat Champion



Joined: 27 Jun 2008
Karma :
PostPosted: 22:19 - 03 Apr 2013    Post subject: Reply with quote
You know that the sub prime mortgages weren't the real cause of the financial crisis?

It was the fact that those sub prime mortgages were wrapped up as prime investments. The markets were essentially defrauded.

If this time the loans are not disguised they will not turn into a worthless commodity as they will find a true market value.
____________________
current: ducati monster 750
past: hyosung gt250r, bajaj pulsar 180, hyosung gt 125 comet
@thomasgarrard | www.straitjkt.com | www.racingseven.com
 Back to top
View user's profile Send private message Send e-mail Visit poster's website You must be logged in to rate posts

mr jamez
World Chat Champion



Joined: 04 Aug 2003
Karma :
PostPosted: 18:47 - 04 Apr 2013    Post subject: Reply with quote
daemonoid wrote:

If this time the loans are not disguised they will not turn into a worthless commodity as they will find a true market value.


Has the ability for them to do it been removed?

What will happen if they go to court? Judges are dismissing cases such as LIBOR and silver manipulation from of court on 'technicalities'. The corruption is absolute.
____________________
NSR 125F > BROS 400 > NC30 > BROS 400 > Trumpet S4 > '97 VFR 750
 Back to top
View user's profile Send private message Send e-mail You must be logged in to rate posts

ThoughtContro...
World Chat Champion



Joined: 14 Aug 2008
Karma :
PostPosted: 18:49 - 04 Apr 2013    Post subject: Reply with quote
mr jamez wrote:
Judges are dismissing cases such as LIBOR and silver manipulation from of court on 'technicalities'. The corruption is absolute.


Did you expect anything else?
____________________
Prize cunt
--
"In a world of universal deceit telling the truth is a revolutionary act" - George Orwell
 Back to top
View user's profile Send private message You must be logged in to rate posts

smegballs
World Chat Champion



Joined: 28 Oct 2007
Karma :
PostPosted: 19:05 - 04 Apr 2013    Post subject: Reply with quote
daemonoid wrote:
You know that the sub prime mortgages weren't the real cause of the financial crisis?

It was the fact that those sub prime mortgages were wrapped up as prime investments. The markets were essentially defrauded.

If this time the loans are not disguised they will not turn into a worthless commodity as they will find a true market value.


My understanding is that banks wrapped up packages of sub-prime loans, and sold them off as secure credit to other banks, who they labelled them a bit higher and got their bit of mark-up.... Round and round until eventually people realised that instead of buying a bucket of gold, they were buying buckets of shit.
 Back to top
View user's profile Send private message Send e-mail You must be logged in to rate posts

ThoughtContro...
World Chat Champion



Joined: 14 Aug 2008
Karma :
PostPosted: 19:17 - 04 Apr 2013    Post subject: Reply with quote
smegballs wrote:
My understanding is that banks wrapped up packages of sub-prime loans, and sold them off as secure credit to other banks, who they labelled them a bit higher and got their bit of mark-up.... Round and round until eventually people realised that instead of buying a bucket of gold, they were buying buckets of shit.


A bit like the re-insurance swindle that made a large number of Lloyds "names" go bang a long while back.
____________________
Prize cunt
--
"In a world of universal deceit telling the truth is a revolutionary act" - George Orwell
 Back to top
View user's profile Send private message You must be logged in to rate posts

Polarbear
Super Spammer



Joined: 24 Feb 2007
Karma :
PostPosted: 15:43 - 06 Apr 2013    Post subject: Reply with quote
daemonoid wrote:
You know that the sub prime mortgages weren't the real cause of the financial crisis?

It was the fact that those sub prime mortgages were wrapped up as prime investments. The markets were essentially defrauded.

If this time the loans are not disguised they will not turn into a worthless commodity as they will find a true market value.


Oh FFS, the whole game is fraudulent.

It means jack shit. The US will never ever pay back what it owes. Neither will any other country. Did Venezuela ever? Did Argentina?

Fuck financial assholes
____________________
Triumph Trophy Launch Edition
 Back to top
View user's profile Send private message Send e-mail You must be logged in to rate posts

Rogerborg
nimbA



Joined: 26 Oct 2010
Karma :
PostPosted: 18:10 - 06 Apr 2013    Post subject: Reply with quote
I've still never figured out why it's a problem if people default. Banks just invent the money anyway in order to buy property that they graciously allow us to live in, it's not like It's A Wonderful Life. We default, they still own a house that they never really paid for to begin with.

Did I just go a bit Freemental there? I think I may have.
____________________
Biking is 1/20th as dangerous as horse riding.
GONE: HN125-8, LF-250B, GPz 305, GPZ 500S, Burgman 400 // RIDING: F650GS (800 twin), Royal Enfield Bullet Electra 500 AVL, Ninja 250R because racebike
 Back to top
View user's profile Send private message You must be logged in to rate posts

Pigeon
World Chat Champion



Joined: 27 Sep 2012
Karma :
PostPosted: 20:29 - 06 Apr 2013    Post subject: Reply with quote
Rogerborg wrote:
I've still never figured out why it's a problem if people default. Banks just invent the money anyway in order to buy property that they graciously allow us to live in, it's not like It's A Wonderful Life. We default, they still own a house that they never really paid for to begin with.


I think it's to do with the destruction of capital and it's impact on shareholders. EDIT: that came out sarky, wasn't meant to be.

eg The bank creates £1,000,000 in loans by depositing £100,000 in real cash at the BoE.

If 20% of the loans go bad, they still have the houses. Except they've probably used these as collateral for many other loans. If they flood the market with house sales the price drops as supply increases (I know this is obvious). Now it only takes 10% fall in asset price to wipe out their cash, meaning they can't generate new loans, they can't put up anything as collateral for new loans and they are bust. The shareholders take a massive hit, possibly 100%.
Shareholders could be anyone from rich investors, to funds, to people with ISA's, 401k's etc
The bank goes bust, or gets bought out. Everyone at the top loses their prestige (if not their money) and they never work in this area again (in theory).
But importantly, real capital is destroyed if people default on a large enough scale.

We have our own subprime. We had 110% mortgages. We have a huge number of interest only mortgages. And we now have the FLS (tax payer subsized lending) and particularly the New Buy and Help to Buy scheme. You put up 5%, the taxpayer guarantees 20%
Yes it helps people get on the property ladder. But really, it just helps banks, bigcap property builders and governments.
 Back to top
View user's profile Send private message You must be logged in to rate posts

Rogerborg
nimbA



Joined: 26 Oct 2010
Karma :
PostPosted: 10:47 - 07 Apr 2013    Post subject: Reply with quote
Indeed, however I (and also some people who might actually know what they're on about) reckon that the BOE would never, ever refuse permission for a bank to invent money, precisely because of the consequences if they did so.

At some point a bank is going to call their bluff and then it'll get very interesting.
____________________
Biking is 1/20th as dangerous as horse riding.
GONE: HN125-8, LF-250B, GPz 305, GPZ 500S, Burgman 400 // RIDING: F650GS (800 twin), Royal Enfield Bullet Electra 500 AVL, Ninja 250R because racebike
 Back to top
View user's profile Send private message You must be logged in to rate posts

fatpies
World Chat Champion



Joined: 01 Mar 2011
Karma :
PostPosted: 14:23 - 07 Apr 2013    Post subject: Reply with quote
senoir.dude wrote:

eg The bank creates £1,000,000 in loans by depositing £100,000 in real cash at the BoE.


Er the UK operates a zero reserve system, the USA operates a 10% reserve system.

The UK system also has a tendency to make reserves out of thin air based on loans they make too.



Anyway its all about debt, not the way you think it is, just that every penny you have in your pocket or virtually via the bank (which doesn't actually exist btw) has debt and interest attached to it.

Create more money/credit = more interest creamed off.

Destroy credit/money = less interest creamed off.

A number of blokes have attempted to create debt free money. A bloke from Austria who failed art school. A number of blokes in the middle east did too since strict Islam doesn't allow ususry and modern money is ursury!

They all wound up dead.
____________________
"It's easy to attack and destroy an act of creation. It's a lot more difficult to perform one"
 Back to top
View user's profile Send private message You must be logged in to rate posts

mr jamez
World Chat Champion



Joined: 04 Aug 2003
Karma :
PostPosted: 20:58 - 07 Apr 2013    Post subject: Reply with quote
fatpies wrote:


A number of blokes have attempted to create debt free money.


I think Guernsey print debt free money? I remember being shocked at how cheap fuel was when I was working on the island about 5 years ago.

ThoughtControl wrote:


Did you expect anything else?


I expect this Mr. Green

https://gifarchive.files.wordpress.com/2008/02/robo1.gif?w=510
____________________
NSR 125F > BROS 400 > NC30 > BROS 400 > Trumpet S4 > '97 VFR 750
 Back to top
View user's profile Send private message Send e-mail You must be logged in to rate posts

Pigeon
World Chat Champion



Joined: 27 Sep 2012
Karma :
PostPosted: 23:04 - 07 Apr 2013    Post subject: Reply with quote
fatpies wrote:
senoir.dude wrote:

eg The bank creates £1,000,000 in loans by depositing £100,000 in real cash at the BoE.


Er the UK operates a zero reserve system, the USA operates a 10% reserve system.

The UK system also has a tendency to make reserves out of thin air based on loans they make too.


I thought under Basel 3 we all had to run 10%. But I'm wrong again, it's 8.5% and it's been delayed twice and now won't fully come into effect (if at all) until 2019!

Unlimited hypothecation, 0% reserve, light touch regulation and tax payer backing. No wonder The City is laughing it's arse off all the way to the...
 Back to top
View user's profile Send private message You must be logged in to rate posts

fatpies
World Chat Champion



Joined: 01 Mar 2011
Karma :
PostPosted: 08:29 - 08 Apr 2013    Post subject: Reply with quote
senoir.dude wrote:


I thought under Basel 3 we all had to run 10%. But I'm wrong again, it's 8.5% and it's been delayed twice and now won't fully come into effect (if at all) until 2019!

Unlimited hypothecation, 0% reserve, light touch regulation and tax payer backing. No wonder The City is laughing it's arse off all the way to the...



UK isn't part of Basel III, we have a voluntary self regulatory scheme with no penalties if they ignore it. Rolling Eyes
____________________
"It's easy to attack and destroy an act of creation. It's a lot more difficult to perform one"
 Back to top
View user's profile Send private message You must be logged in to rate posts
Old Thread Alert!

The last post was made 13 years, 5 days ago. Instead of replying here, would creating a new thread be more useful?
  Display posts from previous:   
This page may contain affiliate links, which means we may earn a small commission if a visitor clicks through and makes a purchase. By clicking on an affiliate link, you accept that third-party cookies will be set.

Post new topic   Reply to topic    Bike Chat Forums Index -> Politics & Current Affairs All times are GMT + 1 Hour
Page 1 of 1

 
 You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
You cannot attach files in this forum
You cannot download files in this forum

Read the Terms of Use! - Powered by phpBB © phpBB Group
 
Debug Mode: ON - Server: birks (www) - Page Generation Time: 0.12 Sec - Server Load: 0.45 - MySQL Queries: 13 - Page Size: 96.66 Kb