How the Feds Invited the Mortgage Mess

[we_are_toast]

Re: How the Feds Invited the Mortgage Mess

Ohhh, those BIG BAD "Community Organizers" made us poor mortgage brokers give those sub prime loans without checking to see if people had an income or even had a remote chance of ever paying the ARMS they signed on to. We tried to explain the mortgage, but you know how THOSE people are, they're just too dumb to understand. It's a good thing we packaged em all up into bonds and securities and derivatives and sold em to real smart edjacated people in big companies all over the world who were smart enough to know what they were buying!

Speaking of Bullshit, it's pretty deep on this thread.

[Starving Steve]

Re: How the Feds Invited the Mortgage Mess

Can you imagine these economics departments at major universities teaching that economics is really just a bunch of mathematical equations? Hence, starting with an understanding of the simultaneous equations, one can shape proper economic policy.... Can you believe it?

So then we ended-up with mortgage packages that made sense mathematically but were nonsense legally---- i.e, mortgage packages that couldn't be ascribed to specific properties and had no legal standing in the courts.

And the mortgage industry bought into this nonsense and sold the mortgage packages off to Wall Street and ultimately the entire world.... After all, everything was firmly rooted in mathematics and checked by computer programmes, and everything was blessed by Ph.Ds in economics. What could go wrong?

I think the key point is that no-one questioned these mortgages packages and the derivatives game. Perhaps, no-one was allowed to think or question anything because the profits in selling this nonsense to the world were too intoxicating?

Where was the Alan Greenspan Fed when all of this nonsense was taking place, and what were they doing?

[ASH]

Re: How the Feds Invited the Mortgage Mess

After all, everything was firmly rooted in mathematics and checked by computer programmes, and everything was blessed by Ph.Ds in economics. What could go wrong?

mathematics = truth

limited mathematical model + empirical observation = science

limited mathematical model alone = wanking

[Slimprofits]

Re: How the Feds Invited the Mortgage Mess

A Home Of Your Own: Expanding Opportunities for All Americans

President Bush has a comprehensive agenda to help increase the number of minority homeowners by at least 5.5 million before the end of the decade.

That was in 2003. This push for minority homeownership was not a partisan effort - it was part of the National Homeownership Strategy.