On Sep 17, 9:53Â pm, Robert Cohen
msn.com> wrote:> On Sep 17, 8:52Â pm, Fred Weiss
papertig.com> wrote:
>
>
>
>
>>> On Sep 17, 9:31Â am, Robert Cohen
msn.com> wrote:>
>>> Theoretical Functions of Fannie & Freddie: To establish standards,
>>> criteria for qualifications of loans, packages for  securitizing
>>> mortgage loans for investors, resales, STANDARDIZATION, facilitation
>
>> I thought it was to help those who don't qualify and couldn't get
>> mortgages - and to offer guarantees to banks to offer such
>> (unjustified) loans. Banks had also separately been under considerable
>> pressure to offer mortgages to unqualified applicants.
>
>> This is a legacy of the New Deal under your hero, FDR.
>
>>> ... mortgage brokers get their half percent (or whatever the
>>> commission) if the buyer is a bad risk or good risk
>
>> Isn't this precisely what gov't policy encouraged? Add to that
>> flooding the market with easy credit in order to keep interest rates
>> low.
>
>> When I say something which is not in accord with "New Deal" philosophy
>> you let me know.
>
>>> If the the processes are flawed (nothing is foolproof), then one can
>>> bet that flaws will be exploited by humans intent on getting their
>>> interests, percentage, commission, fee. pay, graft, feathering their
>>> own nest
>
>> Banks as a rule don't exist to loan money to people who are poor
>> risks. So why do you think that is precisely what they've done in
>> recent years?
>
>> Fred Weiss
>
> re: HUD, FHA, VA, FANNIE, FREDDIE etal
>
> As I interpret your point of view
>
> Real estate loaning-facilitating  is simply not a federal govt
> function
>
> Okay, I think I get your message
>
> I can't argue with that kind of absolutist rationale
>
> You're allowed to believe whatever you want
>
> I'm not going to challenge your reactionary-regressive ideological--
> idealistic & Â romantic--
> convictions
>
> I live here and now in the real world such as it is
>
> If you could tell me of a libertarian actual model, or of an
> Objectivist actual model, or even an unfettered marketplace today or
> in history any time or location, then ...
>
> I am pragmatist enough to go for what works- Hide quoted text -
>
> - Show quoted text -
This is for Fred, Sean, "Strike" guy, and all
re: How the clashings of rational self-interests can bring down the
Temple on everybody if there is incompetence and/or dishonesty in the
cement mixing
A social contract or constitution attempts to define the social
poltical economic order, the culture
Laws are based upon "good" and "bad" as interpreted by humans,
legislators, judges and executive administrators, whom are afterall
ultimately chosen by "the people"
Various individuals' self-interests are not inherently harmonious
Re: Govt regulation/interference in the marketplace is mixed blessing
When ENRON collapsed & bankrupted, thousands of its employees felt
cheated/bamboozled/victimized
So Congress regulates corporations through more corporate financial
disclosures, and yet the Oxley-Sarbannes Reform has also SUPPOSEDLY
caused the mega-complicated corporation nightmare problems in their
complex more open balance sheeting
Re: Repotedly: How Inconsistency by Private Raters (S&P, Fitch,
Moody's) SUPPOSEDLY Really F'd Up The Banquet
Reportedly S&P, Fitch, and Moody's rated the securitized mortgage
paper etal (CDOs: what in the the h are they? ) as generally high.
Reportedly the rating private agencies didn't realize/calculate/allow
for the inherent dishonesties involved in the (sometimes) phony as a 3
dollar bill mortgage process, and the mortgages were accepted as safe
risk investments
Re: Catch 22 a la Sarbanes-Oxley: Reportedly S&P and Moody's NOW rate
the brokerage houses as shakey-risky situations since they peddled
sometimes now admittedly highly risky paper
Dylan & Maria acutely questiond the head ratings guy about this
contradictory phenomenon today on CNBC financial tv.
The head ratings guy said his raters do their jobs and his company is
not responsible for consequences
My opinion: Thus, lawsuits ad nauseam ad infinitum about the whole
unblessed rigamarole
Did I mention the important g greed word?
Wall Steet brokers do not make money when there is "no sale"
Their reason-to-be or method is to sell, sell, sell
Whether they know the paper is partly soiled or not, they don't make
money if they can't peddle it
The brokerages are paying for their greed today: They're paying out
billions to the customers/clients
who've been cheated/bamboozled
And no wonder the brokerages are being given low ratings/low
confidence
