[mrdeadfolx]

Unbelieveable.

 

[DrBenway]

You can ladle all the mathamatical BS you want onto worthless paper, and what you are left with is...worthless paper. As soon as someone wakes up and says, in a startled voice, "Hey! This stuff is worthless," the game is over.

There should be no more bailouts. Let these folks get a taste of what they have done to the rest of the country, and to economies around the world.

 

[ericj]

Quote:

Originally Posted by DrBenway /img/forum/go_quote.gif You can ladle all the mathamatical BS you want onto worthless paper, and what you are left with is...worthless paper. As soon as someone wakes up and says, in a startled voice, "Hey! This stuff is worthless," the game is over. There should be no more bailouts. Let these folks get a taste of what they have done to the rest of the country, and to economies around the world.

The people who made poor decisions and made bad loans strictly because they knew they could sell them to someone else making bad decisions, should suffer.

But sometimes when a bank fails, it means that everyone suffers no matter how good their decisions were.

Look at your 401k lately? How do you feel about bailouts now?

 

[Edwood]

I don't see how Washington Mutual will go under from home loans, they were one of the most conservative banks in appraising home values for loans. I applied for a loan with them, and they rejected my loan because they wouldn't agree on the appraisal.

Unless there are other circumstances with Washington Mutual.

-Ed

 

[DrBenway]

Quote:

Originally Posted by ericj /img/forum/go_quote.gif The people who made poor decisions and made bad loans strictly because they knew they could sell them to someone else making bad decisions, should suffer. But sometimes when a bank fails, it means that everyone suffers no matter how good their decisions were. Look at your 401k lately? How do you feel about bailouts now?

There will certainly be widespread pain. I don't see how propping up poorly run banks will do anything but put off the inevitable.

I think also of the people who prudently decided that the ridiculous loans on offer were a trap. They deferred their dreams of home ownership and saved for the day when they would be able to make a sound investment.

If the fools who signed mortgage contracts with no idea of what they were signing are bailed out, that will prevent the market from doing what it should do. And it will prevent those prudent people I just mentioned from being able to buy homes at sane prices. So the losers win, and the people who did the right thing are left feeling like fools.

How do I feel about bailouts now? No bailouts for banks. No bailouts for homeowners, unless they were atively swindled. And frankly, I think those people should seek redress in the criminal and civil courts. And there must be a Congressional investigation into the business practices of the financial industry.

 

[ameyer17]

Quote:

Originally Posted by Edwood /img/forum/go_quote.gif Unless there are other circumstances with Washington Mutual.

They got way too big, way too fast.
Also, I'm fairly certain they have quite a bit of subprime exposure *cough*Providian*cough*

 

[Fortgammon]

My younger and older brothers Bank with Wamu, guess they might have to bank elsewhere if worst comes to worst

 

[AlanY]

Quote:

Originally Posted by Edwood /img/forum/go_quote.gif I don't see how Washington Mutual will go under from home loans, they were one of the most conservative banks in appraising home values for loans. I applied for a loan with them, and they rejected my loan because they wouldn't agree on the appraisal. Unless there are other circumstances with Washington Mutual.

Your experience may have been different, but Washington Mutual developed a terrible loan portfolio. At this point, they're a hair's breath from insolvency.

For an example of the type of mortgage pool they were issuing, see here:
Mish's Global Economic Trend Analysis: WaMu Alt-A Pool Deteriorates Further

 

[amphead]

Reminds me of the Savings and Loan crisis of the late 80's and early 90's. I guess what is old is new again. Doesn't look good.

 

[JadeEast]

Lehman Brothers - eBay (item 110289318047 end time Sep-20-08 16:58:22 PDT)

 

[DrBenway]

Quote:

Originally Posted by JadeEast /img/forum/go_quote.gif Lehman Brothers - eBay (item 110289318047 end time Sep-20-08 16:58:22 PDT)

Hee hee. I've got some old Penn Central Railroad stock from the 70s...maybe they would accept that as a swap. They do love swaps in that biz, you know.

 

[Gabe Logan]

The comments on that auction are priceless.I laughed hard on those.

 

[ecclesand]

Quote:

Originally Posted by DrBenway /img/forum/go_quote.gif There will certainly be widespread pain. I don't see how propping up poorly run banks will do anything but put off the inevitable. I think also of the people who prudently decided that the ridiculous loans on offer were a trap. They deferred their dreams of home ownership and saved for the day when they would be able to make a sound investment. If the fools who signed mortgage contracts with no idea of what they were signing are bailed out, that will prevent the market from doing what it should do. And it will prevent those prudent people I just mentioned from being able to buy homes at sane prices. So the losers win, and the people who did the right thing are left feeling like fools. How do I feel about bailouts now? No bailouts for banks. No bailouts for homeowners, unless they were atively swindled. And frankly, I think those people should seek redress in the criminal and civil courts. And there must be a Congressional investigation into the business practices of the financial industry.

Very well put.

 

[milkpowder]

Quote:

Originally Posted by Gabe Logan /img/forum/go_quote.gif The comments on that auction are priceless.I laughed hard on those.

LOL x2

 

[vcoheda]

sad day for lehman and merrill.