RE: Models homes being demolished by banks

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RE: Models homes being demolished by banks - 5/10/2009 5:27:28 AM

Aneirin

Posts: 6121
Joined: 3/18/2006
From: Tamaris
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Maybe it would be the right thing for each and everyone of us to consider the banks as our worst enemy, something to avoid at all costs, or at least use as an absolute and extreme last resort and then watch them like shit house rats.

The banks and lending institutions were largely responsible for this world mess, something created through greed, their greed passed to us, we learned this from them and now they penalise us and talk down to us for being a victim to the mess they created.

There are no friends in business.

(Interesting how banker and wanker sound similar, money is a banker's wank fodder, their pornography)

< Message edited by Aneirin -- 5/10/2009 5:29:50 AM >

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RE: Models homes being demolished by banks - 5/10/2009 6:41:56 AM

samboct

Posts: 1817
Joined: 1/17/2007
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"Yeah..."ability to pay"....sure...a fairly common measure in banking.....one I'd actually recommend if one was loaning money....(just a thought)."

You're missing the point. What the banks have done in the past has brought us to the brink of financial abyss and has mortgaged all of our futures to ensure that some very rich folks stay that way. It's going to cripple economic growth for the forseeable future- or at least put the brakes on the growth that will occur.

All good business is fundamentally based on personal relationships. Yet banks threw away the idea of personal relationships for computer programs years ago- and boiled things down to a credit score. Well, not surprisingly, when you set up such a system with fixed and known rules along with greedy and dishonest people- it gets gamed. This banking debacle was not the fault of a few- its endemic to the industry. People ranging from realtors, appraisers, and loan officers were all busy ladling gravy off the train- so when it got derailed- there's a big mess to clean up. It's a problem that shows a fundamental flaw in an entire industry- which now needs to be revamped from both the top down and the bottom up.

Same thing as Enron. Years ago, when I was kicking around applying at Enron for a job- I decided to try and understand their business. I rapidly came to the conclusion that something was up- that the value of the company far exceeded the total market for power in the Southeast. Enron theoretically was making money by selling power where it needed to go-not a bad idea as a business- but its limited by how big the actual power market is. Enron was lots bigger- which meant that something wasn't kosher. Well, mortgages are like that too. Everybody knows how much profit there is in a mortgage- so how did slicing and dicing them create more profit? If you've got 30 hungry people and one apple- making applesauce doesn't really do a lot- unless by smoke and mirrors, you create the illusion that there's more than one apple in the applesauce.

"What I'm going to be really ticked about is if in a year- the banks go on with business as usual ignoring this disaster. Since the bankers are already going back to their old models of compensation, this looks like its happening. Well, it certainly could be....but those that took federal money have identified limits. "

Doesn't seem to be doing a hell of a lot. I'm more interested in effects than theory- I'm pragmatic that way.

"In short- no, we shouldn't deal with it- we should demand accountability (we have that) and if somebody winds up in jail- good (several have) . There's no way these actions should be legal (what would those specific actions be?). "

Well, how about for starters lets start by breaking up the financial superstores which clearly don't have their clients best interests at heart. Then how about some regulations that don't permit banks to take depositors money and invest it all elsewhere, thus chasing fractions of a percent yield at the expense of the region that funded the bank. How about segregating credit cards from banking? Going to an Amex model isn't a bad idea- how many people declare bankruptcy because the old Amex card required them to pay off their bill on a monthly basis. Doesn't make massive piles of money for Visa and MasterCard- but so what? The Europeans pay cash for most of their purchases- yet we keep using credit cards because they're easy. Well, maybe it ought to be harder to get the damn things.

We used to have a sound banking system. We threw it away for ideology and greed. Why can't we recreate it?

Sam

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Post #: 42

RE: Models homes being demolished by banks - 5/10/2009 9:27:02 AM

TheHeretic

Posts: 19100
Joined: 3/25/2007
From: California, USA
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quote:

ORIGINAL: sappatoti

I agree BK. As I watched the story about how the banks would rather destroy those houses than donate them, either as residences for the homeless families or by dismantling them in such a fashion as to reuse those almost new materials, I was appalled at the lack of creativity in their solution.

Interesting thing, Sappa. The housing market here in the high desert has suffered collapses before. The last was in the early 90's. One small tract of less than 50 homes was given away to welfare families, free and clear. 15 years later, it's a ghetto. It hasn't helped the surrounding neighborhood's property values much either.

You wanted creative solutions though. Check out Lethal Weapon II sometime. That housing tract they burn down was very real.

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RE: Models homes being demolished by banks - 5/10/2009 10:28:01 AM

ienigma777

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That's it, THINK,..... but... they don't care about their 'public image'; they have the money, they are established, they conntrol the money, you need the money, you need them. So, while you are thinking, debating the ins and outs, and what they should do....they got your money, your checking account, your credit card, your mortage, your employer's money.... incidently, can anyone believe this 'bailout fiasco' was ...ALL OF A SUDDEN.....no, it was planned, years before it was announced. It was a combination of Government and big business planning....the rape of the people. And...in the words of 'the Great Communicator'...I'm the president, and what are you going to do about it." (in relation to Regan with the Air Traffic Controllers fiasco).

Your money is gone....they will do as they please...no regulations of any importance governs their actions...they demolish....because they can....take the loss on the books...more money needed...incidently, BofA wants another 35 Billion to 'survive'.

Nothing happens like the 'Big Bang'... all of a sudden. Especially in government.

Face it, we've been raped.....how does it feel.

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Post #: 44

RE: Models homes being demolished by banks - 5/11/2009 7:26:46 AM

servantforuse

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Donateing to habitat sounds really nice except for one thing. How does someone who can't afford to buy a small house in the first place, pay for the utilities, taxes and upkeep of a $300,000.00 home.? Another liberal feel-good idea that will not work.

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RE: Models homes being demolished by banks - 5/13/2009 11:29:15 PM

ienigma777

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Well, don't buy a 300,000 dollar house. If you put down, the least amount you can, your house payment will be almost exactly 1 % of the cost of the house....ie, 300,000......= 3500 per month; A time ago...the lender would not EVEN talk to you if you did not earn at the very least; 4 1/2 times what your monthly payment would be. Consider that...it was a standing rule. The alternative was to put a heavy down payment.....on a 300,000 dollar home, 100,000 or more......but the GREED of the banks, threw out all the regulations and rules.....and took your money; knowing full well, you won't be able to make your payments. FORCLOSURE

Your house back up on the market, 'Bank Owned' so now they are not only the lender, they own the property.......FHA homes were forclosed on too, and that loan is gauranteed by the government.

THe lending institutions, all made money, in actuality, but on the books they show a loss, and want a 35 billion dollar bailout, or they'll close down.

So, remember there are trillions of dollar dept out there, credit cards, autos, business loans, all trillions of dollars...if they close down, will YOUR credit card dept vanish too. NO, ...then who will pick up the dept.

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Post #: 46