OT: Wall Street goniffs - where are they now?

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At this link:
http://tinyurl.com/3gcet6v
You will find a list of the big crooks in the Wall Street/too-big-to- fail Bank disaster that wrecked our economy. Did any of the perps get punished?
Hah, hah, and yet again, hah!
HB
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On 10/26/2011 4:53 PM, Higgs Boson wrote:

Are you letting the Flea Baggers use that old leaky toilet of yours?
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On 10/27/2011 7:53 AM, Frank wrote:

Also, from your garden thread, I see they are leaving denture cleaners behind ;)
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On Wed, 26 Oct 2011 13:53:42 -0700 (PDT), Higgs Boson

That's a good site. In my opinion, it was the bundling of mortgages into commodities that was the most harmful. Before that, banks cared about lending because they were on the hook if the loan wasn't repaid. Now all they cared about was getting the quick fees and selling the slow return (and risk) to anyone else. So of course they made loans that they had to know would fail.
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But that has been going on since the 1980's.

No, mortgages have been sold to Fannie, Freddie etc for decades by the issuers. If you look at mortages issued for decades, there were a variety of players and many, if not most of them, sold off the mortgages. It's nothing new. I used mortgage companies that were just that, mortgage companies, back in the 80s. They did nothing more than process the loan, do the initial financing, and then sell them off so they can move on to do the next mortgage deal. Look at your Sunday paper and you will see lot's of similar companies doing business today.
The problem was that buyers of the bundled mortgages failed to do their due diligence and understand what they were buying. And that as you say, some of the mortgage processers were less than honest. But a lot of it was crowd mentality in thinking that real estate always goes up. So, if they made a loan that was a little shakey, worse that happens is they default in a few years and the holder breaks even. Nobody expected house prices to decline 40% or more in some cases.

That potential has been there for decades, it's nothing new.
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snipped-for-privacy@optonline.net wrote:

Reminds me of the story about a fellow with a warehouse full of tinned sardines. He sold them for five cents a tin. The guy who bought them for a nickle, turned around and sold them for fifteen cents. The chap who bought the sardines for fifteen cents sold them for a quarter.
The guy who bought the fish for a quarter went to the warehouse and opened a can. He ran right back to the person who sold him the sardines. "These sardines are RANCID! They're INEDIBLE!"
The seller waved his hand dismissively and said, "Son, those sardines aint' for EATIN', they're for buyin' and sellin'."
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The Wall Street version of the above goes like this...
A guy falls in love with a thinly traded stock that's selling for $1. He buys 2,000 shares. Next day he sees it's at $1.25, so he buys another 2,000 shares. Then he sees it's at $2, so he buys 5,000 more shares. This goes on for a few weeks until he has 50,000 shares and it's at $15. He calls up his broker and says "Sell it all." The brokers asks, "To whom?"
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snipped-for-privacy@optonline.net wrote:

Giggle.
Thanks.
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wrote:

Does a broker ever really ask that?
HB
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Wooosh..... Right over the socialist's head.
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On Fri, 28 Oct 2011 05:08:53 -0700 (PDT), " snipped-for-privacy@optonline.net"

To the government, silly.
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On 10/27/11 09:32 am, dgk wrote:

A few weeks ago I heard an interview (broadcast originally in 2010, IIRC) with the author of a book about parenting -- lamenting that there wasn't much of it going on -- and not only in the traditional family. He referred to one of the Wall Street "geniuses," who had said, "We kept waiting for a parent to show up and tell us to stop, but nobody did."
Perce
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HB
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On Thu, 27 Oct 2011 16:48:48 -0400, "Robert Green"

There was also the impression that people could buy homes and not worry about how to pay the mortgage because home values would keep rising. And it worked, as long as home values kept rising. Many people who did understand that payments would increase (if not by how much) did figure that they could always sell the house for more than they paid for it.
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<stuff snipped>

Yes, as Kurt's pointed out, everyone thought the prices would climb to the heavens, bolstered by chestnuts like "real estate prices will always rise because there's a fixed amount of it and God isn't making any more." We showed God!
I think there were a lot of factors. If people were even aware of the escalation clauses (I am sure they were whispered if they were mentioned at all) they thought, as you suggest, rising values would protect them. Or they thought they would have more income as they got older and got raises.
-- Bobby G.
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On Fri, 28 Oct 2011 15:40:06 -0400, "Robert Green"

I really object to that "everyone." It wasn't everyone. There's still a huge base of folks who are very leery of debt. Wouldn't think of getting in deep, or pulling equity from their home. In fact they pay off their mortgages early. They were never swayed by the PT Barnums.
--Vic
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On Fri, 28 Oct 2011 19:21:47 -0500, Vic Smith

Yes, there are still one or two of us, still above water.
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wrote:

And you should. My error. Should have said "so many people that even the prudent ones (like you) got caught up in the tidal wave." We sold my wife's house into the overheated market and did well, but the taxes on my house skyrocketed just because assessments are based, in part, on comps - what nearby houses sell for. We've been stuck here much longer than we wanted to be, waiting for prices to recover before selling this house.
It's sort of worked out because she's decided to keep working instead of retiring to try to put a little bit more aside for our old age. She's more concerned than I am because women in her family live into their nineties. My grandfather died at age 39, my dad at 69, so I am not so worried about what will happen in the next 30 years. I'll most likely be worm's meat.

However a lot of people, for a lot of reasons (job transfers, deaths in the family, etc) had no choice but to participate in a badly over-heated environment. The tidal wave washed over the good and the evil.
-- Bobby G.
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LOL. There you have it folks. He PROFITTED from what he knew was an overheated market. He took advanatge of the seller! OMG. He's a capitalist pig and should be arrested, his wealth confiscated! Did you disclose to the seller that you knew the house was over valued? You expect that of those on Wall Street, but apparently there are different rules for you.
but the taxes on my house

More uniformed nonsense. A municipality needs X dollars for their budget. The houses could all be valued at Y or they could be changed and valued at 2 times Y. The taxes raised would be the same.
We've been stuck here much longer than we wanted to

Yeah, I'm sure that includes you. You were FORCED to sell that house at a high price to a buyer. What a total fuckwit you are.
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On Thu, 3 Nov 2011 10:01:37 -0400, "Robert Green"

I doubt anyone who is truly prudent got caught up in it. The housing bubble was obvious.

What makes you think prices will "recover?" About a year ago one my sons moved into a bigger home when they had their third child. He was refusing offers on his previous home because he would lose $20k. It sat empty with him paying the taxes for a few months. I told him to unload it, and he did at a $20k loss. Six months later he would have taken a $40k loss.

The way I look at it is if you already had a house, you benefited by the sale on that end if you switched houses. If you didn't already own, you should know what you can afford as a first time buyer. Not saying I'm not sympathetic to some who made stupid mistakes. Especially those who thought their jobs were secure. But thinking your job is secure is another stupid mistake. Anybody could see that coming too, just by noticing that nothing you buy is made in the U.S. I knew the economy was unsustainable, because I worked production and knew its effect on the economy. But a big reason I'm okay financially is simply luck. When I was born, and when I could retire. Before the shit hit the fan. It's funny that many don't understand that.
--Vic
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