Sep 14th 2012, 1:58:23
CK:
1) Your understanding of subprime loans is deeply flawed. I recommend you spend time reading Tanta's posts on Calculated Risk -- she was in charge of loan risk control at a regional bank, and her posts were quoted in papers by the Fed.
2) "The government meddled in the financial market for social progress reasons instead of logic" : This statement is 100% wrong. The private market FAILED - get over it. The private market gave money to people who couldn't pay it back, and then BEGGED THE GOVERNMENT to prevent them from failing.
CRA loans are better quality than everything given by the private market -- always have been, always will be. Median income combined with low home value is a GOOD loan, not a bad loan. Seriously, you're simply objectively wrong on this.
Want to confront the numerical reality of derivatives values plus private market loan origination total dollar values between 2003 - 2007? Those are just the two private market figures which I can get in a reasonable amount of time.. and isn't anywhere near the total private market dollar values. And we'll compare that to total CRA loans in the same time period - which, by the way, are 100% prime loans.
The government does not "inflate" the housing market -- Wall Street does that all by themselves because they skim profits from each sale.
1) Your understanding of subprime loans is deeply flawed. I recommend you spend time reading Tanta's posts on Calculated Risk -- she was in charge of loan risk control at a regional bank, and her posts were quoted in papers by the Fed.
2) "The government meddled in the financial market for social progress reasons instead of logic" : This statement is 100% wrong. The private market FAILED - get over it. The private market gave money to people who couldn't pay it back, and then BEGGED THE GOVERNMENT to prevent them from failing.
CRA loans are better quality than everything given by the private market -- always have been, always will be. Median income combined with low home value is a GOOD loan, not a bad loan. Seriously, you're simply objectively wrong on this.
Want to confront the numerical reality of derivatives values plus private market loan origination total dollar values between 2003 - 2007? Those are just the two private market figures which I can get in a reasonable amount of time.. and isn't anywhere near the total private market dollar values. And we'll compare that to total CRA loans in the same time period - which, by the way, are 100% prime loans.
The government does not "inflate" the housing market -- Wall Street does that all by themselves because they skim profits from each sale.