Here we go again! http://www.msnbc.msn.com/id/47015090/ns/business-eye_on_the_economy/ "But as financial institutions recover from the losses on loans made to troubled borrowers, some of the largest lenders to the less than creditworthy, including Capital One and GM Financial, are trying to woo them back, while HSBC and JPMorgan Chase are among those tiptoeing again into subprime lending." "Consumer advocates and lawyers worry that the financial institutions are again preying on the most vulnerable and least financially sophisticated borrowers, who are often willing to take out credit at any cost. “These people are addicted to credit, and banks are pushing it,” said Charles Juntikka, a bankruptcy lawyer in Manhattan." "The lenders argue that they have learned their lesson and are distinguishing between chronic deadbeats and what some in the industry call “fallen angels,” those who had good payment histories before falling behind as the economy foundered." So we're basically working our way back to probably the single most reason our economic slide began- NINJA loans (no income, no job and no assets). I hope Obama is keeping an eye on this.
Today they're pushing the FHFA for principle reductions! I guess houses are truly a great, no risk investment when you can stop paying in order to get more money!
Obama has complained that he can't get regulations on the financial industry passed because they lobby Republicans with contributions. The legislation has gone nowhere.
I'm against new regulations in the voter ID thread! Here, we need them. Might as well have a second collapse, and get this transfer of world power to China over with faster.
This is just greedy. They already have the government pushing kids into student loans that take years to pay off.
The rates are what is criminal, and the reason for default in nearly all cases. A permanent legal cap of 6% on all loans for owner-occupied housing is the fair thing to do here. Outlaw anything but a fixed rate, with no prepayment penalties.
I agree with no more ARM's, but capping loans at 6% is a good theory, but fails as a practical matter. It would be better to cap them at the prime rate + some amount.
When was that? When did leaders of the 40 Republicans allow freedom to vote wth the 60 Democrats, who are allowed the freedom to cross over? I don't remember this era of which you speak, in which Democrats controlled anything.
wow, just, wow. I refer you to the first few years of obummers term. He had both the houses, momentum and a blank check.
But not 60 votes he could count on, because Democrats are free to vote the way they want, not in immature lockstep like Republicans.
Baloney. And you know it. The dems had both Houses locked down fully secure in Obama's first 2 years. I would think priority #1 would have been some proper regulation to this sub prime mess. And maybe the dems did. I really don't know except to say they did whatever they pleased for those 2 years.
agreed, that is untrue, and its easy to give you trillions of reasons, one dollar at a time. best line.."you have to pass it to know what is in it"
Uhm sorry Socialists, the government bought about 6 trillion in MBS so you can stop with the "more financial regulations" charade. Stop giving poor people easy government credit. And stop fucking up with your Pell Grants too.
I have zero problem with private firms offering any kind of lending instrument they wish. Just don't ask me to bail you out if and when you fail. What the banking industry needs is moral hazard injected back into the system.
