Crony Capitalism at its Finest!

[Texas Contrarian]

Here's something of an eye-opener for those who think Dodd-Frank (or any of the other "reform" measures) actually fixed much of anything:

http://www.huffingtonpost.com/bill-f...b_2424156.html

It's refreshing to see such a concise rundown of banking sector shenanigans written by someone who actually understands finance. Most financial "journalists" don't know anything about this issue, or don't care about it. (Or they understand who's really buttering their bread and won't go anywhere near the real issues!)

[CuteOldGuy]

Those are real issues the libs want to ignore. We need to End the Fed NOW!

[WTF]

Originally Posted by CuteOldGuy

Those are real issues the libs want to ignore. We need to End the Fed NOW!

Why do you lie/distort so?

Why does everything have to be blamed on liberals?

Did you read the article?

Crony Cap is faceless and party neutral.

This from the article:

Recapitalizing these "banks" after their housing market malinvestments and the crash of their derivatives casino -- the inevitable outcome of Alan Greenspan's money printing to fuel Fannie Mae's doomsday machine -- has been the principal goal of both the Bush and Obama administrations.

[CuteOldGuy]

Actually, WPF, I don't know where you copied your post, but you're right. Crony capitalists come in all forms. I mentioned libs because they are the ones who think Dodd Frank will prevent this stuff. It won't.

But yes, crony capitalists are Republican, Democrat and others.

[WTF]

Originally Posted by CuteOldGuy

Actually, WPF, I don't know where you copied your post, but you're right. .

I copied it from the article this thread was about. Maybe you should read the links before going into auto attack mode on 'liberals'.

You think I am liberal and I do not think Dodd/Frank was worth a shit. I think those investment bankers really run this country. I think it is pitiful.

Originally Posted by WTF

This from the article:

Recapitalizing these "banks" after their housing market malinvestments and the crash of their derivatives casino -- the inevitable outcome of Alan Greenspan's money printing to fuel Fannie Mae's doomsday machine -- has been the principal goal of both the Bush and Obama administrations.

[I B Hankering]

Originally Posted by CaptainMidnight

Here's something of an eye-opener for those who think Dodd-Frank (or any of the other "reform" measures) actually fixed much of anything:

http://www.huffingtonpost.com/bill-f...b_2424156.html

It's refreshing to see such a concise rundown of banking sector shenanigans written by someone who actually understands finance. Most financial "journalists" don't know anything about this issue, or don't care about it. (Or they understand who's really buttering their bread and won't go anywhere near the real issues!)

According to the Talking-Heads of the MSM: "it's all good" -- America is "recovering". Plus (in another story about mass deception):


‘The New Subprime’ Mortgage: Risky Loans Emerge in Twist on Seller Financing - By Teke Wiggin –Under the Radar – Skirting Dodd-Frank and CFPB? (the new loan sharks?)

Mortgages resembling the kind of subprime loans that were blamed for the foreclosure crisis are creeping back into the market, leaving some experts and regulators alarmed. The loans give a relatively new twist to seller financing, putting homeownership within reach of borrowers who can't qualify for a conventional mortgage. But they also carry terms that some experts say are predatory.

"Seller financing is the new subprime," said Wayne Sanford . . .



http://realestate.aol.com/blog/2013/...twist-on-sell/


. . . and the Talking-Heads of the MSM say "it's all good" -- America is "recovering".

[WTF]

Originally Posted by I B Hankering

According to the Talking-Heads of the MSM: "it's all good" -- America is "recovering". Plus (in another story about mass deception):


‘The New Subprime’ Mortgage: Risky Loans Emerge in Twist on Seller Financing - By Teke Wiggin –Under the Radar – Skirting Dodd-Frank and CFPB? (the new loan sharks?)

Mortgages resembling the kind of subprime loans that were blamed for the foreclosure crisis are creeping back into the market, leaving some experts and regulators alarmed. The loans give a relatively new twist to seller financing, putting homeownership within reach of borrowers who can't qualify for a conventional mortgage. But they also carry terms that some experts say are predatory.

"Seller financing is the new subprime," said Wayne Sanford . . .



http://realestate.aol.com/blog/2013/...twist-on-sell/


. . . and the Talking-Heads of the MSM say "it's all good" -- America is "recovering".

Taking a closer look at the article shows that it is a bit misleading: This I do know something about as I have a seller financed home that to be perfectly honest would be a sweet deal if it did come back to me. It will not because they have to much in it.

From the article:

Despite similarities between the notorious subprime mortgages of the housing boom and today's seller-financed loans by investment firms, there's an important difference: Even if they become more common, they wouldn't pose a risk to the financial system.

That's because seller financiers do not sell their mortgages to major lenders or government-sponsored entities whose failure could require bailouts. Seller financiers assume the full risk of the loans.

[i'va biggen]

Greed will trump common sense every time.

[Texas Contrarian]

Originally Posted by i'va biggen

Greed will trump common sense every time.

People are rarely surprised when greed triumphs over common sense.

Far more serious problems occur when it triumphs over seemingly comprehensive efforts at financial reform!

Originally Posted by WTF

...I do not think Dodd/Frank was worth a shit...

As I noted in another thread a few months ago, fewer and fewer people disagree with that assessment. Now it appears that in at least one key respect, Dodd-Frank may even be a net positive for the largest banks!

There's no question that it imposes some compliance costs on all institutions. But the legal costs to the smaller community banks, as a percentage of their asset bases, is vastly greater than total costs to the megabanks. As a consequence, many smaller banks are no longer able to effectively compete, and in many cases have been virtually forced to unload assets or seek merger partners. So the largest of the large have been able to pick up assets on the cheap.

As has been widely reported, the five biggest TBTF banks are, in the aggregate, more than 50% bigger than they were five years ago. And they still know they will be backstopped by the Fed and the Treasury if anything goes badly wrong.

The really sad thing about this whole mess is that a well-functioning community banking system is needed to supply the lifeblood of small businesses, which have been such a critical driver of employment and healthy economic growth over the last few decades.

[Texas Contrarian]

In the same vein, Barry Ritholtz makes some excellent points in this short piece:

http://www.ritholtz.com/blog/2013/01...for-bad-banks/

Here's an excerpted comment on financial regulation:

"Indeed, the banks, via their ownership of congress, made sure to neuter most of the new rules."

(end of excerpt)

Very sad, but quite true.

If you're into memes that are simply useful tools to partisans, look somewhere else. But if you enjoy good, non-ideological analysis, I highly recommend Ritholtz's book Bailout Nation.

[JCM800]

it just never ends

http://gma.yahoo.com/blogs/abc-blogs...ews-deals.html

[WTF]

The funny thing is that 90% of the people think their party will fix the problem(s) if elected...despite 200 years to the contrary!

Threads like this one should be the one with hundreds of posts, not some BS gun control crap. IMHO of course.