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October 10, 2008


mrs beezer

I am listening to the link. It is very informative, but I believe that it starts midstream in the link on the chain. The question is why were banks pressured to make NINA loans in the first place? What got it started? Why would banks throw out all of their standard banking practices to begin with? I googled this, and this is one of the links I found
What may have started out as a noble idea, to help the poor get into affordable housing, has turned into a real mess.


I think it's naive to think it started as a noble idea. No one in politics does anything altruistic, on either side of the aisle. They do what they do to gain votes. So I will concede the accusation that you won't just come out and make.

The fuel to the fire was that there were 70 trillion dollars looking for a better than average return. The "investors" (speculators) were either deceived or in denial about the enormous risks they were taking on. CDOs and CDSs were invented to make insurance not look like insurance so that it couldn't be regulated. Does anyone deny that these institutions should have been forced to set aside capital to cover their obligations?


I mean, it's really a lot like teenagers wanting to have unprotected sex. They both know the risks, but they both want to so bad that they will believe the first thing either one tells the other about how the risks aren't serious.

Denial is a strong force.

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