The model at the time was "captive origination to securitize" or "originate to sell to another entity (i.e. a Wall Street bank) that would securitize". Virtually no large scale originators made loans with the intention of keeping the risk on their own books.

In the "originate to sell" model, the loan purchaser almost always had contractual "putback" rights in the event the loans did not meet certain reps and warranties.

And no matter the model, when loans were sold into securitization trusts, the trust had similar putback rights that were exercisable either in the judgment of the trustee or at the insistence of 25% of the certificateholders in the trust. In fact, trustees almost never acted at their own initiative and almost always acted only when certificate holders forced their hands.

The mortgage crisis is too big a topic to tackle in the Republican nomination thread. If someone starts another thread, I'll try to contribute. For better or worse, I have been knee deep is this subject for years and years.

Economic insecurity is definitely part of it but it's also about the current situation with people who feel they deserve better jobs, more pay, more status having a strong tendency to blame others.

There's also fear, anger and frustration - these are the real harbingers of racism and people like Trump both exploit them and nurture them. It's scary stuff when there's a solid bedrock of racism to start with, the danger of big headline events and such a hate filled divisive environment.

It seems likely, similar with UKIP and Corbyn in the UK. But it's not Corbyn or Bernie afaik who are trying to convert the anger/fear/frustration into racism and belligerence.

True statement but at this point you are attacking banks for responding to incentives the government created.

It does seem worse but overt racism winning in mainstream politics would be a huge step in the wrong direction.

We have to realise that one thing that wont happen is people being openly racist and thinking it's bad. They will think it is good and that's flirting with the catastrophic.

Come on, man. WS banks securitized hundreds of billions of dollars of private label (i.e., non-government backed) mortgages. And they financed a huge number of private label originations through warehouse lines, etc. No one put a gun to their heads.

I don't subscribe to the simplistic 'GOP is racism' type viewpoint or the gospel of many round here but let's turn your question round.

If the illegal immigrants were Canadian do you think Trump would be getting so much traction from the issue?

Does anyone read both the far left (DailyKos) and far right (RedState) websites for the LOLs?

Kos is obviously all about Bernie. Some diaries trash Hillary, but in general, I would say that the vast majority will end up supporting HRC.

But over at RedState. OMG. Evidently Erick Erickson left last year and there is a new moderator team. You used to get banned over there if you even mentioned not voting for the Republican or discussing 3rd Party. Now the lead moderator is pretty much saying Trump is the anti-Christ and they will vote 3rd Party if he wins.

http://www.redstate.com/leon_h_wolf/...ird-party-run/

Completely surprised. Now to be fair I remember that RedState was pro-Gingrich in 2012 and hated that fake conservative Mitt Romney, but I'm very surprised at how over the top anti-TRUMP it is now. The LOLs of the denial diaries are very tasty to read after every TRUMP win.

These are the diaries of literally the lead moderator of RedState. Just read the headlines for the wanting LOLs and the crocodile tears.
http://www.redstate.com/leon_h_wolf/

https://www.youtube.com/watch?v=TPm0Zz31bFI ?? Rubio taking unknown pill during debate??

I wish they played the clip out that doesnt seem to be gum though.

From watching it over a few times, it seems like he starts to reach in his pocket, then he remembers he has the pill on the stand of the lectern, he picks it up from the lectern then puts it in his mouth. Perhaps a quick swallowing motion after. Can't be too sure without the full video though. Perhaps there's no pill, it doesn't exactly look like it. However it's also hard to find another explanation for the movements.

I believe if the 11 million competing for their unskilled jobs were Scandinavian women, there would still be an attraction to Trump with his anti globalization stance.

Although my belief cannot be quantified, I believe the majority of Trump's appeal is economic and minority is pandering to racism. I'll try to explain the basis of my belief.

I went to college at Lehigh University in 1970. That college is located in Bethlehem, PA which was also the home of the steel giant Bethlehem Steel. Any kid who graduated high school with no intention of going to college could get a job there, get good wages with full benefits and retirement and could easily buy a decent home and raise a family.

In 1967 the US produced 23% of the world's steel. Today, 5%, In 1967 China produced 3% of the world's steel. Today 49%. Today, the great Bethlehem Steel on the Lehigh River is gone and a Sand's Casino sits on that site.

The same thing throughout the textile industry where employment dropped by 800,000 between 1990 and 2013 in the USA.

Globalization has effected the unskilled worker's outlook on life. A good paying job is difficult to find for the less educated masses than it was 30 years ago.

Now throw 11 million or so people into competition for the remaining jobs that pay much less and have little or no benefits and you have the prototypical Trump supporter in 2016.

You are condemning bankers for responding to incentives the GSEs created. The GSEs bought, sold, insured, and indeed originated a huge number of "private label" securities.

Saying the banks are primarily responsible for the crisis is like saying the ocean is primarily responsible for drowning Leonardo DiCaprio.

Adderall side effects include excessive sweating too

I've seen him do this on the stump. No idea what it is, but he chewed it then as well, and also made no effort to hide it.

Just sharing because it's excellent:

But the primary deficiency was still the mortgage itself right? The "orginators" would not be so quick to unload if they held loans for San Francisco or Greenwich Village.

Adderall lasts a pretty long time. There's just no way in hell someone even remotely worried about their image is taking their adderall with them up onto a stage on national tv and taking it then, when they could have taken it 4 hours ago in their private restroom. I think we've entered conspiracy theory territory now.

Even today I believe there are loan originators whose primary model is to quickly sell the loans. I don't think that's because the loans are necessarily bad, it's just how they do business. Whether that's because they believe that model is most profitable for them, or regulations, or some other reason I don't know.

I mean it makes sense that a company may have sufficient capital and licensure to originate loans, but just not want to be in the loan servicing business but that's just a guess.

A new thread would be good both because it's a topic worth discussing and shouldn't really be in this thread.

It is always hilarious when proven, obvious idiots from other forums like DMW or others like domer and mets stroll into politics and just completely remove all doubt that they have any idea about the world around them.

Dude we have literally been telling you "hey this is just a racist hoax to blame black people for the crisis". And this is your response? Is this conversation in reverse chronological order?


So here's the difference between your cultural background and my cultural background. Your links are to ****ing Snopes and say "Mostly False", my links are to actual economists and say "Division of Research and Statistics" down the side.

http://www.federalreserve.gov/newsev...3_analysis.pdf
http://www.frbsf.org/community-devel...meltdown11.pdf
http://ccc.unc.edu/contentitems/debu...ra-myth-again/
http://www.federalreserve.gov/pubs/f...136/index.html

I think it's interesting that all the Notre Dame fans seem to be super conservative while the SEC fans tend to be more liberal. Would not have guessed that.

Although Pac12 fans being waaay left was quite predictable.

Big 10 crushes the thread imo

Yep

SEC fans are mostly unemployed or work for minimum wage. Obviously support Sanders.

Like, I know there's a reason y'all ain't liberals, but when someone says "the crisis was cause Jimmy Carter and Obama made those nice banker fellows lose money on loans to darkies", that's a ****ing testable claim. You can see if subprime loans were even subject to the CRA(many of them weren't). You can see default rates by origination.

That is a hypothesis that can be tested, but lol Neil Munro and lol grizy and lol DMW seem to think just saying, with a straight face, that the government trying to stop redlining caused the financial crisis is the end of it. That redlining was good. Great look guys, really surprised at how the GOP could be supporting Trump.

And again, even what I'm saying isn't new or groundbreaking. Matt Taibbi in his seminal RS profile of the Tea Party:
For God's sake, y'all free market worshippers can just think this through with econ 101:
A risky loan defaulting doesn't cause a bank crisis, that **** should(in theory) be baked into the interest rate and reflected in the price of the security.

No, mortgage money is often pooled with a mix of borrowers that have a vatariety of credit scores. Vaya's post is accurate.

And that's why it does belong in this thread. The origination moment of the Tea Party was the GOP realizing how attractive this myth was, and that's a direct line to Trump's explicit "government by white people, for white people" rhetoric.