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"Alan Greenspan in 2005"

11 Comments -

1 – 11 of 11
Anonymous Anonymous said...

From a loan officer's prospective the situation in 2005 was very good.

You get paid to make loans for you little storefront mortgage company, you hector your underwriter to get them approved by any means possible, and then your company puts them on the wire for WaMu (Washington Mutual) to buy up or for countrywide to buy up.

All you need are basically to have been employed for a while somewhere, have two bills that you have paid regularily for about a year (we are talking electric bill and water bill or phone bill and cable bill.....how hard is that????!), and to show that you have paid your rent on time for a period (one year or two, can't remember what my pal M, a loan officer, told me). The officer knows what has to be "bare bones" filled out. You can overstate the value of your assets (your 5 year old car suddenly becomes worth 20K on the application and your "Rooms-to-Go" furniture becomes worth 20K also, you can guess what happens with your estimates of your jewelry's worth and the like in certain communities. It goes through the roof-LOL).

If you lie well enough, you might qualify to get into a house that you'd never dream you'd live in, and get to have neighbors who never dreamed they'd have YOU for a neighbor. Great, ain't it?


Don't worry a thing either, WaMu, as my pal told me, was buying damn-near anything, and if they didn't, Countrywide or one of the others would. When a lot of local mortgage shops told you "we look for lenders to give you the best deal", what they mean is they SCOUR LENDERS to see if any ONE of them is SUCKER enough to buy our crappy loan, which we took as many points off of as possible, because we'd never service this turkey ourselves.

It wasn't this way in 1990.


M

10/25/08, 2:54 AM

Anonymous ks said...

I've been making my way through Greenspans autobiography, "The Age of Turbulence". Reading it is like being cornered at a bus stop by a guerrulous senior (albeit one with some interesting stories).

In his book (and in person), Greenspan presents himself as a modest but curious bit player to wider world events. His history however shows him something of a wannabe nerd attention-seeker whose vanity led him to increasingly unwise decisions.

His book emphasizes how Bush I blames Greenspan's unpopular anti-inflationary measures for costing him re-election. I think this is to hide the fact that Greenspan increasingly and aggressively reinflated every bubble during the Clinton and Bush II years to feed his growing Kissinger-like rockstar status.

I should've know the markets were heading for the crapper this summer when Greenspan went on his book media tour trying to favorably revise history in the face of an impending collapse he helped cause.

It's like Greenspan, Tenet, Powell and McClellan all followed the same script to try to wipe their fingerprints off their incompetence and culpability during the Bush years+ (e.g. Me? I wasn't present). Rumsfeld disappeared while others seemed to have jumped ship without injury or so much as a by your leave like Rove and Wolfowitz. I wonder how history will sort out Rice and other Bushies. Someone should do a VH1 "Where Are They Now" on the class of Bush II.


ks

10/25/08, 7:03 AM

Blogger master_of_americans said...

Greenspan was a sell-out from the beginning. Now they have him on the news proclaimiing that his free market ideology has failed. Makes sense that a Randian would be chasing after the main chance.

10/25/08, 8:58 AM

Anonymous Anonymous said...

Actually, you didn't even need that much. Karl Denninger spotted this website (swiftly removed) that gave you fake paperwork for a modest fee...

http://market-ticker.denninger.net/uploads/payroll1099.png

10/25/08, 9:31 AM

Blogger John S. Bolton said...

A left that uses financial panic-mongering should lose massively. The media hype has been so extreme that hardly anyone can not see it. the left wants power and doesn't care about collateral damage.

10/25/08, 10:07 AM

Anonymous Miss Marple said...

"The more credit availability expands, however, the more important financial education becomes. In this increasingly competitive and complex financial services market, it is essential that consumers acquire the knowledge that will enable them to evaluate products and services from competing providers and determine which best meet their long- and short-term needs."

This is my favorite part. In contrast to the "Mau-Mauing the Flak Catchers" selection and M's post, you have to wonder if Greenspan (aka Bubbles) has been living in the real world.

10/25/08, 10:26 AM

Anonymous Anonymous said...

One thing I don't understand about the mortgage meltdown. I have read that similarly irresponsible loans were being made in countries other than the United States. Anybody have information/links regarding mortgage loans made outside the U.S. during this time?

10/25/08, 10:54 AM

Anonymous bob said...

Without defending the particular "counseling" jobs you and Tom Wolfe describe, subsidized public inner city jobs are not bad social policy.

Police, teachers, social workers, sanitation workers, city secretaries, and so on keep inner cities relatively clean and orderly.

Inner city public employees do more to impose bourgous values on ghettos than any other force. They are more likely to be married and are frequently pillars of their churches.

There are many worse things for a kid in the inner city to aspire to than a government job.

10/25/08, 4:49 PM

Blogger TGGP said...

You can read Tom Wolfe's Mau-Mauing the Flak Catchers online.

10/25/08, 10:14 PM

Anonymous Michael T said...

Without defending the particular "counseling" jobs you and Tom Wolfe describe, subsidized public inner city jobs are not bad social policy.


That the fact that they're required stems directly from bad social policy.

Police, teachers, social workers, sanitation workers, city secretaries, and so on keep inner cities relatively clean and orderly.


And those evil racist conservatives want to do away with them all.

Inner city public employees do more to impose bourgous values on ghettos than any other force. They are more likely to be married and are frequently pillars of their churches.


In other words, they have little in common with numbnuts "credit-counselors."

10/25/08, 10:30 PM

Anonymous headache said...

"One thing I don't understand about the mortgage meltdown. I have read that similarly irresponsible loans were being made in countries other than the United States. Anybody have information/links regarding mortgage loans made outside the U.S. during this time?"

In Germany they have always required 25% downpayment. That is the reason why so many people rent and don't own.

The financial problems here emanate from the big banks and other institutions playing cards with Lehmann and co.

10/26/08, 4:25 AM

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