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And The Fastest Growing Bank Asset in 2017 Was… Subprime

By MrMagic following x   2018 Apr 3, 1:01pm 816 views   3 comments   watch   sfw   quote     share    

Case in point: Throughout the mid-2000s, bankers engaged in woefully short-sighted, self-destructive behavior by loaning their depositors’ money to risky borrowers who put no money down to buy overpriced houses.

These loans called ‘subprime mortgages’. And before long, some even more self-destructive bankers began packing thousands of these subprime mortgages together into gigantic bonds, which bankers would trade among themselves.

Banks were making risky loans to borrowers who had a history of not paying their debts based on the premise that home prices only increase in value. And when home prices started to fall, the entire apparatus collapsed in late 2008.

You’d think that the entire financius dumbassus species would have learned from this experience.

But you would be wrong.

And that’s because financius dumbassus has an incredibly short memory. Not even a decade after these loans nearly brought down the entire global economy, SUBPRIME IS BACK.

In fact it’s one of the fastest growing investments among banks in the United States. Over the last twelve months the subprime volume among US banks doubled, and it’s already on pace to double again this year.

Bottom line– financius dumbassus is once again back to its old ways… making risky loans to borrowers with pitiful credit.

What could possibly go wrong?

Of course, they don’t call it ‘subprime’ anymore. Now it’s called “non-QM”, meaning “non qualified mortgage.” But it’s exactly the same thing– borrowers who don’t qualify for a conventional loan because of their pitiful credit and inability to make a down payment.

1   NuttBoxer   ignore (2)   2018 Apr 3, 1:20pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

Why change anything when you get paid win or lose?
2   joshuatrio   ignore (0)   2018 Apr 3, 1:28pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

Awww yeah. Whenever the next crash happens, I'm ready to pay cash for a few rentals.
3   APOCALYPSEFUCKisShostikovitch   ignore (36)   2018 Apr 3, 2:18pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

If banks are enslaved by rules requiring mortgage applicants to have a detectable pulse, then FREEDOM! has no meaning!

The Housing Trap
You're being set up to spend your life paying off a debt you don't need to take on, for a house that costs far more than it should. The conspirators are all around you, smiling to lure you in, carefully choosing their words and watching your reactions as they push your buttons, anxiously waiting for the moment when you sign the papers that will trap you and guarantee their payoff. Don't be just another victim of the housing market. Use this book to defend your freedom and defeat their schemes. You can win the game, but first you have to learn how to play it.
115 pages, $12.50

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