Now Curious, let me say this real slow so you and Henry and BigBen and Homitern can understand it:

Banks  changed  their  lending  policies  because they could securitize the loan and sell it for a profit and not have the risk on their books.



Well, kenc that is not exactly a true statement! The vast majority of loans sold were sold to fannie and freddie as recourse paper with a 2 years recourse.....true enough they are not on their books but they still have the risk!

topjohn5 wrote:

Now Curious, let me say this real slow so you and Henry and BigBen and Homitern can understand it:

Banks  changed  their  lending  policies  because they could securitize the loan and sell it for a profit and not have the risk on their books.



Well, kenc that is not exactly a true statement! The vast majority of loans sold were sold to fannie and freddie as recourse paper with a 2 years recourse.....true enough they are not on their books but they still have the risk!

And Fanny a Freddie repackaged and resold it.
Goddammit where do you think all this Fannie and Freddie "paper" that everyone's buying came from??????

All this shit has been going round and round and round in circles for years.  And now the game of Musical Chairs has stopped and no one wants to hold the "hot potato".
The "Credit Crisis" is a banking panic in the classic 19th century way.
The Credit Markets are constipated and the so called "Bailout" is in fact a laxitive to try and get everything moving again.

And I've mixed way too many metaphors for a Friday night but I'm real pissed off now.



Last edited by kenc on Fri 3 Oct, 2008 11:13 pm; edited 1 time in total

homintern is on your IGNORE list.

I've just been getting way too overheated lately on this board by all the political topics popping up.
Apologies to Henry C, Bigben, Curios, Topjohn and even Homitern if I'm starting to sound a bit strident.
I come to this board mainly to talk about Thailand but lately I've been dragged into these political arguments and I can't seem to help myself.

Well its Fri night, what can I say......

(oh I know )


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Who's with me on this?


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Saw her about 15 years ago in Vegas a she still had it.......

and money also.......

Kenc the right wing wackos on this forum are the ones whose views have helped create this problem. You don't need to apologize instead you and all of us should be MAD AS HELL, AND I'M NOT GOING TO TAKE IT ANYMORE!


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Ok Rincondog.  As long as were on the subject.....

Ned Beatty explains how the world really works to Peter Finch.

Is this how The Pod People got to Henry?

"...And our children will live...to see that Perfect World, in which there is no War or Famine, Opression or Brutality.  One vast and ecumenical Holding Company for whom all Men will work to serve a common profit [Prophet?]; in which all Men will hold a share of stock.
All necessities provided.
All anxieties tranquilized.
All boredom amused. ..."


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Right now, in Manila, I am not using a bank for that reason, and the fact that for one year here you cannot set up a Dollar account and the dollar seems to be up by two points since I arrived. So to lock it in at that rate of exchange is not what I would like to do. So, I am working out of an ATM business card for the time being. I have lost one  bank back in the USA and I am a bit  over worried about it is not the case in all countries, but I fear a spread of lack of Confidence in the banking  system.. I just don’t trust the consumer mind set right now, its 24 hour news and the more they talk about it on TV the worse it gets. If I had to guess I would say half the  problem are the Talking heads on CNN and other networks, than the actual banking System, But I know several people that have made runs on their bank and that is not safe for them or the banking system. I think the UK did and USA and other banks around the world will eventually shore up their banking system. In the Philippines as soon as I red a local paper I saw they have  set aside a considerable amount, for a small country, to cover any banking  failure already, although this will not quickly solve the problem if you are patient and the  consumer is patient it will be okay. If you don't stay in and others do the same there will be serious depression not just a mild recession. In my life time any way, I have never seen a run on banks. This is serious and I am being more cautious than usual since I lost quite a lot when the banks failed in Kyrgyzstan in 98. for almost a  year I had to bank in Almaty for almost a year, which was a 6  hour  drive  then.

 But, I have  decided if  me and others like me run on the banking system it will lead  to a serious lack of confidence in the banking system which will cause  a serious meltdown of the  baking system . After all the banking system really is all about consumer confidence. Few of them have actual money on hand to cover their loans or investments. Should there be a run, by lack of confidence, I would bet 80% are not liquid enough to survive it; since most of their money is tied up in loans and investments and not cash