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| TRUMP 2024 (Page 17/59) |
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olejoedad
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JAN 20, 03:06 PM
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Why did they issue credit default swaps?
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ray b
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JAN 20, 03:36 PM
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| quote | Originally posted by olejoedad:
Why did they issue credit default swaps? |
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MARKETS KNOW BEST THE CON'S SAID
WELL THE SCAM KNEW BETTER
WAS SUPPOSED TO BE INS AGAINST DEFAULT
over used and abused by the 1%
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BingB
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JAN 20, 05:15 PM
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| quote | Originally posted by olejoedad:
Why did they issue credit default swaps? |
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Big investors like retirement fund managers were not often not allowed to buy investments that were not A+ rated and the mortgage backed securities were not rated that high. The credit default swaps were supposed to act like insurance to cover losses if the mortgage back investments tanked. But since there was no regulation the big investment houses did not have enough funds to cover the losses.
If the federal government had not stepped in many more people would have lost their retirements.
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olejoedad
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JAN 20, 07:50 PM
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Why did the bankers fear that the mortgage backed investments would tank?
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BingB
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JAN 21, 12:28 PM
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| quote | Originally posted by olejoedad:
Why did the bankers fear that the mortgage backed investments would tank? |
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I don't understand this question. Investment bankers like Lehman Bros and AIG did not think they would tank. That is why they were willing to issue the credit default swaps.
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82-T/A [At Work]
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JAN 21, 01:39 PM
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| quote | Originally posted by BingB:
I was not talking about the cause of the crisis. I was talking about the claim that it had been fixed by the time Obama took office. And the claim that it was Obama who "used the crisis" to pass massive federal spending bills.
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To be clear, Bush (whom I'm not defending), had already stabilized the economy at that point. He was the one that created TARP... which was meant to be a "loan" for banks and corporations to prevent a run on the banks. Guess who "forgave" these loans when he got into office? ... Obama.
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ray b
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JAN 22, 10:05 AM
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| quote | Originally posted by 82-T/A [At Work]:
To be clear, Bush (whom I'm not defending), had already stabilized the economy at that point. He was the one that created TARP... which was meant to be a "loan" for banks and corporations to prevent a run on the banks. Guess who "forgave" these loans when he got into office? ... Obama. |
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well what was forgiven by which corpRAT ?
as ''From 2008 to 2010, TARP invested $426.4 billion in firms and recouped $441.7 billion in return.''
you claim the obama people did something not in the records
guess the obama derangement is affecting the rump cult
NO HE DID NOT DO THAT
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82-T/A [At Work]
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JAN 22, 10:20 AM
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| quote | Originally posted by ray b:
well what was forgiven by which corpRAT ?
as ''From 2008 to 2010, TARP invested $426.4 billion in firms and recouped $441.7 billion in return.''
you claim the obama people did something not in the records
guess the obama derangement is affecting the rump cult
NO HE DID NOT DO THAT |
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You're numbers are a bit off... but I am not disputing that the government effectively "made money" on it (which technically they're not allowed to do, but I'm not complaining). But only half of the money loaned was "paid back" by the corporations that borrowed it. The rest of the return came from dividends and interest from the loans.
Left-leaning fact checker here:
https://www.politifact.com/...ck-all-federal-bail/
Right or wrong, Obama forgave the rest of the loans for those who hadn't paid it back, when he determined that the government had effectively been made whole. He was criticized widely for it at the time with the Occupy Wall Street movement... which was created as a direct result of Obama forgiving those loans. The argument of course was that the banks were given bail-outs, but the individual home owners were not. This is of course not true... because many home owners had their mortgages modified and / or completely forgiven. But it was all in the narrative.
The home behind mine in Fort Lauderdale was purchased at its peak (at the time) by a family who absolutely never should have been there. The husband was a trash collector, and the wife was a middle school teacher. The husband could barely read or write and at the time, the state of Florida used to allow you to look at all the property documents for every home. In any case... they bought the home for almost $600k back in 2007 on a middle school teacher's salary. A hurricane hit and damaged their fence, and they didn't have the money to repair it (I just repaired it myself and didn't make a big deal about it). The pool enclosure failed though, and soon they stopped maintaining it. This is a house that is now a 1 million-dollar plus home. In any case, they stopped paying their mortgage almost immediately. They squatted for like 2 years, and then the bank forgave half of their loan... effectively forgiving almost $300k of their loan... which was unbelievable to me. They stayed in there another 6 months, and the home yet again went into foreclosure and they squatted. After a full 8 months, the police came in and escorted them off the property. This was a luxury home in a wealthy neighborhood that was now infested with rats, and completely run down. A home flipper bought it in early 2012 and began renovating it, and sold it a few months later. It's now a ~1.2 million dollar home. I paid my mortgage the entire time... it sure would have been nice for half of my loan to have been forgiven.[This message has been edited by 82-T/A [At Work] (edited 01-22-2024).]
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BingB
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JAN 22, 12:14 PM
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| quote | Originally posted by 82-T/A [At Work]:
To be clear, Bush (whom I'm not defending), had already stabilized the economy at that point. He was the one that created TARP... which was meant to be a "loan" for banks and corporations to prevent a run on the banks. Guess who "forgave" these loans when he got into office? ... Obama. |
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TARP was never any kind of "loan". It was using federal government funds to purchase "troubles assets". There was no forgiveness of any loan. Instead the government held the assets until their price went back up and sold them at a profit.
But the economy was far from stabilized when Obama took office. The markets continued to tank and the banks continued to lose money for months. The stock market did not begin to recover until March when the Obama administration announced its Public-Private Investment Program (P-PIP).
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82-T/A [At Work]
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JAN 22, 12:21 PM
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| quote | Originally posted by BingB:TARP was never any kind of "loan". It was using federal government funds to purchase "troubles assets". There was no forgiveness of any loan. Instead the government held the assets until their price went back up and sold them at a profit.
But the economy was far from stabilized when Obama took office. The markets continued to tank and the banks continued to lose money for months. The stock market did not begin to recover until March when the Obama administration announced its Public-Private Investment Program (P-PIP).
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Yes, we can all quote from Wikipedia BingB... we all know what TARP is.
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