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Thread: $800bn and still the markets fail?

  1. #21
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    I would like to be paid 19 million dollars period. Geesh.












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  2. #22
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    Quote Originally Posted by Keith, post: 56970
    Well I was speaking a guy from the mortgage industry the other day in the UK, no idea if its the same in the states.

    He was saying that when he started out, you got promoted through the bank on the basis of making good solid loans to people. Your loan book was like a CV.

    The last so many years he said things changed and you were being commissioned to sell loans to everyone and anyone. A few bad ones were expected but if you typed in the name to the computer and you got a yes to a loan, you sold it. He said it was very obvious to him at least that some people werent going to be able to afford the mortgage even after a few years but what was he supposed to do? He was getting huge commissions, the bank was happy, the customer desperately wanted it.

    I guess although I dont necessarily agree, I think the weak part was the banks who set the criteria for that computer check to say yes to people.

    Did anyone see the questioning of the ex ceo of Lehmanns? 1/2 a billion earned in the last few years even as the bank was going down. You can bet that guy isn't in any financial difficulties
    That is exactly what happened in the industry. When I first started you were in the Bank many years before you lent a penny and had to go on many lending courses before that. You were also mentored by the Bank Manager (in the days when they were real Bank Managers - older than 20. Mine had the bowler hat and was about 80 ) We did not have credit scoring but a discretionary limit which increased as our skills developed. We were taught a system known as CAMPARI and ICE (each letter standing for a criteria which had to be met not having a drink!!) which every lending proposition had to fit. We were taught it was like lending our own money.

    The past ten years or so and since the introduction of credit scoring the lending system has been automated and joking aside if the 'computer says no..it's a no' - removing the need for any staff skill or common sense. Sales of loans and protector insurances have been the drivers in banking with a reckless sense of lending leading to the situation we find ourselves in today.

    I also worked as a mortgage adviser and our criteria were strict but I was always in competition with the likes of HBOS, Northern Rock and lost a lot of deals to them as their criteria of 5x income and 125% mortgages was ridiculous - look where they are today as a result of these decisions.

    As to being asked to repay your mortgage or any other bank debt it would be suicide for Bank's to recall good lending but in the small print of every loan it will say monies are repayable on demand. Would it happen - no







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  3. #23
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    so now the uk has injected 50bn what does this mean for us all?



  4. #24
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    Quote Originally Posted by disneymom, post: 57066
    so now the uk has injected 50bn what does this mean for us all?
    Well if you are a tax payer you are now a shareholder in every major bank in the UK.

    This news plus the base rate cut has not had any impact on the FTSE. I don't think there are many more options left for the Government.







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  5. #25
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    Wonder what would have happened if they had just given the money to us tax payers so we could have paid our bills??

  6. #26
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    Something that bothers me is there has been no definition of the specific problems or plan to address them. It's a vague "buying securities" and direct lending at the moment. They really need to look at past programs (RTC most recent) and get their act together so they don't waste the funds before they can begin doing something positive.

    Grammiepo, I think your idea is marvellous! Not likely to happen, as we are merely voters and taxpayers with almost no voice in how the country is run, but marvelous!

    A mere $70K (down from almost $300K) would pay off the remaining debt for caring for my parents. Then all I would have to worry about is the mortgage, taxes and living expenses. Think anyone would forgive the debt of said mere taxpayer?


  7. #27
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    Well inflation in Zimbabwe just hit 231 million per cent so I guess it's not so bad here after all.

  8. #28
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    Quote Originally Posted by Dawn, post: 57558
    Well inflation in Zimbabwe just hit 231 million per cent so I guess it's not so bad here after all.
    Not to be too pesimistic but..give it time!:mad:

    Normally in the US, the presidential election year normally has the best financial situtation. It is the best time to buy a house (rates tend to be lowest), make investments. What happened this time? Now I am not saying that normally the congress cooks the books, but the fed usually makes things smoother shall we say.

    I have a feeling that we haven't bottomed out yet. The ripples reverberate around the economic world. Will take some time to sort things out. A nice recovery follows these trends, but how long will that take.

    How bad is it for me personally? I am a teacher, have stability there, only have a few more years on the mortgage (no worries there, fairly low rate), but my retirement is sacked, descimated...I could retire after this year (30 years of teaching = hazardous vocation - lump us with firefighters and police here in VA)but that isn't going to happen. Let's say that I put in $4500 last year...my balance should go up right..wrong..lost over $2000 on balance...who can afford to look $6500 each year? I may never retire.:(










  9. #29
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    All I know is that Rick and I are watching our retirement slowing fade in the west with the setting sun. Our financial people tell us to wait, and that's Rick's stand on it also. Me....I want our money in a shoe box under the bed.
    People who say money doesn't buy happiness...don't know where to shop!





  10. #30
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    I did retire and know I wonder what I am going to live on, too old and tired to work, or even stand in the bread line. Can't get on my knees to pray, cause I just know I can't get back up. :rolleyes008: Have no idea what to do. The only happy thought I can come up with is we are all in the same boat:shocked025: and a boat full of Disney nuts, isn't a bad place to be.

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