How did a Relatively Small Number of Subprime Loans Cause a Record Crisis?

catherine at 05:00 2011-01-04 said:

I said in December 2007 that if every single subprime loan failed in America, WE WOULD BE FINE............we were able to handle that...........but even back then they were dumping hundreds of billions of dollars INTO THE WORLDWIDE FINANCIAL SYSTEM, I was wondering why because I knew the numbers of loans................AND THEN WE LEARNED ABOUT securitization.........

Those loans could have failed and easily been fixed like the savings and loan fiasco..........instead when Clinton and Rubin and Greenspan gutted the glass steagall act, all hell broke loose.............they took those 'managable' subprime losses and securitized them to TRILLIONS OF DOLLARS OF INVESTMENTS..............

500 trillion on all the securitization...............not enough money in the world to fix that hole I am afraid............

but thankfully with PRIME TANKING IN OUR FACES EVERY SINGLE DAY, thankfully someone is sticking their toes in the water with the truth

THIS WAS NOT A SUBPRIME PROBLEM BUT IT SURE DID GIVE THE GOVERNMENT A BIG FAT REASON FOR THE WORLD TO HATE MORTGAGE PEOPLE, DIDN'T IT?

Made it easy for the government to nationalize us out of business, didn't it?Remember they couldn't have done it to us as easily as they did without making people HATE OUR GUTS...............could they?

With USDA doing NO MONEY DOWN LOANS--THIS MINUTE..........., NOT A WHIMPER, WITH THE BIG BOYS securitizing everything EVEN TODAY WITH FALLING VALUES, not a whimper............

thank you, this had nothing to do with subprime, they were just the weakest and fell first.........UNEMPLOYMENT KILLED THEM FIRST......but in the last two years it has moved to prime "A" mortgages and no one seems to notice............. Permalink