How SubPrime Really Works - BMW Luxury Touring Community
 
LinkBack Thread Tools Display Modes
post #1 of 22 Old Feb 15th, 2008, 3:28 pm Thread Starter
Senior Member
 
KMC1's Avatar
 
Join Date: Jul 2005
Location: SLC, UT, United States Of America
Posts: 2,337
How SubPrime Really Works

Oh My God, I almost laughed myself out of my chair!!
Too bad it's so close to the truth!

Content warning for adult language:

How Subprime really works

R1200GSA Hi Ho, Hi Ho, It's off to Alaska I go!
(Down to ONE BIKE - ARGH!)
KMC1 is offline  
Sponsored Links
Advertisement
 
post #2 of 22 Old Feb 15th, 2008, 4:47 pm
Senior Member
 
AliMar's Avatar
 
Join Date: Dec 2007
Location: Newington, CT, US
Posts: 438
Re: How SubPrime Really Works

It's sad that it's funny... Laughed me ass off...

Mark
'07 RT
AliMar is offline  
post #3 of 22 Old Feb 15th, 2008, 5:39 pm
Senior Member
 
GolfGuy's Avatar
 
Join Date: Sep 2007
Location: North Mankato, Minn., USA
Posts: 550
Re: How SubPrime Really Works

It's really sad...but true!
Old Addage: If it looks like a Duck, Walks like a Duck, Talks like a Duck....it's probably a Duck!
There are NO Free Lunches!!

Bob Thede
'02 K1200 LT-Blackie II
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

'97 BMW Z3-SO's
BMWMOA #135792
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

CCR-'08
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

'62 Fender Jazz Bass-played often!
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
GolfGuy is offline  
 
post #4 of 22 Old Feb 15th, 2008, 6:08 pm
Senior Member
 
Retread's Avatar
 
Join Date: Sep 2007
Location: Sparks, Nevada, USA
Posts: 198
Re: How SubPrime Really Works

I remember sitting around at lunch with some friends about 5 years ago. We were talking about these sub-prime and interest only loans people were taking out. We all thought it was crazy even way back then.

I work in HR and the rest of the people there worked in computers and telecom. How come we could see this was nuts even then, but no one in the financial world caught wise.

Yeah, that show was way to true to be real funny.

"Don't do anything you'd be embarrassed to explain to the paramedics."

Gary Helmers
Sparks, NV
2002 K1200LT
2003 XR250R
Retread is offline  
post #5 of 22 Old Feb 15th, 2008, 7:01 pm
Senior Member
 
c00k1e's Avatar
 
Join Date: Dec 2003
Location: Powys, , Wales & Cuba
Posts: 1,876
Re: How SubPrime Really Works

Good friend of mine worked in a mortgage brokers specialising in Sub-prime here in the UK.
Gave it out like water they did. Got a few k for arranging and took no risk at all - also took NO evidence of income.
So who was dumb enough to give that money? Lehman Brothers-owned Southern Pacific SPML. The carp hasn't hit the fan on them yet, so pull out if you are in!

"Whenever you find you are on the side of the majority, it is time to pause and reflect" Mark Twain


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
c00k1e is offline  
post #6 of 22 Old Feb 15th, 2008, 8:03 pm
Senior Member
 
cfell's Avatar
 
Join Date: Apr 2004
Location: Round Rock, TX, USA
Posts: 7,794
Re: How SubPrime Really Works

In some ways this is like the $&Hell "crisis" we are still paying off while the thieves... the big fat ones are smoking big fat ones.

And around we go... again.

...............
J.M.J...
Dcn Channing

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
cfell is offline  
post #7 of 22 Old Feb 16th, 2008, 11:17 am
Senior Member
 
Join Date: Apr 2002
Location: , ,
Posts: 163
Re: How SubPrime Really Works

Only thing missing in the presentation was the regulators. Actually they were missing too. The administration blocked the Attorneys General in several states from investigating and did not use the authority within the Fed to stop this mess.

The administration believed the market would sort it out. They were right. The market is now sorting it out.

Karl
nocanpickem is offline  
post #8 of 22 Old Feb 16th, 2008, 1:16 pm
Senior Member
 
BMWphreak's Avatar
 
Join Date: Apr 2003
Location: Putnam, CT, USA
Posts: 1,435
Talking Re: How SubPrime Really Works

Awesome! I totally understand investing my money with others now...

'07 - R1200RT Slippery Silver

MOA #107139
RA #28511

Past rides:
'03 R1150RT - MAXed out
'03 K1200LTC - Gone to the Darko side
'00 Kawasaki Concours - Buzz
'71 Honda SL350 - The original dual-sport
'72 Kawasaki 250 triple - The smoking gun
'67 Montgomery Wards 125 - Thrashed to death
BMWphreak is offline  
post #9 of 22 Old Feb 18th, 2008, 6:59 pm
THE Democracy Doctor
 
jayjacobson's Avatar
 
Join Date: Feb 2006
Location: We LOVE illegals and Socialists, Sunny, Southern Kommyfornia,
Posts: 5,694
How SubPrime Really Works

Quote:
Originally Posted by KMC1
Oh My God, I almost laughed myself out of my chair!!
Too bad it's so close to the truth!
45 pages of brilliant comedy....can be summed up with just one word: GREED!

"Those who would give up essential liberty to purchase a little temporary safety, deserve neither liberty nor safety." (Some really OLD friggin' White dude who couldn't have possibly known what he was talking about!) WARNING: Official HATE speech!
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
jayjacobson is offline  
post #10 of 22 Old Sep 17th, 2008, 5:31 am Thread Starter
Senior Member
 
KMC1's Avatar
 
Join Date: Jul 2005
Location: SLC, UT, United States Of America
Posts: 2,337
Re: How SubPrime Really Works

I thought today would be a really good day to give this thread a shameless bump.
So now I own AIG stock! Yay!
I wonder what else our quasi-Socialist Government is up to today?

R1200GSA Hi Ho, Hi Ho, It's off to Alaska I go!
(Down to ONE BIKE - ARGH!)
KMC1 is offline  
post #11 of 22 Old Sep 17th, 2008, 5:47 am
Senior Member
 
pkpr1998's Avatar
 
Join Date: Feb 2004
Location: Ringgold, GA, USA
Posts: 3,696
Re: How SubPrime Really Works

Quote:
Originally Posted by jayjacobson
45 pages of brilliant comedy....can be summed up with just one word: GREED!
Can I get an "Amen" to that?

Brett
2003 K1200LTC SOLD
2013 K1600GTL SOLD
2018 K1600GA SOLD
2019 K1600GA Blue

North Georgia

2005 CCR-Tetons
2006 CCR-Braselton
2008 CCR-Midway
2009 CCR-Rapid City
2011 CCR-Boise
2012 CCR-Duluth
2014 CCR-Chattanooga
2015 CCR-Coeur d 'Alene


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
pkpr1998 is offline  
post #12 of 22 Old Sep 17th, 2008, 7:49 am
Bouncer
 
eljeffe's Avatar
 
Join Date: Apr 2002
Location: Allen, TX, USA
Posts: 9,315
Re: How SubPrime Really Works

The Real Culprits In This Meltdown

By INVESTOR'S BUSINESS DAILY | Posted Monday, September 15, 2008 4:20 PM PT

Big Government: Barack Obama and Democrats blame the historic financial turmoil on the market. But if it's dysfunctional, Democrats during the Clinton years are a prime reason for it.

http://www.ibdeditorials.com/IBDArti...06370789279709


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

__________________
El Jeffe
Plano, TX
'06 K1200GT Crystal Grey
'04 Sprint RS Caspian Blue

__________________

"I am hoping for an asteroid impact to put all this climate change nonsense to bed."
-
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
eljeffe is offline  
post #13 of 22 Old Sep 17th, 2008, 9:22 am
Senior Member
 
RonKMiller's Avatar
 
Join Date: Jul 2003
Location: Tucson, AZ, USA
Posts: 6,279
Re: How SubPrime Really Works

I had a neighbor down the street about 5 years ago that was a mortgage broker. She was writing mortgages out of her home office.

In addition to her very nice house she (and her boyfriend - a home builder) bought a VERY nice condo in San Diego and $600K boat to go along with it. They both drove luxury SUV's.

She kept begging me to come to work for her since she was putting in 14 hours days trying to keep up with demand.

When I told here I didn't know the first thing about mortgage underwriting and that numbers were not my strong suit she said it didn't matter, and that I could easily make $200K a year just by answering the phone and filling out applications - part time.


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
"Like Butt-ahh!"
RonKMiller is offline  
post #14 of 22 Old Sep 17th, 2008, 2:51 pm
THE Democracy Doctor
 
jayjacobson's Avatar
 
Join Date: Feb 2006
Location: We LOVE illegals and Socialists, Sunny, Southern Kommyfornia,
Posts: 5,694
Re: How SubPrime Really Works

Quote:
Originally Posted by eljeffe
The Real Culprits In This Meltdown

By INVESTOR'S BUSINESS DAILY | Posted Monday, September 15, 2008 4:20 PM PT

Big Government: Barack Obama and Democrats blame the historic financial turmoil on the market. But if it's dysfunctional, Democrats during the Clinton years are a prime reason for it.

http://www.ibdeditorials.com/IBDArti...06370789279709
This one paragraph in the above referenced article really caught my attention: "While government arguably has a role in helping low-income folks buy a home, Clinton went overboard by strong-arming lenders with tougher and tougher regulations, which only led to lenders taking on hundreds of billions in subprime bilge."

Would that be the same role as in helping educate, support and care for the good citizens of this great country?! With so many on the big government tit, no wonder we're so F'D up!

The physical "slave master" has been replaced by the economic "slave master"--and the economic slave master sees no color, race or creed. He "imprisons" everyone!

"Those who would give up essential liberty to purchase a little temporary safety, deserve neither liberty nor safety." (Some really OLD friggin' White dude who couldn't have possibly known what he was talking about!) WARNING: Official HATE speech!
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
jayjacobson is offline  
post #15 of 22 Old Sep 17th, 2008, 4:54 pm
Senior Member
 
hallzee's Avatar
 
Join Date: Mar 2006
Location: Gold Country, CA, USA
Posts: 2,571
Re: How SubPrime Really Works

Quote:
Originally Posted by KMC1
I thought today would be a really good day to give this thread a shameless bump.
So now I own AIG stock! Yay!
I wonder what else our quasi-Socialist Government is up to today?
With Fannie, Freddie, AIG, et al, the U$ Government is into this for just over $700 Billion.

Before you go thinking that that's a lot of money... Why, it's "only" about $2,500.00 for every (documented) man, woman, and child in the U.S.!

Brian
CCR: 2008, Midway; 2011, Boise; 2012, Duluth; 2014, Chattanooga. MOA: Billings, 2015; SLC, 2017
CCR-R: 2018, Russellville
'13 K1600 GTL-P - "Eva"
Sold but "beloved" ride: K12 LT - "Pepe"
IBA #31242 (SSx2, BB, BBG)
MOA #136148

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
-
hallzee is offline  
post #16 of 22 Old Sep 17th, 2008, 9:05 pm
Senior Member
 
BMWphreak's Avatar
 
Join Date: Apr 2003
Location: Putnam, CT, USA
Posts: 1,435
Re: How SubPrime Really Works

Quote:
Originally Posted by KMC1
I thought today would be a really good day to give this thread a shameless bump.
So now I own AIG stock! Yay!
I wonder what else our quasi-Socialist Government is up to today?

Don't expect a dividend check anytime soon!

'07 - R1200RT Slippery Silver

MOA #107139
RA #28511

Past rides:
'03 R1150RT - MAXed out
'03 K1200LTC - Gone to the Darko side
'00 Kawasaki Concours - Buzz
'71 Honda SL350 - The original dual-sport
'72 Kawasaki 250 triple - The smoking gun
'67 Montgomery Wards 125 - Thrashed to death
BMWphreak is offline  
post #17 of 22 Old Sep 17th, 2008, 9:06 pm
Senior Member
 
BMWphreak's Avatar
 
Join Date: Apr 2003
Location: Putnam, CT, USA
Posts: 1,435
Re: How SubPrime Really Works

Quote:
Originally Posted by hallzee
With Fannie, Freddie, AIG, et al, the U$ Government is into this for just over $700 Billion.

Before you go thinking that that's a lot of money... Why, it's "only" about $2,500.00 for every (documented) man, woman, and child in the U.S.!

Yep, I sent my $5k in today, how about you?

'07 - R1200RT Slippery Silver

MOA #107139
RA #28511

Past rides:
'03 R1150RT - MAXed out
'03 K1200LTC - Gone to the Darko side
'00 Kawasaki Concours - Buzz
'71 Honda SL350 - The original dual-sport
'72 Kawasaki 250 triple - The smoking gun
'67 Montgomery Wards 125 - Thrashed to death
BMWphreak is offline  
post #18 of 22 Old Sep 17th, 2008, 9:20 pm Thread Starter
Senior Member
 
KMC1's Avatar
 
Join Date: Jul 2005
Location: SLC, UT, United States Of America
Posts: 2,337
Re: How SubPrime Really Works

Quote:
Originally Posted by hallzee
With Fannie, Freddie, AIG, et al, the U$ Government is into this for just over $700 Billion.

Before you go thinking that that's a lot of money... Why, it's "only" about $2,500.00 for every (documented) man, woman, and child in the U.S.!
Oh, It's even better than that.... If you check the stats there are a LOT less taxpayers than that... Tax Stats at a glance
Better sharpen our pencils and tighten our belts for this one fellers!

R1200GSA Hi Ho, Hi Ho, It's off to Alaska I go!
(Down to ONE BIKE - ARGH!)
KMC1 is offline  
post #19 of 22 Old Sep 17th, 2008, 9:20 pm Thread Starter
Senior Member
 
KMC1's Avatar
 
Join Date: Jul 2005
Location: SLC, UT, United States Of America
Posts: 2,337
Re: How SubPrime Really Works

Quote:
Originally Posted by BMWphreak
Yep, I sent my $5k in today, how about you?
Saving it for a new GS

R1200GSA Hi Ho, Hi Ho, It's off to Alaska I go!
(Down to ONE BIKE - ARGH!)
KMC1 is offline  
post #20 of 22 Old Sep 18th, 2008, 2:12 am
IBR# 366
 
meese's Avatar
 
Join Date: Apr 2002
Location: West Linn, OR
Posts: 16,409
Garage
Re: How SubPrime Really Works

Quote:
Originally Posted by hallzee
With Fannie, Freddie, AIG, et al, the U$ Government is into this for just over $700 Billion.
They're into it for a hell of a lot more than that already. Oh wait, that's the illegal and unjust war that has cost us so much so far . . .

Ken
Pacific NorthWet
'13 Dark Graphite Metallic K16GTLD, 24K miles and counting...
'09 Magnesium Beige Metallic K13GT, 63K miles miles and counting...
'02 Mauve Metallic K12LTC, 106K miles and sold
BMWLT#143, IBA# 366, MOA# 111996, SCMA# 24032


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.


All lower 48 states plus Alaska on the K13GT in two weeks . . .

Some people see the gas tank as half empty. Some see it as half full. All I care is that I know where the next tankful is coming from...
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
meese is offline  
post #21 of 22 Old Sep 18th, 2008, 10:19 am
Senior Member
 
Join Date: Sep 2002
Location: Augusta, GA, USA
Posts: 796
Re: How SubPrime Really Works

While the little skit is cute, it is a little off. All loan programs start with the investors (HE WHO HAS THE GOLD MAKES THE RULES), not with originating lenders (brokers, bank, mortgage companies, etc ). In the absence of fraud within the origination system, the investor(s) get exactly they say they want - or they would not fund them.

The big problems did in fact start in the late 80's and early 90's with huge pushes to grant credit (home ownership) through FHA ( your government's sub-prime operation ) and to some extent FNMA it's sister.

The sub-prime / non-conforming market actually worked very well in the beginning as the investors that made the underwriting rules were the ones that funded and serviced the loans. They knew exactly what they were buying and knew the risks along with how to collect the payments. For example - First Union and Bank of America each had well run divisions that did sub-prime loans and they were good at it. They knew their market and knew how to service it. Then, Wall Street started pumping money into stupid loans at rates that did not support the risks, both companies dropped those divisions. (The then current stigma of doing sub-prime loans did not help as they were perceived as loan sharks - which they were not - but it helped shut down those divisions which had helped many people.)

When the big boys on Wall Street figured out how much money could be made with sub-prime (non-conforming) loans they apparently jumped in big time. Hedge funds also got into the market with neither knowing much about the risk or how they worked - nor did they seem to care. All they cared about was volume as that is where the money is. The result is what you now see.

It's easy as hell to make a really stupid loan with someone else's money, but it is hard to make one with your own. I know.

I do not think the bail-outs by the government is/was the thing to do - especially with the previous years mega bonuses given out for scam (pencil whipped) earnings.

Just my opinion.

Lee Nowell
Black 01, LTC
BMWRA & MOA, AMA, IBA
lnowell is offline  
post #22 of 22 Old Sep 18th, 2008, 5:06 pm
THE Democracy Doctor
 
jayjacobson's Avatar
 
Join Date: Feb 2006
Location: We LOVE illegals and Socialists, Sunny, Southern Kommyfornia,
Posts: 5,694
Re: How SubPrime Really Works

Quote:
Originally Posted by hallzee
With Fannie, Freddie, AIG, et al, the U$ Government is into this for just over $700 Billion....
Quote:
Originally Posted by meese
They're into it for a hell of a lot more than that already. Oh wait, that's the illegal and unjust war that has cost us so much so far . . .
Yes--and speaking of missions from GOD--if we spent that $700 million on Iraq/Afghanistan, at least we could look forward to MORE killing and breaking things. That's value for my money!

"Those who would give up essential liberty to purchase a little temporary safety, deserve neither liberty nor safety." (Some really OLD friggin' White dude who couldn't have possibly known what he was talking about!) WARNING: Official HATE speech!
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
jayjacobson is offline  
Reply

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the BMW Luxury Touring Community forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in











Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode



Similar Threads
Thread Thread Starter Forum Replies Last Post
Starcom1 Digital, it works! Offwego Intercom, CB, & 2-Way Radios 23 Aug 16th, 2009 8:24 pm
? about Microsoft Works 7.0 REWDOC Chit Chat 10 Nov 15th, 2005 12:37 pm

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome