by GarySpicuzza » Tue Sep 16, 2008 05:59 pm
You can trace our current financial turmoil to the Financial Services Modernization Act of 1999.
Read THIS link.
Read THIS link.
On November 4, 1999, Congress passed sweeping legislation that will dramatically reshape the financial services industry by removing barriers between banks, insurance companies, and investment firms which have existed since the Great Depression. President Clinton is expected to sign this historic legislation.
Eliminates many Federal and State legal barriers to affiliations among banks and securities firms, insurance companies, and other financial service providers, including provisions of the Bank Holding Company Act of 1956 and Section 20 of the Banking Act of 1933 (commonly referred to as the "Glass-Steagall Act"). Full affiliation can now occur between the entities.
Posted: Thu Sep 18, 2008 02:29 pm Post Subject:
All of that happened, happens, and will happen regardless if it's the same company or different companies.
The problem was the attitude of the government. They looked the other way when people were qualified for a home that they could not afford. Part of this was the Gramm-Leach-Biliy Act but it was much larger then that.
Everyone should _not_ be able to own a home. That's been proven now. :)
Posted: Thu Sep 18, 2008 11:02 pm Post Subject:
WHO needs a 125% mortgage? who?
Posted: Fri Sep 19, 2008 12:42 am Post Subject:
I'd say it the other way... if you need a 125% mortgage, you don't need a mortgage. :)
Posted: Fri Sep 19, 2008 10:18 am Post Subject:
I'd say it the other way... if you need a 125% mortgage, you don't need a mortgage.
Agreed...works both ways...but seriously...what would make someone think that automatcially being 25% upside down is a good idea? or a car? apparently you can do that as well...I just don't get it....I understand the horrific greed involved in the lenders...well I don't understand it I see that a motivator on their part...sick or not....gut what does a person say to themselves that makes that make sense to them? :?Posted: Fri Sep 19, 2008 11:22 am Post Subject:
WHO needs a 125% mortgage? who?
Nobody. But that misses the point.
Follow my math using a $100,000 home with an $80,000 original 1st mortgage.
First let's inflate the value of the home to $150,000. Now, even if the bank only loans 90% loan to value look what happens.
90% of $150,000 is $135,000.
$135,000 minus the $80,000 1st mortgage equals $55,000 the bank loans on the home.
The homeowner gets $55,000 cash to do whatever they want with. Go on vacation, buy a boat, buy a corvette, buy a diamond ring, invest in stocks, bonds, mutual funds.
But now they owe $135,000 on a home that is actually only worth $100,000 so they simply just walk away from the home BUT guess what? They get to keep the boat, the car, the diamond ring, the investments and the vacation was a blast!
They have legally robbed the bank and in the words of Eleanor Roosevelt.
"NOBODY can make a fool out of you without your permission."
So while the Poli-Tic bass towards go on and on about this poor homeowner con artist who lost their home they fail to mention they have kept all their ill-gotten gains while making fools out of the banks and the Gubment.
Where's MY stimulus check when I need it?
Posted: Tue Sep 30, 2008 06:09 am Post Subject: Sec. 20, Act of 33
Mr. Spicuzza,
in law school, (I was only a "C" student), I remember the corporations prof warned if section 20 of the Act of 33 was ever messed with, chaos would follow. Can I cut/paste your stuff to include in my own rants?
Peace . . .
Posted: Sat Oct 04, 2008 06:16 pm Post Subject:
Mr. Petrano wrote:
Can I cut/paste your stuff to include in my own rants?
Yes.
I would consider it an honor!
...after all, my sig line does say,...
"No Rights Reserved."
:wink:
Posted: Sat Oct 04, 2008 10:47 pm Post Subject:
I think it is all bull****. Then we are the ones left bailing them out and we don't have the keys to the car,boat or the diamond ring on our fingers. Why did they ever come up with second mortgages to begin with and why don't they take into consideration your scenario? I am just a regular person and don't understand much pf the ins or mortgage world but I figure it is my tax dollars being affected. Now McCain wants to tax my health insurance benefits too? Where does it end???????
Add your comment