- Joined
- Dec 5, 2015
- Messages
- 28,602
- Reaction score
- 6,367
- Location
- Washington
- Gender
- Male
- Political Leaning
- Independent
Dude. Obama didn't "revive" subprimes - the lending industry found a way around the regulations. It's not much different from drug pushers developing a new type of drug that - since it's not yet on the 'banned' list - is every bit as intoxicating as cocaine, but is legal because it's effectively used a loophole to get around the existing regulations.
For a better explanation:
The business of bundling riskier U.S. mortgages into bonds without government backing is gearing up for a comeback. Just don’t call it subprime.
Hedge fund Seer Capital Management, money manager Angel Oak Capital and Sydney-based bank Macquarie Group Ltd. are among firms buying up loans to borrowers who can’t qualify for conventional mortgages because of issues such as low credit scores, foreclosures or hard-to-document income. They each plan to pool the mortgages into securities of varying risk and sell some to investors this year. JPMorgan Chase & Co. analysts predict as much as $5 billion of deals could get done, while Nomura Holdings Inc. forecasts $1 billion to $2 billion.
Investment firms are looking to revive the market without repeating the mistakes that fueled the U.S. housing crisis last decade, which blew up the global economy. This time, they will retain the riskiest stakes in the deals, unlike how Wall Street banks and other issuers shifted most of the dangers before the crisis. Seer Capital and Angel Oak prefer the term “nonprime” for lending that flirts with practices that used to be employed for debt known as subprime or Alt-A.
But I get it - you've just GOT to find stuff to blame Obama for.
So, you are not blaming Bush for the crash?
I'm sure your post will be flooding with hypocrisy.