It's Just Business as Usual , in the USA

White House Offers Plan to Ward Off Credit Crises


The plan, which relies primarily on state regulators and private industry to tighten their oversight of financial markets, calls on states to issue nationwide licensing standards for mortgage brokers.


Yeah , we took those suckers for a ride, didn't we , and let me tell you how we did it too , it was so easy it was criminal !

We're morgage brokers ! What does that mean ? Broker = salesman. But we aint selling our product. We're selling someone elses, we're the broker not the producer.

In this case we're lending SOMEONE ELSES money to you, and the more we lend , the bigger the cut we get. And you know , those paper pushing managers only get to keep their jobs for a year or two, one bad downturn and they're out , and they know it. So when we tell them "if you loosen the rules just a bit we could sell more morgages, and bigger ones and no one will ever catch us until two years later ..." they jump at the opportunity ! 'Cause in two years they won't be there anymore , they'll have moved on and someone else will take the heat for the fall.

And so , we lend SOMEONE ELSES MONEY to you , with outrages terms, but terms that don't kick in for two years, your protected for the first two years , and we make a killing on commisions. And the managers who went along with the gag , got to look good for their quarterly reports , which are issued every three months, so they got several good quarterly reports out of us , got a raise and a promotion and everything !

And then it fell apart, because the moment the "protection" clauses fell away and the consumer (that would be YOU ! by the way) had to pay the going rates, it was far too expensive, and so you defaulted on your homes.

But we morgage brokers kept our commisions.
And those managers that went along with the gag kept their promotions and their new jobs.
And those brand new wet behind the ears managers got the shaft nicely left for them by the previous crop of managers.


At the news conference, Mr. Paulson said growing market problems were caused by a series of factors, including mortgage brokers who pushed risky loans on homeowners, conflicts of interest at credit-rating agencies, bond underwriters that loosened standards, and financial institutions that failed to adequately grasp the riskiness of the instruments they were buying and selling.


Conflict of interests ..heh heh heh ..guess who was collecting from both sides ...


On Thursday, Representative Barney Frank of Massachusetts and Senator Christopher J. Dodd of Connecticut, the two Democratic lawmakers who head Congressional committees that oversee markets, announced plans to provide billions of dollars to states to buy homes in foreclosure and encourage mortgage lenders to write down the value of mortgages in troubled areas.


And the government steps in to keep those loans from defaulting anyways. So we milk the govenrment instead of the the consumer. But since the government gets most of it's money from the consumer anyways ... we're just milking the consumer through a different path.

I love it ! Lets wait five years and do it again !