Subprime mortgage meltdown ass'plained - for dummies

z · 10-01-2008, 08:38 PM

probably wtlw...
but decided it should be seen again

Pretty much what got us into this mess we're in today e.g. $700billion bailout

cn: stick figure cartoon ass'plaination (which is 100% true and funny as hell)

edit: *some nws words in doodles*

v *click pic* v

* Registered users of the site do not see these ads.

Shavenyak · 10-01-2008, 08:50 PM

They kind of left out Fannie and Freddie and their infinite line of credit backed by the taxpayers.

MikeCee · 10-01-2008, 09:00 PM

OMGZORZ

kevinsUBARU · 10-01-2008, 09:20 PM

OMGZORZ

scooby888 · 10-01-2008, 09:24 PM

You forgot the First Bank of Bankland, Inc., RSG Investment Bank of Wall Street, Office of the Czar of Accounting and the Norwegian Village Pension Fund.

hoodscoob · 10-01-2008, 09:35 PM

or The United States of Goldman Sachs

FunkerVogt · 10-01-2008, 09:36 PM

Was posted months ago...

But, every bit as funny, and relevant today

stu1811 · 10-01-2008, 10:21 PM

OMGZORZ

MikeWRX-NJ · 10-01-2008, 11:50 PM

f you, f you, the end.... yup that's about right.

hondaeater69 · 10-02-2008, 12:05 AM

you know, American society and culture is partly to blame for this mess to begin with. they love to pressure people into doing stupid things, like getting married, having kids, AND buying houses.

my parents still to this day equate things like marriage and buying a home to success. it's neanderthal and ludicrous IMO.

now, there was a great credit expansion, and credit available where it previously hadn't been. but the pressures placed by society opened the flood gates for people to buy homes who previously could not. had these pressures not been present, these people would most likely have NOT bought houses, and simply stayed in their cheaper rentals.

Kostamojen · 10-02-2008, 12:06 AM

We shall call it: The Collapse of the Credit Society

Joe250 · 10-02-2008, 12:26 AM

Keep digging. Loans to less-than-qualified buyers is merely a symptom. Here's a great little article that explains what the cause was:

http://www.lewrockwell.com/paul/paul421.html

Mr. Bungle · 10-02-2008, 12:33 AM

Quote:

Originally Posted by Joe250

Keep digging. Loans to less-than-qualified buyers is merely a symptom. Here's a great little article that explains what the cause was:

http://www.lewrockwell.com/paul/paul421.html

Agreed.

Shavenyak · 10-02-2008, 12:39 AM

Quote:

Originally Posted by Joe250

Keep digging. Loans to less-than-qualified buyers is merely a symptom. Here's a great little article that explains what the cause was:

http://www.lewrockwell.com/paul/paul421.html

Quote:

Originally Posted by Mr. Bungle

Agreed.

X11ty

Yoo Shin · 10-02-2008, 12:48 AM

I've seen it go like this for co-workers, fellow neighbors, and even close friends...

Buyer: "Hey bank guy things are going great! I'm making $XXXk year, and things are only getting better! The company I work for can't stop giving me bonuses and raises for no reason other then I sit on my ass all day and talk a good game, and my pretentious wife has to compete with all of her stuck up snobby friends, and my kids have to have the latest gizmos like i pods and cell phones so they won't hate me and end up on drugs.."

Banker: "Dude, hi five! [hi five ensues] Hey I got your back! What's your credit like and what kind of down payment?"

Buyer: "Well my credit score sucks and I don't really have a down payment, but things are about to turn around for me you see..."

Banker: "uh...yeah. Dude no problem because we got these special plans just for great qualifiers like you,...just sign here...."

Buyer: "Awesome, that's great, now I can't wait to max out my credit cards on a new big screen flat panel, Blu Ray, surround sound, those cool front load washing machines.."

Banker: "yeah sure why not...(whatever your mortgage loan is about to be handed off to the investment pool full of other over-extending douchbags)"

Signifgant Other to Buyer: "Hey darling, now that we have this huge awesome house that's better and bigger then all our friends, why don't we go out and buy a bunch of furniture and house hold goods on those killer no interest & no payments for XX months credit specials!"

Buyer: "Since I don't know how to say no to you, or our spoiled brat kids, sure!"

[2-3 years later..]

Signifigant Other: "Honey, we can't afford to pay for ****!"

Buyer: "uh ..krap."

chris74 · 10-02-2008, 08:28 AM

......sorry

chris74 · 10-02-2008, 08:30 AM

Don't forget affirmative action in the 80's as a cause as well.

BacDoc · 10-02-2008, 08:32 AM

Quote:

Originally Posted by chris74

Don't forget affirmative action in the 80's as a cause as well.

......sorry

Don't be sorry. The government absolutely forced some if not most of these lending facilities to hand out loans to unqualified people plain and simple. It's not a racial slander it's a fact.

chris74 · 10-02-2008, 08:36 AM

no i was sorry about double posting before done typing laptop is touchy

big_mac314 · 10-02-2008, 08:49 AM

While it is true that many people that got into them made very poor decisions, not everyone did. Some people (myself included) used them wisely to sock away 10's of thousands of dollars in other investments while the payments were low.

Unlike many though, I was fully aware of the risks associated with this type of loan. I made sure that the terms were such that even if my wife lost her income and the interest went to 19.99% (the max) that I could still afford my payments.

I could see the writing on the wall and got out before it bust. Sold a bit early, in fact on guy bought my house and sold it 10 months later for an additional $60K, while it sucks, it wasn't a risk I was willing to take. The other I refinanced.

z · 10-02-2008, 09:41 AM

Quote:

Originally Posted by chris74

Don't forget affirmative action in the 80's as a cause as well.

Quote:

Originally Posted by BacDoc

Don't be sorry. The government absolutely forced some if not most of these lending facilities to hand out loans to unqualified people plain and simple. It's not a racial slander it's a fact.

equal housing lender...

Stickee · 10-02-2008, 09:45 AM

Quote:

Originally Posted by Yoo Shin

I've seen it go like this for co-workers, fellow neighbors, and even close friends...

Buyer: "Hey bank guy things are going great! I'm making $XXXk year, and things are only getting better! The company I work for can't stop giving me bonuses and raises for no reason other then I sit on my ass all day and talk a good game, and my pretentious wife has to compete with all of her stuck up snobby friends, and my kids have to have the latest gizmos like i pods and cell phones so they won't hate me and end up on drugs.."

Banker: "Dude, hi five! [hi five ensues] Hey I got your back! What's your credit like and what kind of down payment?"

Buyer: "Well my credit score sucks and I don't really have a down payment, but things are about to turn around for me you see..."

Banker: "uh...yeah. Dude no problem because we got these special plans just for great qualifiers like you,...just sign here...."

Buyer: "Awesome, that's great, now I can't wait to max out my credit cards on a new big screen flat panel, Blu Ray, surround sound, those cool front load washing machines.."

Banker: "yeah sure why not...(whatever your mortgage loan is about to be handed off to the investment pool full of other over-extending douchbags)"

Signifgant Other to Buyer: "Hey darling, now that we have this huge awesome house that's better and bigger then all our friends, why don't we go out and buy a bunch of furniture and house hold goods on those killer no interest & no payments for XX months credit specials!"

Buyer: "Since I don't know how to say no to you, or our spoiled brat kids, sure!"

[2-3 years later..]

Signifigant Other: "Honey, we can't afford to pay for ****!"

Buyer: "uh ..krap."

Will read again.

10-01-2008, 08:38 PM	#1
z Scooby Specialist Member#: 41762 Join Date: Aug 2003 Chapter/Region: International Location: House of Pancakes Vehicle: 04 STi in ur Floriduh	Subprime mortgage meltdown ass'plained - for dummies probably wtlw... but decided it should be seen again Pretty much what got us into this mess we're in today e.g. $700billion bailout cn: stick figure cartoon ass'plaination (which is 100% true and funny as hell) edit: some nws words in doodles v click pic v * Registered users of the site do not see these ads. Last edited by z; 10-01-2008 at 09:00 PM.

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10-01-2008, 08:50 PM	#2
Shavenyak Scooby Specialist Member#: 7156 Join Date: Jun 2001 Chapter/Region: SCIC Location: Montrose, CA Vehicle: 2016 Subaru WRX Grey	They kind of left out Fannie and Freddie and their infinite line of credit backed by the taxpayers.

10-01-2008, 09:00 PM	#3
MikeCee Scooby Specialist Member#: 136687 Join Date: Jan 2007 Location: crosby, vokoun, tk, orpik Vehicle: 15 iginla, dup...	OMGZORZ

10-01-2008, 09:20 PM	#4
kevinsUBARU Scooby Specialist Member#: 2263 Join Date: Sep 2000 Chapter/Region: Tri-State Location: Hudson Valley Vehicle: 2014 Sportwagen TDI	OMGZORZ

10-01-2008, 09:24 PM	#5
scooby888 Scooby Specialist Member#: 64226 Join Date: Jun 2004 Chapter/Region: NESIC Vehicle: 2004 Impreza WRX World Rally Blue	You forgot the First Bank of Bankland, Inc., RSG Investment Bank of Wall Street, Office of the Czar of Accounting and the Norwegian Village Pension Fund.

10-01-2008, 09:35 PM	#6
hoodscoob Scooby Newbie Member#: 85140 Join Date: Apr 2005 Chapter/Region: MWSOC Location: Cincinnati, OH Vehicle: 2005 Legacy GT wagon topazzzzz	or The United States of Goldman Sachs

10-01-2008, 09:36 PM	#7
FunkerVogt Scooby Newbie Member#: 4585 Join Date: Mar 2001 Chapter/Region: Tri-State Location: Northern NJ	Was posted months ago... But, every bit as funny, and relevant today

10-01-2008, 10:21 PM	#8
stu1811 Scooby Specialist Member#: 124651 Join Date: Aug 2006 Chapter/Region: NESIC Location: RI Vehicle: 2011 LGT DGM	OMGZORZ

10-01-2008, 11:50 PM	#9
MikeWRX-NJ Scooby Specialist Member#: 33410 Join Date: Feb 2003 Chapter/Region: Tri-State Location: wishing i was somewhere else Vehicle: 08 wrx dgm	f you, f you, the end.... yup that's about right.

10-02-2008, 12:05 AM	#10
hondaeater69 Scooby Guru Member#: 60324 Join Date: Apr 2004 Location: soon to be somewhere else Vehicle: 1998 RS	you know, American society and culture is partly to blame for this mess to begin with. they love to pressure people into doing stupid things, like getting married, having kids, AND buying houses. my parents still to this day equate things like marriage and buying a home to success. it's neanderthal and ludicrous IMO. now, there was a great credit expansion, and credit available where it previously hadn't been. but the pressures placed by society opened the flood gates for people to buy homes who previously could not. had these pressures not been present, these people would most likely have NOT bought houses, and simply stayed in their cheaper rentals.

10-02-2008, 12:06 AM	#11
Kostamojen Scooby Guru Member#: 2272 Join Date: Sep 2000 Chapter/Region: BAIC Location: Fire Caves Vehicle: 2019 Macan 4cyl 1993 Impreza FWD WRX swap	We shall call it: The Collapse of the Credit Society

10-02-2008, 12:26 AM	#12
Joe250 Scooby Newbie Member#: 52513 Join Date: Jan 2004 Chapter/Region: BAIC Location: CA Vehicle: 1960 Seven	Keep digging. Loans to less-than-qualified buyers is merely a symptom. Here's a great little article that explains what the cause was: http://www.lewrockwell.com/paul/paul421.html

10-02-2008, 12:48 AM	#15
Yoo Shin Scooby Specialist Member#: 87327 Join Date: May 2005 Chapter/Region: South East Location: North Bama Vehicle: 2017 Heron White SS OG Thread Killa	I've seen it go like this for co-workers, fellow neighbors, and even close friends... Buyer: "Hey bank guy things are going great! I'm making $XXXk year, and things are only getting better! The company I work for can't stop giving me bonuses and raises for no reason other then I sit on my ass all day and talk a good game, and my pretentious wife has to compete with all of her stuck up snobby friends, and my kids have to have the latest gizmos like i pods and cell phones so they won't hate me and end up on drugs.." Banker: "Dude, hi five! [hi five ensues] Hey I got your back! What's your credit like and what kind of down payment?" Buyer: "Well my credit score sucks and I don't really have a down payment, but things are about to turn around for me you see..." Banker: "uh...yeah. Dude no problem because we got these special plans just for great qualifiers like you,...just sign here...." Buyer: "Awesome, that's great, now I can't wait to max out my credit cards on a new big screen flat panel, Blu Ray, surround sound, those cool front load washing machines.." Banker: "yeah sure why not...(whatever your mortgage loan is about to be handed off to the investment pool full of other over-extending douchbags)" Signifgant Other to Buyer: "Hey darling, now that we have this huge awesome house that's better and bigger then all our friends, why don't we go out and buy a bunch of furniture and house hold goods on those killer no interest & no payments for XX months credit specials!" Buyer: "Since I don't know how to say no to you, or our spoiled brat kids, sure!" [2-3 years later..] Signifigant Other: "Honey, we can't afford to pay for **!" Buyer:** "uh ..krap."

10-02-2008, 08:28 AM	#16
chris74 Scooby Newbie Member#: 71940 Join Date: Oct 2004	......sorry

10-02-2008, 08:30 AM	#17
chris74 Scooby Newbie Member#: 71940 Join Date: Oct 2004	Don't forget affirmative action in the 80's as a cause as well.

10-02-2008, 08:36 AM	#19
chris74 Scooby Newbie Member#: 71940 Join Date: Oct 2004	no i was sorry about double posting before done typing laptop is touchy

10-02-2008, 08:49 AM	#20
big_mac314 Scooby Newbie Member#: 38251 Join Date: Jun 2003 Chapter/Region: South East Location: NC	While it is true that many people that got into them made very poor decisions, not everyone did. Some people (myself included) used them wisely to sock away 10's of thousands of dollars in other investments while the payments were low. Unlike many though, I was fully aware of the risks associated with this type of loan. I made sure that the terms were such that even if my wife lost her income and the interest went to 19.99% (the max) that I could still afford my payments. I could see the writing on the wall and got out before it bust. Sold a bit early, in fact on guy bought my house and sold it 10 months later for an additional $60K, while it sucks, it wasn't a risk I was willing to take. The other I refinanced.