Should the government investigate current conditions? Will a free economy poison itself, and the rest of the world, as it did with subprime mortgages? Are banks and institutional investors trying to recap $385 Billion dollars (USD) in collaterized debt obligation losses? These questions and many more are being discussed at Crazy Speculators (www.crazyspeculators.com) and we think it is important. The truth is some of the major players that ruined subprime and Alt-A are the same major players driving up everything from oil and gasoline to cotton and corn.
While Treasury Secretary Henry Paulson was speaking, a federal appeals court shut the door to state enforcement of federally charted banks. Now Paulson wants help from the states. What in the world is going on? Didn’t the court render the states powerless to seek documents and enforce predatory lending laws, while Paulson is asking stes for help after the fact? First we blame poor people, then we take no action at the federal level, and now this? American’s are not that stupid and gullible!
If you are concerned about your adjustable rate mortgage or just cleaning up your credit report an issue that you should be aware of is the statute of limitations on old debt. Many people believe they must pay everybody regardless. At the same time some creditors try to get people to renew their debt, primarily because the statute of limitations is about to run out. Be careful when talking to these people on the phone. Any misworded answer to any simple question can restart the debt, throwing the statute of limitations out the window.
Boston Federal Reserve Bank president Eric S. Rosengren urged banks to take a second look at subprime borrowers, saying many have improved their credit scores since buying a home. If that is the case banks could step in and help those homeowners. Meanwhile arguments and debates continue as issues are labeled as “bailouts” or “rescues.” It is interesting to note the soundness of Rosengren’s theory – which it is – while contrasting it against new issues of predatory lending.
Strange bedfellows are now suing each other. A sure sign that Radian, MGIC, and C-BASS are singing the mortgage blues came to the forefront as a recent news article shows Radian and MGIC feuding like business partners who canít get along. The two sides have disagreed on whether MGIC is obligated to complete its buyout of Radian, now that their joint interest in a subprime mortgage investor has become all but worthless. MGIC is suing Radian for more information. MGIC and Radian are mortgage insurance companies.