+ Reply to Thread
Results 1 to 28 of 28

Thread: Buffett sez banks are the victims

  1. #1

    Buffett sez banks are the victims

    Yet one more reason to despise the old pirate hiding behind a grandfatherly facade.

    Warren Buffett, who controls the biggest shareholding of the No. 1 U.S. mortgage lender, said banks were victimized by some homeowners who refinanced their loans before getting evicted.

    “Large numbers of people who have ‘lost’ their house through foreclosure have actually realized a profit because they carried out refinancings earlier that gave them cash in excess of their cost,” Buffett, chairman and chief executive officer of Berkshire Hathaway Inc. (BRK/A), said Feb. 25 in his annual letter. “In these cases, the evicted homeowner was the winner, and the victim was the lender.”
    http://www.bloomberg.com/news/2012-0...s-winners.html


    Screw you and the horse you rode in on Mr. Buffett!

    The field was tilted entirely in the banks' favor and they simply screwed the pooch. Their entire business is supposed to be making profitable loans. As professionals they were always in much better position to know which loans were sound and which ones were risky than the individual on the other side of that desk. Yet somehow the BANKS are the victim here?

    He's just another scumbag talking his book. It's just sickening how anyone can try to paint the banks as anything more than incompetents at best and organized crime at worst. If that's not enough he tries to use political influence in a way that is profitable for him but damaging to the country. I'm amazed that anyone continues to buy into his BS.

  2. #2
    I used to like that $#@!. But that is horrendous bull$#@!.

  3. #3
    I read this mentally as {Vontez} Burfect sez banks are the victims....and thought he said this during a meeting with some NFL GM....

    That said...pity those poor poor suffering banks at the hands of those greedy depositors and retirees!

  4. #4
    Yep. Those poor naive bankers had no chance. They were just taken advantage of by a bunch of savvy borrowers who just cheated them out of their [z]hard-earned[/z] stolen money.

    I mean first, the borrowers had all of the data. And they controlled the language of the contracts. And then mortgage debtors used their political pull with Congress to have the bankruptcy laws changed in their favor, just as the housing bubble was bursting. Oh wait ...

  5. #5
    Don't forget how the evil pernicious borrowers used robots to sign all those notes for more rapid access to their ill gotten gains.

  6. #6
    Dark and Stormy washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn's Avatar
    Join Date
    Feb 2008
    Location
    Denver
    Posts
    6,389



  7. #7
    Shag's Crazy Uncle Cookie MrPhlegm GORN MrPhlegm GORN MrPhlegm GORN MrPhlegm GORN MrPhlegm GORN MrPhlegm GORN MrPhlegm GORN MrPhlegm GORN MrPhlegm GORN MrPhlegm GORN MrPhlegm GORN MrPhlegm's Avatar
    Join Date
    Feb 2008
    Location
    Theres No Business Like Show Business!
    Posts
    34,669
    I'd like to sic this $#@!er on ol' Warren


  8. #8
    Banned clear lake horn might be a clever chap. or know the right people. know what i mean, nudge nudge? clear lake horn might be a clever chap. or know the right people. know what i mean, nudge nudge? clear lake horn might be a clever chap. or know the right people. know what i mean, nudge nudge? clear lake horn might be a clever chap. or know the right people. know what i mean, nudge nudge? clear lake horn might be a clever chap. or know the right people. know what i mean, nudge nudge? clear lake horn might be a clever chap. or know the right people. know what i mean, nudge nudge? clear lake horn might be a clever chap. or know the right people. know what i mean, nudge nudge? clear lake horn might be a clever chap. or know the right people. know what i mean, nudge nudge? clear lake horn might be a clever chap. or know the right people. know what i mean, nudge nudge? clear lake horn might be a clever chap. or know the right people. know what i mean, nudge nudge? clear lake horn might be a clever chap. or know the right people. know what i mean, nudge nudge?
    Join Date
    Sep 2011
    Location
    Bucolic Wonderland
    Posts
    11,111
    Why is this a surprise? Warren Buffet is spreading Obama's "tax the rich" meme in return for Obama $#@!canning the pipeline so Warren's trains can carry the oil. Warren is a loyal Democrat crony.

    The Democrats love Wall Street. Hell, they practically let Goldman Sachs write the Frank-Dodd bill.

  9. #9
    asshat SullHorn can play the whole course with a 4 iron. At night. SullHorn can play the whole course with a 4 iron. At night. SullHorn can play the whole course with a 4 iron. At night. SullHorn can play the whole course with a 4 iron. At night. SullHorn can play the whole course with a 4 iron. At night. SullHorn can play the whole course with a 4 iron. At night. SullHorn can play the whole course with a 4 iron. At night. SullHorn can play the whole course with a 4 iron. At night. SullHorn can play the whole course with a 4 iron. At night. SullHorn can play the whole course with a 4 iron. At night. SullHorn can play the whole course with a 4 iron. At night.
    Join Date
    Feb 2008
    Location
    Billings, Montana
    Posts
    1,487
    Quote Originally Posted by SushiHorn View Post
    Yet one more reason to despise the old pirate hiding behind a grandfatherly facade.



    http://www.bloomberg.com/news/2012-0...s-winners.html


    Screw you and the horse you rode in on Mr. Buffett!

    The field was tilted entirely in the banks' favor and they simply screwed the pooch. Their entire business is supposed to be making profitable loans. As professionals they were always in much better position to know which loans were sound and which ones were risky than the individual on the other side of that desk. Yet somehow the BANKS are the victim here?

    He's just another scumbag talking his book. It's just sickening how anyone can try to paint the banks as anything more than incompetents at best and organized crime at worst. If that's not enough he tries to use political influence in a way that is profitable for him but damaging to the country. I'm amazed that anyone continues to buy into his BS.
    Look, he's wrong, but is also taken a bit out of context. He goes on after this about how Clayton Homes' lending arm is profitable because they made loans the old fashioned way--requiring a reasonable downpayment for both lender and borrower, and not overextending the borrower. While its easy to blame the banks (and we should), the get rich quick scumbags in our society are not totally blameless.

    If we passed banking regs to deny access of credit to those folks in the midst of the largest housing bubble ever, the government and banks would be accused of racism and elitism and the Barney Franks of the world would be on TV every five minutes claiming that Congress and big banks are trying to ruin the American dream.

  10. #10
    Sushi, I'm suprised that you of all people would see a quote in an article and take it at face value. I'm not a Buffet fan by any means (because of his political influence, not his investement strategy), but if you click on the link to the full letter to shareholders and search to the paragraph this quote was taken from, I think you'll be far less enraged.

  11. #11
    Dark and Stormy washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn's Avatar
    Join Date
    Feb 2008
    Location
    Denver
    Posts
    6,389
    Quote Originally Posted by SullHorn View Post
    Look, he's wrong, but is also taken a bit out of context. He goes on after this about how Clayton Homes' lending arm is profitable because they made loans the old fashioned way--requiring a reasonable downpayment for both lender and borrower, and not overextending the borrower. While its easy to blame the banks (and we should), the get rich quick scumbags in our society are not totally blameless.

    If we passed banking regs to deny access of credit to those folks in the midst of the largest housing bubble ever, the government and banks would be accused of racism and elitism and the Barney Franks of the world would be on TV every five minutes claiming that Congress and big banks are trying to ruin the American dream.
    Quote Originally Posted by Skipper View Post
    Sushi, I'm suprised that you of all people would see a quote in an article and take it at face value. I'm not a Buffet fan by any means (because of his political influence, not his investement strategy), but if you click on the link to the full letter to shareholders and search to the paragraph this quote was taken from, I think you'll be far less enraged.
    Lenders packaged the crap loans and sold them to investors. Buffett calling the "lender" the victim is utter horse$#@!.

  12. #12
    bunghole NK is probably perfectly normal.  Probably. Maybe. Who cares? NK is probably perfectly normal.  Probably. Maybe. Who cares? NK is probably perfectly normal.  Probably. Maybe. Who cares?
    Join Date
    Nov 2010
    Posts
    571
    The victims in this are the taxpayers who have to pay for the bailouts. The banks and borrowers both deserved to get screwed over here.

  13. #13
    asshat The Missing Link grows his own roses The Missing Link grows his own roses The Missing Link grows his own roses The Missing Link grows his own roses The Missing Link grows his own roses The Missing Link grows his own roses The Missing Link grows his own roses The Missing Link grows his own roses The Missing Link grows his own roses The Missing Link grows his own roses The Missing Link grows his own roses The Missing Link's Avatar
    Join Date
    Oct 2008
    Location
    Hyrule
    Posts
    6,380
    Quote Originally Posted by NK View Post
    The victims in this are the taxpayers who have to pay for the bailouts. The banks and borrowers both deserved to get screwed over here.
    I think this is the first time we have been in agreement.

  14. #14
    dead from aggy misery od Ghost of LL might be a clever chap. or know the right people. know what i mean, nudge nudge? Ghost of LL might be a clever chap. or know the right people. know what i mean, nudge nudge? Ghost of LL might be a clever chap. or know the right people. know what i mean, nudge nudge? Ghost of LL might be a clever chap. or know the right people. know what i mean, nudge nudge? Ghost of LL might be a clever chap. or know the right people. know what i mean, nudge nudge? Ghost of LL might be a clever chap. or know the right people. know what i mean, nudge nudge? Ghost of LL might be a clever chap. or know the right people. know what i mean, nudge nudge? Ghost of LL might be a clever chap. or know the right people. know what i mean, nudge nudge? Ghost of LL might be a clever chap. or know the right people. know what i mean, nudge nudge? Ghost of LL might be a clever chap. or know the right people. know what i mean, nudge nudge? Ghost of LL might be a clever chap. or know the right people. know what i mean, nudge nudge? Ghost of LL's Avatar
    Join Date
    Jan 2008
    Location
    They Tried to Make Me Go to Aggy Misery Rehab . . .
    Posts
    22,642
    Why does anybody listen to his political opinions?

  15. #15
    Dark and Stormy washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn's Avatar
    Join Date
    Feb 2008
    Location
    Denver
    Posts
    6,389
    Quote Originally Posted by NK View Post
    The victims in this are the taxpayers who have to pay for the bailouts. The banks and borrowers both deserved to get screwed over here.
    Good thing Dodd and Barney fixed the problem. Oh wait . . .

    Last edited by washparkhorn; 02-28-2012 at 04:20 PM.

  16. #16
    Dark and Stormy washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn's Avatar
    Join Date
    Feb 2008
    Location
    Denver
    Posts
    6,389
    Quote Originally Posted by Ghost of LL View Post
    Why does anybody listen to his political opinions?

  17. #17
    Quote Originally Posted by SullHorn View Post
    Look, he's wrong, but is also taken a bit out of context. He goes on after this about how Clayton Homes' lending arm is profitable because they made loans the old fashioned way--requiring a reasonable downpayment for both lender and borrower, and not overextending the borrower. While its easy to blame the banks (and we should), the get rich quick scumbags in our society are not totally blameless.

    If we passed banking regs to deny access of credit to those folks in the midst of the largest housing bubble ever, the government and banks would be accused of racism and elitism and the Barney Franks of the world would be on TV every five minutes claiming that Congress and big banks are trying to ruin the American dream.
    The word "victim" is highly misleading and offensive in this context. The banks actions were the proximate cause of the very problem Buffett is whining about. That makes them perpetrators, not victims. The only reason a small number of people were able to extract excessive equity was the moronic underwriting of the banks themselves. This is very much akin to calling a suicide bomber a victim of violence. The Clayton Homes example just makes the corruption and incompetence of the TBTF banks more glaring by contrast.

    No one said anything about denial of credit by regulation. Most of us would like to see the banks eat the crap sandwiches they cooked up. Let the overleveraged debtors go bankrupt and allow the banks that made the loans deal with it. Our entire economy and monetary system have been completely twisted by the Fed and the government to prevent this outcome.

  18. #18
    asshat maninblack might be a clever chap. or know the right people. know what i mean, nudge nudge? maninblack might be a clever chap. or know the right people. know what i mean, nudge nudge? maninblack might be a clever chap. or know the right people. know what i mean, nudge nudge? maninblack might be a clever chap. or know the right people. know what i mean, nudge nudge? maninblack might be a clever chap. or know the right people. know what i mean, nudge nudge? maninblack might be a clever chap. or know the right people. know what i mean, nudge nudge? maninblack might be a clever chap. or know the right people. know what i mean, nudge nudge? maninblack might be a clever chap. or know the right people. know what i mean, nudge nudge? maninblack might be a clever chap. or know the right people. know what i mean, nudge nudge? maninblack might be a clever chap. or know the right people. know what i mean, nudge nudge? maninblack might be a clever chap. or know the right people. know what i mean, nudge nudge? maninblack's Avatar
    Join Date
    Aug 2010
    Location
    The Catalina Fucking Wine Mixer
    Posts
    24,322
    Quote Originally Posted by Ghost of LL View Post
    Why does anybody listen to his political opinions?

  19. #19
    Duke of New York Hellraiser97 Shaggy Gold Club Hellraiser97 Shaggy Gold Club Hellraiser97 Shaggy Gold Club Hellraiser97 Shaggy Gold Club Hellraiser97 Shaggy Gold Club Hellraiser97 Shaggy Gold Club Hellraiser97 Shaggy Gold Club Hellraiser97 Shaggy Gold Club Hellraiser97 Shaggy Gold Club Hellraiser97 Shaggy Gold Club Hellraiser97 Shaggy Gold Club Hellraiser97's Avatar
    Join Date
    Feb 2008
    Location
    Brooklyn, NY
    Posts
    21,519
    Quote Originally Posted by SushiHorn View Post
    Yet one more reason to despise the old pirate hiding behind a grandfatherly facade.



    http://www.bloomberg.com/news/2012-0...s-winners.html


    Screw you and the horse you rode in on Mr. Buffett!

    The field was tilted entirely in the banks' favor and they simply screwed the pooch. Their entire business is supposed to be making profitable loans. As professionals they were always in much better position to know which loans were sound and which ones were risky than the individual on the other side of that desk. Yet somehow the BANKS are the victim here?

    He's just another scumbag talking his book. It's just sickening how anyone can try to paint the banks as anything more than incompetents at best and organized crime at worst. If that's not enough he tries to use political influence in a way that is profitable for him but damaging to the country. I'm amazed that anyone continues to buy into his BS.
    Buffett is a grade A $#@! and while I agree that most of the time the field was tilted entirely in the banks' favor, he is correct that some evicted homeowners made out like bandits. Plenty of fraud to go around in the mortgage mess.

  20. #20
    Quote Originally Posted by Hellraiser97 View Post
    Buffett is a grade A $#@! and while I agree that most of the time the field was tilted entirely in the banks' favor, he is correct that some evicted homeowners made out like bandits. Plenty of fraud to go around in the mortgage mess.
    Yep. Below is the actual quote. When actually read in context really not a big $#@!ing deal IMO:


    “As is well-known, the U.S. went off the rails in its home-ownership and mortgage-lending policies, and for these mistakes our economy is now paying a huge price. All of us participated in the destructive behavior – government, lenders, borrowers, the media, rating agencies, you name it. At the core of the folly was the almost universal belief that the value of houses was certain to increase over time and that any dips would be inconsequential. The acceptance of this premise justified almost any price and practice in housing transactions. Homeowners everywhere felt richer and rushed to “monetize” the increased value of their homes by refinancings. These massive cash infusions fueled a consumption binge throughout our economy. It all seemed great fun while it lasted. (A largely unnoted fact: Large numbers of people who have “lost” their house through foreclosure have actually realized a profit because they carried out refinancings earlier that gave them cash in excess of their cost. In these cases, the evicted homeowner was the winner, and the victim was the lender.)

    In 2007, the bubble burst, just as all bubbles must. We are now in the fourth year of a cure that, though
    long and painful, is sure to succeed. Today, household formations are consistently exceeding housing starts.”

  21. #21
    asshat Montag Shaggy Gold Club Montag Shaggy Gold Club Montag Shaggy Gold Club Montag Shaggy Gold Club Montag Shaggy Gold Club Montag Shaggy Gold Club Montag Shaggy Gold Club Montag Shaggy Gold Club Montag Shaggy Gold Club Montag Shaggy Gold Club Montag Shaggy Gold Club Montag's Avatar
    Join Date
    Mar 2009
    Location
    Louisiana
    Posts
    6,156
    Quote Originally Posted by Skipper View Post
    We are now in the fourth year of a cure that, though long and painful, is sure to succeed. ”
    Yeah. Right. Maybe for you and your banker friends. And at the expense of taxpayers and their depreciating investments (houses) and their depreciating wages.

    $#@!wad.

  22. #22
    asshat Austinvines slams and goes hard. Austinvines slams and goes hard. Austinvines slams and goes hard. Austinvines slams and goes hard. Austinvines slams and goes hard. Austinvines slams and goes hard. Austinvines slams and goes hard. Austinvines slams and goes hard. Austinvines slams and goes hard. Austinvines slams and goes hard. Austinvines slams and goes hard. Austinvines's Avatar
    Join Date
    Mar 2008
    Location
    Dwelling on the threshold
    Posts
    1,779
    Quote Originally Posted by Skipper View Post
    Yep. Below is the actual quote. When actually read in context really not a big $#@!ing deal IMO:
    Context matters? I recently found out that a friend of mine got hammered by a late pay 2 days before closing on his home equity loan that his rate jumped to 9.5% from 6.0%. He has been trying to refi with his lender for 4 years and hasn't made a single payment since then, just banked most of the payments and since a home equity loan is non-recourse, if they don't come to terms, he is going to come out way, way ahead.

  23. #23
    Dark and Stormy washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn can play the whole course with a 4 iron. At night. washparkhorn's Avatar
    Join Date
    Feb 2008
    Location
    Denver
    Posts
    6,389
    Quote Originally Posted by Skipper View Post
    Yep. Below is the actual quote. When actually read in context really not a big $#@!ing deal IMO:


    “As is well-known, the U.S. went off the rails in its home-ownership and mortgage-lending policies, and for these mistakes our economy is now paying a huge price. All of us participated in the destructive behavior – government, lenders, borrowers, the media, rating agencies, you name it. At the core of the folly was the almost universal belief that the value of houses was certain to increase over time and that any dips would be inconsequential. The acceptance of this premise justified almost any price and practice in housing transactions. Homeowners everywhere felt richer and rushed to “monetize” the increased value of their homes by refinancings. These massive cash infusions fueled a consumption binge throughout our economy. It all seemed great fun while it lasted. (A largely unnoted fact: Large numbers of people who have “lost” their house through foreclosure have actually realized a profit because they carried out refinancings earlier that gave them cash in excess of their cost. In these cases, the evicted homeowner was the winner, and the victim was the lender.)

    In 2007, the bubble burst, just as all bubbles must. We are now in the fourth year of a cure that, though
    long and painful, is sure to succeed. Today, household formations are consistently exceeding housing starts.”
    Bankster claptrap.

    Certainly there were fraudsters, but the system was a game designed by the banksters (the same ones Buffett is now in bed with as he talks up his book).

    They built it - through Grendelish gibberish legislation that no one read or understood - and rigged it so that almost everyone but them was at a severe disadvantage when trying to comprehend how they would make billions off of the housing market.

    The same model was used for Obamacare. Opponents call it socialism, but it is in fact a giant giveaway to the worst actors in the health care market.

    We are $#@!ed until we realize corporatists like Buffett use the political system for their advantage. They have access to the President and senior politicians that 99.99% of us will never have. They use complicated REGULATION to make billions.

    The cure is a simplification of all regulations and, where the federal government is not needed, a removal of the federal boot. The game is rigged towards those with money and access. That system is destroying this country.

    Buffett is a prime example of how easily the public is duped into looking at the pretty pictures rather than reading the fine print.

    None of the elites give a damn about the ramifications of the systems they design. If millions lose their homes, they say $#@! 'em - they were crooks. Meanwhile they make off like bandits - pleading they were the victims. Home ownership was a way to inflate a bubble - suck it dry - and let it implode. When the wolves start asking questions about why it happened, they throw homeowners (or anyone else) under the bus to divert attention away from the billions they made off of the collapse.

    Welcome to America.


  24. #24
    Banned clear lake horn might be a clever chap. or know the right people. know what i mean, nudge nudge? clear lake horn might be a clever chap. or know the right people. know what i mean, nudge nudge? clear lake horn might be a clever chap. or know the right people. know what i mean, nudge nudge? clear lake horn might be a clever chap. or know the right people. know what i mean, nudge nudge? clear lake horn might be a clever chap. or know the right people. know what i mean, nudge nudge? clear lake horn might be a clever chap. or know the right people. know what i mean, nudge nudge? clear lake horn might be a clever chap. or know the right people. know what i mean, nudge nudge? clear lake horn might be a clever chap. or know the right people. know what i mean, nudge nudge? clear lake horn might be a clever chap. or know the right people. know what i mean, nudge nudge? clear lake horn might be a clever chap. or know the right people. know what i mean, nudge nudge? clear lake horn might be a clever chap. or know the right people. know what i mean, nudge nudge?
    Join Date
    Sep 2011
    Location
    Bucolic Wonderland
    Posts
    11,111
    Goldman-Sachs (the ones who authored the Dodd-Frank bill) was selling Collateralized Debt Obligations (CDOs) they knew were worthless while at the same time buying insurance (derivatives) on the same crappy CDOs they were selling. They made a fortune on the derivatives.

  25. #25
    asshat UTinBigD grows his own roses UTinBigD grows his own roses UTinBigD grows his own roses UTinBigD grows his own roses UTinBigD grows his own roses UTinBigD grows his own roses UTinBigD grows his own roses UTinBigD grows his own roses UTinBigD grows his own roses UTinBigD grows his own roses UTinBigD grows his own roses UTinBigD's Avatar
    Join Date
    Jan 2008
    Location
    Dallas
    Posts
    3,867
    say it out loud "no document loans" as in show up, nod when I ask if you make 200K a year as a part time nanny, and proceed to the vault to collect your payment.

    The banks were begging homeowners to use their houses as ATM machines. aggresniffly advertising/competing to capture that business. I would wager that biggest chunk of money the banks lost (in the fashion that Warren describes) was through fraud that included the homeowner, appraiser and mortgage broker. your average joe that got 'lucky' his house was now 400K underwater right after taking out a 200K HE loan was probably few and far between.

  26. #26
    Quote Originally Posted by Warren Buffet
    “As is well-known, the U.S. went off the rails in its home-ownership and mortgage-lending policies, and for these mistakes our economy is now paying a huge price. All of us participated in the destructive behavior – government, lenders, borrowers, the media, rating agencies, you name it. At the core of the folly was the almost universal belief that the value of houses was certain to increase over time and that any dips would be inconsequential. The acceptance of this premise justified almost any price and practice in housing transactions. Homeowners everywhere felt richer and rushed to “monetize” the increased value of their homes by refinancings. These massive cash infusions fueled a consumption binge throughout our economy. It all seemed great fun while it lasted. (A largely unnoted fact: Large numbers of people who have “lost” their house through foreclosure have actually realized a profit because they carried out refinancings earlier that gave them cash in excess of their cost. In these cases, the evicted homeowner was the winner, and the victim was the lender.)”
    I read the entire section before the original post. The context just makes WB's comments even more offensive. I have highlighted three sections and will address them individually:

    1) The Housing Bubble wasn't a series of "mistakes." Those would be random events. It was the inevitable result of bank POLICY and that of the central bank which they collectively own.

    2) Actually only a fraction of the population participated in the bubble - and most of them did so to their own detriment. A third of houses are owned free and clear - no mortgage. Those people never participated at all. Those who simply wanted a place to live weren't participants in the bubble except as victims. Those folks were forced to overpay for a necessity by being pitted against straw buyers funded by the banks. They were the marks in a rigged auction con game.

    Even the people who managed to extract equity were only playing by the rules the banks put in place. The fact that a tiny portion of them got out without getting killed must piss WB off when the banks couldn't also escape the trap of their own making.

    It is sickening to me that he tries the "everybody's fault" (so it's really nobody's fault) approach here. Even to the extent that the public did participate, there is a huge difference between being the author of a con and getting caught up in one. The lenders committed a huge pile of felonies. Fraud in the underwriting and securitization, mass perjury and forgery for starters. The ratings agencies took the banker's 30 pieces of silver to facilitate the fraud in securitization. The government propped it up through subsidies, tax breaks and GSEs. But borrowers and the media were simply duped - patsies, not co-conspirators. Buffett tries to make the all morally equivalent because he's up to his neck with the two worst sets of players - the lenders and ratings agencies.

    3) This "premise" didn't exist in a vacuum. It existed solely because the banks continued to fund the madness. They KNEW exactly how dangerous and stupid the prices had become by 2004-05. More importantly, they knew how dangerous the loan structures were by then. And yet they made things still WORSE with even more dangerous loans for another two years. The chief lending officer for Citigroup testified before Congress that 60% of the loans made in 2006 didn't meet their own underwriting criteria.



    Buffett isn't entirely wrong in his description of what happened. But his snide blame shifting and deceitful "explanations" of how and why it happened just sicken me.

  27. #27
    asshat softlynow is a rep whore. softlynow is a rep whore. softlynow is a rep whore. softlynow is a rep whore. softlynow is a rep whore. softlynow is a rep whore. softlynow is a rep whore. softlynow is a rep whore. softlynow is a rep whore. softlynow is a rep whore. softlynow is a rep whore. softlynow's Avatar
    Join Date
    Jan 2008
    Location
    Disengaged
    Posts
    3,821
    Quote Originally Posted by washpark
    We are $#@!ed until we do something about rich people with access to and control over favored politicians by way of campaign donations use the political system for their advantage.
    fify

    "Corporatism" or whatever term you want to use isn't the problem. Ideology is just marketing. The problem is structural, though it's probably inherent to any structure we mortals are capable of constructing.

  28. #28
    asshat maninblack might be a clever chap. or know the right people. know what i mean, nudge nudge? maninblack might be a clever chap. or know the right people. know what i mean, nudge nudge? maninblack might be a clever chap. or know the right people. know what i mean, nudge nudge? maninblack might be a clever chap. or know the right people. know what i mean, nudge nudge? maninblack might be a clever chap. or know the right people. know what i mean, nudge nudge? maninblack might be a clever chap. or know the right people. know what i mean, nudge nudge? maninblack might be a clever chap. or know the right people. know what i mean, nudge nudge? maninblack might be a clever chap. or know the right people. know what i mean, nudge nudge? maninblack might be a clever chap. or know the right people. know what i mean, nudge nudge? maninblack might be a clever chap. or know the right people. know what i mean, nudge nudge? maninblack might be a clever chap. or know the right people. know what i mean, nudge nudge? maninblack's Avatar
    Join Date
    Aug 2010
    Location
    The Catalina Fucking Wine Mixer
    Posts
    24,322

+ Reply to Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Home .. Advertise .. ShaggyShop .. PanchoChat
Football .. Basketball .. Baseball .. Other Sports .. RC Didn't Offer .. Gamboool
Varsity .. Hole in the Wall .. PCL .. Einstein's .. Nasty's .. GM Steakhouse .. NSAA
Bada Bing .. Can you help me with this? .. Shagslist .. Cloak Room .. Classics .. Bellmont