Author Topic: UNLIMITED horrible bond bubble thread.  (Read 7279 times)

Doktor Howl

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Re: UNLIMITED horrible bond bubble thread.
« Reply #15 on: October 30, 2018, 07:12:20 pm »
That I knew. Got my mortgage through a local bank a few years back, followed by a series of letters telling me who owns my loan this week.

Eventually it wound up with Wells Fargo.

This isn't actually bad.  If your debt winds up in an unidentifiable bundle, THEN it's bad.
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Bruno

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Re: UNLIMITED horrible bond bubble thread.
« Reply #16 on: October 30, 2018, 07:21:50 pm »
Paraphrased:

"After the 1906 San Francisco earthquake, Well Fargo allowed people to withdraw money based on their word alone. Today, Well Fargo continues that tradition of being fair to its customers."


SHEESH!
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Bruno

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Re: UNLIMITED horrible bond bubble thread.
« Reply #17 on: October 30, 2018, 07:24:30 pm »
That I knew. Got my mortgage through a local bank a few years back, followed by a series of letters telling me who owns my loan this week.

Eventually it wound up with Wells Fargo.

This isn't actually bad.  If your debt winds up in an unidentifiable bundle, THEN it's bad.

If my mortgage wound up in one of these bundles, could that affect me, specifically, or just in the same general way that everyone is affected?
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Doktor Howl

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Re: UNLIMITED horrible bond bubble thread.
« Reply #18 on: October 30, 2018, 07:25:43 pm »
That I knew. Got my mortgage through a local bank a few years back, followed by a series of letters telling me who owns my loan this week.

Eventually it wound up with Wells Fargo.

This isn't actually bad.  If your debt winds up in an unidentifiable bundle, THEN it's bad.

If my mortgage wound up in one of these bundles, could that affect me, specifically, or just in the same general way that everyone is affected?

The second one.  I recommend Michael Lewis's The Big Short.  It actually made me understand derivatives.  And then I shat myself to death.
"Daisy had syphilis, Tom died of genital warts, and Nick Carroway watched it all in mounting horror, then made off with the silverware and the maid."
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Ecclesiastes 2:14, JACKASS.

Pergamos

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Re: UNLIMITED horrible bond bubble thread.
« Reply #19 on: October 30, 2018, 07:27:14 pm »
Those bundles were found to be unenforceable, so if he plans on defaulting on the mortgage it could be good for him personally.

Doktor Howl

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Re: UNLIMITED horrible bond bubble thread.
« Reply #20 on: October 30, 2018, 09:09:23 pm »
Those bundles were found to be unenforceable, so if he plans on defaulting on the mortgage it could be good for him personally.

How'd that work out last time?  They just seized houses anyway.  Can he afford a lawyer to deal with a 4 year lawsuit while he's living in a hotel?
"Daisy had syphilis, Tom died of genital warts, and Nick Carroway watched it all in mounting horror, then made off with the silverware and the maid."
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Bruno

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Re: UNLIMITED horrible bond bubble thread.
« Reply #21 on: October 31, 2018, 06:34:30 am »
Those bundles were found to be unenforceable, so if he plans on defaulting on the mortgage it could be good for him personally.

Yeah, I'm gonna just try to not do that.

I got out of that grocery store fuel center and got a decent paying job with plenty of overtime. Currently trying to build up a nice pile of cash for when everything goes sideways again.
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Re: UNLIMITED horrible bond bubble thread.
« Reply #22 on: October 31, 2018, 12:03:27 pm »
Ok, I'mma put my capitalist hat on for a sec.


:ouch:


So.... in the housing crisis, one of the "boots on the ground" problems was that when 1%ers realized the dark money potential of bundling mortgages, there was a push to offer new kinds of products, not to benefit new homeowners, but to get more debt into the system.  And these new products were absolutely of the "too good to be true" kind.  And they were unscrupulously pushed to people desperate to get out of the rental market, and to "flippers" who thought they could replicate the stuff seen on HGTV.  Humans were grist for the money mill, and no protections were offered.  But this is old news. 

The people who didn't get massively fucked by the housing market were the people who got traditional, fixed-rate 30 year mortgages with 10-20% down.  They still suffered, but only in equity, not in, you know, homelessness and bankruptcy.

Anyway, the moral of the story is to be incredibly skeptical of financial markets, make fiscally conservative decisions, and only play with money you'll be ok not seeing for 20 years.


I gotta get this hat off me.  Anyone got a set of pliers?

Doktor Howl

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Re: UNLIMITED horrible bond bubble thread.
« Reply #23 on: November 01, 2018, 04:23:07 pm »
Ok, I'mma put my capitalist hat on for a sec.


:ouch:


So.... in the housing crisis, one of the "boots on the ground" problems was that when 1%ers realized the dark money potential of bundling mortgages, there was a push to offer new kinds of products, not to benefit new homeowners, but to get more debt into the system.  And these new products were absolutely of the "too good to be true" kind.  And they were unscrupulously pushed to people desperate to get out of the rental market, and to "flippers" who thought they could replicate the stuff seen on HGTV.  Humans were grist for the money mill, and no protections were offered.  But this is old news. 

The people who didn't get massively fucked by the housing market were the people who got traditional, fixed-rate 30 year mortgages with 10-20% down.  They still suffered, but only in equity, not in, you know, homelessness and bankruptcy.

Anyway, the moral of the story is to be incredibly skeptical of financial markets, make fiscally conservative decisions, and only play with money you'll be ok not seeing for 20 years.


I gotta get this hat off me.  Anyone got a set of pliers?

Got my evil hat on. 

During the mass foreclosures, people who were in standard mortgages that had not defaulted were escorted off their own property by sheriff's deputies.

Basically, the banks just foreclosed illegally, and there was no mechanism to stop it.  Steve Mnuchin made a career out of this.  Now, of course, he's the secretary of the treasury.
"Daisy had syphilis, Tom died of genital warts, and Nick Carroway watched it all in mounting horror, then made off with the silverware and the maid."
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Ecclesiastes 2:14, JACKASS.

Doktor Howl

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"Daisy had syphilis, Tom died of genital warts, and Nick Carroway watched it all in mounting horror, then made off with the silverware and the maid."
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Ecclesiastes 2:14, JACKASS.

Doktor Howl

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Ecclesiastes 2:14, JACKASS.

Faust

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Re: UNLIMITED horrible bond bubble thread.
« Reply #26 on: January 23, 2019, 04:03:49 pm »
Subprime mortgages? Not only are we doomed to repeat the mistakes of the past but now we must do so every ten years.
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Doktor Howl

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Re: UNLIMITED horrible bond bubble thread.
« Reply #27 on: January 23, 2019, 04:51:40 pm »
Subprime mortgages? Not only are we doomed to repeat the mistakes of the past but now we must do so every ten years.

This is correct.  Because if you're one of the banksters pushing this, it wasn't a mistake in the first place.
"Daisy had syphilis, Tom died of genital warts, and Nick Carroway watched it all in mounting horror, then made off with the silverware and the maid."
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Ecclesiastes 2:14, JACKASS.

Doktor Howl

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Re: UNLIMITED horrible bond bubble thread.
« Reply #28 on: January 23, 2019, 05:02:31 pm »
It's worth mentioning that the people who do this have entirely different goals than anyone else.  The goals are retarded when looked at from the long or medium term, but these grifters are neither trained nor given any incentive to think beyond the next fiscal quarter (or, for the clever ones, the end of the next long con).

Capitalism is basically a high-speed rotary-arm tit machine.  Everyone wants some of that tit (traders want bonds, people want houses), and the people who maintain machines (the SEC) are not authorized to do any work on bonds.  So even though you can look at the machine and see smoke coming out of the gearbox and hear bearings start to whine, nobody will allow any work to be done on it so long as they are still getting some tit.

And the only people who get a seat belt are the traders, and they ALSO know that when this machine breaks, the feds will replace it again (may not be accurate, but that's what they believe), and they just get right on the new machine and start harvesting that magical tittie.
"Daisy had syphilis, Tom died of genital warts, and Nick Carroway watched it all in mounting horror, then made off with the silverware and the maid."
~ The Good Reverend

Ecclesiastes 2:14, JACKASS.

LMNO

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Re: UNLIMITED horrible bond bubble thread.
« Reply #29 on: January 23, 2019, 05:49:09 pm »
Don't forget the people who see the smoke, and then bet on the damn thing to fail.