Housing Bubble 2.0

[sirs]

No one claimed they didn't.  But, like I said, when the Fed tells you do do something, or else, you generally do it.  Your inability to back up your own meritless claims is indeed appreciated, as is the dropping of the never referenced unemployed no-income folks

[Plane]

Banks are the final arbitrators of whom they lend money to.

They have always had the final say about this.

You know that isn't right.

The legalitys involved make the government the final word on who can't be loaned to.
Regulations must be studyed by anyone who works as a loan arranger.

And if the government encourages risk taking so much that it actually transfers all risk away from the loan arranger, the government has mandated this behavior.

Banks that were more strict than the official rules were not growing as fast as banks that followed the rules that provided for lots of loan rolling.

So banks with conservative lending policys were not attractive to investors, fell behind the curve with earnings and became takover targets for banks with lotsa cash.

It isn't as if the rules on rape were relaxed, it is more like locking up all the guys that didn't want to be rapists.

[Xavier_Onassis]

Banks cannot be taken over if their stock is not offered on the exchange, or if there is a sufficient amount of stock in the hands of those who refuse to sell, which is quite common as well. There are many ways to prevent a hostile takeover.

[Plane]

Banks cannot be taken over if their stock is not offered on the exchange, or if there is a sufficient amount of stock in the hands of those who refuse to sell, which is quite common as well. There are many ways to prevent a hostile takeover.

Not if your bank is publicly traded.

Or why even Hostile?

Banks using the government plan for flipping loans had plenty of cash for tempting smaller banks to sell out, good plan for the less successfull bankers to get away from the business.

And some of the banks were less successfull because they were not flipping loans and tossing all of the risk onto the taxpayer.

I think all of the big ones participated more or less, not going along with loan flipping was a way to aviod being a big and profitable bank.

Suppose I offered to buy from you every useless knicknack you could give me at inflated prices, would you go down to the pawn shop and act just as indiscriminate as I was willing to finance?

[sirs]

*golf clap*     

[Xavier_Onassis]

Those big and profitable banks did not profit from this. Only a few hucksters of derivatives made big money on this.

Many,many banks had nothing to do with it.

[Plane]

Those big and profitable banks did not profit from this. Only a few hucksters of derivatives made big money on this.

Many,many banks had nothing to do with it.

Nope, almost all of the big ones , plus Fannie and Freddie were the producers of these derivatives.