Cnbc House of Cards
CNBC HOUSE OF CARDS VIDEOS
* Moodies, S&P, and Fitch are the three rating agencies * Stickmen securitization
CHAPTER 1 – EASY MONEY OR MORTGAGE MARKET ON FIRE
Who the players are? Stakeholders?
Technical and ethical issues are?
What was the relationship about prices and personal incomes?
People started to buy houses that they couldn’t afford and then they were left behind leaving. The economy is falling and so are the communities. Insects, graffiti, dirty pools are left behind since people are evicted and people don’t have were to go.
The lenders are not responsive to customers who want to cooperate to pay for their debts. Wall street only cares about the money they can generate from this foreclosure.
During the crisis thousands of people were relieved from their jobs
MORTGAGE RATES
Housing prices were rising faster than incomes making it impossible to keep with payments. The demand for the houses went down and prices SHOULD HAVE been that prices went down but they went up. People will not be able to pay making prices to fall but they didn’t fell.
“Keep going until someone tells you no” (uniformed and uneducated in finance?) the person didn’t know what he was able to pay right now and in the future, and he asked until someone tell him that he couldn’t do so.
BUT people keep buying houses.
CHAPTER 2 - MORTGAGE MARKET ON FIRE
Subprime mortgage –mortgage for the credit challenged
Freddie and Fannie – the leaders in mortgage lending
Quick Loan – for people who couldn’t afford a down payment
You didn’t need to prove how much you made, no verifying incomes or assets
After 2001 things got crazy. Before 2001 it was difficult to get a loan because more verification was needed such as tax returns, how much you make, and down payment. They had good loans until 2001.
**GSE’s accounting scandal (executives could make more bonuses)
In 1999 GLB the banks became deregulated causing banks to become commercial
* Moodies, S&P, and Fitch are the three rating agencies * Stickmen securitization
CHAPTER 1 – EASY MONEY OR MORTGAGE MARKET ON FIRE
Who the players are? Stakeholders?
Technical and ethical issues are?
What was the relationship about prices and personal incomes?
People started to buy houses that they couldn’t afford and then they were left behind leaving. The economy is falling and so are the communities. Insects, graffiti, dirty pools are left behind since people are evicted and people don’t have were to go.
The lenders are not responsive to customers who want to cooperate to pay for their debts. Wall street only cares about the money they can generate from this foreclosure.
During the crisis thousands of people were relieved from their jobs
MORTGAGE RATES
Housing prices were rising faster than incomes making it impossible to keep with payments. The demand for the houses went down and prices SHOULD HAVE been that prices went down but they went up. People will not be able to pay making prices to fall but they didn’t fell.
“Keep going until someone tells you no” (uniformed and uneducated in finance?) the person didn’t know what he was able to pay right now and in the future, and he asked until someone tell him that he couldn’t do so.
BUT people keep buying houses.
CHAPTER 2 - MORTGAGE MARKET ON FIRE
Subprime mortgage –mortgage for the credit challenged
Freddie and Fannie – the leaders in mortgage lending
Quick Loan – for people who couldn’t afford a down payment
You didn’t need to prove how much you made, no verifying incomes or assets
After 2001 things got crazy. Before 2001 it was difficult to get a loan because more verification was needed such as tax returns, how much you make, and down payment. They had good loans until 2001.
**GSE’s accounting scandal (executives could make more bonuses)
In 1999 GLB the banks became deregulated causing banks to become commercial